Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
P&C
Course Definitions
| Term | Definition |
|---|---|
| Certificate of Insurance | A Statement evidencing that a policy has been written and stating the coverages in general. |
| Coinsurance / Insurance to Value | a Requirement that the insured carry insurance equal to a specified percentage of the value, to be fully indemnified under the policy. Provides a proper basis for setting rates. |
| Limits of Liability | The sum or sums beyond which a liability insurance company does not protect the insured on a particular policy. |
| Personal / Injury Liability | Liability insurance coverage for third party claims for damages which are other than physical such as libel slander, false arrest, wrongful eviction and invasion of privacy. |
| Bodily Injury Liability | The Liability which may arise from injury or death of another person. |
| Property Damage Liability | Protection against liability for damage to the property of another not in the care, custody and control of the insured, as distinguished from liability for bodily injury. |
| Fair Credit Reporting Act | Public law requires that an applicant be advised that a consumer report may be requested and given info regarding the agency should applicant be declined. |
| Claims Made policy form | Policy providing liability coverage only if a written claim is made during the policy period or any applicable extended reporting period. |
| Deposit premium / Audit | The premium deposit required by the company on those forms of insurance subject to periodical premium |
| Insured Contract | Definition which shapes the extent of contractual liability coverage by describing the types of contracts which are insured. |
| Other Insurance | The existence of another contract covering the same interest and perils. |
| Binders | Is a temporary contract of insurance, oral or written, offered by an insurer of agent pending issuance of the policy. It is usually written for a period of thirty days or sixty days and remains in force for that period or until permanent policy is either |
| Mortgagee Rights | Mortgagees right of recovery shall not be defeated by any act or neglect of the insured and giving the mortgagee other rights and privileges. |
| Other Insurance Provision | a Provision found in practically every insurance policy, stating what is to be done in case any other contract of protection embraces the same property and / or hazard. |
| Liability | Any legally enforceable obligation. |
| Occurrence | a Sudden, unexpected, unforeseen event resulting in a loss including repeated and continuous exposure to conditions. |
| Insurance | A social device that protects people and businesses against certain types of losses. |
| Indemnity | insurance is designed to restore the policyholder to the same financial condition enjoyed prior to the loss. |
| Peril | is the cause of a potential loss. It is immediate and specific. |
| Hazard | anything that increases the seriousness of a loss. 3 Types: Physical= oily rags ex. Moral= arsonist Morale= who cares? A condition that gives rise to a peril. |
| Representations | on an application, facts that the applicant represents as true and accurate to the best of his or her knowledge and belief. |
| Warranties | a statement made on an application for insurance that is warranted to be true in all respects. |
| Subrogation | policyholder transfers the right of legal action against a responsible third party to the insurer. |
| Salvage | property taken over by an insurance company to reduce its loss. |
| Insurable Interest | in order to purchase insurance, one must have an insurable interest in the subject of the insurance. In P&C, insurable interest must exist at time of loss. |
| Theft | any act of stealing. |
| Burglary | breaking entering into premises of another, with felonious intent and with visible signs of forced entry. |
| Robbery | the felonious taking by force or fear of force, of the personal property of another. |
| Mysterious Disappearance | the vanishing of insured property in an unexplained manner. |
| Proof of Loss | formal statement made by the insured to the insurance company regarding a loss. |
| Negligence | failure to do what a reasonably prudent person would do under the same circumstances. |
| Unoccupancy | furnished but unused. |
| Vacancy | has neither occupants or contents. |
| Elements of a Contract | to establish a valid contract you need: (C.L.A.P.) Legally competent parties Offer and acceptance Valid consideration Legality of purpose |
| Risk | the uncertainty about loss. Only pure risks are insurable these involve the uncertainty of loss without any possibility of gain. |
| Proximate Cause | when an uninterrupted chain of events resulting from a negligent act causes a loss. |
| Concealment | the with-holding of facts by an applicant for insurance that affects an insurance risk or loss. |
| Assignment | transfer of rights in a policy to other than the policyholder. |
| Appraisal | means to settle indemnification disputes. |
| Limitations | exclusions, exceptions, or reduction of coverage contained in a policy. |
| Exclusions | causes, conditions or property listed in the policy which are not covered and for which no benefits are payable. |
| Pair and Set Clause | in the case of a loss the insurance company may repair or replace any part, or pay the value before and after the loss. |
| Declarations | a portion of an insurance contract that informs who and what is covered, in addition to when coverage is effective. |
| Loss | is any reduction in the quality, quantity or value of something Direct - property is lost, stolen, damaged, or destroyed. Indirect - related to direct losses may also be covered. Loss of housing or business due to fire eg. |
| Actual Cash Value | is equal to the replacement cost less depreciation. |
| Replacement Cost | the cost of replacing property without deduction for depreciation. |
| Right of Salvage | insurance companies generally have a right to salvage property which has only been partially damaged or which has been destroyed but still has a salvage value. |
| Cancellation | termination of contract of insurance in force by voluntary act of the insurance company or insured by contract provision or mutual agreement. |
| Nonrenewal | termination of insurance coverage at an expiration date or anniversary date. |
| Definition of the Insured | the party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits or render service. |
| Abandonment | the insured cannot just hand over the insurance company, declaring it unsuitable without other pieces from a grouping to be paid for the property as a loss even though it was not damaged. |
Created by:
Bcarbone