AIA PcM INSURANCE

Question 1

CLAMS-MADE INSURANCE

Answer 1

requires that the claim be made while the insurance policy is in force for coverage to apply

Question 2

DEDUCTIBLE

Answer 2

Provision requiring the insured to pay a specified portion of the loss on each claim.

Increase Deductible to lower the premium cost.

Important to consider the balance between deductible, premium, and coverage.

Question 3

ENDORSEMENTS and EXCLUSIONS

Answer 3

Written amendment or rider affecting the declarations, insuring agreements, exclusions, or conditions of an insurance policy.

records a change to the insurance contract

specifically eliminates coverage for a certain hazard from an insurance policy.

Question 4

HOLD HARMLESS

Answer 4

syn to INDEMNIFY

contract provision whereby one party assumes another’s legal liability

Question 5

CLAIM

Answer 5

a demand for money, services, or property based upon a right usually found in contract or by operation of law.