Definitions

Question 1

Rider

Answer 1

Adds additional coverages to those all ready in pleace

Question 2

Data

Answer 2

Information stored on media

Question 3

All property (Blanket)

Answer 3

A policy under which all property owned by the insured is covered or “ blanketed “ by a single limit of insurnace

Question 4

Replacement Value

Answer 4

Represents the cost to repair, replace or rebuild the lost or damaged property without deduction for depreciation.

Question 5

Condition

Answer 5

Something imposed by he insured which requires the insured to do or not to do something

Question 6

Warranty

Answer 6

A promise that certain facts are as they are represented to be and that they will remain so.

Question 7

Material Fact

Answer 7

Facts which if communicated to the insured would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid.

Question 8

Fire Resistive

Answer 8

Buildings which have met minimum standards in terms of hours it will withstand a specific carefully controlled test fire.

Question 9

Detachment

Answer 9

Refers to the proximity of the building insured or containing the property insured to other commercially rated buildings

Question 10

Adverse Selection

Answer 10

Occurd whe the applicants for insurancr are largely those moet likely to suffer a loss

Question 11

Risk Classifications

Answer 11

Refers to the grouping or classifying of a risks according to established criteria which, in large part, is based on their probability for loss as a class

Question 12

Hard Market

Answer 12

Occurs when low profit margins force out some of the competition resulting in a more disciplined underwriting approach where insurers receive little or nothing in rate discounts