Chapter 2 Flashcards
List five functions of insurance
Spread the Risk
Aid to Security
Aid to Credit
Loss Prevention
Source of Capital
Employment
Property and Casualty (P&C)
Property - Indemnifies the owner for direct or indirect loss.
Casualty = liability other than life, fire or auto.
So its property damage, death or bodily obligation.
Examples of insurance
Auto, aviation, floater policies, property, marine, inland transportation, business interruption, liability, surety bonds, boiler and machinery, crime,
Accident
Provides benefits for loses as a result of bodily injury
Aviation
Covers aircraft of all types and the airfields air stripes
Auto
Liability and third party, bodily injury, coverage of the vehicle
Casually
Body and personal injury
Commercial property floater
Portable items of a commercial nature.
Crime
Losses due to criminal activity
Cyber
Losses from a cyber attack
Economic Impacts of Insurance
Employment - direct and indirect
Bonds, equity and other investments.
Pay billions for medical treatment, rehab lost wages.
Can’t run our society without insurance
Public Adjuster
An insurance claims adjuster representing an insured on a fee basis in a claims settlement
Broker
A licensed independent person or firm who acts on behalf of an insured in placing business with insurance companies.
Independent adjuster
One who adjusts on behalf of the insurance companies but is not employed by any one insurance company
Unrated Premium
The part of the premium that has not been used or earned. Premium representing the unexpired portion of a policy.
Unearned premium reserve
A reserve fund of an insurance company or reinsurance company, representing the unearned premiums.
Telematics
An interdisciplinary field with telecommunications, vehicular technologies, road transportation, road safety, electrical engineering and computer science.
Agent
A person licensed and authorized or employed to act on behalf of another.
Earned premium
That portion of premium earned or charged for the period of time a policy remained in effect.
Adjuster
One who investigates claims, makes recommendations regarding the payment of benefits from insurance policies and negotiates payment settlements.
Indemnify
To provide compensation for loss or expenses incurred.
Casualty insurance
Loosely used to describe an area of insurance not particularly concerned with life, fire or auto insurance. Refers to liability, burglary and plate glass insurance.
Property insurance
First party insurance that indemnifies the owner of property for its loss or the loss of its income producing ability when the loss of damage is caused by a covered peruse as fire or explosion.
Contract
An agreement between two or more parties that is intended to be legally enforceable.
Public adjuster
An insurance claims adjuster representing an insured on a fee basis in a claims settlement.
