Arkansas Property & Casualty Study Guide Questions And Correct Answers

Flat Cancellation {Ans: Cancellation of the policy as of the original or renewal date.}Coverage Part {Ans: Part of the Commercial Package Policy. The insured can choose a particular type of coverage for his business. A coverage part consists of the declarations, coverage forms & endorsements.}Casualty Insurance {Ans: A line of insurance which historically has included a wide variety of unrelated coverages. One important coverage in the casualty line is Liability. Casualty also includes Glass, Aviation, Auto, Boiler, & Machinery, Crime, Workers' Comp, & Bonds.}Actual Cash Value (ACV) {Ans: The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss.}Fidelity Bond {Ans: A class of bonds which guarantees an employee's honest discharge of duty.}Occurrence Coverage Form {Ans: Liability coverage for injury or loss that occurs only during the policy period, regardless of when the claim is actually made.}