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24 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The agent contract with an insurance company is an example of what authority? |
Express |
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What represents valuable consideration on behalf of the insured? |
Both application and all statements made in it and initial premium paid to the sales representative |
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Since the policy is written by the insurer and the insured has no input in the wording, any vagueness or ambiguity will always be ruled in favor of the insured is known as |
The doctrine of adhesion |
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Mutual insurer |
An insurer that is owned by the policyholders and may pay a dividend to those policyholders if the company shows a profit |
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Express authority |
In an oral or written agreement |
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Implied authority |
The public may believe an agent to have. Example agent issues policy would then think agent issues endorsements |
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Apparent Authority |
Created when action or inaction by the insurer gives the impression that the authority exists. (Binding authority) |
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Stock company |
Stockholders own a stock insurance company, while a mutual insurance company is owned by the policy owners |
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Peril |
Anything that will cause a loss. Fire, lightening, and wind are examples |
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What is NOT a defense against negligence? |
Vicarious negligence |
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If a person violates the co-insurance provisions of the policy, how much will be received in the event of a total loss? |
The policy limit |
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What damages awarded to the injured person are covered by liability insurance? |
Both General and special damages |
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Typical component of a rate filing |
Claims + Expenses-interest |
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Strict liability |
Being held responsible for someone’s injuries even though you might not have been negligent |
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Special dsmages |
Lost wages, and medical bills are examples of compensatory damages |
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The limits for BI or PD on a liability policy |
Are used to pay for the claimants compensatory damages |
State law does not allow the payment of punitive damages by insurance companies |
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When must insurable interest be present under a property policy? |
At the time of loss |
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Negligence |
Is defined as failure to act as a reasonable person would under similar circumstances |
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Vicarious liability |
Could involve one party being liable for acts of another party like an employer or parents |
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Indirect loss |
A loss suffered as a result of consequences of a direct loss happening first. |
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Liability insurance |
Smoke from a factory discoloration the paint on nearby homes. An occurrence is a loss resulting from repeated exposure to a continuously similar event |
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Transfer of rights of recovery |
Concept where an insured assigns to an insurer his right of action against an at-fault party. |
In order to prevent an insured from collecting twice on the same loss |
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Compensatory damages include |
General and special Special damages are definite and defined. General over and above special damages like medical forever |
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Co insurance calculation |
Insurance carried/insurance required x loss=amount paid |
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