Casualty Insurance Basics Flashcards
6 cards from real Property And Casualty Insurance License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Casualty Insurance Basics flashcards as text
What is the split limit '25/50/10' on an auto liability policy?
Answer: $25,000 per person bodily injury, $50,000 per accident bodily injury, $10,000 property damage
The split limit 25/50/10 means $25,000 maximum per injured person, $50,000 maximum per accident for all bodily injuries, and $10,000 for property damage.
What does 'occurrence' mean in a liability policy?
Answer: An accident or continuous exposure to conditions that result in bodily injury or property damage
An occurrence is an accident, including repeated exposure to substantially the same general harmful conditions, that results in bodily injury or property damage.
What is the difference between an 'occurrence' form and a 'claims-made' form?
Answer: Occurrence covers losses that happen during the policy period; claims-made covers claims filed during the policy period
An occurrence form triggers coverage based on when the loss occurred, while a claims-made form triggers coverage based on when the claim is first reported during the active policy period.
Personal Injury Protection (PIP) coverage is associated with which type of auto insurance system?
Answer: No-fault system
PIP is a component of no-fault auto insurance systems, providing medical and income loss benefits to the insured regardless of who caused the accident.
What is the purpose of an 'umbrella' liability policy?
Answer: To provide excess limits above underlying primary policies and drop-down coverage for some uncovered claims
An umbrella policy sits above primary liability policies, paying claims that exceed underlying limits and sometimes covering gaps left by underlying policies.
Employers Liability coverage (Part 2 of workers' compensation) protects the employer against:
Answer: Employee lawsuits alleging negligence beyond standard workers' comp benefits
Employers liability covers the employer if an employee sues for damages beyond what workers' compensation statutes provide, such as in dual-capacity or loss-of-consortium suits.