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96 Cards in this Set
- Front
- Back
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Condominium Association
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An entity composed of the unit owners in a condominium to manage the condominium and to own the common elements
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Common Elements
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Areas of a condominium that are jointly owned by all units owners, including the land on which the buildings are located.
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Condominium Association Agreement
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A document that describes what each condominium unit owner has purchased and clarifies the rights and responsibilities of the unit owners and the association.
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Bare-walls Concept
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A concept of condominium ownership in which the association has no ownership interest within the bare walls of each unit.
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Single-entity concept (original specifications coverage)
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A concept of condominium ownership in which the association is condisered to be the owner of all the property contained in the unit as sold to the original purchaser or replacements of such property if the replacements are of like kind and quality.
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All-in Concept (additional installations coverage)
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A concept of condominium ownership that is similar to the single-entity concept except that the all-in concept includes improvements made by the unit owner, not just the original installations of replacements of like kid and quality
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Cooperative Corporation
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A form of real property ownership in which the real property is owned by a corporation whose shareholders are the tenants of the property
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Planned unit Development (homeowners association)
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A real estate development in which each occupant has exclusive ownership of its own unit and the land that the structure occupies and a homeowners' association composed of all the unit owners jointly owns the surrounding land and structures.
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Builders Risk Coverage Form
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A form that covers buildings in the course of construction, including additions or alterations to existing buildings
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Standard Property Policy (SPP)
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A Commercial property policy form for covering buildings and business personal property on restricted terms.
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Legal Liability Coverage Form
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A commercial property coverage form that provides legal liability coverage on buildings or personal property of others in the insured's care, custody, or control
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Leasehold Interest Coverage Form
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A commercial property coverage form for insuring a tenant's financial losses resulting from the cancellation of the tenant's lease because of damage to the premises by a covered cause of loss.
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Write Your Own (WYO)
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A program allowing private insurers to write flood insurance under the National Flood Insurance Program (NFIP)
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Regular Program
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Second phase of the National Flood Insurance Program in which the community agress to adopt flood-control and land-use restrictions and in which property owners purchase higher amounts of flood insurance than under the emergency program
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Emergency Program
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Initial phase of a community's participation in the National Flood Insurance Program in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates
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General Property Form
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The version of the National flood Insurance Program (NFIP) Standard Flood Insurance policy that is used for insuring commercial buildings and contents
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Residential Condominium Building Association Policy (RCBAP)
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A version of the National Flood Insurance Program (NFIP) Standard Insurance Policy that is used for isnuring residential condominium buildings, as well as contents that are owned either by the unit owners in common or by the condominium association solely.
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Coinsurance
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An insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced.
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Increased Cost of Compliance (ICC)
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National Flood Insurance coverage that pays for compliance costs related to floodplain management for qualifying structures.
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Difference in Conditions (DIC) Policy, or (DIC) Insurance
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Policy that covers on an "all-risks" basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage.
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Highly Protected Risk (HPR)
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A large property whose construction meets high standards of risk mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specific occupancy.
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Layered Property Coverage
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Two or more property policies arranged in levels of coverage; the policies in the second or higher levels provide coverage only when the loss exceeds the coverage afforded by the lower-level policies
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Attachment Point
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The dollar amount above which the reinsurer responds to losses.
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Business Income Insurance
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Insurance that covers the reduction in an organization's income when operations are interrupted by damage to property caused by a covered peril.
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Net Income
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The difference between revenues (such as money received fro goods or services) and expenses (such as money paid for merchandise, rent, and insurance).
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Profit
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Net income that results when revenues exceed expenses.
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Net Loss
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Net Income that results when expenses exceed revenues.
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Continuing Expenses
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Expenses that continue to be incurred during a business interruption
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Noncontinuing Expenses
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Expenses that will not continue during a business interruption
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Extra Expenses
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Expenses, in addition to ordinary expenses, that an organization incurs to mitigate the effects of a business interruption.
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Dependent Property Exposure
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The possibility of incurring business income loss because of physical loss occuring on the premises of an organization that the insured depends on for materials, products, or sales.
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Coinsurance Basis
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The sum of the insured's estimated net income and operating expenses for the twelve months following policy inception, minus only those expenses listed in the form.
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Business Income Worksheet
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A worksheet for calculating the amount of insurance necessary to comply with the Coinsurance condition of business income insurance forms, for reporting business income values to the insurer, or for providing underwriters with information they need to evalute an organization's business income loss exposure.
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Period of Restoration
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The period during which business income loss is covered under the BIC forms; it begins seventy-two hours after the physical loss occurs and ends when the property is (or should have been) restored to use with reasonable speed. (With regard to extra expense coverage, it begins immediately after the physical loss occurs.)
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Civil Authority additional coverage
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An additional coverage in a business income form, covering loss of business income and/or extra expenses that result when access to the insured's premises is prohibited by a civil authority because of damage by a covered cause of loss to property other than the insured's.
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Extended Business Income (EBI) additional coverage
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Coverage for business income losses that continue after the period of restoration ends; the coverage begins when the damaged property has been restored and ends when the insured's business returns to normal, subject to a maximum of thirty days.
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Extended Period of Indemnity
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An optional coverage that lengthens the duration of the extended business income (EBI) additional coverage for up to two years.
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Interruption of Computer Operations additional coverage
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Coverage for loss of business income or extra expense due to a suspension of operations resulting from an interruption of computer operations caused by destruction or corruption of electronic date as a result of a covered cause of loss.
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Maximum Period of Indemnity
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Option that deletes the coinsurance clause while limiting loss payment to the lesser of (1) the amount of loss sustained during the 120 days following the beginning of the period of restoration of (2) the policy limit.
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Monthly Limit of Indemnity
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Option that deletes the coinsurance clause while limiting the amoutn recoverable during any month of business interruption to a stipulated fraction (1/6, 1/4, 1/3) or the insurance amount.
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Ordinary Payroll
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The entire payroll expense (including employee benefits, FICA payments, union dues paid by the employer, and workers compensation premiums) for all employees of the insured except officers, executives, department managers, and employees under contract.
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Ordinary Payroll Limitation of Exclusion endorsement
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Endorsement that limits coverage for ordinary payroll expenses to a specified number of days or excludes such expenses altogether, allowing the insured to satisfy the coinsurance requirement with a lower amount of insurance.
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Discretionary Payroll Expense endorsement
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An endorsement that extends business income forms to cover payroll expenses for specified job classifications or employees regardless of whether such expenses are necessary to resume operations.
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Power, Heat and Refrigeration Deduction endorsement
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Endorsement that eliminates power, heat and refrigeration expenses from coverage and from the coinsurance calculation, allowing the insured to satisfy the coinsurance requirement with a lower limit of insurance.
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Business Income Premium Adjustment endorsement
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An endorsement that bases the final policy premium earned by the insurer on the actual exposure as reported by the insured at twelve-month intervals.
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Business Income Changes - Endorsement Institutions endorsement
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An endt that modifies business income coverage forms to make them more appropriate for covering the business income loss exposures of schools
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Utility Services - Time Element Endt
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An endt that covers loss of business income or extra expense at the insured premises caused by the interruption of utility services (water, communications, or power) to the insured premises.
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Ordinance or Law - Increased Period of Restoration endt
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Endt that covers business income loss during the additional time required to comply with building ordinances or laws.
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Business Income
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Sum of (1) net profit or loss that would have been earned or incurred if the suspension had not occurred and (2) normal operating expense, including payroll, that continue during the suspension.
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Nationwide Marine Definition
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Specifies the types of property that may be insured on inland marine and ocean marine insurance forms.
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Nonfiled classes (uncontrolled classes)
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The classes of inland marine business for which neither policy forms nor rates must be filed with the state insurance department.
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Filed classes (controlled classes)
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The classes of inland marine business for which policy forms and/or rates must be filed with the state insurance dept.
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Floater
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A policy designed to cover property that floats, or moves, from location to location.
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Invoice value
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A valuation bases that values covered property at its invoice value, including freight.
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Agreed Value Method
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A method of valuing property in which the insurer and the insured agree, at the time the policy is written, on the maximum amount that will be paid in the event of a total loss.
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Shipper
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The person or organization shipping goods, often the seller of the goods.
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Consignee
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The person or organization that receives property being transported by a carrier.
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Common Carriers
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Airlines, railroads, or trucking companies that furnish transportation to any member of the public seeking their offered services.
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Contract Carriers
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Carriers that furnish transportation services to shippers with whom they have contracts
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Act of God
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A natural and unavoidable catastrophe that interrupts the expected course of events.
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Inherent Vice
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A quality of or condition within a particular type of property that tends to make the property destry itself.
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Bill of lading
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A document acknowledging receipt of goods from the shipper, given by the carrier which includes the terms of the contract of carriage for the goods.
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Charter
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A travel contract in which transportation is temporarily hired for a specific trip.
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Annual transit policy
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Policy that covers all shipments made or received by the insured throughout a one-year policy period.
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Open Cargo Policy
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Policy that covers all goods shipped or received by the insured during the policy's term; comparable to an inland marine annual trip transit policy, but without a set policy expiration date.
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Assured
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In ocean marine policies, the party named as the insured.
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General Average
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Partial loss that must, according to maritime law, be shared by all parties to a voyage (cargo owners and vessel owner)
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Sue and Labor Clause
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Clause that covers the cost of reasonable measures that the insured is required to take to protest property from damage at the time of loss.
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Warehouse-to-warehouse coverage
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Clause in open cargo policies that covers the insured cargo during the ordinary course of transit (including land transit) from the time the cargo leaves the point of shipment until it is delivered to its final destination.
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Free of capture and seizure (FC&S) warranty
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A warranty that excludes loss cause by war, piracy, virtually any lawful or unlawful taking of the vessel, a nuclear weapon, a mine, or a torpedo.
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Strikes, riots, and civil commotion (SR&CC) warranty
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A warranty that excludes loss caused by strikes, labor disturbances, riots, vandalism, sabotage, or malicious acts.
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Delay clause
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A clause that excludes coverage for loss caused by delay, such as loss of market, spoilage, and business interruption.
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Inchmaree Clause
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A clause that adds coverage to an ocean marine cargo policy for loss resulting from bursting of boilers, breakage of shafs, latent defects in the vessel, or faults or errors in the navigation or management of the vessel.
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FPA/AC (Free of particular average/american conditions)
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An exceptive warranty that excludes particular average unless the loss is actually caused by the stranding, sinking, or burning of the vessel or its collision with another vessel.
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Particular Average
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Partial loss that is borne by only one party to a voyage (such as a cargo owner).
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Accumulation Clause
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A clause in open cargo policies that doubles the policy limit when, for reasons beyond the control of the assured, shipments accumulate at some point in transit.
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Trip Transit Policy
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Policy that covers a particular shipment of goods specified in the policy.
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Mail Coverage Form
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Form that covers a financial institution against loss of securities and other negotiable instruments while in transit through specific types of mail.
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Parcel Post Policy
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Inland marine policy that provides broad coverage on parcel post shipments.
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Motor truck cargo liability policy
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Policy that covers a trucker's liability for damage to cargo of others being transported by the trucker.
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Owners' goods on owners' trucks policy
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A type of motor truck cargo policy that covers any type of organization (not just a trucking company) for damage to its own cargo while being transported on its own trucks.
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BMC 32 - Endt for Motor Common Carrier Policies of Ins. For Cargo Liability
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An endt. That insurers must attach to motor truck cargo liability policies of interstate carries stating that the insurer will pay cargo claims for which the insured is liable, up to the limits required by the US department of transportation, even if such claims are not covered under the policy.
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Equipment Floaters
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A cateogry of inland marine policies covering various types of equp., wherever it may be located in the policy period.
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Contractors equipment floater
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A policy that covers mobile equipment or tools while located anywhere in the coverage territory.
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Upgraded Value
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The cost to replace covered equipment with the latest comparable state-of-the-art equipment available; can be used as a valuation basis in an EDP floater.
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Breakdown Coverage
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Coverage, in an EDP equipment floater, for perils such as mechanical failure, electrical disturbance, and damage to electronic data when covered equipment breaks down.
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Installation floater
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Policy that covers a contractor's interest in building supplies or fixtures that the contractor has been hired to install.
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Warehouse Operators Legal Liability Policy
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Policy that covers warehouse operators against liability for damage to the property of others being stored in operators' warehouses.
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Bailees' customers policy
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A policy that covers damage to customers' goods while in the possession of the insured, regardless of whether the insured is legally liable for the damage.
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Pattern and Die Floater
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A policy that covers the insured's patterns and dies while located at the premises of others and also while in transit to and from those premises.
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Processing Floater
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A policy that covers the insured's goods while being worked on at a subcontractor's and processor's premises and while in transit to and from those premises.
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Dealers Policy
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A policy that covers the inventory and other property of any of the types of dealers that qualify for inland marine coverage (such jewelers, equipment dealers, fine arts dealers, and furriers.)
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Block Policy
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A dealers policy, particularly one written for a jeweler or furrier.
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Signs Coverage Form
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Form that covers neon, flourescent, automatic, or mechanical signs.
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Accounts Receivable insurance
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Ins. That covers the sums the insured is unable to collect when records of accounts receivable are destroyed by a covered cause of loss.
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Valuable papers and records ins.
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Ins. That covers direct physical loss to valuable papers and records, such as architect's blueprints and plans.
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