Common Policy Provisions Flashcards
A provision that specifies the process to be followed when more than one policy covers the same loss
Other insurance
Other insurance:
Policy makes payment before all other policies in place
Primary insurance
Other insurance:
Policy makes payment after the primary policy exhausts its limits
Excess insurance
Other insurance:
When more than 1 policy is on a risk
Pro rata liability
Other insurance:
When 2 or more insurers’ policies cover at the same level
Contribution by equal shares
A provision in the policy that specifies the most it will pay in the event of loss
Limits of liability
Limit of liability:
The most a policy will pay for all losses arising from any 1 OCCURENCE
Per occurrence limit
Limit of liability:
The most a policy will pay for loss to any 1 injured person in any 1 loss
Per person limit
Limit of liability:
The most the policy will pay for losses submitted during the policy period
Aggregate limits
Limit of liability:
The most the policy will pay for loss of different types that occur of any 1 loss
Split limit
Limit of liability:
The most the policy will pay for losses of all types resulting from any 1 occurrence
Combined single limit
True or False
Liability policies cover damages to insured’s own property
False
True or False
Liability insurance makes payments to a 3rd party
True
An unintended & unforeseen event from which a loss occurred
Accident
Medical expenses & loss of earnings to an injured party are considered…
Special damages
