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7 Cards in this Set
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- Back
- 3rd side (hint)
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Parties to a policy contract |
The 3rd party may benefit from the policy, but doesn’t enter into the contract. |
Example: when the insure causes injury or damage to the others, the policy pays the 3rd party even though they are not the policy holder5 |
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5 parts of Insurance Policy |
Declaration-who, what, when, where, and how of the policy contract Who-who the insurance company is and who is the insured What-what property is covered such as the residence address being insured or the vehicle When-when the policy is in force or the policy term Where-where coverage is effective. May be restricted to geographical area How-how much coverage applies. Coverage dollar limit or “actual loss sustained” Insuring Agreement-typically called “the contract”. Includes the terms of the policy including property coverage, perils insured against, etc.. Conditions-the portion of the policy that details the responsibilities of the insured and the company Exclusions-something that is NOT covered Definitions-section where terms are defined |
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Supplementary Payment or Additional Coverages |
Included as extra coverage in the policy at no additional cost |
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Binder |
Temporary insurance; typically issued for a short period of time |
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Certificate of Insurance |
A document certifying that insurance coverage is in place |
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Endorsement |
A document that is attached to the policy that changes it in some way. 1) changes to an existing policy 2) additions to a policy |
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Non-Renewal |
A non-renewal is when a decision is made not to continue the policy at the end if the existing term. Decision can be made by the insurer or insured |
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