Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
|
Insurance |
The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or perilto which the object of the insurance may be exposed ... Or to pay a sum of money or other thing of value upon the happening of a certain event |
|
|
Contract |
An agreement between two or more person which creates an obligation to do or not do a particular thing |
|
|
Consideration |
An exchange of something of value between parties |
|
|
Insurable interest |
One has an insurable interest in the subject matter of the insurance when they will suffer financially by a loss |
|
|
Utmost good faith |
The law requires insurance contracts maintain a higher standard of honesty than is needed to other contracts. (Applies to insurer and broker) |
|
|
Indemnity |
Application of the principle of indemnity ensures people receive the actual amount if their loss, no more and no less |
|
|
Instance binder |
A temporary agreement in which the insurer agrees to provide certain coverages pending the issuance of the policy |
|
|
Agency Agreement |
A written agreement or contract between the insurer and the brokerage which acknnowledges their relationship |
|
|
Void Contract |
One which is unable in law to support the purpose for which it was intended. Such contracts are deemed never to have existed |
|
|
Voidable Comtract |
A contract that may be voided at the option of the wronged party only and not the wrongdoer |
|
|
Peril |
The cause of loss |
|
|
Direct Loss |
A direct loss occurs when the peril insured actually attacks the object of insurance |
|
|
Indirect Loss |
Losses which arise as a consequence of a direct loss |
|
|
Actual Cash Value |
New or replacement cost of the property at trying time of loss, less depreciation |
|
|
Replacemen Cost |
The cost to repair or replace the lost or damaged property with new property of like kind and quality without deduction for depreciation |
|
|
Valued Policy |
Both the insured and insurer agree at the time the policy is issued as to the cash value of the property. In the event of a loss, the agreed amount would be paid |
|
|
Blanket Coverage |
Policy which provides a single limit of insurance for all property falling within a specific class |
|
|
Scheduled Coverage |
Covered property is itemized on the policy |
