VA P&C Practice Exam Questions

A set of 142 vocabulary flashcards to aid in studying for the Virginia Property and Casualty (P&C) Insurance exam.

Pure Risk

A risk that presents a chance of loss with no possibility of gain.

Peril

An event or condition that can cause a loss.

Direct Loss

A loss that involves direct physical damage to property.

Stated Value

The value assigned to an item of property for insurance purposes.

Unoccupancy

A condition where property is not occupied, which may affect coverage.

Vacancy

A condition where a property is empty; may exclude certain perils.

Absolutely Liable

A situation where liability is assigned regardless of fault.

Strict Liability

Liability that does not require proof of negligence.

First Named Insured

The first individual or entity named in an insurance policy.

Insured Duties

Responsibilities of the insured as outlined in the policy.

Claim Settlement

The process by which an insurer resolves claims.

Proof of Loss

A formal statement made by the insured to the insurance company to support a claim.

Consumer Report

A report regarding a consumer's credit or insurance history.

Adverse Underwriting Decision

A decision made by an insurer based on negative information in consumer reports.

Financial Modernization Act of 1999

A federal law that protects the privacy of insurance applicants.

Certificate of Insurance

A document confirming the existence of an insurance policy.

HO 2 Form

Homeowners policy form that provides broad named perils coverage.

HO 3 Form

Homeowners policy form that provides open perils coverage for the dwelling.

HO 5 Form

Homeowners policy form that provides broader coverage for both the dwelling and personal property.

HO 4 Form

Homeowners policy form designed for renters, covering personal property.

NFIP

National Flood Insurance Program that provides flood insurance.

Deductible

The amount an insured must pay before the insurance coverage begins.

Commercial Package Policy (CPP)

A policy that combines multiple types of coverage, such as property and liability.

Supplementary Payment

Additional benefits provided by an insurance policy beyond the standard coverage.

Basic Cause of Loss Form

A form that outlines perils covered under property insurance.

Special Cause of Loss Form

A form that covers more perils than the basic cause of loss form.

Nationwide Marine Definition

A definition used to identify marine insurance risks.

Water Damage Loss Limit

The maximum amount paid for water damage under specific insurance policies.

BOP (Businessowners Policy)

A package insurance policy designed for small to medium-sized businesses.

Claim Settlement Rights

The rights of the insured regarding settlement of claims.

Uninsured Motorist Coverage

Coverage that provides payment for damages caused by a driver without insurance.

Time Element Coverage

Coverage that depends on time in relation to loss and recovery.

Exclusions

Specific conditions or circumstances that exclude coverage.

Pollutant Cleanup and Removal Coverage

Coverage for the costs associated with cleaning up pollutants.

Debris Removal Coverage

Coverage for the cost of removing debris after a loss.

Grave Marker Coverage Limit

The maximum limit of coverage for grave markers under a homeowners policy.

Slander

The act of making false spoken statements damaging to a person's reputation.

Claims-Made Policy

A policy that covers claims reported during the policy period.

Occurrence Policy

A policy that covers claims occurring during the policy period.

Garagekeepers Policy

Coverage that protects auto repair shops for damage to customers' vehicles.

Installation Floater

Coverage for equipment that is at a job site but not yet installed.

Business Income Coverage

Coverage for loss of income due to business interruption.

Liability Coverage

Insurance providing protection against claims resulting from injuries.

Coverage A in CGL

Coverage for products and completed operations under Commercial General Liability.

Expiration Date

The date an insurance policy is no longer valid.

Proof of Loss Requirement

The obligation of the insured to submit a claim form within a specific time frame.

Certificates of Insurance

Documents assuring parties that coverage exists.

DIC Insurance

Difference in Conditions insurance, which supplements other coverages.

CGL Exclusions

List of items or liabilities not covered under a Commercial General Liability policy.

Paid-Up Life Insurance

A life insurance policy where no further premiums are required.

Basic Perils

Fundamental risks that are typically covered under standard insurance policies.

Building and Personal Property Coverage Form

A standard commercial property policy form detailing coverage.

Underwriter Duties

Responsibilities of an insurance underwriter in evaluating risks.

Consumer Reporting Agency

An organization that collects and sells consumer information.

Implied Authority

Authority granted to an agent that is not explicitly stated.

Commissioner's Authority

The power granted to the insurance commissioner to regulate the insurance industry.

Agent's Responsibilities

The legal obligations an insurance agent has towards their clients.

Risk Classification

The categorization of risks to determine insurance rates.

Breach of Contract

Failure to fulfill the terms of an agreement.

Negligence

Failure to take proper care in doing something, resulting in damage or injury.

Umbrella Insurance Policy

Additional liability coverage that extends beyond standard policy limits.

Coverage B in HO

Coverage under a homeowners policy for other structures.

Personal Injury Liability

Liability for non-physical injuries such as defamation.

Property Insurance Policy

Coverage for damage to or loss of physical assets.

Surety Bond

A bond guaranteeing the satisfactory completion of a project.

Business Personal Property Coverage

Coverage for business equipment, inventory, and other property.

Workers' Compensation Coverage

Insurance providing wage replacement and medical benefits for employees injured on the job.

Fire Department Service Charge

Coverage for fees charged by fire departments for covering a fire.

Personal and Advertising Injury Coverage

Liability for damages arising from non-physical personal injuries.

Negligence Standard

Legal standard used to determine if a person failed to act with reasonable care.

Professional Liability

Liability insurance for professionals against claims of negligence.

Health Care Liability Coverage

Coverage for healthcare providers against malpractice claims.

Liability Assumed Under Contract

Liability that an insured takes on through contractual agreements.

Indemnity Clause

A contractual provision that outlines compensation for losses.

Building Code Coverage

Coverage for the increased costs associated with rebuilding due to ordinance changes.

Rescission

The act of nullifying a contract.

Direct Compensation Property Damage

Coverage for property damage based on the principles of no-fault insurance.

Excess Policies

Insurance that provides additional coverage above a primary policy.

Terrorism Insurance

Coverage for damages resulting from terrorist acts.

Liability for Damage to Property

Coverage for liabilities incurred relating to damage caused to property.

Regulatory Authority

The ability of a governing body to enforce laws and regulations.

Environmental Liability Coverage

Coverage for risks related to environmental damage.

Fraud and Misrepresentation

Intentional deception for personal gain in the context of insurance.

Fiduciary Responsibility

The obligation of an agent to act in the best interest of their clients.

Coverage for Auto Liability

Insurance that covers driver liabilities in vehicle accidents.

Civil Liability

Liabilities that arise from civil suits rather than criminal offenses.

Insurer's Obligation

The duties that an insurance company must fulfill under a policy.

Risk Transfer

The process of shifting risk from one party to another.

Physical Damage Coverage

Insurance that protects against damage to physical property.

Statutory Authority

Legal provisions governing the licensing and regulation of insurance agents.

Nonrenewal of Insurance Policy

The decision by an insurer not to renew a policy upon expiration.

Replacement Cost Coverage

Payment for damages to property based on the condition of the property at the time of loss.

Liability Coverage Extensions

Additional coverage options available in liability insurance policies.