Psi Pa Property And Casualty Exam Guide (100% Correct Solutions).

Adverse Selection {Ans: insuring risks that are more prone to losses than average risk (poorer risks tend to seek insurance or file claims to a greater extent than better risks) companies can refuse or restrict coverage for bad risks or charge them a higher rate}Salvage {Ans: property that is taken by the insurer to reduce its loss after a claim is paid}1. professional & business liability coverage's is excluded from all other primary personal and commercial insurance polices 2. increased risk of suit {Ans: Need for special liability coverages are important bc... (2 reasons)}Comparative Negligence {Ans: the fault is shared between the parties involved & the awards for damages are reduced by the percentage of negligence of each party (statutory defense)}Misappropriation of funds {Ans: improper holding, breaking fiduciary obligations}Exposure {Ans: unit of measurement used to determine rates charged for insurance coverage}Coverage I- Personal & Advertising Liability {Ans: -covers insured for personal injury like slander or libel -covers also for advertising injury like copyright infringement -exclusions are- intentional acts, contractual liability, breach of contract, or failure of goods to perform}Conditions {Ans: indicates the general rules or procedures that the insurer and insured agree