Download CT All-Lines Adjuster Licensing Exam Questions And Answers 100% verified A+ and more Exams Insurance Economics in PDF only on Docsity!
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Abandonment - correct answer ✅Relinquishing of property and letting go of all legal rights with the intent to claim a total loss. Abandonment Clause - correct answer ✅A property policy provision that stipulates that the insurer need not accept any damaged property that the insured chooses to relinquish. Absolute Liability - correct answer ✅The performance of an act so dangerous as to be sufficient to trigger liability regardless of the degree of negligence. Accident - correct answer ✅An unforeseen, unintended, and unexpected event, which occurs suddenly and at a definite place. Accounts Receivable Insurance - correct answer ✅Pays for the cost of reconstructing accounts receivable records that have been damaged or destroyed by a covered peril. Action Over Claim - correct answer ✅A demand by a third party in a subrogation action suing for damages from the employer. (Worker's Compensation)
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Actual Cash Value (ACV) - correct answer ✅Placing value on a property as of the time of its loss or damage. Additional Living Expense Insurance - correct answer ✅Provides payment for extra expenses made necessary by the insured's inability to reside in the insured dwelling because of a cover loss. Adhesion Contract - correct answer ✅Standardized set of agreements offered by one party to another on a take it or leave it basis. Admiralty Courts - correct answer ✅Courts of law that deal with matters pertaining to the sea. Admitted Company - correct answer ✅An insurance company that is licensed to conduct business within a given state. Advertising Injury - correct answer ✅Claim arising out of slander, libel, copyright infringement, or misappropriation of advertising ideas.
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Attractive Nuisance - correct answer ✅Condition that can attract and injure children. The occupants of land on which such a condition exists are liable for injuries to children. Bailee - correct answer ✅One who is charged with the care of the property of another. Bailment - correct answer ✅Delivering property in trust to another for a limited time and specific purpose. Bailor - correct answer ✅The person delivering property to another in trust. Barratry - correct answer ✅Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. Betterment - correct answer ✅The difference in the value of property before loss and after restoration. Blanket Coverage - correct answer ✅Insuring various items of property under one limit of liability.
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Broker - correct answer ✅One who represents the insured in arranging insurance. Typically do not have binding authority. Burglary - correct answer ✅Unlawful removal of property from premises involving visible forcible entry. Businessowners Policy (BOP) - correct answer ✅A package of property and liability insurance for small and medium size businesses. Flat Cancellation - correct answer ✅The full premium is returned to the insured. Pro-Rate Cancellation - correct answer ✅The insurer has charged for the time the coverage was in force. Short Rete Cancellation - correct answer ✅Entails a penalty in excess of pro-rate for early termination.
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Domiciled - correct answer ✅The state in which an insurance company receives a license to operate. Elements of a Negligent Act - correct answer ✅Existence of a legal duty to use reasonable care, failure to perform that duty, damages or injury to the claimant, and proximate cause relationship between the negligent act and the infliction of damages. Equal Shares Clause - correct answer ✅An insurance clause which states that when the insured has other insurance, the loss payment made by the company will be based on the number of applicable policies, not on their limits. Estoppel - correct answer ✅The legal doctrine that a party may be precluded from denying that certain rights exist it, by behavior or implication that such rights did, in fact, exist, another party has acted upon this information to his or her detriment. Excess Insurance - correct answer ✅Coverage that applies on top of underlying insurance that is primary. Insurance that pays until its coverage limit is exhausted at which point the excess coverage takes over.
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Excess or Surplus Lines Market - correct answer ✅The range of insurance available through nonadmitted insurers (Insurance companies that are not licensed in a particular state or territory) Exclusion - correct answer ✅Part of the policy that removes or restricts coverage. Exemplary Damages - correct answer ✅Damages awarded to make an example of the wrongdoer. Extended Nonowner Liability - correct answer ✅A personal auto policy endorsement that provides broader liability coverage for specifically named individuals. When attached, it covers nonowned autos furnished for the regular use on an insured, use of vehicles to carry persons or property for a fee, broader coverage for business use of vehicles. Extended Period of Indemnity - correct answer ✅A time for Recovery of proved business income loss after physical property is restored and business is reopened.
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Gramm-Leach-Bliley Act - correct answer ✅Financial services legislation passed by Congress in 1999, that removed depression- era prohibitions against the combination of commercial banking and investment-banking activities. Gross Negligence - correct answer ✅The degree of negligence somewhat greater than ordinary negligence. (Reckless and willful misconduct) Hazard - correct answer ✅A condition which increases the possibility of loss. Imputed Negligence - correct answer ✅Case where responsibility for damage can be transferred from the negligent party to another person, such as an employer. Indemnity - correct answer ✅Compensation for loss or injury sustained. Insolvency - correct answer ✅Insurer's inability to pay debts. The last resort is liquidation.
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Insurance Services Office (ISO) - correct answer ✅An organization providing statistical information, actuarial analysis, policy language, and related services for the insurance industry. Jones Act - correct answer ✅The federal act through which maritime workers are provided worker's compensation coverage. Larceny - correct answer ✅The unlawful taking of personal property of another. Law of Large Numbers - correct answer ✅The larger number of participants in a given arrangement, the more accurate the rate is to the exposure. Livery Use - correct answer ✅An exclusion in automobile liability policies applying to the use of autos to carry persons for hire as in taxi services. Lloyd's of London - correct answer ✅An association of individuals who write insurance for their own accounts. Began in the 17th century in London in Lloyd's coffeehouse.
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Omnibus Clause - correct answer ✅An agreement that extends the definition to include others without needing to name them. A policy that names the insured and those who reside with them. Pair and Set Clause - correct answer ✅Partial loss to a pair or set of items will be values in terms of the lost item, not on the basis of reduced values of the pair or set. Peril - correct answer ✅A potential cause of loss. Personal Effects - correct answer ✅The property of an individual covered by the policy in question. Proximate Cause - correct answer ✅That event which, in an unbroken sequence, results in direct physical loss under an insurance policy. Punitive Damages - correct answer ✅An award for damages above and beyond the requirements for compensating third parties for injury or damage.
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Redlining - correct answer ✅Unfair discrimination based not on the risk's characteristics but on its location. Reinsurance - correct answer ✅The business of insuring insurance companies. by ceding a portion of its business to a reinsurance company, an insurer spreads the risk of exposure to catastrophic loss. Residual Markets - correct answer ✅Insurance markets established outside the normal insurance marketing channels to cover unusually large or poor risks. Retroactive Date - correct answer ✅The date that defines the extent of coverage in time under claims-made liability not determined until all claims are closed. The final premium is determined by the insured's actual loss experience during the policy period. Risk - correct answer ✅Uncertainty concerning loss. Robbery - correct answer ✅The felonious taking, either by force or by fear of force, of the personal property of another, commonly known as a hold-up.
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Tail Coverage - correct answer ✅Coverage for claims made after a claims-made liability policy has terminated; the extended reporting or discovery period. Terrorism Risk Insurance Act (TRIA) - correct answer ✅A federal law that sets up a temporary program to allow the insurance industry and federal government to share losses according to a specified formula in the event of a major terrorism attack. Theft - correct answer ✅An act of stealing. Third Party - correct answer ✅An outsider. Twisting - correct answer ✅The practice of inducing by misrepresentation or inaccurate information of another company for the purpose of taking out a policy with another company.
