Chapter 10 Flashcards
what are the basic parts of an insurance contract?
- declarations
- definitions
- insuring agreement
- exclusions
- conditions
- miscellaneous provisions
what are declarations?
statements that provide information about the particular property or activity to be insured
what is on a declarations page?
- name of address of insurer
- name and address of insured
- insured property location
- policy period
- amounts of insurance
- premium
- deductible
- other relevant information
what words refer to the insurer?
“we”, “us”, “our”
what words refer to the insured?
“you” and “your”
what is an insuring agreement?
summary of the major promises of the insurer (what the policy covers)
what are named perils?
only those perils specifically named in the policy are covered
what are open perils?
all perils are covered except for those that are specifically excluded
what type of peril is better under an insuring agreement?
open perils
what are exclusions?
perils or property that are not covered under the policy
what are examples of exclusions?
flood/earthquake, war, intentional loss, certain types of property
when are exclusions necessary?
- certain perils are considered uninsurable
- presence of extraordinary hazards
- coverage provided by other contracts
- moral hazard
- attitudinal hazard
- coverage not needed by typical insureds
what are conditions?
provisions in the policy that qualify or place limitations on the insurer’s promise to perform
what are examples of conditions?
- prompt notification of loss
- protect property from further loss
what are some miscellaneous provisions?
- states have mandatory provisions
- notice of cancellation
- notice of nonrenewal
- notice of loss
- mortgage clause
what are the types of insureds?
- named insured
- first named insured
- other insureds
- additional insureds