Insurance

Front 1

Accident Frequency

Back 1

The rate of occurence of accident, number of accidents per million man-hours

Front 2

Act of God

Back 2

An event that is caused by the forces of nature, without human intervention, and that could not have been prevented by reasonable care. Ex. flood, lightning, earthquake, and hurricane

Front 3

Actuary

Back 3

A person trained in mathematics whose job is to apply the theory of probability to the business of insurance, and to advise in situations involving questions of probability.

Front 4

Adjuster X

Back 4

A person who represents the insurer in setting claims with insureds or with third party claimants.

Front 5

"All-Risks" Insurance

Back 5

Insurance that covers loss caused by all perils except those specifically excluded in the contract.

Front 6

Adjustment

Back 6

The process of determining or accomplishing the amount payable or services to be rendered by one or more insurers to an insured or other claimant under the terms of an insurance policy.

Front 7

American Agency System

Back 7

The system of selling insurance through agents compensated by commissions, the agents having the sole right to bind coverage and solicit renewal of coverage from insureds on expiration of their policies.

Front 8

Appraisal

Back 8

The determination of the value of the property, or of the extent of damage, usually made by impartial experts.

Front 9

Attractive Nuisance

Back 9

A dangerous place or instrumentality attractive to children, the owner of which has the legal duty of taking unusual care to guard them from it.

Front 10

Bailee

Back 10

One to whom goods are delivered to be held in trust in accordance with a contract, whether express or implied.

Front 11

Benefits

Back 11

Amount to be paid by the insurer under the provisions of an insurance contract

Front 12

Binder

Back 12

A temporary insurance contract pending execution of the policy contract. Except for specified differences, the terms of the binder are by implication those of the contact which is intended to replace it.

Front 13

Breach of Warranty Endorsement X

Back 13

An endorsement required to be attached to the policy by the lienholder, specifying that no act of the insured will impair the ability of the lienholder to recover money under the policy

Front 14

Consequencial Loss

Back 14

A loss not directly caused by a peril insured against but arising indirectly

Front 15

Coverage

Back 15

The extent of the insurance contract afforded under an insurance contract. often used to mean insurance or insurance contract.

Front 16

Deductible Clause X

Back 16

A clause in an insurance contract providing that the insurer will pay only the amount of any loss that is in excess of a specified amount.

Front 17

Endorsement X

Back 17

an amendment in writing (including print or stamping), added to and made a part of the insurance contract.

Front 18

Exclusions

Back 18

A provision in an insurance contract stating a situation in which, perils against which, or persons or things upon which, insurance is not afforded under the contract.

Front 19

Exposure

Back 19

The state if being exposed to the risk of loss.

Front 20

Financial Responsibility Clause

Back 20

A clause in an insurance contract subjecting it to the requirements of any financial responsibility law and requiring the insured to reimburse the insurer for any reimbursements it would not be required to make except for the clause.

Front 21

Floater Policy

Back 21

An insurance contract that covers property in any location within a specified territory.

Front 22

Grace Period X

Back 22

period following the premium due date during which payment of the premium may be made without penalty or suspension of coverage.

Front 23

Incontestable Clause X

Back 23

A clause in a contact providing that the insurer may not, after a specified time from the inception of the contract, contest the validity of the contract.

Front 24

Indemnify

Back 24

To make goods another's loss.

Front 25

Indemnity Insurance

Back 25

The replacement, repair, or payment of value of a loss.

(1). A pooling of hazards in order to indemnify those who experience losses.

(2). The contractual relationship between the insured and the insurer who agrees, in return for a premium, to indemnify the insured for losses due to specified causes.

Front 26

Loss

Back 26

(1)Injury or damage sustained by the insured.

(2)The amount for which the insurer becomes liable on occurrence of the event insured against

Front 27

Loss Payable Endorsement X

Back 27

An endorsement required to be placed in a policy by the leinholder, requiring any payment made to name the leinholder.

Front 28

Managing General Agency

Back 28

An agency empowered to write insurance in the name of an insurance company.

Front 29

Mortgagee Clause

Back 29

A clause in an insurance contract making the proceeds payable to a named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee.

Front 30

Notice of Termination Endorsement X

Back 30

An endorsement required to be placed in a policy by the leinholder, entitling the leinholder to receive a specified interval of forewarning of the intent of the insurer to terminate coverage.

Front 31

Peril

Back 31

The cause of a possible loss.

Front 32

Premises

Back 32

A particular location or portion thereof as defined by the policy of insurance.

Front 33

Premium

Back 33

The amount charged for insurance.

Front 34

Proof of Loss X

Back 34

A formal written statement of a claim for payment of a loss, with supporting data, made by an insured to the insurer.

Front 35

Protection

Back 35

(1) A promise of payment of indemnify or a specified sum by an insurer.

(2)Guarding persons or things against loss.

Front 36

Risk

Back 36

(1)The subject of insurance, whether a person or thing.

(2)Chance of loss.

Front 37

Salvage

Back 37

(1) Property taken over by the insurer on payment loss.

(2) In maritime law, the award to persons who voluntarily render services to maritime property in peril, with resulting benefit thereto.

Front 38

Standard Form

Back 38

A contract form in general use by insurers, adopted by a group of insurers, approved by the state insurance department, or prescribed by statute.

Front 39

Surety

Back 39

(1) A corporation or individual guaranteeing performance or faithfulness under a bond.

(2) The bond itself.

Front 40

Underwriter X

Back 40

(1) A person whose duty it is to select risks for insurance and to determine in what amounts and on what terms they will be accepted by the insurer.

(2) An insurer.

Front 41

Waiting Period

Back 41

At the inception of covered disability, a period during which benefits are not payable.

Front 42

Workers Compensation Law

Back 42

A statute imposing liability on employers to pay benefits and furnish care ti employees injured, and to pay benefits to dependents of employees killed, in the course of and because of their employment. the employer is thereby generally relieved of liability for common law damages.