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56 Cards in this Set
- Front
- Back
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Insurance |
A device for the transfer of risk from an individual to a large group with similar risk |
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Speculative Risks |
Involves the possibility of both gain and loss. examples being Investments, stocks, gambling |
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Pure Risk |
Possibility of loss; gain not possible |
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Why do people purchase insurance |
Transfer risk, required by law, required by vendor, peace of mind |
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Alien Insurance |
Company formed under the laws of another country |
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Why do insurance companies exist |
They exist to fulfill promises |
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Elements of a contract |
Offer, acceptance, consideration, competent parties, legal purposes, insurable interest |
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Insured's consideration |
Payment of the premium |
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Insurer's consideration |
Promise to pay claims as specified in the contract, conditions on the occurrence of covered losses |
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Insurable interest |
The application for insurance stands to suffer a loss or injury as a result of an event which is to be insured again |
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Good Faith |
Expected from both customer and the insurer |
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Representation |
It's a written or verbal statement the applicant makes that is true to the best of their knowledge |
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Peril |
Cause of loss |
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Hazards |
The factors for situations that increase frequency or severity of a loss |
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Moral hazard |
A character defect that causes some people to exaggerate or fabricate losses ex: Fraud |
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Morale hazard |
Causes some people to be careless or irresponsible because they have insurance |
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Physical hazard |
A hazard that exists due to the nature of the property itself such as those inherent in the construction, occupancy and exposure ex; ice road |
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Declaration |
Provides identifying or descriptive information regarding the insured and the insured location |
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Declaration includes? |
The name insured and their address, the policy term or period period, the amount of insurance or limit of liability |
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Assignment |
Property and Casualty contracts are personal contract between the insured and the insurer |
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Appraisal |
Provides a resolution in the event that an insurer and the insured do not agree on the amount lost |
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Subrogation |
The pursuit of a responsible party for payment of damages that the insurer has to pay on behalf of the insured where the insured is not at fault |
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Abandonment |
Prohibits the insured from turning over property to the insurer and demanding payment for a total loss |
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Mortgage clause |
The insurer must make losses payable to both the named insured and the mortgagee in the order that their insurable interest appear on the policy |
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Endorsement |
A form to attached to add to, delete from it otherwise change the insurance policy |
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Binder |
An immediate but temporary coverage pending issuance, oral or written |
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Waiver |
A deliberate relinquishment of a known right |
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Negligence |
The failure to act as a responsible and prudent person would act under the same circumstances |
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Comparative negligence |
Allows recovery even when both parties contribute to the loss based on extent of each party's negligence |
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Assumption of Risk |
The defense May apply this if the injured party knowingly exposes themself to danger or injury Ex: spectating a sporting event |
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Last clear chance |
The party who has the last chance to avoid damage or injury to another is liable for any resulting loss |
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Avoidable consequences |
The denial of recovery for any damages that could have been avoided by reasonable conduct on the part of the person who suffered the loss |
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Special damages |
Direct and specific expensive involved in a particular loss Ex: medical bills, lost wages, towing |
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General damages |
Compensation for things like pain and suffering |
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Field Claims Representative |
Staff claim handlers who do "out of the office" work and are hired by the insurer |
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Independent Adjuster |
Adjusters that are not employed directly buy Just One Insurance Company |
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Public adjusters |
Adjusters who do not offer their services to insurance companies |
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Supplementary payments |
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Exclusions for auto policy |
Intentional injury, theft , being used to carry persons for a fee |
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Not Collision |
Riots and contact with animals |
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Collision vs comprehensive |
Hitting something stable vs. Something unstable |
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Dwelling |
10% of limit of liability |
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Personal property |
50% of dwelling limit |
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Personal property off premises (PPOP) |
10% of personal property |
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Coverage B |
It covers a personal property owned, worn, or used by a insured anywhere in the world |
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Special limits of liability (Homeowners) |
Money $100 Bullion 500 Jewelry 500 Business Personal Property 2500 |
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Duties after lost |
Give prompt written notice two facts related to the claim , protect further damage , furnish a complete inventory |
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Vacancy |
When the insured moves from the dwelling and personal property is missing |
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Mortgage clause |
At our request pays any premiums under this policy if you fail to do so |
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Medical payments to others under coverage D |
To a person on the insured location with the permission of an insured |
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Miscellaneous property schedule |
Endorsement to add coverage to draw early birds and collectibles |
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H0 101 replacement of personal property |
Ads replacement cost to personal property as well as cloth awnings and wall-to-wall carpeting |
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Coinsurance |
Only applies to partial loss |
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Property insurance deductible |
Building and contact coverage are purchased separately |
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Commercial general liability CGL |
Covers bodily injury and property damage, personal injury , medical payments |
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Premise and operations exposure |
Stuff like slip and falls and employee caused injuries |
