Chapter 1 Section 2

Front 1

Fiduciary

Back 1

One who occupies a position of special trust or confidence in the handling or supervising of the affairs or funds of another.

Front 2

Unearned premiums

Back 2

Are deemed to be held in trust in order to refund the insureds in the event the policy is canceled prior to expiry date.

Front 3

Fire

Back 3

The presence of a visible flame or glow.

Front 4

Friendly fire

Back 4

Contained in its proper receptacle.

Front 5

Hostile fire

Back 5

Once a fire passes outside the limits assigned to it.

Front 6

Proximate result

Back 6

As a natural and continuous sequence of the peril causing the loss.

Front 7

Material change

Back 7

Any change which serves to increase the chance of loss, arising after policy is issued.

Front 8

Pro rata

Back 8

Determined by the number of days remaining in a policy.

Front 9

Short rate

Back 9

When an insurer deducts certain administrative costs as a penalty when they terminate a policy before it expires.

Front 10

Notice of loss

Back 10

Forthwith and in writing.

Front 11

Proof of loss

Back 11

Formal verification, under oath, of the details and amounts being claimed under the policy.

Front 12

Fraud

Back 12

Deliberate attempt to deceive with view to securing some profit.

Front 13

Deductible

Back 13

The amount an insured pays before the insurer pays the remaining.

Front 14

Subrogation

Back 14

To put yourself in the insureds shoes.