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47 Cards in this Set

  • Front
  • Back
Absence of people and property from a location best describes

Vacancy
Many commercial liability policies are written with an aggregate policy limit, which is the most the insurer will pay

For all claims during the policy period

A policy modification that may be added to an insurance policy for an extra premium charge to the insured is called an

Endorsement
Part of the insurance contract that sets forth the rules of conduct, duties and obligations of the insured and the insurer is the

Conditions

A policy ending in the middle of the term has been

Cancelled
When a policy will go to the end of the current term nut no further

Renewal
A sudden and unforeseen event is known as an

Accident

A sudden and unforeseen event or something that could be a continuous or repeated event

Occurrence
Loss of rental value is

Not Considered a consequential loss
In property insurance ACV means

Replacement cost less depreciation

Furniture destroyed when a building burns down is an example of a __________ loss

direct

is one resulting from he direct loss such as loss of business income

Indirect Loss

Indirect Loss is also called

Consequential

Upon notice of a claim Linda's insurer requests an __________ to be submitted within 60 days

Proof of Loss
Data regarding the premium, limits, name and address of the insured and the policy period are found in the

Declarations Page
What part of an insurance contract specifies the perils insured against

Insuring agreement
What part of an insurance contract describes the perils that are NOT covered in an all risk policy

Exclusions

The area of tort law that addresses the issue of unintentional wrongful acts, other than crimes and breach of contract is called

Negligence

________ are grounds for civil lawsuits

Torts

_________ is not required to be present to prove negligence

Intervening Cause

Requiring advance notice is sent to the lender in the event of a policy cancelling is an example of

Mortgagee Rights
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The Proximate Clause
___________ is used to eliminate coverage for small claims and control cost of insurance
Deductible
Tom is involved in an auto accident in which Bill was at fault. Toms insurer pays to fix his car and now would like to go back after bill, the negligent party. This is known as

Right of subrogation
When a policy pays the full replacement cost at todays prices without depreciation

Replacement Cost

Mary can transfer her auto policy to the person that bought her care if her insurer will agree to it. This is also known as right of

assignment
Libel, slander and false arrest are examples of

personal injury
If an insured is found to be responsible for the negligent acts of others it is known as _____________ liability

Vicarious
In property and casualty Insurance field insurable inters must exist at the time of

The loss occurs
A policy that combines the maximum limit available for BI and PD for any one occurrence is a ________________ limit

Single

After a loss the insured should not

repair the damaged property and submit an itemized bill
Demonstrating an insurable interest in the preservation of property is the basis to be an

insured


In liability policies the insurer has a duty to


defend the insured and pay the cost of that defense. The insurer will settle the suit in its best interest. In professional Liability policies the insurer must obtain


consent of the insured to settle the case

Consumer investigative reports maybe used in the underwriting process but are subject to

Fair Credit Reporting Act
The taking of property by visible signs of forced entry or exit is called

Burglary

The taking of property by threat or actual bodily harm is

Robbery
Losing something that you owned

Mysterious Disappearance
After a loss if there is a dispute about the claims process the insurer can


send the loss to the appraisal process for


settlement


Disputes in the settlement of property claims will be settled by the _____________ whereas


liability disputes will use the ______________


Appraisal Clause




Arbitration Clause


Extra coverage added to a property policy at no cost to the insured is known as

Additional Coverage

Extra coverage added to the property for an additional cost to the insured is known as

Endorsements

____________ coverage has to be earned by co-insuring for at least 80% of the cost to rebuild the property

Extended

_________ is not a permitted defense in a negligence lawsuit

Strict Liability

States that have adopted limited forms of no fault Auto Insurance coverage are relying on the concept of

Assumption or risk


_____________ is not a part of the underwriting


process


Payment Plans

Roy wants to insure his 1957 Corvette valued at $50,000 on his current auto policy. He should ask the insurer to insure the vehicle for

Stated Value

Insurable interest exists only when a number of conditions are met. The applicant has insurable risk if

has an interest in protecting what is insured