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7 Cards in this Set
- Front
- Back
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Risk |
Risk from an insurance perspective, means the chance of financial loss. All insurance is designed to offset the financial impact upon an insured of such losses. |
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Binder |
Insurance arrangement must be "written" to constitute a "policy" it is general knowledge that insurance may be placed into effect or bound prior to inssurance of a policy contract
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Property and Liability |
A coverage usually written in conjunction with a bodily injury liability policy. This insurance covers damage done to another person's property, usually including loss of use. |
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Personal Contract |
Insurance covers the person, not property or operations.Insurance contracts are usually personal agreements between the insurance company and the insured individual, and are not transferable to another person without the insurer's consent. |
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Contract of Adhesion |
In property and liability insurance mus have this contract of unequal bargaining power, and one party (the insured) cannot negotiate the terms, having to take the offer of the other party(the insurer) as made |
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Indemnity Contract |
This principal must be established in EVERY Property and liability policy. One should not profit from the response provided by the policy. Without this principle, the fundamental purpose of insurance can be undermined by person intentionally causing loss for economic advantage. |
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Insurable interest |
A person has an insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial or other kind of loss. |
