Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

NY Study Group > 2E-2F > Flashcards

2E-2F Flashcards

1
Q

________ is a process by which two opposing parties attempt to merge their respective interests in an effort to yield a balanced and beneficial outcome for both parties.

A

Negotiation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

_______ ______ are harder to assign dollar amounts to and factor in issues like mental duress and comparative negligence.

A

Liability Claims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

_____ ______ claims addresses the cost to repair or replace, is simple and straightforward.

A

Property damage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Before negotiations begin, an adjuster must determine what three things?

A
  1. Is there coverage?
  2. What is the insured’s liability? (liability claims only)
  3. What are the damages?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What damages should never be negotiated?

A

Punitive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

_______ is not strictly speaking a negotiation method; rather, it is a last option when negotiations fail.

A

Litigation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

In _______ insurance claims, the claimant is typically the insured.

A

Property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who is the claimant in liability cliams?

A

Third Party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Everything in a claim file is discoverable. True or False

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Criminal Trial is when the _____ (plaintiff) vs. ______(defendant).

A

State

Citizen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Civil trial is when a ______(plaintiff) vs. _______ (defendant).

A

Citizen

Citizen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Claims disputes are settled in _____ trials.

A

Civil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

When more evidence supports the plaintiff’s case than contradicts it (51% or more evidence supports) this is called what?

A

Preponderance ofevidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

________ negligence is any negligence on the part of the plaintiff equals no settlement.

A

Contributory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

_________ negligence reduces the settlement by the percentage of the plaintiff’s negligence.

A

Comparative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Policy ______ establish the terms of the agreement between the insurer and the insured.

A

Provisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are ISO and AAIS?

A

Insurance Services Office

American Association of Insurance Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The cancellation/nonrenewal condition establishes when and how the insurer or the insured can
terminate an active insurance contract. True or False

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

An _______ premium is a payment you’ve made for coverage that you never received.

A

Unearned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The ________ Clause states that any change to a policy form that broadens coverage without increasing the premium will automatically apply to the issued policies of that type.

A

Liberalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The representations condition simply states that any information provided by the named insured on the declarations page must be complete and accurate, and clarifies that the insurer has based the provisions of the policy on the information that the insured gave. True or False

A

True

22
Q

The Concealment, Misrepresentation, and Fraud condition of a policy protects the _______ from the dishonesty of the insured.

A

Insurer

23
Q

Resending a policy means what?

A

That the policy was never valid to begin with.

24
Q

The Assignment condition states that a policyholder cannot _____ the policy to someone else unless the insurer agrees to the change in writing.

A

Transfer

25
Q

The _______ ______ provision lets the first named insured add other people or
entities to the policy.

A

Additional Insured

26
Q

The ______ _______, or Apportionment, clause establishes how the policy will respond if the insured risk is covered by two or more policies.

A

Other Insurance

27
Q

A _______ policy will pay first, and up to the policy limit, regardless of the presence of other insurance.
An ______ policy will only pay once the primary policy has paid up to its limits.

A

Primary

Excess

28
Q

Under this provision, each policy pays an equal share of the loss up to the lowest policy limit.

A

Contribution by Equal Shares.

29
Q

Under the ___ ____ apportionment clause, each insurer agrees to pay its share of the loss according to its share of all policy limits.

A

Pro Rata

30
Q

Define nonconcurrency.

A

The situation in which two or more policies covering the same risk have different inception and expiration dates.

31
Q

When the amount of insurance covering a risk which exceeds the insurable value of that risk this is known as what?

A

Overinsurance

32
Q

After a loss occurs and the insurer indemnifies the policyholder, what happens to the policy limit?

A

Restoration of Limits, Reinstatement of Limits, or Non-reduction of Limits.

33
Q

The Legal Action Against an Insurer condition sets certain requirements that must be met before
anyone can sue an insurer. What are they?

A

Insured must comply with all policy obligations

Insurer not liable for damages above policy limit

34
Q

What are the policyholder’s duties when a loss occurs?

A

Notify the police if the loss may have involved a crime.
Notify the insurer about what property was involved, and the circumstances surrounding the loss.
Submit a description of how, where, and when the loss occurred.
Try to prevent further damages, and keep track of expenses incurred doing this
Give insurer a list of damaged property.

35
Q

Remove coverage for uninsurable losses, manage moral and morale hazards, eliminate duplication of coverages, remove coverages that typical consumers don’t need, remove coverages that need special treatment and lower premiums are all purposes of _______.

A

Exclusions

36
Q

The Vacancy condition establishes when a building is considered “vacant”. Why is this important?

A

Some perils are excluded from coverage when a structure has been vacant for a while, since this increases the chance of certain types of loss.

37
Q

What does the Recovered Property condition state?

A

If either party recovers property involved in a claim after the claimant has already been indemnified, that party must notify the other of the recovery.

38
Q

Property insurance policies have an abandonment clause that prohibits the policyholder from
abandoning damaged property to the ______.

A

Insurer

39
Q

The ____ and ____ clause states that, if part of a set or an instrumental part of a whole is lost or destroyed, the policy will pay to replace, restore, or repair the set, or it will pay the difference in the set’s actual cash value that was caused by the loss.

A

Pair and Set

40
Q

Premium Audit, Inspection and Surveys, Examination of Books and Records are all __________ provisions.

A

Commercial

41
Q

What does the loss payment condition clarify?

A

How, when, and to whom a claim will be paid.

42
Q

“Company’s Options” is a provision in the standard ____policy that lays out the insurer’s settlement
options.

A

Fire

43
Q

What clause ensures that the lender will be listed as a payee under the policy if a loss or damage occurs?

A

The loss payable or loss payee clause

44
Q

Similar to the Loss Payee clause, the _______ Clause protects the lender’s financial interest in
the property, but it takes it one step further. Not only does this provision ensure that the lender will be indemnified in the event of a loss, it also establishes the mortgagee’s rights to receive notice if the policyholder either fails to adhere to the contract, or does not pay policy premiums

A

Mortgagee

45
Q

If the policyholder qualifies for replacement cost, when will the receive their Recoverable Depreciation?

A

Once repairs are complete and the claimant submits proof to the insurer.

46
Q

In commercial policies, the _______ __ ______ condition protects the property of the insured from
the negligent actions of persons other than the named insured.

A

Control of Property

47
Q

The No Benefit to Bailee condition, states that insurance coverage will not benefit a third party who has custody or control of the insured’s property, even if it is with the insured’s granted permission. True or False

A

True

48
Q

This provision states that coverage applies to each “insured” separately, as if no other
“insured” existed.

A

Separation of Insureds

49
Q

In Liability Coverage Provisions, the Duties after an Occurrence, addressed the policyholder and _____ separately.

A

Claimant

50
Q

Finally, a condition sometimes included in liability policies is that the bankruptcy or insolvency of
the insured does not relieve the insurer from the obligation to pay claims. True or False

A

True

NY Study Group (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions