Ins. 22 Chpt. 2 Pt. 1

Front 1

Cont. Negligence Law

Back 1

Law the prevents a person from recovering damages if that person contributes in any way to his or her own injury.

Front 2

Comparitive Negligence Law

Back 2

Law requiring both parties to a loss to share the financial burden of the injury accoring to their respective degreess of fault. In a number of states if Driver A is 50% or more negligent he or she can collect nothing from driver B.

Front 3

Tort Reform

Back 3

Proposed or actual legislation intended to reduce legal costs or settlement awards resulting from negligence suits.

Front 4

Financial Responsibility Law

Back 4

Law that requires motorists under certain circumstances to provide proof that they have the ability to pay to up to certain minimum amounts for the damage or injury they might cause as a result of operating a veh.

Front 5

Compulsory Auto Insurance Law

Back 5

Law that requires the owners or operators of autos to carry auto liability ins. at least equal to certain miniumum limits before the veh. can be lisc. or regist. in the state.

Front 6

Un-Satisfied Judgement Funds

Back 6

Funds set up in some states to compensate auto accident victims who have obtained a court judgement that is un-collectible because the negligent party cannot pay.

Front 7

UIM -Un-insured Motorists Covg.

Back 7

Covg. that re-imburses an insd. auto victim who sustains BI caused by an un-insured motorist or a hit and run driver or one who's own provider is insolvent.

Front 8

Under-Insured Motorists Covg.

Back 8

Covg. that applies when a negligent driver has liability insurance at the time of the accident but their limits are lower than those of the injured persons own covg.

Front 9

No-Fault Auto Insurance

Back 9

Insurance that covers the auto. accident victim on a first-party basis, allowing them to collect from their own insurers regardless of who was at fault.

Front 10

Monetary Threshold

Back 10

The level of monetary damages in a no-fault system at which one inj. party can seek compensation from the at-fault party.

Front 11

Verbal Threshold

Back 11

The level of severity of inj. in a no fault system, including death and certain specified injuries such as disfigurement and dismemeberment, at which the inj. party can seek compensation from the at-fault party.

Front 12

Personal Injury Protection (PIP endorsement)

Back 12

Endorsement to an auto insurance policy describing the no-fault benefits that are provided.

Front 13

Pure No-Fault System

Back 13

System that would prevent an inj. person from seeking compensation for damages from the at fault party regardless of the injuries severity, the injured person would collect no fault benefits, directly from his or her own insurer.

Front 14

Ad-On Plan

Back 14

Endorsement that provides certain benefits to the inj. auto. victims regardless of fault, the inj. person retains the rt. to seek compensation from the negligent party who caused the accident.

Front 15

Modified No-Fault Plan

Back 15

Laws that prevent an injured person from seeking compensation for damages from a negligent driver unelss damages exceed the monetary or verbal threshold. If the claim is below the threshold, the inj. person collects benefits from his or her own insurer.

Front 16

Choice No-Fault Plan

Back 16

Plan that gives an insd. the option at the time an auto ins. policy is purchased or renewed of choosing whether to be covered on a no fault basis.

Front 17

Residual Market (shared market)

Back 17

Term referring to providers who make insurance available to those who can not obtain covg. in the standard market.

Front 18

Automobile Insurance Plan

Back 18

Plan for insuring high-risk drivers in which all auto insurers doing biz in the state are assigned their proportionate share of such drivers based on the total vol. of auto insurance written in the state. Ex- if 1 provider writes 10% ins. in the state, it would be assigned 10% of the states high risk drivers.

Front 19

Joint Underwriting Association

Back 19

Organization created in a few states that designates servicing insurers to handle high-risk auto insurance biz, all auto insurers in the state are assessed a proportionate share of the losses and expenses based on their percentage of the voluntary auto ins. permiums written in the state.

Front 20

Underwriting

Back 20

The process by which insurers decide which potential cusotmers to insure and the covg. that insureds will be offered. Underwriting acitivities include selecting insureds, pricing covg., determing policy terms and conditions, and monitoring underwiting decisions.

Front 21

Cancellation

Back 21

Refers to a decision by the insurer or the insd. to terminate covg. during the policy period (before the expiration date of the policy.)

Front 22

A Material Misrepresentation

Back 22

Is a false statement by an insured of an important material fact on which the insurer relies to make an underwriting decision.

Front 23

Nonrenewal

Back 23

Refers to an insurer's decisions to terminate covg. on the expiration date of the policly, in other words the insurer refuses to renew the policy when it expires.

Front 24

Unfair Discrimination

Back 24

Invovles applying different standards or methods of treatment to insureds that have the same basic characteristics or loss potential.