Cpcu 520 - Assignment 9

Front 1

Three types of ownership interest

Back 1

1.Sole ownership
2.Joint ownership
3.Ownership in common

Front 2

Three types of interest other than ownership

Back 2

1.Lessees have an interest in the use of the property for the duration of the least
2.Custodians of property have a financial and legal interest
3.Security interests may exist by law or contractual agreement

Front 3

Three situations in which personal property is covered

Back 3

(Memory Aid: PIP)
1.Personal property not owned by the insured is covered only at the insured location and only if the property is in the insured's care, custody, and control; may be subject to a sublimit
2.Insured's personal property while away from the insured location may or may not be covered, depending on the policy
3.Personal property of the insured located at the insured location

Front 4

Five factors determine the replacement cost for damage to real property

Back 4

(Memory Aid: Labor MOPS)
1.Labor: skilled estimators and "standard" published work rates are used to determine the time needed to perform a job
2.Materials: total quantity is based on specifications and proced according to current material costs
3.Overhead: contractor's fixed costs
4.Profit: precentage of total costs
5.Specifications state exactly what must be done

Front 5

Three important issues in business income claims

Back 5

(Memory Aid: DID)
1.Determining loss of business income
2.Identifying the most appropriate loss settlement method
3.Determining the period of restoration

Front 6

The most important task of teh insurance industry is protecting people from the financial and personal upheaval following the loss of a home. Three priorities of the adjuster in dealing with the insured's concerns

Back 6

(Memory Aid: E.S.P.)
1.Explanation of coverage and the adjustment process to the policyholder
2.Safety and security of the damaged home
3.Physical safety of the policyholder's family

Front 7

Actual cash value

Back 7

Property's replacement cost minus depreciation

Front 8

Agreed amount basis

Back 8

Used for fine arts and valuable papers; insurer agrees to restore property to a pre-loss condition or pay an agreed amount

Front 9

Bill of lading

Back 9

A receipt for shipped goods and a contract for transportation

Front 10

Broad evidence rule

Back 10

Requirement by some courts that the adjuster consider all relevant factors

Front 11

Depreciation

Back 11

Loss of value caused by obsolescence or wear and tear

Front 12

Estoppel

Back 12

Prevents an insurer from asserting a right that the insurer has already waived

Front 13

Examination under oath

Back 13

Statement by a party who swears to tell the truth in the presence of a court officer

Front 14

Joint ownership

Back 14

Each of two or more owners has a complete, indivisible interest in the property

Front 15

Nonphysical loss

Back 15

Loss of value due to causes other than destruction or damage

Front 16

Ownership in common

Back 16

Each of two or more owners has a fractional and identifiable interest in the property

Front 17

Period of restoration

Back 17

Period of time beginning 72 hours from the date of loss and ending on the date repairs should be completed

Front 18

Proof of loss

Back 18

Policyholder's official version of loss, containing relevant information, that is written, sworn-to, and signed by the insured

Front 19

Prospective settlement

Back 19

Made before the repair of the property; desirable when the insured does not plan to repair the property or plans to make substantial alterations

Front 20

Released bill of lading

Back 20

Limits the carrier's liability to a specified dollar amount in return for a lesser charge for freight

Front 21

Replacement cost

Back 21

The cost to replace or repair property with property of like kind and quality or with identical property without deducting for depreciation

Front 22

Retrospective settlement

Back 22

Made after the property has been repaired and the policyholder has resumed business; more common than propspective settlement

Front 23

Stated amount basis

Back 23

Applies to most coverage on personal articles; the insured is entitled to an amount no more than the least amount of the property's actual cash value, the applicable amount of insurance, or the repair or replacement cost of the property

Front 24

Tenancy by entireties

Back 24

Joint ownership between husband and wife

Front 25

Waiver

Back 25

The intentional and voluntary surrender of an insurer's right