P&C Exam Cheat Sheet: 10 Key Definitions You MUST Know

10 Key P&C Definitions You Must Know Cold These terms appear on almost every P&C exam. Memorize them — and understand what they mean in context. 1. Subrogation — The insurer's right to recover from a third party after paying a claim. 2. Indemnity — Restoring the insured to their pre-loss financial position. No profit. 3. Insurable Interest — A financial stake in the subject of insurance. 4. Proximate Cause — The direct, uninterrupted cause of a loss. 5. Coinsurance — A requirement to insure property to a minimum % of its value. 6. Deductible — The amount the insured pays out-of-pocket before insurance kicks in. 7. Binder — Temporary coverage agreement while the policy is being finalized. 8. Rider/Endorsement — A modification attached to a policy that changes its terms. 9. Exclusion — A specific loss or condition NOT covered by the policy. 10. Waiver — The voluntary surrender of a known right by the insurer. Print this out and review it daily in the week before your exam. Need extra help to PASS your Property and Casualty exam? Get our on-demand program here: https://www.pandcpacademy.com/pass-your-exam-now