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absence of both people and property from the insured premises-no-contents/no activity
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When an insured cancels a policy before the expiration date, the insurance company keeps the premium for insurance already provided, but also keeps an allowance for expenses on the unearned premium.
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Property
| Question | Answer |
|---|---|
| absence of both people and property from the insured premises-no-contents/no activity | vacancy |
| When an insured cancels a policy before the expiration date, the insurance company keeps the premium for insurance already provided, but also keeps an allowance for expenses on the unearned premium. | short rate |
| A risk in which there is no change of gain, only loss; only risk that is insurable. | pure risk |
| 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 | warranty |
| Prevents double recovery by assigning or substituting the right of one party to another to collect damages from another party. | subrogation |
| The cost to fix a damaged or destroyed item of property; may be the basis of reimbursement for a loss. | repair cost |
| Package policy that provides property, liability and medical payments coverage for losses arising out of that ownership, maintenance, or use of water craft. | watercraft policy |
| The cost to replace the lost or damaged property with property of like kind and quality, without a deduction for depreciation. | replacement cost |
| Endorsement used with the commercial property coverage part to provide coverage based on the actual cash value of property at certain locations at specific times. | value reporting endorsement |
| Insurance contract written to insure property or a piece of property for specific amount. Fine art ,collectibles, and other hard to value assets may be valued this way. | stated value policy |
| In a property form, if the property is recovered after insured have received payment for the loss the insured must notify the insurance company. The insured must make a decision either to keep property or the settlement amount but not both. | recovery clause |
| A type of contract that is one sided; an insurance policy is one sided because the insurer is legally bound to preform its part of the agreement | unilateral contract |
| property that is specifically listed in the declarations and covered for a specific amount; also called specific insurance. | scheduled coverage |
| form of ocean marine liability insurance that 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. | protection and indemnity |
| Absence of people from the insured premisi-contents with no activity. | unoccupied |
| alternative to purchasing insurance when a company or individual assumes risk of paying for its losses and sets aside the necesary funds to pay for such a loss | self-insurance |
| An action that, in natural and continuous sequence, produces a loss "If it had not been for....." | proximate cause |
| coverage effort the loss of business income over a period of time that results from direct physical loss. | time element coverage |
| Statement on an insurance application that the applicant believes are true; not considered a matter to which the parties contract, so a policy cannot be voided on this basis. | representation |
| federal law designed to ensue that insurance coverage for terrorism losses under commercial line policy's will be available and afordable; | terrorism risk insurance act |
| Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. | actual cash value |
| A loss that occurs at a specific time and place. | accident |
| A condition often contained in property insurance policies that state that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. | abandonment condition |
| A survey of property to determine the insured value of the property or value of the loss sustained | appraisal clause |
| The tendency of insureds with greater than average chance of loss to purchase insurance. | adverse selection |
| Nonfiled commercial inland marine transportation form that insures a property owners incoming or outgoing shipments of goods during a year. | annual transit policy |
| Company that meets a state insurance departments standards and is allowed to do business in that state. | admitted insurer; authorized insurer |
| Buildings of lesser value that are on the same premises as the main building insured under a property policy. | appurtenant structures |
| Nonfiled commercial inland marine form obtained by a bailee to cover loss or damage to customers property in the bailees custody without regard to liability | bailees customer policy |
| Provides coverage for physical damage to an aircraft | aviation hull insurance |
| A person or organization that has temporary possession (care,custody,or control) of someone else's personal property. | bailee |
| Condition in insurance policies that specifies that the policy cannot be transfer to another unless the company consents to the transfer in writing | assignment condition |
| The legal transfer of ones interest in an insurance policy to another person | assignment |
| Type of ocean marine that covers goods while they are in transit over water | cargo insurance |
| Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss. | appraisal condition |
| Commercial property coverage forms that covers commercial, residential, or farm buildings under construction or during remodeling. | builders risk coverage form |
| Type of insurance policy that covers more than one item of property at a single location or one or more items of property at a single location or one or more items of property at multiple locations. | blanket insurance |
| Package policy designed to provide broad property and liability coverage for small businesses; eligibility requirements are stricter than CPP | BOP |
| Oral or written statement that provides immediate insurance protection for a specific peiod; designed to provide temporary coverage untill a policy is issued or denied | binder |
| $200 limit on personal property with special limits | coverage limit on money in HO |
| If property loss makes the residence premises uninhabitable, the additional living expenses are covered; | Coverage D on a HO policy -loss of use |
| commercial property coverage form that covers the buildings in condo complex, dose not cover the condo owners personal property. | condominium association coverage form |
| Fair rental value is covered on a dwelling policy. | Coverage D on a dwelling policy |
| Separate form used with the commercial property coverage part of the commercial package policy that lists covered perils and exclusions. | cause of loss form |
| Pays for the 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, | business income policy |
| Medical payments to others; pays all necessary medical expenses for up to three years after the accident. | Coverage F on homeowners policy |
| insurance carried/insurance covered x amount of loss | coinsurance clause on property |
| Other structures; covers buildings & structures on the premises other than the dwelling set apart by a clear space from the dwelling; 10% of coverage A | Coverage B of homeowners policy |
| Theft, vandalism, and malicious mischief excluded on basic policy. Liability excluded on all policies | coverages excluded on dwelling policy |
| The amount of expenses that must be paid out of pocket before the insurer will pay any expenses from a covered loss | deduction |
| Type of commercial property policy that covers most insurable perils but excludes basic fire and extended coverage perils. | difference in conditions insurance (DIC) |
| When two or more policies or coverage apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted. | excess insurance |
| principle that states that if one intentionally or unintentionally creates the impression that a certain fact exists. | estoppel |
| Part of the commercial package policy that covers a loss due to breakdown of business equipment due to direct or indirect loss. | equipment breakdown coverage; boiler and machinery coverage |
| financial loss resulting directly from a loss to property | direct loss |
| commercial property coverage form that covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. | extra expense |
| Program established by law that makes property insurance available to insureds who might otherwise be uninsured in the standard market | Fair Access to Insurance Requirements (FAIR) |
| AN insurance policy, or an addition to another insurance policy, covering personal property deemed to be easily movable. It covers property lot, damaged, or destroyed. | floater |
| someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. | fiduciary |
| Damaged property is repaired or replaced with less expensive, but functionally equivalent materials. | functional replacement cost |
| A deliberate misrepresentation that causes harm; an all out effort by one party to deceive and cheat the other; must have intent. | fraud |
| The type of ocean marine insurance that protects the insured against the loss of shipping costs. | freight insurance |
| Restores an insured to the appropriate condition before the loss, no better or worse. | indemnity |
| In ocean marine insurance, warranties that are not written into the policy, but have become a part of the policy by custom. | implied warranties |
| Renter's policy. Personal property covered for broad perils. | HO-4 policy |
| Dwelling covered for open perils and personal property covered for broad perils in this HO policy | HO-3 policy perils |
| Section in the policy that describes what property is covered and the perils the policy insures against. | insuring agreement |
| Property insurance coverage designed to insure exposures that cannot be conveniently or reasonably confined to a fixed location or insured under a standard form. | inland marine insurance |
| Characteristic in property itself causing it to depreciate, spoil, break, become defective, disintegrate, or destroy itself. | inherent vice |
| Loss that is the result of consequence of a direct loss | indirect loss |
| 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 insurds care,custody,or control. | legal liability coverage |
| A voluntary action to rid a ship of cargo to prevent further damage or peril. | jettison |
| An independent action that breaks the chain of causation and sets in motion a new chain of events; when this occurs, it becomes the new proximate cause. | intervening cause |
| In a crime policy, defined as an insured, partner or employee who has care and custody of insured property outside the premises | messenger |
| Condition found in property insurance contracts that provides that if the insurer broadens coverage under a policy form or endt without requiring an additional premium | liberlization clause |
| ENDT attached to the truckers coverage form to provide public liability coverage | MCS-90 |
| 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 policy | motor carrier coverage form |
| The amount property could be sold for at the time of loss. May be used to determine the amount of reimbursement for a loss. | market value |
| Hazard created by an individuals tendency to contribute to a loss through his own irresponsible actions or carelessness | morale hazard |
| Commercial inland marine policy that protects a carrier against its liability for damage to domestic shipments in its custody | motor truck cargo policy |
| Loss of property due to an unknown cause; theft ruled out | mysterious disappearance |
| Program run by the federal government that makes the flood insurance available to eligible communities at subsidized rate; includes coverage for both building and personal property with separate deductible for each. | National Flood insurance Program (NFIP) |
| Insurance policy that insures only against perils specifically listed in the policy | named(specified) Peril policy |
| 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. | nonconcurrency |
| Person, Business or other entity named in the declarations to whom the policy is issued. | named insured |
| When two or more coverages or policies apply to the same loss, primary insurance is the one that pays first, up to its limit of liability or the amount of the loss, whichever is less | primary insurance |
| Insurance Policy that protects the insured from losses caused by any peril that is not specifically excluded by the policy. | open peril; all risk; special coverages |
| Inland marine form that provides scheduled coverage for nine optional classes of personal property :jewlrey,furs,camers,instraments,ect | professional articles form |
| Inland Marine form that covers an insureds personal belonging, such as baggage while traveling. | personal effects form |
| Insurance company cancels the policy; unearned premium is returned to the insured. No penalty is applied to this method of cancellation | pro rata basis |
| Non filed commercial inland marine policy that covers a single shipment of goods | trip transit policy |
| Insured property that is damaged by a covered peril; the insured is paid by the insurance company who may take possession of the property. | salvage |
| Method of handling insurance when more than one coverage applies to a loss; | pro rata other insurance; contribution by limits |
| found in some property and inland marine policies stating the company will pay for loss of part of a set by either repairing or replacing | pair or set provision |
| insurance designed to provide broad coverage for cargo and ships in transit over sea; | ocean marine insurance |
Created by:
shainaklein