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67 Cards in this Set

  • Front
  • Back
AGENT
In insurance, person authorized to represent insurer in dealing with third parties in matters relating to insurance
BAILEE FOR HIRE
One who has temporary possession of personal property of others for a purpose other than sale and who is compensated for caring for it
BINDER
A written oral agreement form the insurer giving temporary protection to insured pending issue of the policy
BODILY INJURY
Generally defined in liability policies to mean bodily injury, sickness, or disease sustained by a person, including death resulting from any of these at any time
BROKER
One who is an independent middleman, not tied to a particular company, who obtains insurance for his clients from insurance companies or their agents.
BURGLARY
in insurance policies, generally defined as the unlawful taking of property from within the premises by a person unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit.
COMMISSION
Sum paid as remuneration to the broker for business placed with an insurer
CONDITION
A condition imposed upon insured under the policy requires them to do or not to do something during the term of the policy
CONDOMINIUM
A system of separate ownership of individual units in a multiple unit building.
CONSIDERATION
In a contract, an exchange of something of value between the parties.
CONTRACT
An agreement between two or more parties which is enforceable by law
DAMAGES
An amount of money awarded to the person injured by another’s tort
DEDUCTIBLE
The specific dollar amount or percentage of the insured value to be borne by the insured before he is entitled to recovery from the insurer
DISABILITY
When used in Accident & Sickness Insurance, a physical or mental inability to work
DWELLING
The building occupied as a private residence
ENDORSEMENT
Acknowledges a change in the terms of the contract
ETHICS
Relating to moral character. Conforming to professional standards of conduct
EXCLUSION
Provision specifying the situations, occurrences or persons not covered by the policy
FIDUCIARY
One who manages money or property for another, IE. Trustee
FIRE
The loss of property due to ignition or burning
FLOATER
Insurance document used to provide coverage for property having a high degree of mobility
FORTHWITH
Without delay. Forthwith = immediately.
FRAUD
A deliberate attempt to deceive, with a view to securing profit
FRIENDLY FIRE
Fire confined to the place it is supposed to be e.g. fire in fireplace
HAZARD
A condition which may cause a peril to occur
HOLD HARMLESS
A contractual agreement whereby one party assumes legal responsibility for the acts of another
HOSTILE FIRE
One which becomes uncontrollable or breaks out from where it is intended to be and becomes a hostile element
INDEMNITY (PRINCIPLE OF)
Insurance principle which aims at ensuring the victim of a loss receives the actual amount of the loss, no more no less
INSURANCE INTEREST
People have an insurable interest when they able to show that they would suffer financially from a loss; a requirement of insurance contracts
INSURANCE
The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed…or to pay a sum of money or other thing of value upon the happening of a certain event.
LOADING
The rate over and above the fire rate which is charged by the insurer to provide additional policy coverages
MATERIAL FACT
A fact which, if the insurer knew about it, would cause it to decline the insurance altogether, or charge a higher premium for accepting it
MINIMUM RETAINED PREMIUM
The minimum amount of a premium an insurer will retain in the event the policy is cancelled prior to its expiry
NEGLIGENCE
Failure to use that degree of care which an ordinary person of reasonable prudence would use under the given circumstances
PARTIAL LOSS
A loss under an insurance policy which does not either completely destroy or render worthless the insured property, of which does not exhaust the insurance limits applying thereto.
PAYEE
One to whom insurance monies are payable in the event of a loss to insured property
PERIL
The cause of loss
PREMISES
The land contained within the lot lines
PREMIUM
The money or consideration paid by the insured to the insurer for insurance protection
PRIVATE PROTECTION
Refers to the things a person has done internally to prevent or reduce loss
PROPERTY DAMAGE
In commercial liability insurance policies generally defined as “physical injury to tangible property, including all resulting loss of use of that property; or loss of use of tangible property that is not physically injured
PUBLIC PROTECTION
Refers to the protection provided to insured property from outside sources
PURE RISK
Involves the chance of financial loss with no chance of financial gain
REBATE
Discount or reduction in stipulated premium of policy, generally by agent or broker and intended as an enticement
RELATIVE
One person connected to another by blood or affinity
REPAIR
The act of restoring a damaged structure or thing to a condition as close as possible to that in which it originally existed
REPLACEMENT COST
The cost of replacing, repairing, constructing or reconstructing, whichever is the least, the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation
RETENTION
Refers to “self-insurance”; a means of generating funds from within the organization to pay for losses
RIDER
Adds additional coverages to the existing contract
RISK CONTROL
A risk management technique concerned with taking measures to reduce the frequency and severity of losses
RISK
The chance of financial loss to which the object of insurance may be exposed
ROBBERY
Felonious taking of property from the possession of another against his will, accomplished by means of force or fear
SUBROGATION
Refers to the lawful substitution of a third party in place of a party having claim against another party. In insurance contracts, the insurer has the right to “step into the shoes” of the party whom it has compensated and sue any party whom the compensated party could have sued.
THEFT
The taking of property without the owner’s consent
THIRD PARTY
One who is not a party to the insuring agreement but who may have rights therein
TORT
A legal wrong, other than breach of contract, for which the court will provide a remedy in the form of a suit for damages
TORTFEASER
One who commits a tort, a wrong-doer
TOTAL LOSS
Complete destruction of insured property
UNDERWRITER
(a) The one assuming a risk in return for the payment of a premium. (b) The person within the insurance company authorized to accept or reject applications for insurance
UTMOST GOOD FAITH
A requirement of insurance contracts; implies complete honesty, concealing nothing
VALUED POLICY
One in which the insured and insurer agree as to the value of property insured in advance of any loss to it, such amount to be paid in the event of a total loss of the covered property
VOID
Having no legal force or binding effect
VOIDABLE
That which is capable of being declared void
WAIVE
To voluntarily give up a right
WAIVER
The unilateral and voluntary relinquishment of a known right
WAIVER OF COINSURANCE
A clause contained in a commercial property insurance policies which provides that that coinsurance penalty will not be applied in situations involving small losses even though insured may not be in compliance with coinsurance requirements, e.g. penalty waived for losses which are less than 2% of amount of insurance and less than $5000
WARRANTY
A promise that certain facts are truly as they are represented to be and that they will remain so