Property and Casualty All Chapters

A chance of loss is called ___?

Risk

Gambling is an example of ____.

Speculative risk

Insurance will only cover ____ risks.

Pure

The transfer of risk from an individual or business to a professional risk taking company is called ____.

Insurance

Loss is defined as _____ hurt.

Financial

Having your car stolen is an example of a ____ loss, whereas not having the use of your stolen car would be referred to as an _____ or consequential loss.

Direct and Indirect

Insurance that covers your stuff is called ____ insurance.

Property

Insurance that protects you when your stuff gets you in trouble with The Other Guy is called ____ or _____ insurance.

liability or casualty

Property insurance policies are ____ party contracts, whereas liability policies are ____ party contracts.

Two party contracts, Third party contracts

In insurance lingo, if you have a financial interest in a piece of property, you are said to have an _____.

Insurable interest

When an insurance company pays a policy owner on a claim, the company is said to have _____ the insured.

Indemnified

The stated maximum that an insurance company will pay on a claim is called the _____.

Limit of liability

Losses that are specifically NOT covered by an insurance policy are called _____.

Exclusions

Iron rusts. Cheese turns moldy. In insurance lingo, these latent defects are called ____.

Inherent vice.

In proportion, share or ratio is called ____.

Pro rata.

The promise in your P and C policy, which states that modifications that make the contract more generous and put into effect during the policy period will be automatic enhancements to your policy, is found in the _____ clause.

Liberalization

The transfer of ownership of an insurance policy from one individual to another is called _____.

Assignment

The refusal of an insurer to continue insurance coverage beyond the end of the policy period is called ____.

Non-renewal.

The termination of an insurance policy during the policy period by either the insurance company or the insured is called _____.

Cancellation

If the insurance company cancels a policy, then the customer is entitled to a ____ refund of premium

Pro rata

If an insured cancels his/her commercial policy, then they are only entitled to a ____ refund of premium.

Short rate

In addition to the policy, written proof of insurance coverage is provided by a _____.

Certificate of insurance

A written modification or addition to a policy of insurance is called an ______.

Endorsement

In personal lines insurance policies, the individual(s) who have the rights and duties under the policy are called the _____.

Named Insured(s)

In commercial lines the key contact person who represents the Named Insured(s) is called the ______.

First Named Insured

An ____ is a sudden, unforeseen and unintended event that happens at a known place and known time.

Accident

A broader definition of accident that also covers losses that occur over time as the result of continuous and repeated exposure to injurious conditions is called an ______.

Occurrence

The Business owners Policy, or BOP, is a ____ policy that can be used to cover most small low _____.

Prepackaged, Low risk

One of the advantages of the BOP is that it is ____, which means that many of the coverage questions have been predetermined by the insurance company which lowers the _____.

Prepackaged, Premium

The BOP automatically includes both ____ coverage's and ____ coverage's.

Property and Liability

Eligible for a BOP are small to medium _____ businesses.

Low risk

Ineligible for a BOP are high risk businesses, such as auto repair businesses, auto service stations, auto dealers, parking garages, ____,_____,____ or ______ (no Cars, Bars, Banks or Manufacturing).

bars, large restaurants, banks or manufacturing businesses

The BOP offers two levels of peril power: ____(Standard) or _____.

Basic or Special

Both the building and the _____ are automatically covered.

Contents

The BOP standard deductible is $____.

$500

The BOP does NOT contain a Coinsurance requirement; however, there is an incentive to purchase an adequate amount of coverage. If you purchase at least _______, your loss settlement will be on a Replacement Cost basis instead of on an ___ basis.

80 percent to value, ACV

The BOP automatically provides _____, ______coverage for Loss of Income and Extra Expense. However, there is a ______ time based deductible.

months, 72 hour (3 Day) coverage, 72 hour (3 Day)

The BOP has a built in peak season benefit that automatically allows for up to a __ percent increase in business inventory without the necessity of notifying the insurance company.

25

Optional BOP coverage's include Outdoor Signs, ____, ______, _____ , _____ and Money and Securities.

Employee Dishonesty, Mechanical Breakdown, Burglary and Robbery

The BOP Endorsement that gives a business a premium reduction for installing burglar alarms or fire alarms is called Protective _____.

Safeguards

Under the Protective Safeguards endorsement, your burglar alarm can be out of service for up to _____ without notifying the company before you lose coverage.

48 hours (two days)

Unfortunately the biggest risk that an employer has regarding Crime insurance is his/her own ___.

Employees

As an employer you can protect yourself against employee theft by purchasing _____.

Fidelity Bonds

In a Fidelity Bond it is the employee that owes the obligation to the employee, so the employee is the _____. The employer is owed the obligation, so the employer is the _____. The insurance company agrees to pay, so it is the _____.

Principal, Obligee, Surety or Guarantor.

Coverage on a bonded employee automatically terminates as soon as the employer becomes aware of a _____ act of that employee that could be the basis of a claim. No second chances!

Dishonest

A Fidelity Bond that covers multiple employees that are listed by job title and may have different amounts of coverage for different positions is called a ____.

Position Schedule Bond

The taking of property by violence or threat of violence from a person is called _____.

Robbery

The taking of property from a premises that is closed and locked tight and leaving marks of forced entry or exit is called _____.

Burglary

In Crime insurance, what you know as kidnapping is called _____.

Extortion

Any person who is authorized to have possession of insured property on the premises, but who is not a janitor or watch person, is called a _____.

Custodian

A Messenger is any person authorized to have custody of insured property ______.

Away from the premises.

Any person the Insured retains to protect insured property on the premises who has no other duties is called a _____.

Watch person

Crime coverage Form A Employee Dishonesty are actually _____ on the employees.

Fidelity Bonds

Crime coverage Form C Theft, Disappearance and Destruction is essentially All Risk coverage for ____ and ____ both on and off premises.

Cash and Securities

Crime coverage Form D Robbery and Safe Burglary covers property other than _____, such as precious metal, precious stones, furs, manuscripts or drawings.

Cash

The first module of the Commercial Package Policy (CPP), which covers your building and business personal property, is called the _____.

Commercial Property Policy

The Commercial Property Policy is comprised of thirteen possible sub-parts to cover about any kind of property you could own, including ______, Business Income, _____, Glass, Builder's Risk and Tobacco Sales Warehouse.

Building and Business Personal Property, Extra Expense

The Commercial Property Policy, just like the Homeowners policy, offers three levels of peril power, which are Basic, ____ and ____.

Broad and special

The eleven Basic perils include Windstorm, ___, _____, ____, ____, _____, Volcano and Vehicles or Aircraft.

Riot, Explosion, Lightning, Fire, Smoke

Broad Form peril power adds ____ more perils for a total of ____.

Three, 14

_____ perils cover all perils not specifically excluded.

Special Form

The peril of _____ can be added to any of the three peril power forms and also covers Volcanic Eruption.

Earthquake

Earthquake coverage has a _____ deductible with a minimum of $ _____.

Percentage, $250

Earthquake tremors felt within a ____hour period ( ______ ) are treated as a single occurrence.

168, seven days

For the sake of simplicity, the information that is common to all thirteen of the property coverage sub-forms is included in two mandatory pages called the Commercial Property Declarations and the ________.

Commercial Property Conditions

The Standard Deductible on the Commercial Property Declarations page is $ ______.

$500

Settlement under the Commercial Property Policy is on an ______ basis unless upgraded to Replacement Cost basis by endorsement.

Actual Cash Value (ACV)

If there are two or more insurance companies insuring a commercial building, then losses will be settled on a_____ basis.

Pro rata

A situation in which two insurance policies insure the same property but use different levels of peril power is called _____.

non concurrency

The Commercial Property Policy coverage territory is the U.S. and its possessions, Canada and _____.

Puerto Rico.

The Building and Personal Property Coverage form defines a building to include permanently installed fixtures and equipment, outdoor fixtures, such as swimming pools and flag poles, plus personal property that is _______, such as a snow blower or lawn mower.

Used in the maintenance of the building

The contents in a commercial building, such as the desks, chairs and computers, are referred to as _______.

Business Personal Property

The personal belongings of employees, such as photos, radios and hand bags, are called ______.

Personal Effects

To be covered, Business Personal Property must be in the insured building or within ____ of the building.

Feet

The Personal Property of Others section of the Commercial Property Policy provides a Bailee-like coverage for _____ property that is in your care, custody or control.

The Other Guy's

The Additional Coverage's are ____ and do not cost extra. But Coverage Extensions must be _____ by purchasing coverage of at least __ percent of the building's replacement cost.

Automatic, earned, 80

The Additional Coverage's include Debris Removal, Fire Department Service Charges, ______ and Preservation of Property.

Pollutant Clean-up And Removal

The Coverage Extensions include Newly Acquired or Constructed Property, coverage for ____ and Property of Others.

Personal Effects

The insurance company will only pay losses up to the _____.

Policy limits

If the Insurer and the Insured disagree over the value of lost property, then either party can request an ____, which is binding on both parties.

Appraisal

After a loss, it is the First Named Insured's duty to ____ notify the Insurer.

Promptly

The Insured must also _____ from further damage.

Protect the property

If required by the company, the First Named Insured must submit written _____.

Proof of Loss

A premises which has been stripped so it can no longer be used for its declared function is considered to be _____.

Vacant

Even though property losses under the CPP are paid on an ACV basis, losses under $2500 are automatically paid on a _____ basis.

Replacement Cost

The key thing to remember about the Rights of Mortgage Holders is that _____! The Insured can be a crook, but the bank will still collect from the Insurer.

They never lose

If a business experiences significant seasonal inventory fluctuations, then it may be required to notify the company on a _____.

Reporting Form

Business Interruption Insurance is also referred to as _____ Coverage's.

Time Element

Under a Business Interruption policy Business Income is defined as net income plus ______.

Continuing operating expenses

A Period of Restoration starts on the ______ and runs until the building is or should be ____.

Day of the loss, repaired

To avoid the coinsurance requirement in a Business Income coverage you could select the ______ option in which you agree to a maximum total benefit to be paid out, but that there will also be a limit to the {$alias_2} benefit that will not exceed a fraction of the total limit, such as 1/6, 1/4 or 1/3.

Monthly Limit of Indemnity

An Agreed Value contract is also referred to as a ____ contract.

Valued

If you cannot shut down your business following a loss, such as a fire, then you need to purchase ______ coverage.

Extra Expense

The peril of Windstorm also covers the peril of ____.

Hail

The Additional Coverage called Collapse covers the collapse of an insured building as the result of any one of the ______, plus collapse due to other losses, such as Hidden Decay, Hidden Insect or Vermin Damage or the Weight of People or Personal Property.

Broad Form perils

The peril of Fire also covers losses due to _____, _____, and _____ as the result of the fire.

firefighter damage, water damage, and smoke damage

Earthquake deductibles are written as a ______of the loss.

Percentage

Most of the insurance coverages that the typical business needs, whether they are large or small, are contained in one super policy called The _____.

Commercial Package Policy (CPP)

The modules are actually _____, or coverage's, that are used to construct a CPP.

Policies

You as the Producer/Agent select the ___/____/____ that are required to fulfill the needs of each individual business.

policies/coverages/modules