Day 9 Quiz Flashcards
- If I were to be a wine import merchant, which bond would I require.
License and Permit Bonds
( promise that the holder will act in accordance with legal requirements)
- The definitions of Surety, Obligee, Principal.
Surety Bond has 3 parties: the obligee (owner),
the principal (contractor), and the surety (the insurance company)
- How are Surety bonds signed?
a surety bond is signed by the principal and the surety
- Know the two Latin terms shown (you all took a picture of) - their short forms and what they mean.
Volenti Non Fit Injuria (Volens)
Voluntarily assume risk
Scienti Non Fit Injuria (Scienter)
Nature of the thing is dangerous
- Know your Forfeiture, Waiver, Prescription, definitions.
Forfeiture is the loss of a right as the result of the nonperformance of some obligation or condition.
Waiver is the voluntary relinquishment of a known right.
Prescription is:
A time after which a cause of action ceases
What is reinsurance
Reinsurance is insurance for insurance companies.
Reinsurance is the process whereby an insurer may share its risk with another insurer by paying to this additional insurer a portion of the premium it receives for the risk.
A reinsurer pays only the company it reinsures and not the actual policy holder.
- Know your Reinsurance, Cede, Cession, retain (Retention), Reinsurer, Retrocede (retrocession), Retrocessionaire definitions
The action of reinsuring is the cede
The amount ceded is the cession
The company the insurer cedes to is the reinsurer
The action of the reinsurer reinsuring again is the retrocession
The third reinsurer is called the retrocessionaire
The portion of the risk the insurer keeps for their self is the “retain/retention”
- Facultative Reinsurance key term
Facultative reinsurance is done on a case-by-case basis.
- Under a commercial property policy, maintenance supplies would be insured as a part of the ________ coverage.
Maintenance supplies are insured as part of the building under commercial property supplies
Non waiver agreements
they Prevent an estoppel
(Allow an insurer to investigate a loss without prejudicing its right to deny liability later)
