Chapter 42 - Insurance Flashcards
1
Q
Insurance
A
- Protection against risk, transfer of risk.
2
Q
Insurer/Underwriter
A
- Who gives the insurance
3
Q
Insured
A
- Who buys the insurance
4
Q
Premiums
A
- What the insured pays to the insurer
5
Q
Claim
A
- If something bad happens, I make a claim.
6
Q
Rider/endorsement
A
- Rather than getting a brand new policy, I can get a rider to put on top of the policy.
7
Q
Insurable Interest
A
- Life
- Property
- Must have an insurable interest in it to get insurance.
8
Q
Country Life Insurance v. Marks
A
- Had a life insurance policy on Aunt Connie.
- When she died, Country Life said the Mark’s had no insurable interest.
- The Marks won because they did have an insurable interest in her.
9
Q
Life Insurance
A
- Term Life: for a small period of time
2. Whole Life: for life. Premiums may stop
10
Q
Health Insurance
A
- Covers medical costs due to illness, accident, disease, etc.
- Dental often included
11
Q
Automobile Insurance
A
- Covers damage to the automobile, injuries, and property damage.
- “No fault” insurance laws cover injuries to the driver and passengers even if another party was at fault.
- Uninsured Motorist - cover the insured if the person at fault is uninsured.
12
Q
Homeowners Insurance
A
- Covers damage caused to home and attached buildings.
13
Q
Professional Liability/Malpractice Insurance
A
- Covers many professions where mistakes could happen.
14
Q
Business Interruption Insurance
A
- Covers cost incurred to get business back to normal operations in the event that an emergency occurs.
15
Q
Workers’ compensation
A
- Insurance that pays workers injured on the job.
16
Q
Disability Insurance
A
- Cover an insured’s lost wages in the event that they become disabled.
17
Q
Deductible
A
- Portion that the insured pays out of pocket before the insurance covers it.
18
Q
Indemnification
A
- Insurer will cover the insured for losses.
- Duty to Indemnify
19
Q
Incontestibility Clause
A
- Prevents insurers from contesting several years later statements made by the insured on an application.
20
Q
Duty to Defend
A
- Insurer will provide lawyer to defend me.
21
Q
Exclusions
A
- Criminal activity, riots, wars aren’t covered.
- “Acts of God”
22
Q
Right of Subrogation
A
- If an insurance company pays a claim to an insured, but someone else is at fault, the insurance company has a right to “step into the shoes” of the insured and sue the other company or person to get the money back.
23
Q
Metropolitan v. Morrison
A
- Teenager living at home with parents and he resisted arrest and injured an officer.
- The officer sued parents and their insurance policy.
- Insurance Company said that they wouldn’t cover it because it was a crime.
- Metropolitan Insurance did have a duty to defend the insured but didn’t.
