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167 Cards in this Set
- Front
- Back
Absolute Liability
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Liability that arises from an extremely dangerous situation. Absolute Liability is often found in cases involving explosives. Also known as "strict" liability. For example, you are absolutely liable if you keep a wild animal as a pet. |
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Accident
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A sudden and unexpected event, occurring at a specific time and place |
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Actual Cash Value (ACV) |
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost minus Depreciation). |
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Additional Insured |
A person, firm, or corporation other than the Named Insured on a policy, or a lender named in a mortgage clause, who is protected against loss by the terms of the policy. |
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Additional Living Expenses |
A coverage designed to reimburse the insured for an increase in living expenses necessitated by loss to the dwelling. This Indirect Loss must be the result of Direct Loss by a covered Peril. |
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Adjuster
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Represents the insurance company and acts for the company in working on agreements as to the amount of a loss and the liability of the company. |
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Admitted Company
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A company that meets the state insurance department's standards and is authorized by the Director to do business in the state. |
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Agent/Producer
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An individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance contracts on its behalf. |
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Aggregate Limit
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A type of policy limit found in Liability policies that limits coverage to a specified total amount for all losses occurring within the policy period. |
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Alien Company
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An insurance company incorporated in a country other than the United States. |
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Allied Lines
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Property coverages that are closely associated with and frequently sold with fire insurance: Dwelling Building and Contents form, Earthquake insurance, Sprinkler Leakage, etc.
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All-Risk Insurance |
Insurance protecting the insured from loss arising from any Peril other than those specifically excluded by name. This contrasts with Named Peril Insurance, which names the Peril or Perils insured against. |
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Application
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A questionnaire that is filled out by an agent and the prospect seeking insurance. The form contains rating and underwriting information. The applicant is expected to make representations by answering questions to the best of his knowledge (truthfully). |
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Appraisal
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If the insur ed and insurer cannot agree on the amount of loss, either may demand an appraisal. If demanded, each will select an appraiser, who jointly will select an umpire. The appraisers will appraise the loss and either agree or submit differences to the umpire. Agreement by any two of the three will be binding. Each party will pay its own appraiser and share equally the expenses of the appraisal and the umpire. |
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Appurtenant Structure
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A structure belonging to the insured structure, such as a tool shed. Appurtenant structures are provided for in the Homeowners policy and other Dwelling policies. This coverage is often called Other Structures or Out Buildings. |
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Assigned Risk
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There are some applicants that underwriters do not care to insure, but because of state law or otherwise, must be provided protection. To become authorized, a Casualty company must agree to participate in the Assigned Risk Pool and take its turn providing Auto insurance to high risk drivers. Also known as the auto insurance "plan." |
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Audit |
A survey of the financial records of the insured conducted to determine exposures, limits, etc., which are needed to calculate the premium. The initial premium is only a deposit. |
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Bailee
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A survey of the financial records of the insured conducted to determine exposures, limits, etc., which are needed to calculate the premium. The initial premium is only a deposit. |
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Bailee's Customer Policy |
Insurance obtained by a bailee, to cover loss or damage to customers' property in the bailee's custody, without regard to liability. |
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Binders |
Binders and other temporary insurance contracts may be made orally or in writing. Each binder is deemed to include all usual terms of the policy for which it was given plus endorsements. Life or Disability insurance utilizes conditional receipts instead of binders. |
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Blanket Position Bond
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Fidelity bond that specifies a single limit of Liability applicable to each employee involved in a loss. |
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Bodily Injury
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Usually defined to include bodily harm, sickness, disease, including required care, loss of services and resulting death. |
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Bond |
An obligation of the insurance company to protect one against financial loss caused by the acts of others. |
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Broker
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One who represents an insured in the solicitation, negotiation, or procurement of contracts of
insurance, and who may render services incidental to those functions. Brokers may also be licensed as agents. |
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Burglary
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As it is defined in Crime insurance policies, the unlawful taking of property by forced entry
into the premises, or exit from the premises, while the premises are closed for business. There must be visible evidence of forced entry or exit |
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Cancellation
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Termination of contract of insurance in force mid - term (rather than at the renewal date) by voluntary act of the insurance company or insured, effected in accord ance with provisions in the contract or by mutual agreement.
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Casualty Insurance
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A type of insurance that is primarily concerned with losses caused by injury to persons and legal liability imposed upon the insured for such injury or damage to property of others.
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Coinsurance
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In Property insurance, a clause under which the insured is required to carry a certain percentage of the replacement cost of the property in order to have replacement cost coverage and partial losses paid in full. Coinsurance on personal lines policies is 80%. The coinsurance clause is also called the 80% clause. |
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Coinsurance Penalty
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In Property insurance, a clause under which the insured shares in losses to the extent that she is underinsured at the time of the loss. |
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Comparative Negligence |
Doctrine that a defendant is liable only for the amount of damages allocated to that defendant in direct proportion to the defendant's percentage of fault (if not 51% or more at fault, defendant is not held liable). |
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Competitive State Fund |
A state fund writing Workers' Compensation insurance in competition with private insurers. |
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Comprehensive Personal Liability
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Nonbusiness Liability exposure of individuals who are insured under this policy. The most common Personal Liability exposures arise out of the residence premises and activities of individuals and family members. Comprehensive Personal Liability coverage first became available as a separate policy. Eventually it was incorporated into Homeowners policies |
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Compulsory Insurance |
Any form of insurance which is required by law. In many states, for example, automobile bodily injury liability insurance is compulsory for all owners of automobiles
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Concealment |
The withholding of material facts by an applicant for insurance, which materially affects an insurance risk or loss. May void the policy. |
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Conditions |
The portion of an insurance contract that sets forth the rights and duties of the Insured and
the insurance company. |
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Consequential Loss |
Indirect losses that occur as a "consequence" of a direct loss. Includes Time-Element coverages, such as coverage for rental value. |
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Consideration |
A characteristic of a legal contract: the thing of value exchanged for the performance promised in the contract. In insurance, the applicant's answers and the policy premium paid constitute the consideration. |
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Contingent Liability |
Liability that an insured person or business incurs because of the actions of others (family or employees). Also called Vicarious Liability. |
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Contract |
A legal agreement between two parties promising a certain performance in exchange for a certain consideration.To hold up in court, contracts must contain four required elements: Consideration, Offer, Acceptance and Legal Purpose (remember the acronym COAL). Parties to the contract must also have Legal Capacity. |
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Countersignature |
The signature of a licensed agent, which, in most states, must appear on the policy to validate the contract. |
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Debris Removal |
A coverage provided in many Property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a Peril insured against. |
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Declaration Page (Dec Sheet) |
A portion of the insurance contract that contains information such as the name and address of the insured, the property insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the insured.
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Deductible |
Usually, a dollar amountor percentage the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. |
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Depreciation
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Decrease in the value of property over a period of time due to use, wear and tear, and obsolescence. |
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Direct Loss
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Loss that is a direct result of a Peril, such as fire.
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Direct Writer |
An insurance company that sells its policies through licensed agents who represent the insurer exclusively, rather than through independent local agents, who represent several insurance companies. Direct writing producers are also called “Exclusive” or “captive” producers. |
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Dividend |
The return of part of the premium paid for a participating policy. |
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Domestic Insurance Company |
An insurance company formed under the laws of the state in which the insurance is written. |
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Earned Premium |
That portion of the premium for which policy protection has already been given during the now - expired portion of the policy term. |
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Effective Date |
The date on which an insurance policy or bond goes into effect and from which protection is furnished. |
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Endorsement |
A document, agreed to by both parties, that is attached to the policy and modifies or changes the original policy in some way. No change to a policy may become effective until approved by a company officer.
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Errors and Omissions |
A Professional Liability coverage that protects the insured against liability for committing an error or omission in performance of professional duties. |
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Exclusions |
Causes, conditions, or property listed in the policy that are not covered and for which no benefits are payable.
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Experience |
The loss record of an insured, a class of coverage, or an insurance company.
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Extended Coverage Endorsement (ECE) |
A specific endorsement, attached to a standard Fire policy, usually providing coverage for windstorm, hail, explosion, riot, civil commotion, aircraft, vehicular damage, volcanic eruption and smoke damage. |
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Fair Plan
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Fair Access to Insurance Requirements. A program established by lawthat makes Property
insurance available and affordable to insureds who might otherwise be uninsurable because of "environmental hazards." |
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Fidelity Bond |
A class of bonds that guarantees an employee's honest discharge of duty |
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Fiduciary |
A person who occupies a position of special trust and confidence. For example, one handling or supervising the affairs or funds of another. Insurance producers are considered to be fiduciaries. |
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Financial Responsibility Laws |
State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state. |
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Fire |
Combustion, sufficient to produce a spark, flame, or glow, that is hostile (not in a place where it is intended to be). An example of a friendly fire is a fire in your fireplace or the flame on your gas stove. |
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Fire Insurance |
1) Contract that indemnifies an insured for loss caused by the destruction of the insured property resulting from fire. 2) The field of insurance that provides policies on the insured property for a variety of Perils, including Fire. |
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Floater Policy |
Protection that follows moveable property, covering it wherever it may be, rather than applying only at a fixed location, such as a Personal Articles Floater (PAF). |
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Flood Insurance |
Insurance designed to reimburse property owners for loss due to flood or to flood - related erosion. Administered through the Federal Insurance Administration, but marketed through independent agents. |
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Fraud |
An intentional misrepresentation or false statement intended to deceive the insurer and induce it to part with something of value or to surrender a legal right. May void a policy. |
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General Agent |
An individual appointed by an insurer to administer its business in a given territory. A GA is responsible for building the agency and service force. Compensation is on a commission basis, although there may be additional expense allowances. Often called a Managing General Agent (MGA). |
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Hazard |
Anything that increases the seriousness of a loss or increases the likelihood that a loss will
occur (risk) due to a Peril. A hazard is something that increases the risk. Risk is defined as the chance of loss. For example: improperly stored combustible materials, worn tires, intentional abuse to insured property, unsafe structural changes. |
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Hull Insurance |
In Ocean Marine and Aviation insurance, insurance against physical damage to plane or
ship. |
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Imports and Exports |
A category of the Inland and Ocean Marine Nationwide Definition, which is made up of risks eligible for Marine insurance.
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Improvements and Betterments |
Additions or changes made by an insured to a building that may or may not be owned by hi
m. Cost arising from these changes may enhance values and thereby require special insurance consideration. |
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Indemnity |
Insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss. The intent is to cover the amount of the actual loss only and to avoid paying amounts that allow someone to profit from a loss situation. This is known as the Principle of Indemnity. |
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Indirect Loss |
Loss that is a result or consequence of a Direct Loss.
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Inherent Vice |
A condition or defect that exists within property from the beginning. A tendency of the property itself. An example of inherent vice is the tendency of milk to sour. Insurance policies usually exclude inherent vice. |
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Inland Marine Insurance |
A form of insurance originally designed as an extension of Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.
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Instrumentalities of Transportation and Communication |
A category of the Nationwide Definition that includes several different classes of Inland Marine, including bridges, tunnels, pipelines, etc. |
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Insurability |
Acceptability of an applicant for insurance to the insurance company. |
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Insurance |
A social device that protects people against certain types of financial losses by transferring pure risk from individuals to an insurer, who agrees, for a consideration, to indemnify or pay a specified amount for losses suffered by the insured. Insurance involves the pooling of a large number of individual risks. Funds to cover individual losses are raised by collecting small amounts of money (premiums) from a broad base of buyers. |
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Insurance Commisioner |
Common title for head of state department of insurance (called “Director” in some states).
Insurance is regulated by state law. The Commissioner’s job is to protect the insurance buying public by administering state insurance laws and regulations. The Commissioner does not make the laws, he/she enforces them. |
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Insurance Policy |
A contract, a legal document, which establishes the terms of agreement between the insurer and insured.
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Insured |
The party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide
benefits, or render service. |
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Insurer |
The insurance company assuming risk and agreeing to pay claims or provide services.
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Insuring Agreement |
The section of an insurance policy that states which losses will be indemnified, what property is covered, which perils are insured against. Also known as the Insuring Clause. |
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ISO (Insurance Services Office) |
An organization, made up of member companies, that analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also develops and files standardized policy forms on behalf of members. |
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Jettison |
A voluntary action to rid the ship of cargo in order to prevent further damage or peril. |
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Law of Large Numbers |
An insurance company bases its rates o n a homogeneous group. Risks are not usually considered insurable unless the insurer has a large enough base of previous loss experience to be able to accurately project future losses. It is the Law of Large Numbers that makes accurate predictions of similar risks possible. |
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Liability |
Broadly, any legally enforceable obligation. The term is most commonly used in a pecuniary (money-related) sense. |
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Liability Insurance |
Insures the individual for financial losses that may arise out of the person's responsibilities to others imposed by law or contract. |
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Limits of Liability |
The maximum amount of money the insurance company will pay for a particular loss, or for loss during a period of time. |
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Lloyds Association |
A voluntary association of individuals, or
groups of individuals, who agree to share in insurance contracts. Each individual or " syndicate" is individually responsible for the amounts of insurance it writes. Also known as "Surplus Lines." |
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Loss |
An unpredictable reduction in the quality, quantity, or value of something. For example: bodily injury, disease, property damage, physical disappearance of property, incurred expenses, death, etc. |
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Loss Ratio |
The percentage of losses to premiums, usually losses incurred to premiums earned |
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Marine Insurance |
A form of insurance primarily designed to cover property in transport over land or sea. |
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Material Fact |
A fact that, had the company known it, would have caused it to decline the risk or include entirely different provisions than those currently included. |
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Misrepresentation |
The use of written or oral statements of the insured or insurance company misrepresenting the risk, terms, coverages, benefits, privileges, or estimated future dividends of any policy. |
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Moral Hazard |
A condition of morals or habits that increases the probability of a loss from a peril. Generally, a Moral Hazard is presented by a dishonest person. |
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Morale Hazard |
Hazard created by an individual's tendency to contribute to a loss through his or her own irresponsible actions or carelessness. |
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Mortgagee Rights |
Rights granted to a mortgagee (lender), under a property contract issued to a mortgagor, by virtue of the mortgagee's financial interest in the property. |
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Multi-Peril Policy |
Technically, an insurance policy that insures against more than one Peril. More commonly, an insurance policy that provides coverage against both Property and Casualty perils. |
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Mutual Insurance Company (Insurer) |
An incorporated insurance company, without capital stock, whose governing body is elected by the policyholders. The policyholders own the company and they might share in the success of the company through dividends. |
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Mysterious Disappearance |
Vanishing of property with no known explanation. |
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Named Insured
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Any person, firm, or corporation, or any member thereof, specifically designated by name as insured(s) in a policy, as distinguished from the others who, though unnamed, are protected
under some circumstances. |
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Named Peril Policies
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Policies that insure against only the Perils named, contrary to All-Risk policies. Sometimes called Specified Peril policies. |
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National Flood Insurance Program |
The federal government's program to provide Flood insurance at subsidized rates. |
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Nationwide Definition |
A document designed to categorize and c lassify risks eligible for Ocean or Inland Marine insurance. |
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Negligence |
Failure to use that degree of care that an ordinary person of reasonable prudence would use under the same given circumstances. Negligence may be constituted by acts of either omission or commission or both. |
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No-Fault Insurance |
A form of Automobile insurance mandated by law in many states whereby an insurance company reimburses its insured for auto losses, regardless of fault, and without resort to subrogation. |
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Nonowners Automobile Liability Insurance |
Protection for the policyholder against claims for bodily injury and property damage liability caused by his/her employees or others using autos not owned or hired by the insured while conducting business. A Named Nonowner policy protects an individual who drives only borrowed or rented cars. |
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Nonresident Agent |
An agent licensed in a state in which she is not a resident. |
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Occupancy |
Type and character of the use of property in question. |
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Ocean Marine Insurance |
Marine insurance designed to provide broad coverage for cargo and ships in transit over sea. Includes Cargo insurance, Hull insurance, and Liability coverage (Protection and Indemnity). |
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Other Insurance
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The existence of another contract covering the same interest and Perils. Sometimes called Pro - Rata Liability, because the insurers pay claims according to the proportion of premiums paid to each. (Remember, you can't collect in total more than you lost.) |
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Owners and Contractors Protective Liability |
Part of a Commercial General Liability policy that protects an owner or general contractor against liability arising out of the acts of contractors or subcontractors. It is also known as Independent Contractors Liability coverage. |
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Pair and Set Clause |
A clause found in various Property insurance contracts that states that when part of a set is damaged or destroyed, the insured is not entitled to reimbursement for the entire set. Policies provide various methods for determining the amount of reimbursement. Fine Arts floaters do not contain this clause. |
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Partial Loss |
A loss that does not either 1) completely destroy or render worthless the insured property, or 2) exhaust the insurance applying thereto. |
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Peril |
Cause of a potential loss. An insurance policy may name the perils insured against, or it may be an All-Risk form: one that insures against all Perils not specifically excluded in the policy. |
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Personal Articles Floater |
Personal Inland Marine insurance that provides All-Risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections. |
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Personal Auto Policy |
Easy-to-read auto policy that provides broad coverage for both owned and non-owned autos that are used, maintained, and/or operated by the insured and family. |
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Personal Injury Coverage |
Liability coverage for third-party claims for damages that are other than physical, such as libel, slander, false arrest, wrongful eviction, invasion of privacy, etc. |
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Personal Lines |
Insurance coverages intended to protect individuals and their families. |
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Personal Property Floater |
Personal Inland Marine floater that provides All
-Risk coverage on unscheduled personal property. |
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Personal Yacht Insurance |
A form of Ocean Marine insurance available to individuals who own large boats. Provides both Hull and Protection and Indemnity insurance. |
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Physical Damage |
InAuto insurance, damage or loss to the inured's own autos or autos in the insured's care, custody, or control. |
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Physical Hazard |
The material, structural, or operational features of the risk itself, apart from the morale or moral hazards of persons owning or managing it. |
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Policy |
The written contract effecting insurance or the certificate thereof by whatever name called, and papers attached thereto and made a part thereof. |
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Premium |
1) Consideration for the insurance. 2) Periodic payment made to keep a policy in force.
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Principle of Indemnity |
See Indemnity. |
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Private Passanger Autos |
auto. |
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Proof of Loss
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A formal statement by the insured to the insurance company regarding a loss. The purpose is to place before the company sufficient information concerning the loss to enable it to determine its liability under the policy. |
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Property Damage |
A type of loss covered under many Liability contracts. Includes the insured's liability for damage to property of others or loss of use of other's property. |
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Property Insurance |
Insurance that indemnifies a person with an interest in property for its loss. |
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Pro-Rata Cancellation |
The termination of a contract with premium charge being adjusted in proportion to the exact time theprotection has been in force. When it is the insurer who cancels, refunds of unearned premium are always calculated on a pro-rata basis. When it is the insured who requests cancellation, refunds of unearned premium are calculated on a short rate basis, with a percentage penalty to the insured. |
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Pro-Rata Liability Clause |
Clause in a Fire Policy that provides a method of sharing loss when more than one policy is applicable. Each company covers no more than its share. Also known as the Other Insurance Clause. |
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Protection and Indemnity |
In Ocean Marine insurance, a form of Liability insurance. |
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Pure Risk |
A risk in which there is no chance of gain, only loss. |
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Rate |
The per-unit cost of insurance. |
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Setting Rates and Premiums |
The chance of loss for risk is a combination of the probable frequency of loss and the probable severity of loss, based on accumulated data for similar risks. In the absence of reasonably accurate projections of potential losses, insurance companies would have no basis for setting
rates and premiums. |
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Rebating |
Rebating is illegal in most states. Rebating is a practice that involves the payment of something (usually part of the commission) or covert return of money or other value not stated in the policy, to an applicant in order to induce a sale. You can take your client to lunch, but you cannot say “I will pay for lunch if you buy this policy from me.” Dividends are not considered to be rebates since it is stated in the policy that a dividend might be payable. |
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Reciprocal Company |
An unincorporated group of subscribers that exchange insurance responsibilities with othe r members, managed by an attorney-in-fact. |
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Removal |
Process of removing property for the purpose of preserving it from a Peril insured against. Property contracts provide coverage for loss to property during removal. (For example, during a fire, you remove your furniture from your dwelling, exposing it to other risks.) |
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Renewal |
The continuation in full force and effect of a policy that is about to expire. |
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Rental Value
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An indirect Property coverage available under the Dwelling and Homeowners policies, also available with certain Commercial contracts, that reimburses the insured for rents lost when rented property is damaged by a Peril insured against. |
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Replacement Cost (R/C) |
The cost of replacing property without deduction for depreciation.
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Representation |
Facts that the applicant represents as true and accurate to the best of her knowledge and belief. |
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Retention Limits |
In an Umbrella Liability policy, the amount the insured must pay for a loss not covered by an underlying policy, before the Umbrella will begin to cover losses. |
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Risk |
The uncertainty of loss that exists whenever more than one outcome is possible. (In the area of Life insurance, death is certain, but time of death is uncertain). Also known as the “chance of loss.” Remember, only “pure” risk is insurable. Pure risk is the chance of loss without any chance for gain. |
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Robbery |
In Crime insurance, the forcible and felonious taking of property by violence or threat of violence from a messenger or custodian. |
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Salvage |
Property taken over by an insurance company to reduce its loss. The company may dispose of salvage property as it wishes, but on request and proper reimbursement, may return it to the insured. |
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Short Rate |
A percentage penalty charged on insurance, canceled by the insured, before the end of the policy period. Return premium is calculated on a Short-Rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses. |
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Solicitor |
A representative who helps an agent or broker solicit insurance and collect premiums. A solicitor may neither bind nor countersign policies. |
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Specified-Peril |
Policies that insure against only the Perils named, contrary to All-Risk policies which cover all perils except those that are excluded . Sometimes called Named Peril policies. |
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Speculative Risk |
A risk that may result in a loss or gain. Gambling is a speculative risk. Insurance companies insure pure risk, not speculative risk. |
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Stated-Value Policy
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Insurance contract written to insure an item of property for a specific amount of insurance. Used in insuring hard-to-value items, such as fine arts. |
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Stock Insurance Company |
An incorporated insurance company with capital divided into shares and owned by the shareholders. Profits are shared by the stockholders. Policyholders are NOT entitled to share in company profits. |
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Subrogation |
The transfer to the insurance company of the insured's right to collect for damages. After paying a claim, the company stands in the place of the insured in suing the negligent party, thus preventing the insured from collecting twice. |
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Supplementary Payments |
Found in most Liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's Limit of Liability. Included are first aid, bond premiums, accrued interest on judgments, etc. |
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Theft
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Any act of stealing. Theft includes larceny, burglary, and robbery. |
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Time-Element Coverage |
Provides protection for Indirect Loss that occurs when, following a Direct property loss, there is a time lapse before the property can be used again. Additional Living Expenses and Fair Rental Value are types of time-element coverages on personal lines policies. |
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Trip Transit Policy |
An Inland Marine transportation policy, similar to the Annual Transit policy, but designed to cover a specific shipment. |
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Underinsured Motorist Coverage (UIM)
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Coverage on an Auto policy that stacks coverage for an insured onto inadequate coverage of an individual who negligently caused injury to that insured. |
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Umbrella Liability Policy |
Provides broad coverage for an insured's liability over and above liability covered by underlying contracts or retention limits. |
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Underwriting |
The process of evaluating a risk for the purpose of issuing insurance coverage on it. Also known as risk “classification.” The underwriter’s job is to select business that fits into the rate structure of the insurer, allowing the insurer to not only pay claims and expenses, but to make an underwriting profit. |
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Uninsured Motorist Coverage (UM) |
Automobile Coverage designed to provide Bodily Injury protection for the insured should she be involved in an accident in which the driver at fault has no insurance to cover the loss. |
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Unoccupancy |
The absence of person, return expected. Property coverage on a building is sometimes restricted when there are long periods of vacancy, but not unoccupancy. |
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Utmost Good Faith |
A principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith. |
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Vacancy
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The absence of people and personal property from a building, not expected to return. Property coverage is often restricted when there are long periods of vacancy, especially for the Perils of Vandalism and Glass Breakage. |
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Vandalism and Malicious Mischief (VMM) |
Protects property against damage caused by vandals. May be added by Endorsement to the DP-1 Basic Form; included coverage in many other Property forms. |
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Vicarious Liability |
Imposed in some states upon a person even though he is not a party to the particular occurrence, e.g., the owner of a motor vehicle might be vicariously responsible for injuries even though he is not driving the car at the time of the occurrence. |
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Warranty |
1) A statement that is guaranteed to be true in all respects. Statements on insurance applications are, in the absence of fraud, not warranties, but representations (statements true to the best of the applicant's knowledge). 2) A sworn statement by the insured attesting to the presence of certain safeguards, such as a sprinkler or burglar alarm system. Breach of this type of warranty may void coverage. |