C82 study 3 & 7 Flashcards
3 conditions for occurrence to be classified as FIRE:
1) There must be an actual fire or ignition. A mere heating or fermentation will not be sufficient to render the insurers liable for resulting loss. e.g.: A lit candle
2) There must be something on fire which ought not to have been on fire.e.g.: A candle fell over and drapes caught on fire.
3) There must be something in the nature of a casualty or accident. A fire occasioned by the wilful act of a third person without the consent of the insured, however, is considered accidental.
a fire intentionally kindled in a place provided for it. No matter how furious that fire may become, no matter how much heat and smoke it may give off, as long as it does not leave the place provided for it, it is still a ____.
Friendly fire
When the fire leaves the place provided for it and ignites something outside, the second or accidental fire is a ___. Fires unintentionally kindled and occurring in places where there should not be a fire are also ___.
Hostile fire
an _____, attached to basic fire insurance policy, was the means by which additional perils were insured. These perils are ones to which most properties are exposed.
extended coverage endorsement
In the event of a fire, the insurer with pay the least of:
1) The actual cash value
2) interest of the insured
3) amount of insurance
is doing something that a reasonable person would not do or omitting to do something that a reasonable person would do.
Negligence
is a sum of money claimed or awarded as compensation for loss or injury.
Damages
___are out-of-pocket items such as medical expenses, loss of earnings or damage to property substantiated by a specific invoice or estimate of repair.
Special damages
are less definite and are awarded for such things as pain and suffering, total or partial disability, and disfigurement.
General damages
Collectively, the preceding damages are known as ___. They compensate the plaintiff for some kind of loss.
compensatory damages
___or ____ are intended as punishment against the defendant and as a deterrent to others. ( also not usually covered by a liability insurance policy)
Punitive or exemplary damages
___means responsibility at law or liability assumed under a contract.
legal liability
for coverage on an ___ basis, the injury or damage must be due to an event that is sudden, unintended and unexpected.
Accident
On an ___ basis the injury or damage can occur over a period of time but still must be unintentional an unexpected. In such policies occurrence may be defined as an accident, including continuous or repeated exposure to substantially the same harmful conditions.
Occurrence
____ coverage requires only that the loss be reported during the policy period. It must, of course, be cause by an accident or occurrence as defined in that particular policy and not be otherwise excluded but the event can occur prior to the inception of the policy period. Certain other conditions will apply.
Claims made
