C81 Chapter 8 Flashcards
loss
word often used in place of a claim. the amount the insurer will pay because of a loss
forfeiture
loss of a right as a result of not following through with obligations
Statute of limitations
law that determines the time period within which parties can take a specific legal action to enforce their rights.
prescription
period of time a claim may be brought to policy holders
direct loss vs indirect loss
damage directly from peril vs loss resulting from the direct damage.
claims adjuster
ee who handles adjudication of claims
accident
an unusual, unexpected or unforeseen event.
Claims-made basis
only covers claims made during the term of the contract
Claims-occurring basis
will cover claims if the occurrence of the event of loss happened during the term of the contract, even if the claim was filed after the term of the contract.
salvage
remaining value of property after damage
What are the 4 types of adjusters
staff, independent, telephone, and public adjusters
subrogation
legal process allowing insurer to recover the amount of the claim settlement from those who are legally responsible for it.
contribution
when 2 or more insurers have covering policy, and loss is divided equitably.
coinsurance
only for commercial risks; states the required amount of the risk that must be insured for the company to cover the losses, as for commercial risk the owner does not legally need to insure 100%.
prejudice
when insured deprived the insurer to go through proper legal steps to identify the peril of the claim, putting them at a disadvantage for receiving coverage.
