#1
What does property insurance typically cover?
Loss or damage to personal property
ExplanationCovers losses or damage to personal belongings.
#2
Which of the following is a characteristic of casualty insurance?
Covers liability for injuries or damages caused by the insured
ExplanationProvides coverage for injuries or damages caused by the insured.
#3
Which of the following is NOT typically covered by property insurance?
Injuries to visitors on the insured property
ExplanationCoverage usually excludes injuries to visitors on the insured property.
#4
In property insurance, what does 'peril' refer to?
The cause of loss or damage to property
ExplanationThe specific cause of loss or damage to property.
#5
What is the purpose of a deductible in property insurance?
To reduce the premium cost
ExplanationReduces premium cost by requiring the insured to pay a specified amount before coverage kicks in.
#6
Which of the following perils is typically excluded from standard property insurance policies?
Flood
ExplanationStandard policies often exclude coverage for flood-related damages.
#7
What is an 'endorsement' in property and casualty insurance?
An amendment or addition to the insurance policy
ExplanationAn additional provision or modification to the insurance policy.
#8
What is 'actual cash value' in property insurance?
The value of the property minus depreciation
ExplanationProperty value accounting for depreciation.
#9
In casualty insurance, what does 'liability coverage' refer to?
Coverage for injuries or damages caused by the insured
ExplanationProvides coverage for injuries or damages caused by the insured.
#10
What is 'subrogation' in insurance?
The process of an insurance company seeking reimbursement from a third party for a claim it has already paid
ExplanationInsurer seeking reimbursement from a third party for a paid claim.
#11
What is 'coinsurance' in property insurance?
A clause that requires the insured to share a portion of the covered losses
ExplanationInsured sharing a portion of covered losses with the insurer.
#12
What is 'aggregate limit' in casualty insurance?
The maximum amount the insurer will pay for all claims during a policy period
ExplanationMaximum payout for all claims during a policy period.