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Wisconsin |! Property |! and |! Casualty |!
Exam |! with |! precise |! detailed |!
solutions
FAIR |! - |! Correct |! answer |! ✔Fair |! Access |! to |! Insurance |! Requirements Elements |! of |! a |! Legal |! Contract. |! L. |! O. |! A. |! C. |! - |! Correct |! answer |! ✔• |! Consideration
- |! Legal |! Purpose
- |! Offer
- |! Acceptance
- |! Competent |! Parties Consideration |! - |! Correct |! answer |! ✔Money |! and |! statements |! made |! on |! application Legal |! Purpose |! - |! Correct |! answer |! ✔Risk |! transfer |! doesn't |! violate |! the |! law Offer |! - |! Correct |! answer |! ✔Insured |! submits |! application |! and |! first |! month |! premium |! to |! insurer Insurer |! accepts |! or |! insurer |! declines |! the |! risk
Counteroffer |! - |! Correct |! answer |! ✔Agrees |! to |! issue |! policy |! but |! with |! higher |! premium |! or |! restrictions/ |! exclusions Insured |! either |! accepts |! the |! conditions |! or |! withdraws |! their |! application Competent |! Parties |! - |! Correct |! answer |! ✔Competent• |! Legal |! age |! (usually |! 18) |! • |! Mentally |! sane• |! Sober Adhesion |! - |! Correct |! answer |! ✔Policy |! written |! by |! the |! insurance |! company Adhesion |! = |! glue Insured |! has |! no |! input If |! ambiguous, |! court |! will |! take |! the |! side |! of |! the |! insured Aleatory |! Contract |! - |! Correct |! answer |! ✔• |! Unequal |! value
- |! Pay |! small |! premium |! and |! have |! a |! large |! claim, |! or |! pay |! premiums |! for |! many |! years |! without |! a |! claim representation |! - |! Correct |! answer |! ✔believed |! to |! be |! true misrepresentation |! - |! Correct |! answer |! ✔representation |! that |! is |! actually |! false. Material |! misrepresentation |! - |! Correct |! answer |! ✔information |! given |! that |! is |! not |! true |! and |! DOES |! affect |! the |! insurer's |! decision
Endorsements |! - |! Correct |! answer |! ✔changes |! to |! the |! original |! policy Exclusions |! - |! Correct |! answer |! ✔items |! not |! covered Named |! insured |! - |! Correct |! answer |! ✔listed |! on |! the |! declarations First-named |! insured |! - |! Correct |! answer |! ✔first |! on |! the |! declarations policy |! territory |! - |! Correct |! answer |! ✔typically |! includes |! the |! United |! States, |! Canada, |! Puerto |! Rico, |! and |! other |! U.S. |! territories |! and |! possessions. |! Most |! insurance |! policies |! do |! not |! extend |! coverage |! into |! Mexico flat |! cancellation. |! - |! Correct |! answer |! ✔policy |! is |! canceled |! on |! the |! effective |! date, |! by |! either |! the |! insurer |! or |! insured Cancellation |! - |! Correct |! answer |! ✔occurs |! before |! the |! policy's |! expiration |! date Insurer |! cancellation |! requires |! advance |! notice Insured |! cancellation—no |! advance |! notice Nonrenewal |! - |! Correct |! answer |! ✔occurs |! at |! the |! expiration |! date Insurer |! must |! give |! advance |! notice No |! advance |! notice |! required |! by |! the |! insured
Nonconcurrency |! - |! Correct |! answer |! ✔result |! of |! two |! or |! more |! policies |! covering |! the |! same |! property |! but |! providing |! different |! or |! non-identical |! coverage. Pro |! Rata |! - |! Correct |! answer |! ✔Each |! insurer's |! liable |! for |! a |! portion |! of |! the |! loss calculate |! pro |! rata |! - |! Correct |! answer |! ✔policy |! limit |! of |! one |! company/ |! loss |! policy |! limit |! of |! all |! companies |! X |! loss Contribution |! by |! equal |! share |! - |! Correct |! answer |! ✔each |! policy |! pays |! the |! same |! up |! to |! the |! smallest |! policy |! limit
- |! Prevents |! gain |! (indemnity) duties |! after |! loss |! - |! Correct |! answer |! ✔Prompt |! notice |! to |! insurer Protect |! property |! from |! further |! damage Complete |! proof |! of |! loss |! (if |! asked) Make |! property |! available |! for |! inspection Submit |! to |! examination |! under |! oath |! if |! required Cooperate |! with |! insurer Assignment |! - |! Correct |! answer |! ✔Policy |! cannot |! be |! transferred |! without |! written |! consent |! from |! the |! insurer Transfer |! of |! rights
Binder |! - |! Correct |! answer |! ✔Temporary |! insurance Usually |! given |! by |! the |! agent—verbal |! or |! in |! writing Can |! be |! canceled |! by |! the |! company Does |! not |! guarantee |! a |! policy |! will |! be |! issued Automatically |! ends |! if |! a |! policy |! is |! issued |! by |! the |! underwriter Loss |! Ratio |! - |! Correct |! answer |! ✔Compares |! company's |! operations |! year |! over |! year Expense |! Ratio |! - |! Correct |! answer |! ✔• |! Cost |! of |! doing |! business combined |! ratio |! - |! Correct |! answer |! ✔sum |! of |! the |! loss |! ratio |! and |! the |! expense |! ratio. |! Profit Judgment |! - |! Correct |! answer |! ✔no |! set |! rates, |! based |! upon |! underwriters |! experience Manual |! (class) |! - |! Correct |! answer |! ✔set |! rates |! for |! specific |! risk |! classes Experience |! rating |! - |! Correct |! answer |! ✔modification |! factor |! based |! on |! loss |! experience
- |! Increases |! or |! decreases |! premium |! • |! Usually |! a |! three-year |! period
Loss |! costs |! - |! Correct |! answer |! ✔pure |! claims |! data• |! No |! operating |! expenses |! included |! • |! No |! profits |! included Rate |! Components |! - |! Correct |! answer |! ✔-Loss |! costs |! (estimate |! of |! claim |! costs) -Claims |! handling |! costs -Operating |! -Expenses -Profit TRIPRA |! (TRIA) |! - |! Correct |! answer |! ✔Result |! of |! 9/11 |! attacks |! on |! U.S. Congress |! enacted |! in |! 2002 Limits |! exposure |! of |! insurers |! in |! case |! of |! another |! catastrophic |! event Triggering |! event—$100 |! million |! (increases |! to |! $200 |! millionfrom |! 2015-2020 |! in |! $20 |! million |! increments) |! 100 |! Billion |! Max GRAMM-LEACH-BLILEY |! ACT |! (15 |! USC |! Section |! 206) |! - |! Correct |! answer |! ✔A |! consumer |! is |! anyone |! about |! whom |! information |! is |! collected |! has |! an |! ongoing |! relationship |! with |! a |! financial |! institution. |! opportunity |! to |! opt |! out |! must |! be |! offered Fraud |! and |! False |! Statements |! - |! Correct |! answer |! ✔It |! is |! illegal |! to |! make |! false |! statements. |! If |! guilty:
- |! 50,000 |! Fine, |! up |! to |! 10 |! years |! in |! prison, |! or |! both- |! Up |! to |! 15 |! years |! in |! prison |! if |! false |! statements |! jeopardize |! insurer
Broad |! Perils |! - |! Correct |! answer |! ✔All |! of |! basic |! (fire, |! lightning, |! and |! internal |! explosion) |! plus |! extended |! perils |! (WCSHAVVER |! and |! V&MM) Plus |! BIG |! AFFECT:- BI |! AFFET |! - |! Correct |! answer |! ✔BURGLARY, |! ICE |! AND |! SNOW |! WEIGHT, |! ACCIDENTAL |! DISCHARGE |! OF |! WATER, |! FALLING, |! FREEZING, |! ELECTRICAL, |! TEARING |! APART Broad |! Peril |! Exclusions |! - |! Correct |! answer |! ✔Weight |! of |! ice, |! snow, |! or |! falling |! objects |! on |! awnings, |! fences, |! patios, |! swimming |! pools, |! docks, |! and |! retaining |! walls Accidental |! discharge |! over |! water |! from |! continuous |! leaking Flooding |! from |! river |! or |! lake Burglary |! if |! property |! vacant |! more |! than |! 60 |! consecutive |! days Special/Open |! Peril |! Coverage |! - |! Correct |! answer |! ✔all |! risks |! of |! direct |! physical |! loss, |! except |! those |! specifically |! excluded Special/Open |! exclusions: |! - |! Correct |! answer |! ✔Flooding- |! Earthquake- |! Intentional |! damage |! caused |! by |! an |! insured- |! Losses |! due |! to |! enforcement |! of |! building |! codes- |! Damage |! caused |! by |! a |! power |! interruption |! occurring |! off |! premises |! - |! Governmental |! seizure Types |! of |! Loss |! - |! Correct |! answer |! ✔■ |! Direct—the |! immediate |! damage |! caused |! by |! the |! peril |! ■ |! Indirect—loss |! over |! time |! as |! a |! result |! of |! the |! direct |! loss
- |! Loss |! of |! income |! a |! business |! suffers |! when |! the |! building |! burns- |! Cost |! of |! a |! rental |! car |! because |! someone |! ran |! into |! your |! car- |! Additional |! living |! expenses |! while |! the |! home |! is |! being |! repaired Classes |! of |! Construction |! - |! Correct |! answer |! ✔Class |! 1 |! - |! Frame Class |! 2 |! - |! Joisted |! Masonry Class |! 3 |! - |! Noncombustible Class |! 4 |! - |! Masonry |! Noncombustible Class |! 5 |! - |! Modified |! Fire |! Resistive Class |! 6 |! - |! Fire |! Resistive Loss |! Valuation |! - |! Correct |! answer |! ✔how |! the |! insurance |! company |! determines |! appropriate |! amount |! of |! loss |! to |! be |! paid Coinsurance |! - |! Correct |! answer |! ✔The |! coinsurance |! requirement |! is |! normally |! 80% |! of |! the |! replacement |! cost. |! If |! the |! minimum |! required |! amount |! is |! carried, |! then |! claims |! are |! paid |! in |! full |! up |! to |! policy |! limits. |! If |! the |! minimum |! is |! not |! carried, |! partial |! losses |! are |! not |! paid |! in |! full. Replacement |! Cost |! Value |! (RCV) |! - |! Correct |! answer |! ✔(Better |! than |! ACV)The |! cost |! to |! replace |! the |! property |! on |! the |! same |! premises |! with |! other |! property |! of |! comparable |! material |! and |! quality |! used |! for |! the |! same |! purpose Actual |! Cash |! Value |! - |! Correct |! answer |! ✔replacement |! cost |! - |! depreciation
Dwelling |! Coverages |! - |! Correct |! answer |! ✔Coverage |! A |! - |! Dwelling, |! Coverage |! B |!
- |! Other |! structures, |! Coverage |! C |! - |! Personal |! property, |! Coverage |! D |! - |! Fair |! rental |! value, |! and |! Coverage |! E |! - |! Additional |! living |! expenses Dwelling |! Coverage |! A |! - |! Correct |! answer |! ✔covers |! the |! dwelling, |! structures |! attached |! to |! the |! dwelling Dwelling |! Coverage |! B |! - |! Correct |! answer |! ✔Other |! (detached) |! structures |! insures |! buildings |! on |! the |! premises |! that |! are |! separated |! from |! the |! dwelling |! by |! a |! clear |! space |! or |! connected |! only |! by |! a |! fence, |! utility |! line, |! or |! similar |! connection. |! The |! building |! may |! not |! be |! used |! for |! commercial, |! manufacturing, |! or |! farming |! purposes. Dwelling |! Coverage |! C |! - |! Correct |! answer |! ✔personal |! property |! covers |! the |! insured's |! personal |! property |! that |! is |! at |! the |! described |! location |! and |! is |! usual |! to |! the |! dwelling |! occupancy. Dwelling |! Coverage |! D |! - |! Correct |! answer |! ✔Fair |! rental |! value |! covers |! the |! insured |! in |! the |! event |! a |! covered |! loss |! makes |! the |! rental |! portion |! of |! a |! property |! unfit |! for |! normal |! use. |! 20% |! of |! the |! insurance |! on |! the |! dwelling |! is |! available |! for |! this |! coverage Dwelling |! Coverage |! E |! - |! Correct |! answer |! ✔additional |! living |! expense |! is |! included |! in |! DP-2 |! and |! DP-3 |! and |! pays |! for |! additional |! living |! expenses |! the |! insured |! incurs |! after |! a |! covered |! loss, |! including |! reasonable |! motel, |! dining, |! laundry, |! and |! transportation |! expenses. |! The |! limit |! is |! 10% |! of |! Coverage |! A
DP |! 1 |! Basic |! Form |! provides |! certain |! other |! coverages |! that |! are |! automatically |! included |! for |! no |! additional |! premium. |! - |! Correct |! answer |! ✔Debris |! removal Property |! removed—5 |! days Reasonable |! repairs Tenant's |! improvements |! (10% |! of |! Coverage |! C) Fire |! department |! service |! charge—$500 |! (no |! deductible) Worldwide |! personal |! property |! (10% |! of |! Coverage |! C) DP-2 |! and |! DP-3 |! Other |! Coverages |! - |! Correct |! answer |! ✔All |! basic |! other |! coverages Trees, |! shrubs, |! and |! plants
- |! Maximum |! of |! $500 |! each
- |! Total—5% |! of |! Coverage |! A Collapse—caused |! by |! a |! covered |! peril Glass Ordinance |! or |! law |! (10% |! of |! Coverage |! A) Property |! removed—30 |! days |! (5 |! days |! DP-1) Dp-1 |! Pays |! Losses |! - |! Correct |! answer |! ✔All |! losses |! paid |! Actual |! Cash |! Value |! Basis Dp-2 |! and |! Dp-3 |! pays |! losses |! - |! Correct |! answer |! ✔dwelling |! and |! other |! structures |! on |! a |! replacement |! cost |! basis |! must |! cover |! 80% |! or |! more |! of |! the |! full |! replacement |! cost
General |! Exclusions |! in |! All |! Dwelling |! Policies |! - |! Correct |! answer |! ✔- |! Ordinance |! of |! law
- |! Earthquake
- |! Flood
- |! War
- |! Nuclear
- |! Intentional |! losses
- |! Government |! seizure DP |! Loss |! Valuations |! - |! Correct |! answer |! ✔- |! Loss |! settlement
- |! Our |! option
- |! Deductible
- |! Pair |! or |! set
- |! Loss |! payment
- |! Other |! insurance
- |! Recovered |! property DP |! Personal |! Liability |! Supplements |! - |! Correct |! answer |! ✔- |! Coverage |! L |! - |! personal |! liability
- |! At |! fault
- |! Bodily |! injury |! to |! others
- |! Property |! damage |! to |! others
- |! On |! and |! off |! premises
DP |! Coverage |! M—medical |! payments |! - |! Correct |! answer |! ✔- |! Medical |! and |! bills |! of |! others
- |! No |! Fault
- |! 3 |! Years
- |! On |! and |! Off |! premises DP |! Additional |! (Supplementary) |! Coverages—BAILED |! - |! Correct |! answer |! ✔■ |! Bonds■ |! Aid■ |! Interest■ |! Loss |! of |! earnings |! ■ |! Expenses ■ |! Defense DP |! Residential |! Theft |! Coverage |! - |! Correct |! answer |! ✔-not |! automatically |! included |! in |! dwelling |! policy -on |! and |! off |! premise -broad- |! owner |! occupied -limited- |! not |! owner |! occupied DP |! Exclusions |! - |! Correct |! answer |! ✔■ |! Animals■ |! Credit |! cards■ |! Property |! in |! mail■ |! Aircraft■ |! Other |! insurance |! property■ |! Tenant's |! property |! (not |! related |! to |! insured) |! ■ |! Business |! property■ |! Property |! in |! custody |! of |! others■ |! Motor |! vehicles |! (unless |! assisting |! disabled) DP |! Special |! Limits |! - |! Correct |! answer |! ✔- |! Apply |! to |! certain |! classes |! of |! property
- |! Limit |! is |! total |! of |! each |! category
Valuation |! Clause |! - |! Correct |! answer |! ✔The |! provision |! in |! a |! policy |! that |! defines |! the |! basis |! for |! establishing |! the |! amount |! to |! be |! paid |! in |! the |! event |! of |! a |! loss |! to |! insured |! property. Homeowners |! policy, |! Coverage |! B |! is |! what |! percentage |! of |! Coverage |! A |! - |! Correct |! answer |! ✔10% Personal |! Effects |! Floater |! - |! Correct |! answer |! ✔A |! policy |! to |! provide |! open |! perils |! worldwide |! coverage |! for |! baggage, |! clothes, |! cameras, |! and |! other |! items |! commonly |! worn |! or |! carried |! by |! tourists. HO-8 |! policy, |! the |! dwelling |! is |! valued |! on |! which |! basis |! - |! Correct |! answer |! ✔Actual |! Cash |! Value Absolute |! liability |! - |! Correct |! answer |! ✔Some |! activities |! are |! so |! inherently |! dangerous |! that |! no |! degree |! of |! care |! taken |! by |! the |! insured |! can |! defend |! against |! a |! charge |! of |! negligence. uninsured |! motorist |! coverage |! under |! a |! Personal |! Auto |! Policy |! - |! Correct |! answer |! ✔Coverage |! does |! not |! apply |! when |! a |! person |! is |! using |! the |! vehicle |! without |! permission insured |! under |! a |! Homeowners |! Policy |! - |! Correct |! answer |! ✔1) |! Relatives |! of |! the |! named |! insured, |! meaning |! they |! are |! related |! by |! blood, |! or |! 2) |! Under |! the |! age |! of |! 21 |! and |! in |! the |! care |! of |! any |! insured.
Section |! II |! of |! the |! Businessowners |! Coverage |! Form |! excludes |! - |! Correct |! answer |! ✔Medical |! expenses |! include |! bodily |! injury |! to |! an |! insured |! or |! a |! person |! hired |! to |! do |! work dwelling |! property |! policy |! (DP-3) |! Coverage |! E |! is |! - |! Correct |! answer |! ✔Coverage |! E |! is |! 20% |! of |! Coverage |! A How |! is |! lost |! or |! damaged |! property |! valued |! under |! the |! BAP |! - |! Correct |! answer |! ✔Lesser |! of |! the |! ACV |! or |! the |! cost |! to |! repair |! or |! replace The |! Proximate |! Cause |! - |! Correct |! answer |! ✔primary |! cause |! of |! loss |! in |! a |! sequence |! of |! events |! resulting |! in |! a |! claim. An |! insurer |! may |! not |! use |! odometer |! reading |! data |! collected |! in |! the |! course |! of |! an |! inspection |! to |! set |! rates |! or |! premiums |! for |! a |! motor |! vehicle |! policy |! or |! as |! a |! factor |! in |! altering |! rates |! or |! premiums |! during |! - |! Correct |! answer |! ✔the |! term |! of |! the |! policy |! or |! at |! the |! time |! of |! renewal. Medical |! Payments |! under |! the |! Personal |! Auto |! Policy |! - |! Correct |! answer |! ✔is |! a |! per |! person |! limit |! that |! applies |! to |! each |! accident. Section |! II |! Coverage |! E |! provides |! - |! Correct |! answer |! ✔personal |! liability |! coverage |! for |! property |! damage |! to |! others |! due |! to |! actions |! of |! the |! insured. PAP |! part |! B |! Medical |! expenses |! - |! Correct |! answer |! ✔must |! be |! incurred |! within |! 3 |! years |! of |! the |! accident.
