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29 Cards in this Set
- Front
- Back
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Where is the policy period stated in an insurance policy? |
On the declarations page |
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In insurance contracts, when is the offer usually made? |
When the insurance application is submitted |
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What is proof of loss? |
A sworn statement from an insured notifying the insurer about a loss |
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What does an endorsement do to an insurance contract? |
It modifies the policy's original terms |
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What's the difference betweent cancelation and nonrenewal |
Cancellation: termination of a policy by either party prior to the expiration date Nonrenewal: termination of a policy at its expiry date by not offering a continuation of the existing policy |
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What is consideration in an insurance contract? |
Consideration is something of value that each party gives to the other. Consideration on the part of the insurer is binding. |
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Who is the named insured? |
The named insured is the individual who's name appears on the policy declarations. |
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When is an appraisal needed dland how can it be requested? |
When there is a dispute about the loss amount and either party can make a written demand for an appraisal. |
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In commercial property policies, who had control of the policy and who can cancel it? |
First named insured |
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What section personalizes an insurance policy? |
Declarations |
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In property and casualty policies, what is required for an assignment to he valid? |
Written consent of the insurer |
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In insurance contracts, when does acceptance usually occur? |
When the insurer approves a prepaid application |
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Who is an insured in property and casualty insurance? |
Anyone covered by the policy, even if not specifically named |
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What does an exclusions section of a policy specify? |
What perils are not insured against, or what persons are not covered in a policy. |
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What are some of the sources of information that may be used by property/casualty insurers in the underwriting process? |
Application, MVR, interviews w/ neighbors/friends/employers, inspection of property, and applicant's insurance history |
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According to Gramm-Leach-Biley Act, when must insurers give the 2 required disclosures to customers? |
When a policy is purchased and before disclosing protected information |
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What is a warranty in an insurance contract? |
An absolutely true statement upon which the validity of the policy depends. |
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What part of an insurance policy indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy? |
Conditions |
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What is consideration on part of the insurer? |
A promise to pay in the event of a loss |
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When does pro rata liability apply? |
When an insured has more than one policy covering a loss |
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What are an insurer's duty after a loss? |
1)Prevent further damage 2)Inventory of damaged property 3)Cooperate with insurer 4)Notify police in case of a theft 5)Submit proof of loss |
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What provision defines how a policy will respond of there is more than one insurance policy written on the same risk? |
Other insurance |
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Which method of loss valuation is contrary to the principle of indemnity? |
Replacement cost |
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What insurance principle does pro rats liability protect? |
Indemnity |
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What part of an insurance policycontains the insurer's promise to pay a claim? |
Insuring agreement |
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What is a binder? |
Temp insurance contract that goes in effect prior to the policy issue. |
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What are the four elements of an insurance contract? |
1)Agreement 2)Consideration 3)Competent parties 4)Legal purpose |
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Persons who are not named on the declaration page of a policy but who are protected by the policy are known as what type of insured? |
Additional insured |
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What is additional coverage in an insurance policy? |
A provision that adds more coverage for a specific loss at no additional premium |
