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
The amount to replace property with like property of the same quality and construction is
Replacement cost
An insurer cancels a policy and returns the entire premium this us is:
Flat Cancellation
How many days does an agent have to return an unearned premium ?
1⃣5⃣ days
What effect does increasing a deductible have on a policy ?
Reduces the premium
Payment ⬇️
Which insurance company is owned and formed for the benefit of its members?
A mutual insurer
Insurance companies transfer part of a particularly large risk through what process!?
REINSURANCE
Insurance contracts are between how many parties?
2⃣
The total amount an insurance company is liable to pay out is:
Limit of insurance ✋
Provisions that deny coverage for certain perils are
Exclusions
The insuring agreement contains all of the following
Perils insured against⚡️☔️❄️
True or False?
A deductible is the portion of a loss retained by the insured before the insurer will cover a claim
TRUE✅✅✅✅
What does insurable interest mean?
A loss of property would have some financial loss to a person
True or False?
Co insurance refers to the amount of insurance an insured must carry in order to be fully insured
TRUE!!!! ✅✅✅✅✅
What does insurable interest mean?
A loss to the property would have some financial loss for the person
In order for negligence to exist which of the following must be present ?
Breach of the duty to act
Occurrence of injury or damage
Duty to act
True or False:
Compensatory damages in hearing will generally determine the amount of punitive damage.
FALSE
Through what kind of liability can a person be held responsible for the actions of others? I.e. Negligent acts of a child or employee
Vicarious
A fiduciary must hold funds and property in a position. They must also…
Act in a prudent fashion
A way for insurers to avoid having to pay for large or catastrophic losses
Reinsurance
