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31 Cards in this Set
- Front
- Back
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Abandonment Condition |
A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value |
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Absolute Liability |
Type of liability imposed by law on those participating on certain activities that are considered especially hazardous; a person involved in such operations may be held liable for the damages of another even though the individual was not negligent |
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Accident |
A loss that occurs at a specific time and place |
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Accounts receivable insurance |
Filed commercial inland marine form that insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged or destroyed |
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Actual Cash Value (ACV) |
The cost to replace an item of property at the time of loss, less an allowance for depreciation; often used to determine the amount of reimbursement for a loss |
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Additional Coverages |
Supplemental insurance coverage's that apply only in certain circumstances, have reduced or separate limits of liability, or require the insured to meet certain requirements before they are applicable, also called coverage extensions, other coverage's, extended coverage's |
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Additional Insured |
An individual or company, in addition to the insured, who is listed in the declarations |
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Additional Insured- Lessor endorsement |
Commercial auto endorsement used to make leased vehicles considered owned vehicles for coverage purposes |
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Adhesion contract |
A contract where one party has more power than the other party in drafting the contract; an insurance policy is an adhesion contract-the insurer is the one with more power |
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Adverse Selection |
Th tendency of insureds with a greater than average chance of loss to purchase insurance |
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Agency |
Principles governing the authority of any agent that represents a principal |
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Agent |
An individual or organization that legally represents another; a state licensed professional who represents the insurance company in the sale and servicing of insurance; the direct link between the insurance company and the policyholder |
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Aggregate Limit |
Type of policy limit found in liability policies that limits coverage to a specified total amount for all losses occurring within the policy period |
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Agreed value condition |
Condition found in some property insurance policies that stipulates a certain value that will meet the coinsurance requirement; if the policy limit equals or exceeds this amount, the insured will not be assessed a coinsurance penalty; also called stated amount condition |
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Aleatory contract |
A contract that is contingent on an uncertain event (a loss); an insurance policy is an aleatory contract |
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Alien company |
An insurance company incorporated in a country other than the US that is doing business in the US |
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A.M. Best Company |
Organization that rates the financial stability of insurance companies doing business in the US |
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Annual transit policy |
Non filed commercial inland marine transportation form that insures a property owners incoming and outgoing shipments of goods during a year |
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Apparent authority |
Legal doctrine that states that an agent has whatever authority a reasonable persona would assume she has |
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Application |
Questionnaire filled out by an agent and the prospect who is seeking insurance; the form contains information used to underwrite and rate the policy |
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Appraisal condition |
Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of loss-the insurer and insured each select an appraiser; the two appraisers selct an umpire; if the appraisers cannot agree on the amount of loss, the umpire is consulted; the amount agreed to by any of the two of the three parties is the amount paid for the loss |
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Appurtenant structure |
Buildings of lesser value that are on the same premises as the main building insured under a property policy; they are usually covered by the policy |
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Arbitration condition |
Policy condition that is similar to the appraisal condition; may be used to resolve other areas of disagreement besides those regarding the value of loss |
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Assessment mutual company |
Mutual insurance company that charges members pro-rata share losses at the end of each policy period |
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Assignment condition |
Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing |
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Assumption of risk |
Defense against liability based on the common law principle that a person who knowingly exposes himself to danger or injury assumes the risk of loss and cannot hold another person responsible for the loss |
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Authorized insurer |
Company that meets a state insurance departments standards and is authorized to do business in that state, also called an admitted insurer |
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Automatic increase in Insurance Edorsement |
Dwelling policy endorsement that provides an annual increase in the Coverage A amount of 4% 6% or 8% |
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Automobile insurance plan |
A state-sponsored plan that provides automobile insurance to those who cannot be insured under standard auto insurance polices |
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Aviation hull insurance |
Insurance that provides coverage for physical damage to aircraft |
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Aviation liability insurance |
Insurance provided for owners of aircraft that covers liability for bodily injury, injury to passengers, and property damage; also provides medical payments coverage |
