insurance cram

Download Insurance CRAM

Post on 11-Jul-2016

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useful for persons who are taking insurance test.

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in order to be insured an induvidual has to have a resource that he may lose if an even occurs. What term describes this concept?insurable interestWhat is the legal concept in which an individual is responsible for the harm that occurred because the individual failed to perform the actions that a reasonable person in a similar situation would take to ensure the safety of other individualsnegligence

A legal concept in which an indivudal must COMPENSATE an individual for the harm that he or she causedliabilitya legal concept in which an individual is responsible for the harm that occurred because the individual was performing an extremely hazardous activity, which caused harm even though the individual took all of the necessary precautionsabsolute liabilitya legal concept in which an individual is responsible for the harm that occurred due to the actions of another individual because the individual is responsible for the SUPERVISION OR CARE of the individual who caused the harmvicarious liabilityThe declarations section of an insurance policy that identifies the specific resources and/or perils that the policy coversinsuring agreementthe declarations section of an insurance policy that identifies the specific resources/perils that the policy does not coverexclusionsThe declarations section of an insurance policy that identifies what key itemswho is covered\nname of insurer\namount of coverage\nphone # & address\ncost of premium\nspecific property coveredan individual who is covered by an insurance policy that he or she does now own but is listed on the policyadditional insuredan individual or organization that is covered by the policy because the individual or organization owns the policynamed insuredindividual or organization that is covered by the policy because the individual or organization is considered to be the PRIMARY ownerfirst named insuredcovered by the policy because the individual or organization owns the policy but the individual or organization is not considered to be the primary owneran additional named insureda provision that allows an insurer to acquire the rights to a piece of damaged property in exchange for a payment equal to the amount necessary to replace the propertysalvage provisiona provision that prohibits the policyholder from transferring the policy to another individual or organization during his lifetime unless the insurer has agreed to the transfer in writingassignment provisionprovision that allows an insured individual or organization to collect the benefits of the policy even if the individual or or organization decides to abandon the propertyabandonment provisiona provision allows an insurer to seek the amount that it paid for a claim from the individual who caused the harm if the insurer is required to pay a claim related to an incident for which the insured individual(s) are not responsiblesubrogation provisionThe Dwelling policy Broad form (DP1) will only cover damage to a dwelling that occurs as a result ofa fire, internal explosion, and/or lightningThe Dwelling policy Broad form (DP2) will only cover damage to a dwelling that occurs as a result of (COVERS THE MOST!!)accidental dischararge or overflow of liquids\nan aircraft; burglary; civil commotion; an explision; falling objects; a fire; freezing pipes; hail; lightning; smoke; sudden and accidental damage from electrical current; cracking; a sprinkler system; vandalismDwelling policy Broad form with extended coverage will coveran aircraft, civil commotion, an explosion, hail, smoke, vehicles, and/or windThe Dwelling policy Broad form (DP3) will only cover damage to a dwelling that occurs as a result ofany even that is not specifically excluded in the policyA type of dwelling coverage in which an insurer agrees to pay an amount equal to the income that a landlord would lose if the landlord's rental property is damaged and a tenant is no longer able to occupy the propertyFair Rental ValueA type of dwelling coverage in which an insurer agrees to pay an amount equal to the value of an individual's personal property if the individual's property is stolenBroad Theft CoverageA type of dwelling coverage in which an insurer agrees to pay an amount equal to the amount that an individual would need to pay to LIVE in another location if the individual's property is damagedCoverage E Additional Living ExpenseA type of dwelling coverage in which an insurer agrees to pay some of the MEDICAL expenses for an individual other than the insured if an individual is injured on the insured individual's propertyCoverage M Medical Payments to othersan exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of A LAW OR ORDINANCE THAT COMPELS AN INDIVIDUAL TO MODIFY OR REMOVE THE STRUCTURESBuilding Law exclusionan exclusion that states that an insurer will not pay any claim in which an individual's property is damaged or seized by the governmentGovernmental Action exclusionan exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of an earthquake, mudslide. landslide, sinkholeAn Earth Movement exclusionan exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of the fact that the individual did not maintain the propertyA Neglect exclusionWhich Home Owners form covers damage to a condo owner's PROPERTY that occurs as the result of any event that is not specifically excluded in the policyHO6 Unit Owner's formWhich Home Owner's form covers damage to a tenant's PROPERTY that occurs as the result of an aircraft, civil commotion, an explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or windHO4 Contents Broad formWhich Home Owner's form covers damage to the DWELLING that occurs as the result of any event that is not specifically excluded in the policy and damage to the PROPERTY inside the dwelling that occurs as the result of an aircraft, civil commotion, an explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or windHO3 Special formWhich Home Owners form covers damage to the DWELLING and PROPERTY inside the dwelling that occurs as the result of any event that is not specifically excluded in the policyHO5 Comprehensive formWhat means conducting business in accordance with current rules and laws set by government regulatory agencies and the courtscompliancestandards of conduct and moral judgementethicslegal term that describes the relationship between two partiesagencywhat is the term to describe how an insurer appoints an individual to act on its behalfagency contractan individdual whose position and responsibilities involve a high degree of trust and confidence (trustees, guardians & executors)fiduciarythe name for the fact that a producer must sell the kind of policies that best fit the prospect's needs and in amounts that the prospect can affordneeds sellingwhat is given when the applicant pays the initial premium at the time the application for a policy is signedconditional receiptwhat is the term for informing the prospect or client of all facts involving a specific policy or plan so that an informed decision can be madefull disclosurewhat is the name for the watchdog group whose member companies agree to adhere to and enforce ethical principlesInsurance marketplace Standards Association (IMSA)what act deals with the inappropriate use of advertisingUnfair Trade Practices Actany written or oral statement that does not accurately describe a policy's features, benefits, or coveragemisrepresentationany false, maliciously critical, or derogatory communication that injures another's reputation, fame or characterdefamationwhat is the term if the buyer of an insurance policy receives any part of the producer's commission or anything else of significant value as an inducement to purchase a policyrebatingthe unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy without regard to possible disadvantages to the policy ownertwistinga resident producer license must meet what two requirementsmay either reside in PA or have their principal place of business in this statein what two situations is it not required to be licensed as a manager or exclusive general agenta licensee who has limited underwriting authority\na manager or agent who started before Dec 22, 1965Which of the following can not be issued a temporary license:\nsurviving spouse of a decesed producer in order to sell the business\na deceased producer's personal representative until new personnel is trained to run the business\na person holding a power of attorney for a producer in the armed forces\na person selling insurance for the estate of a deceased producera person selling insurance for the estate of a deceased producerwhich of the following is not a reason for a license to be suspended or revoked\nmaking a factual but subjective comparison of two policies\nintentionally violating a cease and desist order\nmaking false statement in a license application\nviolating an insurance regulationmaking a factual but subjective comparison of two policiesincreases the chance of losshazard (leaving the door unlocked)the chance of lossriska means of transferring the risk of lossinsurancethe cause of lossperil (types of peril fire; flood; collision; theft)states that there must be an adequate spread of risk for insurance to be effectivelaw of large numbers more examples used, more reliable the statistic (predict the number of losses; predict the charge for premium)installing an automatic sprinkler system is an example of whatreduction (can not avoid risk but can reduce risk)deciding not to produce a product due to serious potential side effectsavoidance (avoid the risk of being sued)person in good health cancels health insurance policy what risk management methodretention (retaining risk)under what regulati