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13 Cards in this Set
- Front
- Back
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Aleatory |
A contract in which the participating parties agree to exchange on equal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premium is unequal to the amount the insurer will pay in the event of a loss |
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Alien Insurer |
An insurance company that is incorporated outside of the United States. |
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Additional Coverage |
A provision in an insurance policy that allows for more coverage for specific loss expense without an increase in premium. |
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Adverse Selection |
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. |
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Aggregate Limit |
The max limit of coverage available under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur. |
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Assignment |
The transfer of a legal right or interest in an insurance policy. In Property and casualty insurance, assignments of policies are usually valid only with the prior consent of the insurer. |
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Arbitration |
Method of claim settlement used when the insured and insurer cannot agree upon the amount of loss. |
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Agent |
An individual licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. |
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Auto |
A land motor vehicle, trailer, or semi-trailer designed for use in public roads, including attached machinery or equipment. Auto does not include mobile equipment. |
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Additional insureds |
Individuals or business that are not named as insured in the declaration page but are protected by the policy usually in regard to a specific interest. |
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Accident |
An unplanned, unforeseen event which occurs suddenly and at a specific place. |
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Avoidance |
A method of dealing with risk by deliberately keeping away from it. |
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Adhesion |
A contract offered on a take it or leave it basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favour of the insured. |
