Insurance Terms - Property Basics, General Insurance & Casualty Basics

Front 1

A ____________ accident includes continuous or repeated exposure to the same harmful conditions.

Back 1

Occurence

Front 2

The termination of an insurance policy before its expiration date

Back 2

Cancellation

Front 3

The termination of a policy at the expiration of its term.

Back 3

Non-renewal

Front 4

Covers Perils specifically stated in the policy.

Back 4

Named Peril

Front 5

Covers losses caused by all perils except for those that are specifically excluded.

Back 5

Open Perils

Front 6

A method of insuring one item of property, under one policy, with one limit of coverage

EXAMPLE: One house is insured on one policy for $100,000

Back 6

Specific limit

Front 7

A method of insuring where multiple items of property are insured under one policy with different limits of coverage.

EXAMPLE: One $200,000 farm policy includes insurance for the house at $100,000 and the barn for another $100,000

Back 7

Scheduled Limit

Front 8

A method of insuring multiple items of property on one policy with one limit of coverage.

EXAMPLE: You own 3 buildings and want to insure all of them on the same policy for a total of $400,000.

Back 8

Blanket Limit

Front 9

The part of the insurance policy that describes basic information about the policy including who is covered, what property is covered, when (dates), where (location of property), how much.

Back 9

Declarations Page

Front 10

States the insurance company's promise to make payment on behalf of the insured.

States which perils are going to be covered and the exclusions.

Back 10

Insuring Agreement

Front 11

States the rights, duties and obligations of the insurer (insurance company) and the Insured (you)

Back 11

Conditions

Front 12

States the perils that are not covered in the policy.

Back 12

Exclusions

Front 13

Extra coverages that are automatically included in property policies without an additional premium.

Back 13

Additional Coverages

Front 14

_____________ is a provision contained in most policies that encourages the insured to purchase insurance to value.

EXAMPLE: For example, you must purchase insurance that covers at least 80% of your home's value.

The higher the coinsurance percentage, the lower the rate.

Back 14

Coninsurance

Front 15

Coinsurance ONLY applies in the event of:

(A) A partial loss

(B) Total Loss

Back 15

Partial loss

Front 16

An _____________is a policy form that alters or adds to the provisions of the property and casualty insurance contract.

Back 16

Endorsement

Front 17

A provision that eliminates coverage for buildings that don't contain sufficient personal property.

Back 17

Vacancy

Front 18

A property that contains personal property but has no occupants.

Back 18

Unoccupancy

Front 19

A legal agreement issued by an insurance company that provides temporary proof of insurance until the insurer is able to provide an insurance policy

Back 19

Binder

Front 20

What information is included in a binder?

Back 20

(1) Name

(2) Amount

(3) Type of insurance

(4) Perils

Front 21

What is the maximum amount of days a binder can be issued for?

Back 21

60

Front 22

Taking of property from inside the premise or from a locked safe by someone who commits forcible entry from the property of another while trespassing.

Back 22

Burglary

Front 23

Taking property from the care of a person by someone who has threatened bodily harm to that person.

Back 23

Robbery

Front 24

Any act of stealing and includes losses by burglary or robbery.

Back 24

Theft

Front 25

Not considered theft, burglary or robbery. It is the loss of property when the cause is not known.

Back 25

Mysterious disappearance

Front 26

The price a willing buyer would pay for property purchased from a wiling seller.

Back 26

Market value

Front 27

A valuation method that states the value of a particular property on the declarations page - but states that the insurer will pay the lesser of the stated value or actual cash value.

Back 27

Stated Value

Front 28

____________ liability is most often associated with dangerous animals, abnormally dangerous activities, and employer's liability for injuries that happen to their employees.

Example:

- Owning a Lion, Pitbull, Rotweiler

- Storing explosives, weapons

Back 28

Absolute Liability

Front 29

__________ liability applies to products. If someone can prove that a product caused the injury the manufacturer will be held liable whether or not the product was defective.

Back 29

Strict Liability

Front 30

When a _____________ liability law is in place, the injured party collects insurance from his or her own insurance, thus eliminating the process of determining who was negligent.

Under this law, the person who was injured cannot sue unless the injury is severe (death, paralysis).

Back 30

No-Fault Liability

Front 31

In order for an act to be considered ___________, it must contain these four elements:

(1) Duty Owed

(2) Violation of Duty

(3) Violation of Duty is Proximate Cause

(4) Foreseeable Consequences

Back 31

Negligence

Front 32

According to the ______________ , all property must contain an element of transportation to be eligible under inland marine coverage forms.

Example: It must be in transit, be moveable, or be held in the possession of a bailee who is someone other than the property owner.

Back 32

Nationwide Marine Definition

Front 33

According to the Nationwide Marine Definition, there are six categories of risk eligible for insurance:

Back 33

(1) Imports

(2) Exports

(3) Domestic Shipments & Property in transit

(4) Instrumentalities of Transportation or Communication

(5) Personal Property Floaters

(6) Commercial Property Floaters Risk

Front 34

Commercial Inland Marine coverage is usually limited to....

(A) Portable Properties

(B) Stationary properties

Back 34

Portable Properties

Front 35

Inland Marine Policies cover property that is....

Back 35

(1) In transit

(2) Moveable

(3) Property particular to transportation & communication risk

(4) Property in the possession of bailees

Front 36

A form of coverage used to insure moveable or in transit property against direct loss.

Back 36

Inland Marine Insurance

Front 37

Individual items such as the ones below are insured under which FLOATER?

- Jewelry

- Furs

- Cameras

- Musical instruments

- silverware

- fine arts

- stamp collections

Back 37

PERSONAL ARTICLES FLOATER?

Front 38

Are personal Articles Floater is provided on

(A) Named Perils basis

(B) Open Perils Basis

Back 38

Open perils basis

Front 39

Are personal article floaters provided on a worldwide basis?

Back 39

Yes

Front 40

______________ Floaters insure property pertaining to a business, profession or occupation.

Back 40

Commercial Property Floaters

Front 41

A federal program that enables certain property owners to purchase flood insurance.

Back 41

National Flood Insurance Program (NFIP)

Front 42

The National Flood Insurance Program provides coverage for direct damage to what types of property?

Back 42

The building and its contents