1-F Important Terms

Question 1

First Named Insured

Answer 1

First person/organization listed on a declarations page (only person/organization allowed to make changes to policy)

Question 2

Policy Period

Answer 2

Dates which policy is in effect

• inception date to expiration date
• coverage usually ends at 12:01am on expiration date

Question 3

Binder

Answer 3

Temporary coverage until policy is issued

Question 4

Blanket Coverage

Answer 4

Covers more than one property, type of property or coverage under a single limit

Question 5

Specific Limits

Answer 5

Apply to one specific type of property

Question 6

Representation

Answer 6

A statement of fact; must be truthful

Question 7

Warranty

Answer 7

Promise or guarantee that certain conditions will be met
- if warranty is broken, insurer can deny coverage

**can be found in conditions section of policy

Question 8

Concealment

Answer 8

Deliberately withholding relevant information

Question 9

Concealment vs. Misrepresentation

Answer 9

• Concealment is hiding the truth purposely

- Misrepresentation is stating something untrue

Question 10

Waiver

Answer 10

Voluntary surrender of a rights, claim, or privilege

Question 11

Waivers can be…

Answer 11

“Expressed” or “Implied”

• expressed: in writing, signed
• implied: assumed based on actions

Question 12

Estoppel

Answer 12

Prevents insurer from denying coverage if insured believes that he has such coverage, based on insurer practice’s
**is a form of implied waiver

Question 13

In reference to an Estoppel; an insurer loses its right to refuse coverage if:

Answer 13

• it’s previously allowed an action without restriction

- is made misleading statements/practices that the insured has come to believe