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97 Cards in this Set
- Front
- Back
ABANDONMENT |
Giving property to another or no one at all |
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ABSOLUTE LIABILITY |
Extremely dangerous operations ie: explosives |
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ACCIDENT |
Unplanned unforseen event |
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ACTUAL CASH VALUE (ACV) |
More coverage for loss without increase in premium |
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ADDITIONAL INSURED |
Non named on declaration page. Protected by policy |
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ADHESION |
TAKE-IT-OR LEAVE IT the way the contract is offered |
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ADMITTED INSURER |
Authorized and licensed to transact business in state |
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ADVERSE SELECTION |
Higher risks higher probability of loss |
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AGENT |
Licensed to sell negotiate on behalf of insurer |
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AGGREGATE LIMIT |
Maximum limit under liability policy year regardless of # of claims |
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AGREED VALUE |
Amount of insurance representing fair value for property at time insurance is written |
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ALEATORY |
Low cost high return low payment high amount of insurance |
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ALIEN |
Out of country |
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APPARENT AUTHORITY |
Assumption of authority you really don't have |
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APPRAISAL |
Assessment of property |
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ARBITRATION |
Claim settlement when you can't agree |
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ASSIGNMENT |
Transfer of legal right only with written consent |
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AUTHORIZED INSURER |
Has a Certificate of Authority from Dept. of Insurance |
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Auto |
Land motor vehicle, trailer, semi trailer Does NOT inclue moblie equipment |
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AVOIDANCE |
Way of dealing with risk by deliberately keeping away from |
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BAILEE |
A person that has personal property entrusted by owner ie tv repair man has tv at his shop |
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BINDER |
Temporary contract until policy is in place |
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BLANKET BOND |
Covers losses by dishonest employees |
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BLANKET INSURANCE |
Single property for multiple classes at one location or one or more classes at multiple locations |
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BODILY INJURY LIABILITY |
Liability arising from death physical trauma from negligence or a purposeful act |
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BOYCOTT |
Refusal to do business until agreement to different conditions |
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BUILDERS RISK COVERAGE |
Commercial Property form for contents |
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BURGLARY |
Forced entry with felonious intent |
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CANCELLATION |
Termination while in-force/ 10 day written notice |
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CASUALTY INSURANCE |
Covers losses caused by injury to person or damage to property |
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CERTIFICATE OF AUTHORITY |
Permission to conduct business as an insurance agent |
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CERTIFICATE OF INSURANCE |
Legal document that insurance has been issued |
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CLAIM |
Demand to cover loss protected in policy |
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CLASS RATING |
Practice of computing price per unit |
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COERCION |
Using physical or mental force to persuade |
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COINSURANCE |
Both parties are expected to pay a portion of loss (insurer and insured) |
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COMBINED SINGLE |
Single dollar limit of liability applied total damage for bodily injury and property combined from one accident or occurance |
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COMMERCIAL LINES |
Business, mercantile or manufacturing insurance |
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COMMON LAW |
Unwritten law based on past judicial decisions |
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COMPLAINT |
Written statement of liability. Reason for a lawsuit |
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COMPONENTS |
Factors determining rates including: Loss reserves, adjusting expenses, operating expenses, profits |
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COMPREHENSIVE COVERAGE |
Covers loss fire, theft vandalism falling objects |
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CONCEALMENT |
Withholding facts can void a contract |
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CONDITIONAL CONTRACT |
When both parties must perform duties and follow rules of conduct to make enforcable |
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CONSIDERATION |
Binding force requiring something of value in exchange for transfer of risk. |
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CONTROLLED BUSINESS |
Entity that gets license for the purpose of writing business on the owner, immediate family relatives employer and employees |
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CONCURRENT CAUSATION |
Multiple events leading to one loss |
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DECLARATION |
Where the basic underwriting information is: name address amount description |
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Insurer audit's insured books at end of policy to be sue enough policy has been collected |
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DEPRECIATION |
Lessening value due to wear and tear |
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DIRECT LOSSES |
Physical damages a result of direct consequences of a particular peril |
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DISCLOSURE |
Telling the name of the producer representing the firm |
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DOMESTIC |
IN STATE |
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DOMICILE |
Location of incorporation (state) |
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ECONOMIC LOSS |
Estimated total cost, of an accident |
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ENDORSEMENT |
Printed addendum to a contact used to change a policy |
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ESTOPPEL |
Legal can't go back and take your rights back after you have waived them |
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EXCESS POLICY |
Policy only pays for loss after primary policy has paid the limit |
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EXCLUSIONS |
Causes of loss exposure conditions when policy will not pay |
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EXCLUSIVE/ CAPTIVE AGENT |
Represent only one company commission only |
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EXPERIENCE RATING |
Determines premium based on past loss experience |
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EXPOSURE |
Unit of measure to determine rates |
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EXPRESS AUTHORITY |
Authority granted to agent by written contract |
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EXTENSION OF COVERAGE |
Property policy with extension of major coverage for certain loss |
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FAIR PLAN |
Fair Access to Insurance Requirements makes insurance attainable to HIGH RISK |
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FLOOD |
Temporary condition partial or complete overflow of island or tidal waters |
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FOREIGN |
Out of country |
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FRAUD |
Intentional misreprentation |
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FUNCTIONAL REPLACEMENT COST |
Less expensive more modern |
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GROSS NEGLIGENCE |
Reckless behavior dieregard for safety |
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HAZARD |
Increase likelihood of loss/ MORAL,MORALE,PHYSICAL |
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IMPLIED AUTHORITY |
Not written in contract but expressed. Taking a payment |
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INDEMNITY |
Compensation/payment for the loss |
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INDEPENDENT AGENT |
Sell insurance products from several companies |
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INDIRECT LOSSES |
Loss from peril not directly caused by it IE: business disruption from fire |
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INFLATION GUARD |
Coverage extension that increases annually by percentage |
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INSURABLE INTEREST |
Any interest in a property so that could cause financial loss |
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INSURANACE |
Transference of the possibility of loss spreading the cost to many individuals |
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INSURANCE POLICY |
The contract that agrees to pay for the loss |
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INSURED CONTRACT |
Definition of liability that describes who what when and where assumed loss is covered |
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INSURER |
Indemnifies against loss, provides benefits |
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INSURING AGREEMENT |
Section containing insurers promise to pay |
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INTENTIONAL TORT |
Deliberate act causing harm |
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INTERLINE ENDORSEMENT |
Written endorsement eliminates redundancy of endorsements |
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JUDGEMENT RATING |
Used when credible statistics are lacking |
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LAW OF LARGE NUMBERS |
Principle based on a large number of factors with similar factors |
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LEGAL LIABILITY |
When a person is responsible for injuries or damages due to negligence |
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LIABILITY |
Responsible under the law |
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LIBERALIZATION |
Property insurance clause extends coverage without higher premiums |
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LIMIT OF LIABILITY |
Maximum amount of liability (you are liable for ) |
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LLOYDS |
Provides support for underwriters and individuals who accept risk |
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LOSS |
Reduction, decrease or disappearance of value by peril |
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LOSS PAYABLE CLAUSE |
In property insurance to cover interest of secured lender in personal property (mortager) |
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LOSS RATIO |
How to determine premium LOSS RATIO= INCURRED LOSS + EXPENSES/ EARNED PREMIUM |
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LOSS VALUATION |
Premium charged and insurance required |
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MARKET VALUE |
Not really used How to value loss based on amount buyer willing to pay for property prior to a loss |
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MISREPRESENTATION |
False statement or lie |