Chapter 2 Flashcards
the expressed will of society
law
a legal wrong
tort
a legal decision serving as an authoritative rule in future similar cases
precedent
statute law which is classified and arranged in a systematic collection or code. it is written law
codified law
an act of legislature declaring, commanding or prohibiting something
statute
to treat a contract as if it never happened
void
someone who can sue and be sued
legal person
people have a - when they stand in such a legal relationship to it that they may be financially prejudiced by its loss or damage and may financially benefit by its continued existence
insurable interest
is property saved from loss
salvage
the legal process by which an insurer who has paid a loss pursues any rights of recovery against a responsible third party
subrogation
insures property for an amount which is agreed to by the insurer and the insured at the time the contract is made
valued contract
the immediate and effective cause of the loss
proximate cause
when is pro rate used
when the insurer cancels
when is short rate used
when the insured cancels
