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30 Cards in this Set
- Front
- Back
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What permits the insurer to increase coverage immediately at no charge? |
Liberalization clause |
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This is used on property policies to determine the amount payable. |
Appraisal |
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This is used on liability policies to determine its coverage applies. |
Arbitration |
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What allows the insurer to collect what they paid you from a negligent party that caused bodily injury or property damage? |
Subrogation |
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Does a mortgagee need to be given notice of policy non renewal |
Yes a mortgagee must be given notice of non renewal |
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Who does an independent adjuster represent? |
The insurer |
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Who does a public adjuster represent? |
Claimant |
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Are claimants required to hire an adjuster to assist them in settling a claim. |
No claimants are not required to hire an adjuster to settle claim. |
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, define strict or absolute liability |
Liability without negligence |
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Benefits payable to an injured party or reduced in accordance with their own degree of negligence, which prevents an injured party from collecting damages related to their own negligence is referred to as what? |
Comparative negligence |
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Do comparative negligence rules vary by state? |
Yes these rules vary by state |
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A type of negligence in which the insured cannot recover at all if they are partly at fault |
Contributory negligence |
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What doctrine prohibits an individual from collecting damages if a person voluntarily participates in a dangerous activity? |
Assumption of the risk |
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Define policy period |
The time period the policy is in effect |
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Define specific insurance |
Provides a certain amount of coverage for certain types of property at certain locations. Usually the word specific is used in place of certain |
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How is the amount of property damage in a fire determined? |
Usually the property damage in a fire is determined by negotiation between the insured and the insurer |
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Define pro rata |
A clause on a property policy that allows two or more policies insuring the same property to pay claims proportionately |
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What does the provision contribution by equal shares mean? |
When two policies cover the same loss, each insurer will pay the claim equally until their limits are exhausted. |
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What do exclusions do? |
exclamations eliminate uninsurable perils, like floods. |
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What does the insuring clause state? |
This clause states that "coverage is provided in consideration of....." |
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When does coverage on an annual policy begin? |
The date the binder was issued. |
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How many a binder of coverage be presented? |
Oral or in writing |
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Its two separate appraisers cannot agree on an umpire what happens? |
The court then appoints an appraiser |
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During an appraisal, each party pays for the cost of the appraiser. What happens when an umpire is used? |
The cost is split |
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How soon must the Notice of Claim be given? |
Immediately / promptly |
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What is a method insures use to offset the claims expenses? |
A method to offset expenses may include a sell of the salvage |
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Insurer |
Insurance company |
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Insured |
Person covered by insurance |
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Producer |
Insurance agent / me |
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Loss |
Reduction in the value of an asset |
