Key Facts 2 Word Scramble
|
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
| Question | Answer |
| What is proximate cause of loss? | A direct cause of loss |
| What type of handling risk does a deductible represent? | Form of risk retention |
| Finish this sentence: The higher the deductible.... the ______ the premium | Lower And opposite is true: The lower the deductible, the higher the premium |
| All risk properties are also known as what? | Open peril policies |
| What must you read in order to see what is covered for an open-peril policy? | The exclusions |
| Liability without negligence is also known as: | Strict or absolute liability |
| What is the principle of comparative negligence? | Benefits to pay to injured are reduced according to their own (liable person or responsible person) degree of negligence which parents injured collecting damages for their OWN negligence |
| What does CONTRIBUTORY NEGLIGENCE state? | Injured party cannot recover or collect at all if they are partly at fault |
| What is the purpose of subrogation? | To prevent from insured from collecting TWICE |
| Binder of coverage may be presented in what 2 ways? | Oral or writing |
| What four parts make a policy? | D-I-C-E D - declarations I - insuring agreement C - conditions E - exclusions |
| What does the declarations state? | Lists the names insured, policy limits, premium and policy period |
| Where can the limits of liability be found in a policy? | Declarations |
| What does the insuring agreement describe? | Coverages provides and lists the covered perils |
| What does the conditions state? | Obligations of both parties (the insured and insurer) |
| What does the exclusions state? | The perils that are not covered |
| Why do exclusions exist? | To clarify coverage |
| What is paid in addition to liability limits? AND where can this be found (in what section of Policy)? | Supplementary payments And it is found in the liability section |
| What does an endorsement do? | CHANGES term of policy NOT policy conditons |
| What defines policy period? | The time the policy is in effect |
| What is assignment? | When insured transfers rights of ownership to another party |
| What are appraisals? And what is it used for in insurance? | The estimation of value Used on property policies to determine amount to pay |
| What is arbitration? | Used on liability policies to determine if coverage applies |
| What does it mean to go to arbitration? | Insured and insurer will go to arbitration if there is a disagreement that the liability policy does it does not provide coverage |
| In arbitration, how many arbitrators are there? | 3 |
| What section in the policy can you find cancellation provisions? | Conditions section |
| What must the insured do if they have a claim? | Tell their insurer |
| The maximum in amount an insurer will pay is stated where? | In the limits of liability |
| What is the purpose of coin insurance ? | To make sure the client carries adequate limits |
| What is the pro rate liability clause? | Property policy allows two or more policies insuring the same property to pay claims proportionately |
| What does pro rata mean? | PROPORTIONATE (does not mean equal) |
| What is the liberalization clause? | Permits insurer to increase coverage immediately at no charge |
| What can insurers do to offset the claim expense? | Sell the salvage |
| What does vacancy mean? | You have moved out of your home and taken your furniture with you |
| What does unoccupied mean? | You are I an extended vacation but your furniture is still in your home and you will return |
| What four things need to exist for negligent liability? | Legacy duty owed, breach of legal duty, proximate cause, damages |
| If a person has wild animals or uses explosives, what type of liability would they have? | Absolute |
| Where is the policy period stated? | Declarations page |
| Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss or defense expenses? | Additional coverage |
| Which of the following is defined as the cost to replace damaged property with less expensive and ore modern construction or equipment? | Functional replacement cost |
| Insurable interest in a Property must be proven when... | At the time of loss |
| With regard to fire insurance premium, structures with which if the following type of construction would most likely have the most favorable remount rate for the peril of fire? | Fire resistive |
| What is the purpose of the coinsurance clause found i. Property insurance policies? | Encourage the insured to insure the property closer to its full value - the insurer agreed to give the insured a reduced rate per hundred on the insurance and pay partial losses in full |
| What is provisions? | Refers to the section or clauses of an insurance policy that communicate the policy’s benefits, conditions, etc. |
| Which type of valuation works best for property whose value does not fluctuate much? | Agreed value because when a loss occurs, the policy pays the agreed value as specified on the policy schedule regardless of insured items appreciation or depreciation |
| Persons covered under an insurance policy, whether named or not are known as: | insureds |
| Which of the following policy provisions would automatically broaden coverage under a policy without requiring additional premium? | Liberalization |
| Property condition that precludes the insured from simply turning over damaged property to the insurer and claiming a total loss is called | Abandonment |
| What is the formula for a loss ratio? | Incurred losses + loss adjusting expenses / earned premium |
| To comply with coinsurance, what percentage does it need? | 80% |
| Which of the following is a mandatory part of an insurance policy that varies with each individual policy? (Options is DICE) | Declarations |
| An insurers. Business is damaged because of a fire and he is forced to close the business temporarily for repairs. As a result the insured lost income. What type of loss it this? | Consequential loss (indirect loss) is a second financial loss caused by coveted direct loss |
| In property and casualty what is the amount of loss the an insured must cover out of pocket? | Deductible |
| In liability insurance what is the amount the insured must cover out of pocket? | Retention |
| The policy that pays first in the event of a covered loss is known as... | Primary policy |
| Which coverages in dwelling and homeowners policies is for indirect loss? | Loss of use |
| The part of a policy that clarifies terms in the policy is the: | Definitions |
| What is the transfer of legal right or interest in an insurance policy? | Assignment |
| What factors determine actual cash value: | Replacement cost, age of property and type and quality of property |
| Termination of in-force insurance policy prior to expiration date shown in policy is known as: | Cancellation |
Created by:
nusly