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P&C Insurance


Abandonment condition Insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value.
Absolute liability (Type of liability) Imposed by law on those participating in certain activities that are considered especially hazardous. (A person may be held liable for the damages of another even though the individual was not negligent.)
Accident A loss that occurs at a specific time and place.
Accounts receivable insurance (Filed commercial inland marine form) Insures against loss the insured suffers because of inability to collect from customers when accounts receivable records are damaged or destroyed.
ACV (Actual Cash Value) The cost to replace an item of property at the tim of loss, less an allowance for depreciation. (Often used to determine the amount of reimbursement for a loss.)
Additional coverages (Coverage extensions, other coverages, extended coverages) Supplemental insurance coverages to that apply only in certain circumstances, have reduced of separate limits of liability, or require the insured to meet certain requirements before they are applicable.
Additional insured An individual or company, in addition to the named insured, who is listed in the declarations.
Addition insured- Lessor endorsement Commercial auro endorsement used to make leased vehicles considered owned vehicles for coverage purposes.
Adhesion contract A contract where one party has more power than the other party in drafting the contract.
Adverse selection The tendency of insureds with a greater than average chance of loss to purdahs insurance.
Agency Principles governing the authority of any agent that represents a principal.
Agent An individual or organization that legally represents another.
Aggregate limit (Type of policy limit) Found in liability policies that limits coverages to a specified total amount for all losses occurring within the policy period.
Agreed value condition (Stated amount condition) Stipulates a certain value that will meet the coinsurance requirement; if the policy limit equals ors exceeds this amount, the insured will not be assessed a coinsurance penalty.
Aleatory contract Contract that is contingent on an uncertain event.
Alien company An insurance company incorporated in a country other than the United States that is doing business in the United States.
A.M. Best Company Organization that rates the financial stability of insurance companies doing business in the United States.
Annual transit policy (Nonfiled commercial inland marine transportation form) Insures a property owner's incoming or outgoing shipments of goods during a year.
Apparent authority Legal doctrine that states that an agent has whatever authority a reasonable person would assume she has.
Application Questionnaire filled out by an agent and the prospect who is seeking insurance. (Contains information used to underwrite and rate the policy.)
Appraisal condition (Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss.) The insured and insurer each select an appraiser, the two appraisers select an umpire..
Appurtenant structure Buildings of lesser value that are on the same premises as the man building insured under a property policy. (They are usually covered by the policy.)
Arbitration condition (Policy condition that is similar to appraisal condition.) May be used to resolve other areas of disagreement besides those regarding the value of loss.
Assessment mutual company Mutual insurance company that charges members a pro-rata share of losses ate the end of each policy period.
Assigned risk plan Automobile insurance plan.
Assignment condition Specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing.
Assumption of risk (Defense against liability based on the common law principle.) A person who knowingly exposes himself to danger to injury assumes the risk of loss and cannot hold another person responsible for the loss.
Authorized insurer (Admitted insurer) Company that meets a state insurance department's standards and is authorized to do business in that state.
Automatic increase in insurance endorsement Dwelling policy endorsement that provides an annual increase in the Coverage A amount of 4%, 6%, or 8%.
Automobile insurance plan State-Sponsored plan that provides automobile insurance to the who are uninsurable under standard auto insurance policies.
Aviation hull insurance Provides coverage for physical damage to aircraft,
Aviation liability insurance Provided for owners of aircraft that covers liability for BI (bodily injury), injury to passengers, property damage, and medical payments.
Bailee A person or organization that has temporary possession of someone else's personal property.
Bailee's customer policy (Nonfiled commercial inland marine form) Obtained by a Bailee to cover loss or damage to customer's property in the Bailee's custody without regard to liability.
Bailment Delivery of property by the owner to someone else to be held for some special purpose and then returned to the owner.
Barratry (Covered in ocean inland marine insurance) Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. (Includes hijacking, abandonment, and embezzlement.)
Best's Organization that rates the financial stability of insurance companies doing business in the United States.
Bid bond (Type of surety bond) Guarantees that if a contractor's bid is accepted, the contractor will enter into a contract and provide the required performance bond.
Bill of lading Standardized contract of carriage issued by the common carriers to the business's or which it is shipping goods.
Binder Oral or written statement that provide immediate insurance protection for a specified period. (Designed to provide temporary coverage until a policy is issued or denied.)
Blanket insurance Type of insurance policy that covers more than one item of property at a single location or one or more items of property at multiple locations.
Blanket position bond (Type of fidelity bond) Covers losses arising from the dishonesty of one or more employees acting separately or in collusion. (Provides a single limit of liability applicable to each employee involved in a loss.)
BI (Bodily injury) Defined in most policies to include injury, sickness, disease, and death resulting from any of these at any time.
Boiler and machinery insurance Covers the insured for losses arising out of the use of steam boilers or other machinery or equipment. (May be included in CPP.)
Broad theft coverage endorsement Dwelling policy endorsement that covers theft, attempted theft and V&MM resulting from theft. (Property is covered while it is on or off the premises.)
Broker Individual who represents the prospect, instead of the insurance company, in the insurance transaction.
Builders risk coverage form (One of the commercial property coverage forms) Covers commercial, residential, or farm buildings that are under construction.
Builders risk reporting form (Optional form used with the commercial property builders risk coverage form.) Allows the insured to purchase a smaller amount of insurance that gradually increases as the value of the building under construction increases.
Building and personal property coverage form Commercial property coverage form that covers buildings, the insured's business personal property, and the personal property of others located at the business premises.
Burglary (As defined in crime insurance forms) The taking of property by a person unlawfully entering or leaving the premises as evidence by visible signs of forced entry or exit.
Business auto coverage form (One of the commercial auto coverage forms) Covers a business's owned, non-owned, and hired autos against liability and physical damage losses.
Business auto physical damage coverage form (One of the commercial auto coverage forms) Covers a business's owned or hired business autos for physical damage only.
Business income coverage forms Commercial property coverage forms that pay for loss of income that the insured sustains due to a direct physical loss from a covered peril that forces the insured to suspend operations until the property can be repaired, rebuilt, or replace with reasonab
Business income from dependent properties (Broad form commercial property coverage form) Designed for insured's whose business income is dependent on the ongoing operations of other businesses they do not own.
Business liability Liability that arises out of the conduct of a business.
Business pursuits endorsement Homeowners policy endorsement the provides liability coverage for a business conducted away from the residence premises.
BOP (Businessowners policy) Packaged policy designed to provide broad property and liability coverage for small businesses; eligibility requirements are more strict than the CPP's.
Camera and musical instruments dealers coverage form (Filed commercial inland marine form) Written to cover camera and musical instruments dealers; covers the insured's stock in trade as well as customer property in the insured's care, custody, or control.
Cancellation Termination of an insurance policy by the insured to the insurance company during the policy period.
Capital The accumulated, permanent resources a company gets from owners and customers; the value of the portion of assets that a company owns and that are not restricted by obligations to creditors.
Cargo insurance (Type of ocean marine insurance) Covers goods while they are in transit over water.
Casualty insurance Line of insurance that includes a wide variety of unrelated coverages, including liability, at, workers' compensation. aviation, crime, and surety bonds.
Causes of loss form Separate form used with the commercial property coverage part of the CPP that lists covered perils and exclusions.
Certificate of insurance Written form that verifies a policy has been written. (Provides a summary of the coverage provided under the policy.)
Claim adjuster Person employed by or acting on behalf of an insurance company to evaluate and settle insurance claims. (Must determine the cause of loss, where the loss is covered by the policy, the value of loss, and the amount of loss payable by the policy.)
Claims-made form CGL coverage form that pays for BI or PD losses for which a claim was first made against the insured during the policy period.
Coinsurance Policy condition that requires an insured to pay party of a loss if the amount of insurance carried on property is less than a specified percentage of the value of the property at the time of loss.
Coinsurance penalty The amount not paid by the insurance company because the insured failed to comply with the coinsurance condition.
Collision coverage (In auto insurance) A type of physical damage coverage that covers loss that occurs when the insured auto strikes another object or vehicle; may also include upset or overturn of the insured auto.
Combined ratio The sum of the loss ratio and the expense ratio; a ratio of 100% is the breakeven point; a ratio below 100% indicates an underwriting profit; a ratio above 100% indicates a loss.
Commercial articles coverage form (Filed commercial inland marine form) Covers photographic equipment or musical instruments used commercially .
Commercial auto coverage part (Part of CPP) Provides liability and physical damage coverage for a business's autos. including garage, trucking, and motor carrier business.
Commercial blanket bond (Type of fidelity bond) Covers loss arising from the dishonesty of one or more employees acting separately or in collusion. (The limit of liability applies separately to each loss, regardless of the number of employees involved.)
Commercial crime coverage (Part of the CPP) Covers various crime exposures of businesses.
CGL (Commercial general liability) coverage part (Part of the CPP) Provides liability coverage for businesses.
Commercial lines Insurance designed for businesses, institutions, or organizations.
CPP (Commercial package policy) The ISO (Insurance service office) commercial lines policy that contains two or more lines or insurance to two or more coverage parts. (Can include almost any commercial coverage, except ocean marine, aviation, and workers' compensation insurance.)
Commercial property coverage part (Part of the CPP) Provides insurance for a business's real and business personal property.
Commercial property floater risks (Category of the nationwide definition) Includes a number of commercial inland marine forms.
Common policy conditions (Form that must be included in the CPP) Contains conditions that apply to all coverages issued under the CPP.
Common policy declarations (Form that must be included in the CPP) Contains information about the insured that applies to all coverages under the CPP.
Comparative negligence Law that allows an injured party to collect from another party for a loss, even when the injured party contributed to her own loss. (Damages are reduced to the extent of the injured party's negligence.)
Compensatory damages Damages that reimburse an injured party for losses that were actually sustained.
Competent parties (One of the requirements of a legal contract) States that for a contract to be valid, it must be made between parties who are considered competent under the law.
Competitive state fund (Method of providing workers' compensation coverage in some states) Employers may either purchase insurance from a private insurance company or from a state fund.
Completion bond (Type of surety bond) Guarantees that when contractors borrow money to fund construction projects, the project will be carried out and the work will be delivered free and clear of liens or encumbrances.
Comprehensive coverage (OTC- Other than collision coverage) (In auto insurance) A broad physical damage coverage that covers all property losses except collision and those perils or property that are specifically excluded.
Concealment The withholding of a material fact involved in the contract on which the insurer relies.
Concurrent causation A situation where two or more perils act concurrently (at the same time or in sequence) to cause a loss.
Condition contract A contract that contains a number of conditions that both parties must comply with.
Conditions (Portion of an insurance policy) Describes the rights and duties of the insured and the insurance company under the policy.
Condominium association coverage form Commercial property coverage form that covers buildings in a condominium complex.
Condominium commercial unit-owner coverage form (Commercial property coverage form the may only be purchase by owners of commercial condominiums.) Covers the condominium's contents, including business personal property and the personal property of others.
Consideration (A characteristic of a legal contract) The thing of value exchanged for the performance promised in the contract.
Consultant Insurance professions who, for a fee, offers advice on the benefits, advantages, and disadvantages of various insurance policies. (Sells advice, not insurance.)
Contract A legal agreement between tow competent parties that promises a certain performance in exchange for a certain consideration.
Contract bonds (Category of surety bonds) Guarantee the fulfillment of contractual obligations; includes bid bonds, performance bonds, payment bonds, supply bonds, and completion bonds.
Contractors equipment floater (Nonfiled commercial inland marine form) Covers the heavy machinery. equipment, and tools a contractor uses in business.
Contribution by equal shares Calls all insurers to contribute equally up to the limit of the policy having the smallest limit, that company stops paying; the other companies share in the remainder until the loss is paid in full or all policy limits are exhausted.
Contributory negligence Common law defense against negligence that states that if an individual contributes to her own loss in any way, then someone else cannot be held liable for the loss.
Countersignature Signature of a licensed agent that in most states, must appear on yhr policy to validate the contract.
Court bond (Type of surety bond) Used to settle legal arguments that do not involve monetary damages.
Coverage form (Policy form) Document that contains insuring agree,eat, coverages, exclusions, and conditions; must be attached to a policy jacket to make a complete policy.
Coverage part Combination of forms and endorsements used to provide a particular commercial coverage. (The forms and endorsements available under each coverage part can be used to issue a policy covering a single line of insurance or combined to provide a CPP.)
Coverage trigger Event that activates (triggers) coverage under a CGL form.
Custodian (As defined in crime insurance forms) An insured, partner, or employee who has care and custody of insured property within the premises. (Does not apply to watchperson or janitor.)
Damages Monetary compensation awarded by a court to an injured party.
Declarations (Section of an insurance contract) Shows who is insured, what property or risk is covered, when and where the coverage is effective, and how much coverage applies.
Deductible Dollar amount the insured must pay on each loss to which the deductible applies.
Defense costs Legal expenses incurred by the insurer to defend suits brought against insureds; defense costs are paid in addition to payments for BI or PD.
Definitions (Section of an insurance policy) Clarifies the meaning of certain terms used in the policy.
Degree of care (Standard of care) Extent of legal duty owed by one person to another.
Deposit premium (Estimated premium) Premium paid at the beginning of the policy period that is based on an estimate of what the final premium will be; this premium is adjusted based on report submitted by the insured to the insurer.
DIC (Difference in conditions) insurance Type of commercial property policy that covers most insurable perils but excludes basic fire and extended coverage perils.
Diminution of value An actual of perceived loss of an auto's resale or market value that results from a direct accidental loss.
Direct loss Financial loss resulting directly from a loss to property.
Direct response system Insurance company that sells insurance through the mail or over the phone. (No agents involved.)
Direct writer Insurance marketing system where the company's agents are also employees of the company.
D&O (Director and officers) liability insurance Type of errors and omissions policy written for directors and officers of corporations who may be sued as individuals by stockholders.
Disability insurance Line of insurance that protects the insured against loss of income resulting from injury or sickness.
Discovery form (Commercial crime form) Covers losses that are sustained at any time and discovered either during the policy period or up to 60 days after the policy expires. (Related to employees benefit plans is extended for up to one year after policy expiration.)
Doctrine of reasonable expectations Legal principle that provides that an insurance policy includes coverages that an average person would reasonably expect it to include, regardless of what the policy actually provides.
Domestic company Insurance company doing business in the state in which it is incorporated.
Domestic shipments (Category of nationwide definition) Includes coverage for cargo in transit over land.
DOC (Drive other car)- Broadened coverage for name individuals endorsement (Commercial auto endorsement) Extends the definition of a covered auto to include autos the named insured does not own, hire, or borrow while being used by the person named in the endorsement.
Duties following loss Condition found in property-casualty policies explains the insureds responsibilities after a loss occurs.
Dwelling policy Policy provides property coverage to individuals and families; covers dwellings, other structures, personal property, and fair rental value.
Dwelling under construction endorsement Dwelling policy endorsement used to provide provisional limits of liability for dwellings under construction; the limits of liability increase as construction of the building progresses.
Earned premium Premium an insurance company has actually earned by providing insurance protection for designated period of time.
Earthquake insurance Insurance that covers damage to a structure, its contents, or both as the result of an earthquake. (Available as a separate policy or endorsement to the dwelling, homeowners, and commercial property policies.)
Electronic data processing equipment floater (Nonfiled commercial inland marine policy ) Provides open peril coverage for computer hardware, computer software, an data that is owned by the insured or in the insured's care, custody, or control.
Employees as additional insureds endorsement (Used with the business auto coverage form) Covers employees while they are using an auto not owned, hired, or borrowed by the business in the business or personal affairs of the named insured.
Employers liability coverage Coverage included in the workers' compensation and employers liability policy that covers the employer's liability at common law arising out of employees' work-related injuries and occupational diseases.
Employment practices liability insurance Type of policy that covers a business's losses arising out of wrongful termination, discrimination, sexual harassment, and other employment-related practices.
Endorsement Document attached to an insurance policy that changes the policy in some way.
Equipment breakdown protection coverage form Title of ISO coverage form used to write what is traditionally called boiler and machinery insurance.
Equipment dealers coverage form (Filed commercial inland marine coverage form) Covers mobile equipment and construction equipment dealers; covers the insured's stock in trade as well as customer property in the insureds care, custody, or control.
E&O (Errors and omissions) insurance Professional liability coverage that protects the insured against liability for committing and error or omission in the performance of professional duties.
Estoppel Principle that states that if one intentionally or unintentional creates the impression that a certain fact exists, and an innocent party relies on that impression.
Excess electronic equipment endorsement PAP endorsement that allows an insured to add coverage for tapes, records, and disks used with electronic media and to increase the limit of insurance for electronic equipment that is permanently installed in an are of the auto not normal.
Excess insurance When two or more policies or coverages apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted.
Excess lines agent (Surplus lines agent) Agent licensed by the state to handle the placement of business with nonadmitted insurers.
Exclusions Section of an insurance policy that lists property perils, persons, or situations that are not covered under the policy.
Exclusive agent (Captive agent) An agent that markets insurance for a single company.
Exclusive remedy doctrine Stipulates that the only means available to employees to receive compensation from employers for injuries covered by workers' compensation laws is through the benefits mandated by those laws.
Expense ratio Ratio that indicates the cost of doing business. (Calculated by dividing the amount underwriting expenses by the amount of written premium.)
Experience modification factor The factor applied to reduce the premium when loss experience is better than expected.
Experience rating Type of merit rating that determines premium based on previous loss experience.
Exports (Category of the nationwide definition) Includes risks eligible for ocean marine insurance
Exposure A condition or situation that presents a possibility of loss.
Express authority Legal doctrine that states that an agent has the authority specifically given to the agent, either orally or in writing, but the principal
Extended nonwoned coverage- vehicles furnished or available for regular use endorsement PAP endorsement that eliminates most exclusions applicable to autos that are furnished of available for the regular use of the named insured or family members.
ERP (Extended reporting period) Period of time provided by the claims-made CGL coverage form during which coverage will be provided for claims made after the expiration date of the policy if certain conditions are met. (Basic- 60 days, extended- 5 years, supplemental- unlimited.)
Extortion- commercial entities endorsement (Used with commercial from policy) Covers loss of money, securities and other property when surrendered away from the premises as result of a threat to do bodily hard to the insured, an employee, or relatives of either who is being held captive.
Extra expense coverage form Commercial property coverage form that covers additional expenses incurred by the insured business to continues operations following a direct loss by a peril insured against.
Fair credit reporting act Federal law that allows consumers who are denied insurance because of information contained in a credit report to be notified and allowed to obtain the information used in the report from the reporting agency.
FAIR (Fair access to insurance requirements) plan Program established by law that makes property insurance available to insureds who might otherwise be uninsurable in the standard market.
Farm coverage Part of the CPP that provides property and liability insurance to farmers for both their personal and business exposures.
FELA (Federal employers liability act) Federal law that provides benefits to injured railroad workers who are exempt under state workers' compensation laws.
Fellow servant rule Common law defense against liability that allowed employers to escape liability for injury to an employee if another employee's carelessness had contributed to the loss.
Fidelity bond Class of bonds that guarantees an employee's honest discharge of duty; written to protect an insured from dishonest acts by employees.
Fiduciary Person who stands in a special relationship of trust to another person.
Fiduciary bond (Type of surety bond) Guarantees that a fiduciary will fulfill its obligations set forth by law.
Fiduciary liability policy Insurance that protects people who manage private pension and employee benefit plans against liability foe violation of the federal ERISA law.
Field underwriting Selection of clients by the agent in accordance with company standards.
File and use Method of rate and form ratification used by some state insurance departments that allows a company to begin using forms or rates as soon as they are filed by the department.
Filed form Standardized inland marine form that can be written under the commercial inland marine coverage part of the CPP.
Film coverage form (Filed commercial inland marine form) Covers exposed motion picture film until production is complete and positive prints are made.
Financial responsibility laws State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable.
First-named insured First person listed in the declarations as an insured; the first-named insured may have a higher level of duties or rights under the policy.
Flat cancellation Cancellation of a policy by the insured of the insurance company on its effective date.
Floater Insurance policy that covers property wherever it is located.
Floor plan coverage form (Filed commercial inland marine form) Covers stock that is subject to a floor plan arrangement, where a dealer borrows money from a lender with which to pay for merchandise.
Foreign company An insurance company doing business in a state other than the one in which it is incorporated.
Fraternal benefit society An incorporated society of order, without capital stock, that is operated on the lodge system and is conducted solely for the benefit of its members and their beneficiaries and not for profit.
Fraud A deliberate misrepresentation that causes harm; an all-out effort by one party to decide and cheat the other.
Freight insurance (Type of ocean marine insurance) Protects the insured against the loss of shipping costs.
Functional replacement cost Method to determine reimburse,eat for some losses, particularly those to antique, ornate, or custom construction; the damaged property is repaired or replaced with less expensive, but functionally equivalent, materials.
Garage coverage form (Commercial auto coverage form) Provides liability, garage keepers, and physical damage coverages for vehicle dealers. including dealers that have repair operations on the business premises.
Garagekeepers insurance (Coverage that is part of the garage coverage form) Covers garage risk's legal liability for customers' autos in the care, custody, or control of the garage. (Can apply without regard to fault.)
General average loss (Ocean marine term used to indicate a partial loss resulting from jettison.) Each party shares in the loss in portion to his total interest in the property being transported.
General conditions form Separate form that lists the conditions that apply to a policy.
General damages Type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement.
Hazard Something that increases the chances of loss.
Health insurance Line of insurance that protects the insured against financial loss due to medical bills.
Hired and nonowned auto liability endorsement Businessowners policy endorsement used to cover hired or nonwoned autos used by the business.
Hold harmless agreement Contractual arrangement where one party assumes the liability of a situation and relieves the other party of responsibility.
Home daycare coverage endorsement Homeowners policy endorsement used to provide coverage for home day care business.
Homeowners policy Personal multiline policy for homeowners that includes both property and liability coverages. (There are different forms that provide varying degrees of property coverage; liability coverage is the same in all forms.)
Hull insurance Ocean marine insurance that provides coverage for physical damage to the ship.
Implied authority Authority given by the principal to the agent that is not formally expressed or communicated.
Implied warranties (Ocean marine insurance) Warranties that are not written into the policy, but have become a part of the policy by custom.
Imports (Category of nationwide definition) Includes risks eligible for ocean marine insurance.
Incidental occupancy A business conducted in a dwelling used primarily as a residence with no other businesses operating on the same premises. (Individual insurers have specific guidelines about the types of incidental businesses permitted.)
Incurred losses One of the components used to calculate the loss ration; it includes losses and certain expenses associated with claim handling.
Indemnity Principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he occupied before the loss occurred, no better no worse.
Independent adjuster Claim handler who works independently instead of fr a particular insurer.
Independent agent (Nonexclusive agent) Agent who represents many insurance companies. rather than a single company.
Indirect loss (Consequential loss) Loss that is the result or consequence of a direct loss.
Individual named insured endorsement (Commercial auto endorsement) Provides coverage similar to that provided under the PAP to family members of the names insured while using any auto.
Inland marine insurance (Personal inland marine insurance) Form of insurance originally designed as an extension of ocean marine coverage to insure transportation of goods over land. (Can be included in CPP.)
Installation policy (Nonfiled commercial inland marine policy) Covers loss to machinery, equipment, building materials, and supplies in transit to or being used with or during the course of installation, testing, building, renovating, or repair.
Instrumentalities of transportation and communication (Category of nationwide definition) Includes a variety of forms closely related to transportation or communication; such as bridges, pipelines, and television towers.
Insurable interest Any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance from loss or destruction or financial damage or impairment.
Insurance Contract or device for transferring the risk of loss from a person, business, or organization to an insurance company that agrees, in exchange for a premium, to pay for losses through an accumulation of premiums.
Insurance commissioner (Insurance director, insurance superintendent) Head official of a state insurance department.
Insurance department State department charged with controlling insurance matters within the state.
Insurance guaranty association State funds created by law that pay claims of insurers domiciled in that state become insolvent; generated by making assessments against other insurers operating in the state.
ISO (Insurance Services Office) Organization established for the benefit of its member insurance companies and other subscriber companies; ISO gathers statistics, provided loss costs, drafts policy forms and coverage provisions, and conducts inspections for ratemaking purposes.
Insured contract (Incidental contract) Term used in the CGL and businessowners liability forms to describe contracts for which contractual liability coverage is available under the policy, such as leases, sidetrack agreements, and elevator maintenance agreements.
Insuring agreement Section of an insurance policy that describes what is covered and the perils the policy insures against.
Interline endorsement An endorsement that modifies two or more lines of insurance.
Intervening cause An independent action that breaks the chain of causation and sets in motion a new chain of events; when this occurs, the intervening cause becomes the proximate cause. (Can serve as a common law defense against liability.)
Invitee A person invited onto a premises for some purpose involving potential benefit to the property owner.
Jettison A voluntary action to rid a ship of cargo to prevent further damage or peril. (Jettison is covered peril in ocean marine policies.)
Jewelers block coverage form (Filed commercial inland marine form) For jewelers that covers the insured's stock in trade and the property of others while it is on or off the premises.
Joint ownership coverage endorsement PAP endorsement that allows the policy to be issued to two or more persons who live in the same household to two or more individuals who are related in another way besides husband and wife.
Jones act Federal law that allows members of ships' crews to sue their employer/ship owner at common law for injuries caused by the employer's/ship owner's negligence.
Judgement rating Method of rating that establishes premiums based on a careful evaluation of each individual risk without the use or manuals or tables.
Judicial bond (Category of surety bond) Guarantees that the principal will fulfill certain obligations set forth by law- includes fiduciary bonds and court bonds.
Law of large numbers Principle that states that the more examples used to develop any statistic, the more reliable the statistic will be.
Legal liability coverage form Commercial property coverage form that covers the insured for liability arising out of negligent damage to the property of others while it is in the insured's cares custody, or control.
Legal purpose (One of the characteristics of a legal contract) Means that contracts are only enforceable if they are not obviously illegal, immoral, or against the public good.
Liability insurance Type of insurance that protects an insured from financial loss arising out to liability claims by transferring the burden of financial loss from the insured to the insurance company.
Liberalization condition Condition that provides that if the insurer broadens coverage under a policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.
License and permit bond (Type of surety bond) Sometimes required in connection with the issuance of licenses by government agencies. They guarantee that the person who posts the bond will comply with all applicable laws pertaining to their activities.
Licensee Person on the premises with the property owner's consent but for the sole benefit of the visitor.
Life insurance Insurance that pays a stipulated sum to a designated beneficiary against the financial consequences of the insured's premature death.
Limitations Policy language that eliminates or reduces coverage under certain circumstance or when specified conditions apply.
Liquor liability coverage form (CGL coverage form) Provides coverage for liquor liability excluded by standard CGL policies for those who are in the business of manufacturing, distribution, selling, serving, or furnishing alcoholic beverages.
Livestock coverage form Fair coverage form used to provide separate coverage for livestock.
Lloyd's association Voluntary association of individuals or groups of individuals who agree to share in insurance contracts; each individual or syndicate is individually responsible for the amounts of insurance they write.
Longshore and Harbor Workers' Compensation Act coverage endorsement Used with the Workers' Compensation and Employers Liability policy that covers the additional benefit required by federal law for maritime workers injured while working on navigable waters or shore-site areas.
Loss cosr Factor used in figuring insurance rates that represents how much an insurance company needs to collect to cover expected losses.
Loss provisions General term used to describe policy conditions that specify what the insured and insurer must do after a loss.
Loss ratio Method used to determine an insurance company's success in covering current losses out of current premium income; determined by dividing incurred losses by earned premium.
Loss sustained during prior insurance condition (Condition found in loss sustained version of the commercial crime forms) Allows losses that occurred during a prior policy period to be covered under the current policy if certain conditions are met.
Loss sustained form (Commercial crime form) Covers losses that are sustained during the policy period and discovered either during the policy period or up to one year after the policy expires.
Mail coverage form (File commercial inland marine form) Covers property in transport by registered mail, first class mail, certified mail, or express mail.
Malpractice insurance Term used to describe professional liability insurance issued to medical professionals or institutions.
Manual rating Method of premium determination that uses rates based on collected statistics. The rates, which apple per unit of insurance, are published in manuals; also called class rating.
Market value The amount property could be sold for at the time of loss. May be used to determine the amount of reimbursement for loss.
Material fact A fact that would cause an insurer to decline a risk, charge a differ premium, or change the provisions of the policy that was issued.
MCS-90 endorsement Endorsement attached to the truckers coverage form to provide public liability coverage.
Merit rating Method of determine premiums where a manual rate is modified to reflect the risk's unique characteristics.
Messenger As defined in crime insurance forms, and insured, partner, or employee who has care and custody of insured property outside the premises.
Miscellaneous type vehicle endorsement PAP endorsement that provides coverage for vehicles that are usually excluded by the policy, such as motorcycles, motor homes, gold acres, mopeds, and other recreational vehicles.
Misrepresentation Written or viral misstatement of a material fact involved in the contract on which the insurer relies.
Mobile agricultural machinery and equipment coverage form Farm coverage form that provides separate coverage for a farmer's mobile agricultural machinery and equipment.
Mobile equipment endorsement (Commercial auto endorsement) Makes mobile equipment considered a covered auto for coverage purposes.
Mobile home insurance Coverage that protects both a mobile home structure and its contents; some companies have mobile home packaged policies that provide property and liability insurance for owners of mobile homes. (Can be attached to HO-2 or HO-3 to modify coverage.)
Monoline company Insurance company that sites a single line of insurance
Monoline policy Insurance policy that provides one type of insurance coverage.
Monopolistic state fund Method of providing workers' compensation coverage used in some states; employers must purchase workers' compensation insurance from a state fund; private insurance companies are not allowed to compete.
Moral hazard Hazard created by an individual who would be willing to create a loss situation on purpose just to collect from the insurance company.
Morale hazard Hazard created by an individual's tendency to contribute to a loss through his own irresponsible actions or carelessness.
Mortgage condition (Loss payable condition) Condition found in property insurance policies that specifies the rights and duties of the mortgage under the policy.
Mortgagee rights Rights granted to a mortgagee under a property contract issued to a mortgagor by virtue of the mortgage's financial interest in the property.
Motor Carrier Act of 1980 Federal regulation that requires truckers and other commercial carriers to certify they are able to meet financial obligations if they become liable for injury or damage arising from their trucking operations.
Motor carrier coverage form Commercial auto coverage form that is an alternate to the truckers coverage form; it can be used to cover anyone who transports property by auto in a commercial enterprise.
Motor truck cargo policy (Nonfiled commercial inland marine policy) Protects a carrier against its liability for damage to domestic shipments in it custody.
Mutual company Insurance company owned by its policyholders; the policyholders share in profits made by the company through dividends or reductions in future premiums.
Mysterious disappearance Vanishing of property with no explanation.
Named schedule bond (Type of fidelity bond) Covers loss only from named employees.
Named insured Person, business, or other entity named in the declarations to whom the policy is issued.
Named non owner coverage endorsement PAP endorsement that provides coverage for the use of nonwoned autos to individuals who do not own a car.
Named peril policy (Specified peril policy) Insurance policy that insures only against perils specifically listed in the policy.
NAIC (National Association of Insurance Commissioners Organization made up of individual state insurance commissioners whose purpose is to promote uniformity in regulation by drafting model laws and regulations.
National flood insurance program Program run by the federal government that makes flood insurance available to eligible communities at subsidized rates; includes coverage for both buildings and personal property.
Nationwide definition Document that categorizes and classifies risks that are eligible for ocean or inland marine insurance.
Negligence The lack of reasonable care that is required to protect others from the unreasonable chance of harm.
No benefit to bailey condition Condition found in some property insurance contracts that states that a bailee is not covered under an insured's policy while the bailee has possession of the insure's property.
No-fault insurance Form of automobile insurance where each insurance company pats the damages of it own insureds, regardless of who was at fault for the accident.
Nonadmitted insurer (Unauthorized insurer) Company that is not authorized to do business in a particular state.
Nonconcurrency Situation that exists when the same property is covered by more than one policy, but the policies are not identical as to the extent of coverage provided.
Nonrenewal Decision made by an insured or insurance company to not continue coverage for another policy period after the current policy period expires.
Non reporting policy Type of insurance policy for which a flat premium is charged every time the policy is renewed.
Obligee In bonds, the party to whom the principal makes the promise and for whose protection the bond is written.
Occurence A loss that occurs at a specific time and place or over a period of time.
occurence form (Commercial general liability coverage form) Covers BI or PD that occurs during the policy period, regardless of when the claim is made.
Ocean marine insurance Insurance designed to provide broad coverage for cargo and ships in transit over sea; includes cargo, hull, freight, and P&I insurance.
Offer and acceptance (Agreement) (One of the elements of a legal contract) Must involve two parties: one who makes an offer and another who accepts the offer.
Open competition Method of rate and form regulation used by some state insurance departments that allows insurance companies to compete openly with the forms and rates they select, subject only to requirements of adequacy and nondiscrimination.
Open peril policy (All risk, special coverage) Insurance policy that protects the insured from losses cause by any peril that is not specifically excluded by the policy.
Optional limits transportation expenses coverage endorsement PAP endorsement that allows the insured to select the daily and maximum limits of coverage provided for transportation and loss of use expenses.
Ordinance or law coverage endorsement Endorsement used with the commercial property coverage part for provide coverage for demolition costs and increased construction costs required or regulated by law or ordinance.
Other insurance condition Policy condition that sets out how any other insurance that applies to the same loss will affect reimbursement under the policy.
Outboard motor and boat insurance Insurance against physical damage to boats; usually provided by inland marine forms.
Owners and contractors protective liability coverage form Commercial general liability coverage form that covers claims caused by the negligence of a contractor or subcontractor hired by the insured.
Package policy (Multiline policy) Policy that includes more than one type of insurance coverage.
Pair or set condition Loss settlement condition that states that when part of a set is damaged or destroyed, the insured will not be reimbursed for the value of the entire set. (Various ,methods are used to determine the amount of reimbursement.)
Parcel post policy (Nonfiled commercial inland marine policy) Covers mail sent by parcel post.
Particular average loss In ocean marine insurance, any partial loss that does not arise from a general sacrifice of property (jettison).
Payment bond (Labor and materials bond) (Type of surety bond) Guarantees bills for labor and materials will be paid to the contractor as they are due.
Peak season endorsement Endorsement attached to the commercial property coverage part to provide increased coverage during particular seasons of the year when the insured's inventory is at higher levels than usual.
Performance bond (Type of surety bond) Guarantees that jobs will be completed by the contractor according to the contract specifications.
Peril The cause of loss.
Perils of the sea Perils to which property in transit by water is exposed; includes unusual action of wind or waves, stranding, lightning, collision, and sinking.
Permitted incidental occupancies endorsement Homeowners policy endorsement that covers the insured's business activities conducted on the residence premises.
Personal articles form (Personal inland marine form) Provides scheduled coverage for nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stay collections, and coin collections.
PAP (Personal auto policy) Auto policy that provides property and liability coverage for both owned and nonowned autos used, maintained, or operated by the insured and her family members.
Personal contract One of the characteristics of an insurance contract; means that an insurance contract insures a person, not property.
Personal effect form (personal inland marine form) Covers and insured's personal belongings.
Personal injury Injury other than bodily injury arising out of such things as libel, slander, false arrest, wrongful entry, violation of privacy, and malicious prosecution.
Personal injury endorsement Homeowners policy endorsement that modifies the definition of bodily injury to include personal injury.
Personal liability and medical payments to others endorsement Endorsement to the dwelling policy that provides liability coverage similar to that provided by section II of the homeowners policy. (May be purchased as a separate policy.)
Personal lines Insurance coverages that protect individuals and their families.
Personal property form Personal inland marine form that provides open peril coverage for personal property.
Personal property floater risks (Category of the nationwide definition) that includes risks eligible for personal inland marine insurance.
Personal property replacement cost endorsement Homeowners policy endorsement that adds replacement cost coverage for personal property.
Physical hazard Hazard that arises from the condition, occupancy, or use of the property itself.
Physicians and surgeons equipment form (Filed commercial inland marine form) Covers medical instruments on and off the premises and furniture and fixtures at the doctor's office against direct physical loss.
Policy An insurance contract
Policy jacket (Skeleton policy) Document used to assemble an insurance policy; contains general conditions or the declarations page, but provides no coverage in and of itself; a policy form must be attached to make it a complete policy.
Policy limit (Limit of coverage, limit of insurance, limit of liability) Maximum amount the insurance company will pay for a particular loss or for losses sustained during a period of time.
Policy period The date and time specified in the declarations for when coverage begins and ends.
Policy territory Place where coverage under a policy applies.
Pollution liability coverage extension endorsement CGL endorsement that provides coverage for BI and PD claims arising out of pollution losses; excludes coverage for pollution clean-up costs.
Pollution liability coverage form CGL coverage form that provides certain pollution coverage that are excluded under the standard CGL; includes coverage for pollution clean-up costs.
Pollution liability- limited coverage form CGL coverage form that provides certain pollution coveragages that are excluded under the standard CGL; does not include coverage for pollution clean-up costs.
Position schedule bond (Fidelity bond) Covers specifically named positions in the company, rather than the individuals who hold these positions.
Post-judgment interest Interest accruing on a judgement after an award has been made, but before payment is made by the insurance company; usually covered as a supplementary payment in liability policies.
Prejudgment interest Interest awarded ti compensate a third party for interest he might have earned if compensation had been received at the time of injury or damage, rather than at the time of judgment.
Premises and operations Business liability exposure arising our of the business location or the activities of the business. (Covered under the CGL)
Premium audit Survey of the insured's financial records to gather information used to calculate the premium; such as exposure and limits.
Primary insurance When two or more coverages or policies apply to the same loss, the one that pays first, up to its limit of liability or the amount of the loss, whichever is less.
Principal In bonds, the party who promises to do or not do a specific thing; in agency law; in agency law, the person or company being represented.
Prior approval Method of rate and form ratification used by some state insurance departments that requires a company to obtain official approval before using new forms or rates.
Producer General term used to describe someone who sells insurance, such as an agent, broke, or solicitor.
Products and completed operations Business liability exposure arising out of defects in the company's products or completed operations; covered by the CGL.
Professional liability Liability arising out of rendering or failing to render services of a professional nature.
Professional liability policy Insurance coverage issued to a professional that covers the rendering or failing to render services of a professional nature; policies are tailored to fit specific occupational needs.
Proof of loss Form completed by and insured after a loss that provides an official inventory of damages.
PD (Property damage) Damage to or destruction of property, including loss of use of the property.
Property insurance Line of insurance that includes many types of coverage designed to handle the risk that a person will suffer financial loss because something she owns is damaged or destroyed.
Pro rata other insurance (Contribution by limits) Method of handling insurance when more than one coverage applies to a loss; each coverage pays a portion of the loss in proportion to the relationship it limit of liability bears to the total limit of liability under all applicable insurance.
P&I (Protection and indemnity) (Form of ocean marine liability insurance) Covers a variety of types of liability, such as damage to cargo through negligence and damage to other property or another boat resulting from collision.
Protective safeguards endorsement Businessowners policy endorsement that requires the insured to maintain fair or security service on specified property as a condition of the policy.
Proximate cause An action that, in a natural and continuous sequence, produces a loss.
Public official bonds (Type of surety bond) Furnished by principals who are elected or appointed to fill positions of trust that guarantee their faithful and honest performance in office.
Punitive damages (Exemplary damages) Type of damages intended to punish the defendant and make an example out of her to discourage other from behaving the same way.
Pure risk A risk in which there is no chance of gain, only loss.
Quotation A summary of coverages and premiums proposed by an agent to a prospective client.
Rate The basic charge an insurance company sets for various types of insurance.
Reasonable person rule Principle of law that state that each person must behave like a prudent person following those ordinary considerations that guide human affairs.
Rebating Giving or offering some benefit other than those specified in the policy to induce a customer to buy insurance. (Rebating is illegal in most states)
Reciprocal company An unincorporated group of members that share insurance responsibilities with other members; it is managed buy an attorney-in-fact.
Reinsurance Acceptance by an insurer, called a reinsurer, of all or part of the risk of loss of another insurer.
Repair cost The cost to repair a damaged or destroyed item of property. May be the basis of reimbursement for a loss.
Replacement cost The cost to replace a damaged or destroyed item of property without deduction for depreciation; may be the basis of reimbursement for some losses.
Reporting policy Type of policy that the insured pays a deposit premium, then submits periodic reports to the insurer showing the status of the factors on which the premium is based; from these report, premiums are calculated and charged against the deposit.
Representation Statements on an insurance application that the applicant believes are true; a representation is not considered a matter to which the parties contract, so a policy cannot be voided on the basis of a representation.
Residual market insurance Insurance that is not ordinarily available from private insurers and may be provided by the government.
Retention limit (Self-insured retention) In an umbrella policy, the amount the insured must pay for a loss that is not covered by an underlying policy before the umbrella will begin to cover the loss.
Retroactive date Under the claims-made CGL form, a date stipulated in the declarations as the first date on which an event may occur and be covered by the policy if a claim is filed.
Retrospective rating Type of merit rating that bases the insured's premium on losses incurred during the policy period.
Risk The chance or uncertainty of loss.
Risk retention group Insurance company formed by several organizations to cover those organization' liability loss exposures; risk retention groups are exempt from most state laws that govern insurance companies.
Robbery In crime insurance, the taking or attempted taking of property by one who has cause or threatened to cause bodily harm, or committed a witnessed obviously unlawful act.
Running down clause (Provision found in ocean marine hull policies) Provides protection if the ship owner is held liable for the negligent operation of the vessel in damaging another ship.
Salvage Damaged property that can be retrieved, reconditioned, and sold to reduce and insured loss.
Schedule rating Type of merit rating that applies a system of debits or credits to reflect characteristics of a particular insured.
Scheduled coverage (Specific insurance) Property that is specifically listed in the declarations and covered for a specific amount.
Scheduled personal property endorsement Homeowners policy endorsement that provides open peril, scheduled coverage for nine optional classes of property.
Self-insurance Alternative to purchasing insurance where a company or individual assumes the risk of paying for its losses and sets aside the necessary funds to pay for such losses.
Service bureau Organization that gathers, pools, and analyzes statistics from its member insurance companies to establish loss costs used to determine insurance rates.
Signs coverage form Filed commercial inland marine form that insures business against loss to neon, fluorescent, automatic, or mechanical electric signs and lights.
Single limit (Combined single limit) One policy limit that applies to both BI and PD losses.
Solicitor Insurance professional who sells insurance and collects premiums but cannot issue or countersign policies.
Special damages Type of compensatory damages that reimburse the injured party for direct and specific expenses involved in the loss, such as medical expenses and lost wages,
Specified causes of loss One of the physical damage coverage options in the commercial auto coverage forms; provides more limited coverage than comprehensive coverage, insuring only against specified perils such as fire, flood, or explosion.
Speculative risk A risk that may result in a loss or gain.
Split limits Policy limit that provides separate limits for BI and PD.
Spoilage endorsement Adds coverage for the insured's perishable stock- personal property that must be maintained under controlled conditions to protect it from loss or damage.
Spread of risk Principle of insurance that states that insurers should spread their insured risks over a large geographical area, rather than insuring a large number of people in a small area.
Standard & Poor Organization that rates the financial stability of insurance companies doing business in the United States
Statue of limitations Law that provides that certain types of suits must be brought wishing a specified time of the occurrence to be valid under the law.
Stock company An insurance company owned by its stockholders; profits are shared by the stockholders; policyholder are not entitled to share in company profits.
Subrogation The transfer to the insurance company of the insured's right to collect damages from another party.
Supplementary payments Provide extra coverage over and above the insured's limit of liability; commonly included are defense costs, first aid expenses, bond premiums, and post-judgement interest.
Supply bond (Type of surety bond) Guarantees that a supplier will furnish supplies, products, or equipment at an agreed-upon time and price.
Surety In bonds, the party (often the insurance company) that agrees to be responsible for loss that may result if the principal does not keep his promise.
Surety bond Bond that guarantees that someone will perform faithfully whatever she agrees to do or that someone will make an agreed-upon payment to another party.
Surplus The difference between what a company owns (assets) and what it owes (liabilities).
Terrorism risk insurance act of 2002 Federal law designed to ensure that insurance coverage for terrorism losses under commercial lines policies will be available and affordable; it requires insurers to pay a specified amount for terrorism loss in a given calendar year.
Theatrical property coverage form (Filed commercial inland marine form) Covers scenery, props, and costumes used by a theatre group in a specific production.
Theft In crime insurance, a broad term encompassing any unlawful taking of property including burglary and robbery.
Third party loss A liability loss.
Time element coverage Coverage for the loss of business income over a period of time that results from direct physical loss.
Tort A civil wrong for which monetary damages may be provided; does not include losses arising out of contracts.
Towing and labor costs endorsement PAP endorsement that covers towing and the costs or labor performed at the site the car was disabled.
Trailer interchange insurance (A coverage provided under the truckers and motor carrier forms) Covers damage to a specific trailer under the policy of the trucker who has possession of the trailer at the time of loss.
Trespasser A person who is on the premises without the property owner's express or implied permission.
Trip transit policy (Nonfiled commercial inland marine policy) Covers a single shipment of goods.
Truckers coverage form Commercial auto coverage form written specifically for the trucking industry.
Twisting Illegal activity in which an agent convinces a prospect to cancel existing insurance and buy another policy from the agent to the detriment of the prospect.
Umbrella policy Type of policy that provides broad coverage for an insured's liability over and above liability covered by and underlying contract; may also cover losses excluded by the underlying policy; available as personal or commercial insurance.
Underinsured motorists coverage Auto coverage that pays the difference between the insured's actual damages for BI and the amount of liability insurance carried by the as-fault drive; may be added to the personal of commercial auto policy endorsement.
Underwriting Insurance company function that involves researching and evaluating insurance applicants to decide which ones are acceptable to the company as insureds.
Underwriting expenses One of the components used to calculate the expense ration; includes all costs required to acquire and maintain a book of business, such as expenses for commissions, salaries, and other administrative and regulatory costs.
Unfair discrimination Applying different standards to insureds that have the same risks of loss.
Unilateral contract A type of contract that is one sided; and insurance policy is one sided because only the insurance company is legally bound to perform its part of the agreement.
Uninsured motorists coverage Automobile coverage designed to provide protection for the insured is she is involved in an accident in which an uninsured motorists is at fault.
Uninsured motorist Those who do not carry insurance, motorists whose insurance does not meet the state's minimum financial responsibility laws, drivers whose insurance companies are insolvent, and hit-and-run drivers who cannot be identified.
Unoccupancy The absence of pop;e from a premises property coverage is often restricted if there are long periods of unoccupancy.
Use and file Method of rate and form ratification used by some state insurance departments that requires insurance companies to file rates and forms within a certain period of time after that are first used.
Utility services- Direct damage coverage endorsement Businessowners policy endorsement that covers loss or damage to property caused by a an interruption in water, communication, or power service.
Utility services- Time element coverage endorsement Business owners policy endorsement that covers loss of business income and extra expense that occurs because of an interruption in water, communication, or power service.
Utmost good faith A characteristic of insurance contracts meaning that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill it obligations.
Vacancy The absence of both people and property from a premises; property coverage is often restricted when there are long periods of vacancy.
Valuable papers and records insurance (File commercial inland marine form) Provides coverage for valuable papers such as manuscripts, blueprints, records, and other printed documents.
Valuation Method used by the insurance company to determine the appropriate payment for a loss.
Valued policy (Agreed amount policy) Policy written for a specified amount that lists the value of the insured property as agreed to by both the insured and the insurer; this amount is used to value losses.
Value reporting endorsement Endorsement used with the commercial property coverage part to provide coverage based on the actual values of property at certain locations at specific times.
V&MM (Vandalism and malicious mischief) Coverage provided in many property insurance policies that protects property against damage caused by vandals.
Vicarious liability (Imputed liability) Liability that a person or business incurs because of the actions of others, such as family members or employees.
Voluntary compensation endorsement Endorsement used with the workers' compensation and employers liability policy that adds coverage for employees who are excluded from the state's workers' compensation law.
Waiver The intentional relinquishment of a known right.
Warehouse to warehouse clause Provision found in ocean marine cargo policies that extends coverage for the cargo from its point of origination to its point of destination.
Warranty A specific agreement between the insured and the insurer that becomes a part of the insurance policy; a breach of warranty can void the policy.
Watchperson As defines in crime insurance forms, someone retained specifically by the insured whose sole duty is to have care and custody of property inside the premises.
Watercraft endorsement Homeowners policy endorsement that provides coverage for B or PD arising out of the use of watercraft.
Watercraft packaged policy Packaged policy that provides property, liability, and medical payments coverage for losses arising out of the ownership, maintenance, or use of watercraft.
Workers' compensation and employers liability policy Insurance the cover an employer's obligations under workers' compensation laws, which make the employer responsible for stated damages in the event of a work-related injury or illness.
Written premium One of the components used to calculate the expense ratio; it is the gross amount of premium income on the company's books, which includes both earned and unearned premium.
Created by: Palaniii
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