Fundamentals Of Insurance Definitions

Front 1

Bailee

Back 1

One who has temp. possession of personal property of others who is compensated for caring for it.

Front 2

Binder

Back 2

Written or oral agreement from insurer giving temporary protection to insured pending issue of the policy.

Front 3

Bodily Injury

Back 3

Sickness or disease including death resulting from any of these

Front 4

Broker

Back 4

Mediator to insured and insurer.

Front 5

Burglary

Back 5

Unlawful taking of property by person unlawfully on premisis by entering or leaving by forcible entry.

Front 6

Condition

Back 6

Imposed upon insured under policy requiring then to do or not to do during time of policy.

Front 7

Consideration

Back 7

Ah exchange of something of value between parties.

Front 8

Contract

Back 8

Agreement between two or more parties which is enforceable by law.

Front 9

Damages

Back 9

Amount of money awarded to person injured by another's tort.

Front 10

Deductible

Back 10

Amount paid by insured before they are entitled to recover from insurer.

Front 11

Disability

Back 11

Physical or mental inability to work.

Front 12

Dwelling

Back 12

Building occupied as a private residence.

Front 13

Endorsement

Back 13

A change in terms of the contract.

Front 14

Exclusion

Back 14

Situations, occurrences or persons not covered by policy.

Front 15

Fiduciary

Back 15

One who manages money or property of another.

Front 16

Floater

Back 16

Used to provide coverage for property having a high degree of mobility.

Front 17

Fraud

Back 17

Deliberate attempt to deceive to secure profit.

Front 18

Friendly Fire

Back 18

Contained to the place it is supposed to be in.

Hint 18

Fire in a fireplace

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Hazard

Back 19

Condition which may cause a peril to occur.

Front 20

Hostile Fire

Back 20

One which becomes uncontrollable or breaks out from where it originates.

Front 21

Indemnity

Back 21

Principle which aims to ensure the victim receives the actual amount of loss, no more no less.

Front 22

Insurable Interest

Back 22

Ability to show that they would suffer financially from a loss.

Front 23

Negligence

Back 23

Something that an ordinary person of reasonable prudence would not commit

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Partial Loss

Back 24

Does not completely destroy or render the property worthless or does not exhaust the insurance limits

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Peril

Back 25

Cause of loss.

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Premisis

Back 26

Land contained within the lot lines

Front 27

Premium

Back 27

Money or consideration paid by insured to insurer for insurance.

Front 28

Pure Risk

Back 28

Chance of financial loss with no chance of gain.

Front 29

Rider

Back 29

Adds additional coverage to existing contract.

Front 30

Risk

Back 30

Chance of financial loss to which the object of Insurance may be exposed.

Front 31

Robbery

Back 31

Taking of property by means of force or fear.

Front 32

Subrogation

Back 32

Front 33

Theft

Back 33

Taking of property without owners consent.

Front 34

Tort

Back 34

A legal wrong for which the court will provide a remedy in the form of a suit for damages

Front 35

Underwriter

Back 35

Person within insurance authorized to accept or reject applications for insurance.

Front 36

Utmost Good Faith

Back 36

Implies complete honesty.

Front 37

Warranty

Back 37

Promise that certain facts are truly as they are represented and will remain as such.

Front 38

Fire or Lightning

Back 38

Includes damage to electrical devices from a natural source.

Front 39

Explosion

Back 39

Covers damage caused from hot water heaters and domestic boilers but not water hammer.

Front 40

Smoke

Back 40

Coverage is provided only where loss arises out of the sudden, unusual and faulty operation of certain types of units.