Chapter 10 Vocab (Text) Flashcards
Declarations
statements that provide information about the particular property or activity to be insured
Insuring Agreement
summarizes the major promises of the insurer
Named-Perils Policy
only those perils specifially named in the policy are covered
Open-Perils Policy
all losses are covered except those losses specifically excluded
Special Coverage Policy
An Open-Perils Policy
Exclusions
basic part of any insurance contract; exceptions to an insurance contract
Conditions
provisions in the policy that qualify or place limitations on the insurer’s promise to perform
Named Insured
person or party named on the declarations page of the policy
First Named Insured
first name that appears on the declarations page of the policy as an insured
Other Insureds
persons or parties who are not insured under the named insured’s policy even though they are not specifically named in the policy
Additional Insured
a person or party who is added to the named insured’s policy by an endorsement
Endorsements and Riders
In property and casualty insurance, means a written provision that adds to, deletes from, or modifies the provisions in the original contract. In life and health insurance, a rider is a provision that amends or changes the original policy
Deductible
a provision by which a specified amount is subtracted from the total loss payment that otherwise would be payable
Straight Deductible
the insured must pay a certain number of dollars of loss before the insurer is required to make a payment
Aggregate Deductible
all losses that occur during a specified time period, usually a policy year, are accumulated to satisfy the deductible amount
Calendar Year Deductible
Type of aggregate deductible that is found in individual and group medical expense policies
Elimination/Waiting Period
stated period fo time at teh beginning of a loss ruing which no insurance benefits are paid
Coinsurance Clause
in a property contract, encourages the insured to insure the property to a stated percentage of its insurable value. if it is not met at the time a loss, the insured must share in the loss as a coinsurer
Equity in Rating
fundamental purpose of coinsurance
Coinsurance Clause
a provision that requires the insured to pay a specified percentage of covered medical bills in excess of the deductible
Other-insurance provisions
typically present in property and casualty insurance and health insurance contracts; apply when more than one contract covers the same loss; purpose is to prevent profiting from insurance and violation of the principle of indemnity
Pro Rata Liability
generic term for a provision that applies when two ore more policies of the same type cover the same insurable interest in the property
Contribution by Equal Shares
another type of other-insurance provision that often appears in liability insurance contracts
Primary and Excess Insurance
Another type of other-insurance provision. The primary insurer pays first and the excess insurance pays only after the policy limits under the primary policy are exhausted
Coordination of Benefits
provision is designed to prevent overinsurance and the duplication of benefits if one person is covered under more than one group health insurance plan
