1-F Flashcards
Simple Insurance Terms
Insurer- Company or Organization offering financial protection
Insured- Person or organization that pays premiums for financial protection
First NAMED INSURED- The first person or organization listed on the declarations page.
Policy Period?
The dates during which the policy is in effect.
-Runs from the inception date to the expiration date
-Usually ends at 12:01 on the expiration date
Binder?
Temporary coverage for an insurance applicant until the policy is issued.
-Gives the insurer time to underwrite policies thoroughly
-Provides needed coverage to applicants in the meantime.
EX. coverage even tho isn’t verified yet
Blanket Coverage vs Specific insurance
Blankets more than one property, type of property, or coverage under a single limit
Specific limits: Limits that apply to one specific type of property.
Representation/Misrep
Rep- A statement of fact
Misrep- A false distorted or deceitful statement of fact or opinion, even if made unintentionally.
Warranty
Promise or guarantee that certain conditions will be met
- Warranties are found on the conditions page
- If a policyholder breaks a warranty, the insurer can deny coverage.
Concealment
Deliberately withholding relevant info
Concealment vs misrepresentation:
Concealment: Hiding truth
Misrepresentation: Stating something untrue
Waiver
Voluntary surrender of a right, claim, or privilege
Waivers can be “Express” or “Implied”
Express Waiver: In writing, signed
Implied waiver: Assumed based on actions
Estoppel
Legal principle that prevents an insurer from denying coverage if the insured has reasonably come to believe that he has such coverage based on the insurers practices.
Estoppel is a form of implied waiver. The insurer loses it’s right to refuse coverage, if:
-It has previously allowed an action without restriction
-It has made misleading statements or practices that the insured has come to believe.
