Assignment 7

Question 1

Third party

Answer 1

A person or business who is not a party to the insurance contract but who asserts a claim against the insured.

Question 2

Bodily injury

Answer 2

Physical injury to a person, including sickness, disease, and death.

Question 3

Property damage

Answer 3

Physical injury to, destruction of, or loss of use of tangible property.

Question 4

Occurrence

Answer 4

An accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Question 5

Loss assessment

Answer 5

A charge by the condominium association against the unit ownders for the cost of uninsured losses.

Question 6

Severability of insurance condition

Answer 6

Policy condition that applies insurance separately to each insured; does not increase the insurer’s limit of liability for any one occurence.

Question 7

Waiver

Answer 7

The intentional relinquishment of a known right.

Question 8

Apparent authority

Answer 8

A third party’s reasonable belief that an agent has authority to act on the principal’s behalf.

Question 9

Binding authority

Answer 9

An insurance agent’s authority to effect coverage on behalf of the insurer.

Question 10

Condominium or cooperative units

Answer 10

Housing unit in a complex owned by a corporation, the stockholders of which are the building’s residents; the corporation owns the real estate title; each unit owner owns corporation stock and has the right to occupy a specific unit.

Question 11

Moral hazard

Answer 11

A condition that increases the likelihood that a person will intentionallyh cause or exaggerate a loss.

Question 12

Scheduled coverage

Answer 12

Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item.