Overview Of Property And Casualty Insurance

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Sarahjean197
S
Sarahjean197
Community Contributor
Quizzes Created: 2 | Total Attempts: 1,263
| Attempts: 782
SettingsSettings
Please wait...
  • 1/10 Questions

    Replacement cost less depreciation best defines

    • A valued policy
    • Actual appraised value
    • Actual cash value
    • Market value
Please wait...
About This Quiz

Explore key concepts of Property and Casualty Insurance through this structured assessment. Topics include exclusions, appraisal processes, premium refunds, and specific coverage forms. This quiz is crucial for understanding insurance contract nuances and practical applications in risk management.

Property And Casualty Quizzes & Trivia

Quiz Preview

  • 2. 

    A civil wrong can best be described as

    • Bodily injury

    • Personal injury

    • Criminal act

    • A tort

    Correct Answer
    A. A tort
    Explanation
    A civil wrong can best be described as a tort. A tort refers to a wrongful act or omission that causes harm or injury to another person, their property, or their reputation. It is a legal concept that allows individuals to seek compensation for the damages they have suffered due to someone else's negligence or intentional wrongdoing. Unlike criminal acts, which are prosecuted by the state, torts are resolved through civil lawsuits where the injured party seeks monetary damages or other forms of relief from the responsible party. Therefore, a tort is the most appropriate term to describe a civil wrong.

    Rate this question:

  • 3. 

    An insured decides to stop paying premiums on his fire insurance policy and returns the contract to the insurer mid-term. This insured would recieve which of the following premium refunds?

    • Pro rata

    • Short-rate

    • Actual cash value

    • Specified peril

    Correct Answer
    A. Short-rate
    Explanation
    When an insured decides to stop paying premiums on his fire insurance policy and returns the contract to the insurer mid-term, he would receive a short-rate premium refund. A short-rate premium refund is calculated based on the number of days the policy was in force, with a penalty deducted for early cancellation. This means that the insured will receive a refund, but it will be less than the pro rata amount that would have been refunded if the policy had been canceled at the end of the term.

    Rate this question:

  • 4. 

    A theater company that travels across the country would cover its equipment with which of the following fire forms?

    • Blanket form

    • Specific form

    • Reporting form

    • Floater form

    Correct Answer
    A. Floater form
    Explanation
    A theater company that travels across the country would cover its equipment with a floater form. A floater form is a type of insurance policy that provides coverage for movable or specialized equipment, such as cameras, musical instruments, or theater equipment. Since the theater company is constantly on the move, it is essential for them to have insurance coverage that protects their equipment wherever they go. A floater form ensures that their equipment is protected against loss or damage, whether it is in transit or at a temporary location.

    Rate this question:

  • 5. 

    Which of the following statements is accurate with regard to a specific form?

    • It covers the same kind of property in different locations

    • It provides coverage for specific goods in different locations

    • It is designed to provide coverage for contents that fluctuate in value

    • It provides coverage for one kind of property at one location

    Correct Answer
    A. It provides coverage for one kind of property at one location
    Explanation
    The correct answer states that a specific form provides coverage for one kind of property at one location. This means that the form is designed to protect a particular type of property, such as a building or a vehicle, at a specific location. It does not cover different types of properties or multiple locations.

    Rate this question:

  • 6. 

    An insured purchases a fire policy for $150,000. The contract includes an 80% coinsurance clause, and the building is valued at $250,000. After suffering a $30,000 fire loss, the insurer will pay

    • $18,000

    • $22,500

    • $28,125

    • $30,000

    Correct Answer
    A. $22,500
    Explanation
    The insured purchased a fire policy for $150,000, which is less than the 80% coinsurance requirement of $200,000 (80% of $250,000, the value of the building). Therefore, the insured is underinsured. To calculate the claim payment, we divide the amount of insurance purchased ($150,000) by the amount required ($200,000) and multiply it by the loss ($30,000). This gives us $22,500, which is the amount the insurer will pay.

    Rate this question:

  • 7. 

    The definition of bodily injury includes all of the following EXCEPT

    • Slander

    • Death

    • Sickness

    • Loss of income

    Correct Answer
    A. Slander
    Explanation
    The definition of bodily injury includes death, sickness, and loss of income, but it does not include slander. Bodily injury refers to physical harm or damage to a person's body, whereas slander refers to making false spoken statements that harm a person's reputation. Therefore, slander is not considered a form of bodily injury.

    Rate this question:

  • 8. 

    An insured and insurer will use which of the following when they are unable to agree on the amount of a claim to be paid?

    • Arbitration

    • Assignment

    • Appraisal

    • Recession

    Correct Answer
    A. Appraisal
    Explanation
    When an insured and insurer are unable to agree on the amount of a claim to be paid, they will use appraisal. Appraisal is a process in which a neutral third party is brought in to assess the value of the claim and determine the appropriate amount to be paid. This helps resolve disputes between the insured and insurer and ensures a fair settlement.

    Rate this question:

  • 9. 

    Negligence has all of the following as essential elements EXCEPT

    • Legal duty

    • Criminal act

    • Proximate cause

    • Actual injury

    Correct Answer
    A. Criminal act
    Explanation
    Negligence is a legal concept that refers to the failure to exercise reasonable care, resulting in harm or injury to another person. The essential elements of negligence include a legal duty owed to the plaintiff, a breach of that duty, proximate cause linking the breach to the injury, and actual injury or harm suffered by the plaintiff. However, a criminal act is not an essential element of negligence. While a criminal act may be considered negligent behavior, it is not required for a claim of negligence to be established.

    Rate this question:

  • 10. 

    Exclusions in an insurance contract are utilized for all of the following purposes EXCEPT

    • Eliminate duplicate coverage

    • Help manage physical and moral hazards

    • Minimize claims expenses

    • Eliminate duplicate coverage

    Correct Answer
    A. Minimize claims expenses
    Explanation
    Exclusions in an insurance contract are utilized for all of the following purposes except minimizing claims expenses. Exclusions are provisions in an insurance policy that specify what risks or losses are not covered by the policy. They are used to eliminate duplicate coverage, help manage physical and moral hazards, and minimize the likelihood of claims being made. However, minimizing claims expenses is not a purpose of exclusions. Instead, it is a goal of the insurance company to minimize claims expenses by carefully underwriting policies and managing risk.

    Rate this question:

Quiz Review Timeline (Updated): Mar 19, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 31, 2011
    Quiz Created by
    Sarahjean197
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.