Commercial Property Losses -Study 7 Flashcards
A legal term that provides that any ambiguity in a contract must be interpreted against the person who drew the contract because that person has the opportunity to make it clear
contra proferentem
A policy in which the peril insured against are listed as opposed to one that insureds against all perils
Named perils policy
The fair market value of the property, taking into account factors that might reduce the value of the property in question. calculated on one of three ways
*cost of repairs or replacement less depreciation
*fair market value
*consideration of all relevant evidence of the value of the damaged property
Actual cash value ACV
Legal process by which an insurance company after the payment of a loss is assigned the right of the insured to recover the amount of the loss from those who are legally liable for it.
Subrogation
Policy wording that does not conform to the standard wording in general use within the insurance industry and that is unique to the policy involved.
manuscript wording
One who holds a registered claim (referred to as a “lien”) against a given property as security or collateral against a loan or workmanship performed in relation to that property. The financial commitment associated with a registered lien must be fully discharged and satisfied before the property in question may be liquidated, sold, or transferred to another party.
lienholder
A Latin term meaning “to go back to the beginning.” When a policy is rejected or made void ________, premium is refunded entirely, and the contract is treated as though it never existed.
ab initio
The remaining value of property after severe damage by fire or other peril. The overall loss is reduced by the salvage value. Undamaged property may be quite saleable, and some property may be only partially damaged, thus repairable and then saleable.
salvage
One who recovers or assists in recovering damaged property, especially property damaged by fire.
salvor
