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CAIB 1 > CAIB 1 > Flashcards

CAIB 1 Flashcards

0
Q

Speculative risk

A

The category of risk that involves either financial loss or gain

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1
Q

Risk

A

The chance of financial loss to which an object of insurance is exposed

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2
Q

Pure risk

A

Pure risk involves the chance of financial loss or gain

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3
Q

Contract

A

A contract is an agreement between two or more persons which creates an obligation to do or not to do a particular thing

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4
Q

Consideration

A

An exchange of something of value between parties

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5
Q

Insurance interest

A

People have an insurance interest in the subject matter of an insurance contract when they are able to show that they would suffer financially by a loss.

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6
Q

Utmost good faith

A

The complete honesty of of the parties is critical to the contract

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7
Q

Indemnity

A

People receive the actual amount of their loss , no more, no less

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8
Q

Insurance binder

A

The broker has committed the insurer to provide a contract of insurance on the subject matter of discussion

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9
Q

Agency agreement

A

Agreement between an insurance company and a broker to represent the company

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10
Q

Void contract

A

A contract which is unable in law to support the purpose for which it is intended

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11
Q

Voidable contract

A

One which is void as to the wrongdoer but not void as to the wrong party unless he elects to treat is as such

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12
Q

Peril

A

The cause of a loss

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13
Q

Direct loss

A

When the object of insurance is actually attacked by the named peril

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14
Q

Indirect loss

A

Losses that arise as a consequence of direct loss

  • loss of rental income
  • loss of profits after a windstorm levels a building
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15
Q

Actual cash value

A

The new or replacement cost of the property at the time of loss, minus depreciation.

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16
Q

Replacement cost

A

Repair or replacement of lost property, with new product of like kind and quality, without deduction for depreciation

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17
Q

Valued policy

A

Both the insured and the insurer agree at the time the policy is issued as to the cash value of the property. In the event of a loss, the agreed amount would be paid

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18
Q

Blanket policy

A

Single limit without need to schedule items

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19
Q

Scheduled coverage

A

Itemized on policy

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20
Q

Fiduciary

A

Fiduciary is one who occupies a position of special trust or confidence in the handling or supervising of the affairs or funds of others

21
Q

Unearned premium

A

Premiums paid for insurance not yet in force

22
Q

Fire

A

The prescience of visible flame or glow

23
Q

Friendly fire

A

Fire contained in its proper recepticle

24
Q

Hostile fire

A

Fire outside the limits assigned to it

25
Q

Proximate cause

A

A natural and continuous sequence of the peril causing the loss

26
Q

Material change

A

Any change material to the risk and within the control and knowledge of the insureds.

27
Q

Pro rata

A

The insurer divides the amount of the premium paid by the number of days in the policy

28
Q

Proof of loss

A

Formal verification, under oath of the details and amounts being claimed under the policy

29
Q

Notice of loss

A

Notice if an intent to make a claim

30
Q

Fraud

A

Deliberate attempt to deceive, with a view to securing some profit

31
Q

Subrogation

A

To put into another’s shoes. Right of the insurer to recover a loss from a responsible in the name of the insured

32
Q

Proprietary insurers

A

Exist to make a profit, may be either incorporated or un-incorporated

33
Q

Non-proprietary insurers

A

Organized for reasons other than profit
Owned and controlled by the policy holders
No stock or share capital involved

34
Q

Vandalism

A

Wilful or ignorant destruction of property

35
Q

Malicious act

A

A wrongful act done without legal justification or excuse

36
Q

Vacant

A

When the insured has been gone for longer than four days

37
Q

Theft

A

Theft includes all means of taking property without the owner’s consent

38
Q

Criminal law

A

Deals with wrongs against society! defined by the criminal code

39
Q

Civil law

A

Concerned with settling disputes between individuals or other legal entities in matters not involving a criminal act

40
Q

Plaintiff

A

The party doing the complaining

41
Q

Defendant

A

The party who allegedly committed the wrong

42
Q

Tort

A

A tort is a wrong done to another in breach of a duty laid down by law, it is not a breach of contract

43
Q

Strict liability

A

Certain activities have been determined by legislation or common law to create liability without regard to fault. Storing dangerous chemical or keeping a dangerous animal

44
Q

Special damages

A

Special damages can be accurately measured and are intended to reimburse the plaintiff for out of pocket expenses

45
Q

General damages

A

These are damages which cannot be quantified with precision in monetary terms, but reflect what the court believes to be necessary to compensate the aggrieved party fairly

46
Q

Negligence

A

The omission to do something which a reasonable man, guided by those ordinary considerations which ordinarily regulate human affairs would do, or the doing of something a reasonable and prudent man would not do

47
Q

Trespasser

A

People who are on another’s premises for their own purposes without the express or implied permission of the occupier. Their prescience is of no value to the occupier and such persons are viewed as having temporarily appropriated the property for their own use

48
Q

Licensee

A

One who comes on the premises for his own purpose but with the occupiers consent

Postal workers, meter readers

49
Q

Invitee

A

Enters by invitation, express or implied
His entry is connected with the owners business or with an activity the owner conducts or permits to be conducted on his land
Their is a mutuality of benefit or benefit to the owner

50
Q

Visitor

A

Licences or invitees

51
Q

Joint liability

A

When two or more people act together so as to cause injury or damage, they have the same legal duties as if they were working alone.

CAIB 1 (1 decks)

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