(B) Property And Casualty Terms Flashcards
ACCIDENT
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An accident is a sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended.
WHAT ARE TWO TYPES OF PROPERTY LOSSES THAT AN INDIVIDUAL OR BUSINESS ARE EXPOSED TO?
Direct and Indirect
PROPERTY INSURANCE ONLY COVERS
A) DIRECT LOSSES
B) INDIRECT LOSSES
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A) Direct Losses
NAMED PERIL
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Named peril is a term used in property insurance to describe the breadth of coverage provided under an insurance policy form that lists the specific covered perils. No coverage is provided for unlisted perils.
OPEN PERIL
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Open peril is a term used in property insurance to describe the breadth of coverage provided under an insurance policy form that ensures against any risk of loss that is not specifically excluded.
BURGLARY
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A burglary is the crime of forced entry into or out of the premises of another by a person or persons with felonious intent.
Insurance policies covering the peril of a burglary require that, following a loss, there are visible signs of forced entry or exit from the premises.
ROBBERY
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Robbery is the taking of property from the care and custody of a person by one who has caused or threatened to cause that person bodily harm, or committed and obviously unlawful act witnessed by that person.
Robblee requires either of the above. If a thief were able to enter the insured premises undetected and take property without threatening anyone or causing bodily harm, robbery coverage would not respond to the loss.
THEFT
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That is any act of stealing and encompasses both burglary and robbery.
WHAT IS THE BROADEST OF ALL CRIME COVERAGES?
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Theft. It covers both robbery and burglary.
VACANCY
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Vacancy refers to an insured structure in which no people have been living or working, and no property has been stored for the period of time required as stated in the policy (usually 60 days).
For example, if the insured moved, the house would be considered vacant. If the insured went on vacation for two weeks, the house would be considered unoccupied.
UNOCCUPANCY
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Unoccupancy (nonoccupancy) refers to an insured structure in which no people have been living or working within the required period of time, but some property is stored.
For example, if the insured moved, the house would be considered vacant. If the insured went on vacation for two weeks, the house would be considered unoccupied.
