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42 Cards in this Set
- Front
- Back
A ____________ accident includes continuous or repeated exposure to the same harmful conditions. |
Occurence |
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The termination of an insurance policy before its expiration date |
Cancellation |
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The termination of a policy at the expiration of its term. |
Non-renewal |
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Covers Perils specifically stated in the policy. |
Named Peril |
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Covers losses caused by all perils except for those that are specifically excluded. |
Open Perils |
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A method of insuring one item of property, under one policy, with one limit of coverage
EXAMPLE: One house is insured on one policy for $100,000
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Specific limit |
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A method of insuring where multiple items of property are insured under one policy with different limits of coverage.
EXAMPLE: One $200,000 farm policy includes insurance for the house at $100,000 and the barn for another $100,000 |
Scheduled Limit |
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A method of insuring multiple items of property on one policy with one limit of coverage.
EXAMPLE: You own 3 buildings and want to insure all of them on the same policy for a total of $400,000. |
Blanket Limit |
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The part of the insurance policy that describes basic information about the policy including who is covered, what property is covered, when (dates), where (location of property), how much. |
Declarations Page |
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States the insurance company's promise to make payment on behalf of the insured.
States which perils are going to be covered and the exclusions. |
Insuring Agreement |
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States the rights, duties and obligations of the insurer (insurance company) and the Insured (you) |
Conditions |
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States the perils that are not covered in the policy. |
Exclusions |
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Extra coverages that are automatically included in property policies without an additional premium. |
Additional Coverages |
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_____________ is a provision contained in most policies that encourages the insured to purchase insurance to value.
EXAMPLE: For example, you must purchase insurance that covers at least 80% of your home's value.
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Coninsurance |
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Coinsurance ONLY applies in the event of:
(B) Total Loss |
Partial loss |
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An _____________is a policy form that alters or adds to the provisions of the property and casualty insurance contract. |
Endorsement |
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A provision that eliminates coverage for buildings that don't contain sufficient personal property. |
Vacancy |
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A property that contains personal property but has no occupants. |
Unoccupancy |
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A legal agreement issued by an insurance company that provides temporary proof of insurance until the insurer is able to provide an insurance policy |
Binder |
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What information is included in a binder? |
(1) Name (2) Amount (3) Type of insurance (4) Perils |
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What is the maximum amount of days a binder can be issued for? |
60 |
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Taking of property from inside the premise or from a locked safe by someone who commits forcible entry from the property of another while trespassing. |
Burglary |
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Taking property from the care of a person by someone who has threatened bodily harm to that person. |
Robbery |
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Any act of stealing and includes losses by burglary or robbery. |
Theft |
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Not considered theft, burglary or robbery. It is the loss of property when the cause is not known. |
Mysterious disappearance |
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The price a willing buyer would pay for property purchased from a wiling seller. |
Market value |
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A valuation method that states the value of a particular property on the declarations page - but states that the insurer will pay the lesser of the stated value or actual cash value. |
Stated Value |
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____________ liability is most often associated with dangerous animals, abnormally dangerous activities, and employer's liability for injuries that happen to their employees.
Example:
- Owning a Lion, Pitbull, Rotweiler - Storing explosives, weapons |
Absolute Liability |
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__________ liability applies to products. If someone can prove that a product caused the injury the manufacturer will be held liable whether or not the product was defective. |
Strict Liability |
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When a _____________ liability law is in place, the injured party collects insurance from his or her own insurance, thus eliminating the process of determining who was negligent.
Under this law, the person who was injured cannot sue unless the injury is severe (death, paralysis). |
No-Fault Liability |
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In order for an act to be considered ___________, it must contain these four elements: (2) Violation of Duty (3) Violation of Duty is Proximate Cause (4) Foreseeable Consequences |
Negligence |
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According to the ______________ , all property must contain an element of transportation to be eligible under inland marine coverage forms.
Example: It must be in transit, be moveable, or be held in the possession of a bailee who is someone other than the property owner. |
Nationwide Marine Definition |
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According to the Nationwide Marine Definition, there are six categories of risk eligible for insurance: |
(1) Imports
(2) Exports
(3) Domestic Shipments & Property in transit
(4) Instrumentalities of Transportation or Communication
(5) Personal Property Floaters
(6) Commercial Property Floaters Risk |
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Commercial Inland Marine coverage is usually limited to....
(B) Stationary properties |
Portable Properties |
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Inland Marine Policies cover property that is.... |
(1) In transit (2) Moveable (3) Property particular to transportation & communication risk (4) Property in the possession of bailees |
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A form of coverage used to insure moveable or in transit property against direct loss. |
Inland Marine Insurance |
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Individual items such as the ones below are insured under which FLOATER?
- Furs - Cameras - Musical instruments - silverware - fine arts - stamp collections |
PERSONAL ARTICLES FLOATER? |
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Are personal Articles Floater is provided on
(B) Open Perils Basis |
Open perils basis |
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Are personal article floaters provided on a worldwide basis? |
Yes |
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______________ Floaters insure property pertaining to a business, profession or occupation. |
Commercial Property Floaters |
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A federal program that enables certain property owners to purchase flood insurance. |
National Flood Insurance Program (NFIP) |
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The National Flood Insurance Program provides coverage for direct damage to what types of property? |
The building and its contents |