Basics Of Insurance Flashcards
A pure risk involves a chance of
Loss
A monoline policy is?
Any insurance written as a single line policy 〰
When suffering a covered loss an insured individual should do which of the following?
Send a list of items damaged stating the quantity of receipts of purchase
Submit to an interview with the insurers rep with out any other person present
Notify the police if there is a theft loss
How many days does an insurer have to return unearned premiums to an insured ?
25 days 2⃣5⃣
The amount to replace property of the same quality and construction is the:
Replacement Cost
What is actual cash value
ACV
Replacement cost - depreciation
If an individual or a family suffers a loss due to death or disability of a member , what type of loss is it?
Personal loss ☁️
What is an example of loss retention?
Not purchasing collision insurance in your auto
What is true about compensatory damages?
There is usually no direct correlation between the amount of general and special damages awarded to the next victim
Liability losses are referred to as
Third party losses 3⃣
An insurers loss reserve for a claim is:
An estimate of the amount that the insurer will pay
A reduction in the value of property that results immediately from damage to the property is known as
Direct Loss
A policy may not be transferred to another w/ out
Written consent of the insurER
Grouping people by similar characteristics is
Fair discrimination
What is not a benefit of insurance?
It reduces the risk of exposure
