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14 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Fire resistive/resistant
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The term generally applied to buildings which have met minimum standards in terms of the hours they will withstand a specific, carefully controlled test fire
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Test
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Non-combustible
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Materials which will not ignite or burn when subjected to fire.
All structural members including floors, roofs and their supports are constructed of steel, iron, concrete or other non-combustible materials. Exterior also required to be of non-combustible construction. Falls just short of fire resistive. |
Will not ignite
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Common hazards
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Conditions common to all buildings which influence their potential for loss.
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Influence loss potential
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Detachment (Clear space)
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Generally, in commercial property insurance policies, means the distance b/w the insured building or building containing the property insured from other commercially rated exposures.
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Distance b/w
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Adverse selection
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Situation occurring when applicants for insurance are largely those most likely to suffer a loss. If an insurance company did not properly screen all proposals for insurance, it would become the victim of adverse selection.
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Disadvantaged
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Risk classification
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Grouping or classifying risks according to established criteria, in large part, based on their probability for loss as a class.
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Grouping for criteria
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Soft market
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A soft market is characterized by intense competition b/w insurers. As a result, rates tend to be unusually low.
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Low rates
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Hard market
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A hard market occurs when low profit margins force out some of the competition. The insured normally receives little or nothing in the way of rate discount.
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Higher rate
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Hazard
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A condition which may cause a peril to occur.
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Condition
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Physical Hazard
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A condition relating to the use of tangible property which could cause a peril to occur.
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Tangible
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Moral Hazard
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Subjective characteristics of the applicant that could cause a peril to occur.
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Characteristics
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Accommodation business (line)
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A risk which would ordinarily be rejected on a strict underwriting basis but is accepted by an insurer as a favour to a valuable agent/broker.
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Favour
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Supporting business
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It refers to the existence of other insurance policies the applicant has with the same insurer.
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Other policies
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Morale Hazard
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Deals with the attitude of the client.
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Attitude
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