definitions Flashcards
Twisting
Inducing a client to get business with you by generally lying or spreading false shit about competitors, either by voice or mailer.
Assingment
A signed legal transfer of ones interest or benefits in a policy to another party. Must have the written approval of the policyowner and the insurance company.
Specified hazards listed in a policy for which benefits will not be paid are known as __________.
exclusions
The possibility of a loss is known as a/an _______
risk
_________is the act of having an insured cancel a current, inforce policy and buy a new one (may be done legally under rare conditions).
Replacement
Deliberate failure to reveal material facts that would affect the validity of a policy of insurance is a/an ______
concealment
______ is a person or company having possession of property committed in trust from the owner.
A bailee
The practice of a producer inducing a policy owner in one company to switch his policy to another company by using unfair advertising practices, incorrect premium quotations or by misrepresentation is known as ____.
twisting
An insurance company operating in one state but is incorporated or has its home office in another state is called a/an ________ company.
Foreign
A signed legal transfer of ones interest or benefits in a policy to another party. Must have the written approval of the policyowner and the insurance company.
Assignment
What term most closely supports Indemnification?
Insurable Interest
The process, which is part of risk Management, through which an insurer determines whether and on what basis an insurance application will be accepted is called ____ .
Underwriting
A _____ is a document given to an applicant by the Property and Casualty producer when he/she pays a premium at the time of application. This document gives unconditional coverage by the insurance company.
Binder
In a homeowners policy the term WATERCRAFT means
an inboard motor powered boat owned or operated by the insured that has 50 horsepower or less, or a sailing vessel of 25 ft. or less or any boat powered by an outboard motor of 25 horsepower or less.
A producer acting as an agent in soliciting risks for a specific insurer, who has authority to bind risks for that same insurer, and collect premiums on behalf of the insurer, must be ____.
appointed with that insurance company
__________ means the sum of money required to pay for damages or lost property, computed on the basis of replacement value (at the time of the loss), less its depreciation.
Actual Cash Value (ACV)
On the part of an insurer or producer, falsely representing the terms, benefits or privileges of a policy. On the part of an applicant, falsely representing the health, driving record or other condition of the proposed insured.
Misrepresentation
A statement made by an applicant in the application which is believed to be true is known as a ________.
Representation
This is an element of an insurance contract that each party to the contract agrees to give something of value. The company for payment of the premium by the insured agrees to pay for certain losses.
Consideration
_______ means an unintended, unforeseen and unexpected event that takes place at a specific time and location, that causes bodily injury and/or property damage.
An accident
______ is a policy (or floater) providing coverage for loss of or damage to property of bailees customers, payable to customers, regardless of whether the bailee is at fault or not for the loss.
Bailees Customers Coverage
A licensed producer who does not represent a specific company, but places business among various companies and is regarded as a representative of the insured rather than an insurance company is called a/an _________.
Broker
Which of the following is a federal law requiring an individual to be informed that her credit is being investigated by an inspection company and how that information will be used (consumer protection).
Fair Credit Reporting Act
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Indirect Loss
An indirect loss (consequential loss) is a loss which is the result of a direct loss. Indirect losses involve money, whether from loss of income, loss of business, or expenses for lodging and meals after a house fire.
Direct Loss
Direct loss is a loss caused by a peril such as a house fire and the resultant water damage from putting out the fire.
An insurance company domiciled within WA is known as a ________ company
domestic
A ____ is information about the insured that if known would change the underwriting basis of the insurance and would cause the insurer to refuse the application.
material misrepresentation
This is a form supplied by the insurance company, usually filled in by the producer, which is a formal request for insurance coverage. It must be signed by the applicant and insurance producer, and is part of the consideration process.
Application
A _____ is anything that increases the chance of a loss, such as being overweight, having worn tires or having faulty brakes on a car.
hazard
Agreeing to terms of which a bargain is concluded by two parties, such as the insurance company issues the insurance policy, is known as ____.
acceptance
A _____ is an acknowledgment that the insurance coverage applied for is inforce whether or not the premium has yet been paid, and represents temporary, guaranteed coverage.
binder
A provision added to a policy to either broaden or restrict coverage. Not valid unless signed by an executive officer of the company and attached to and made part of the policy.
Endorsement
Alleged professional misconduct or lack of ordinary skills in the performance of a professional act. A practitioner is liable for damage or injuries caused by malpractice. Such liability, for some professions, can be covered by _______ insurance.
malpractice
An insured is anyone who is covered under a property and casualty insurance contract. However, who is the only one who can change a property and casualty contract?
Named Insured
______ coverage obligates the carrier of the policy in effect when a claim is made to cover the claim, even if the negligent act or error occurred many years before.
Claims-Made
An element of an insurance contract; payment of the premium by the applicant and statements made by the prospective insured in the application. It is the insurance company’s promise to pay for certain losses.
Consideration
Intentionally setting a fire in order to collect the insurance, filing a false claim, having excessive speeding tickets are examples of _______ hazard.
Moral
Fire or other direct damage insurance written under a form of policy that covers fluctuating values of merchandise, furniture and construction projects by means of periodical reports submitted to the insurance company by the insured, with an annual adjustment of premium on the average value. This is done on a _____ form policy.
Reporting
Third Party coverage which pays for injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a right to privacy of a person is called _____ .
Personal Injury
he general rule is that you cannot insure a car that is NOT yours, or insure a home which you do NOT own. This rule or concept is called ______ .
Insurable Interest
what are the ammounts that brokers must be bonded for?
A broker needs a minimum bond of $2,500, but not more than $100,000.
All funds representing premiums and return premiums received by a producer must be deposited in one or more identifiable separate accounts, which may accumulate interest (an interest-bearing account). Willful violation of this Separate Account regulation is a ____.
misdemeanor.
The principle which states that an insured should be restored to approximately the same financial position after a loss as before is known as ______.
indemnity
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