Chapter 1 Flashcards
What is Scheduled Coverage?
Refers to policy on which coverage is provided only on that property which is specifically identified or scheduled
What is All Property?
Refers to policy used to insured building, stock and equipment under a single limit of insurance.
What is Tenants Improvements?
Building improvements, alterations and betterments made at the expense of or purchased by the insured to a building occupied by the insured and which are not otherwise insured, provided the insured is not the actual owner of such building.
What is Actual Cash Value?
The replacement or repair cost less depreciation.
What is Replacement Value?
Represents the cost to repair, replace or rebuild the lost or damaged property without deduction of depreciation.
What is Reinsurance?
Involves an insurer ceding part of the risk it has assumed to on or more other insurers.
What is Subscription Policy?
An insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverages.
What is Condition?
Is something imposed by the Insurer which required the Insured to do or not to do something.
What is Subrogation?
Refers to the right of the Insurer to “step into the shoes” of the party whom it has compensated and sue any party whom the compensated party could have sued.
What is Warranty?
Is a promise that certain facts are as they are represented to be and that they will remain so.
What is Material Fact?
A fact which if communicated to the Insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid.
What is Fraudulent?
To act wilfully, and with the specific intent to deceive or cheat…
Void Contract
A void contract is one which has no “legal or binding force” and as such, “is incapable of being enforced by law”
