knowledge topics
Property and Casualty Insurance Contracts
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define parties to a property and casualty insurance contract,1 such as:
- Policy holder
- Insured
- Insurer
- Identify documents forming a property and casualty insurance contract.
- Application
- Policy
- Riders or endorsements
- Identify the outcomes of an application for property and casualty insurance.
- Approval
- Decline
- Define the values that property and casualty insurance policies may use when computing the benefit payable for a loss.2
- Actual cash value
- Replacement cost value
- Salvage value
- Define the terms that property and casualty insurance policies may use when determining the loss covered.
- Specified (or named) perils
- All perils
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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