Chapter 7 Terms Flashcards
Theft
All means of taking property without the owners concent
Employee dishonesty
Dishonest acts commuted by an employee on own or with others
Discovery Period
Time being with expiry of policy which claims must be discovered to be insured
Messenger
To whom is authorized by insured to have care and custody of insured property outside premises.
Forgery
A person fraudulently alters any writing without authorization
Income
All monies from sales or services by a business
Fixed expenses
Those expenses that continue during the period of interruption
Semi variable expenses
Those expenses which may or may not continue during the period of interruption
Gross profit
Adding to the profit all insured standing charges
Net profit
Gross profit less all other expenses incurred by the business
Actual Loss Sustained
Amount the business could actually have earned had the loss not occurred
Ordinary Payroll Expense
Payroll expenses for all employees except officers, directors and other important employees.
Contributing Properties
Manufacturer or supplier upon whom the insured depends for materials or goods
Recipient Properties
The customer who the insured depends upon to purchase its product.
Magnet Properties
These properties clients rely on to draw large numbers of customers near their businesses. Anchor stores.
