Definitions

Question 1

Risk

Answer 1

The chance of loss

Question 2

Insurance

Answer 2

The premiums of the many pay the losses of the few

Question 3

An event that may cause a loss

To occur

Answer 3

Peril

Question 4

The immediate and effective cause of loss

Answer 4

Proximate Cause

Question 5

Putting you back in the same financial position, just prior to loss, no better no worse

Answer 5

Indemnity

Question 6

What is General Insurance?

Answer 6

All insurance other than life & health

Question 7

What a reasonable and prudent person would do or not do in a similar situation

Answer 7

Negligence

Question 8

What is Lloyds of London?

Answer 8

It’s not an insurance company. It’s a place to do business. It’s an insurance market.

Question 9

A one-of-a-kind wording, developed for a particular risk or class of business.

Answer 9

Manuscript Wording

Question 10

What is re-insurance?

Answer 10

It is insurance for insurance companies

Question 11

Who is the first party?

Answer 11

The Insured

Question 12

Who is the second party?

Answer 12

The Insurer

Question 13

Frequency

Answer 13

The number of times something happens

Question 14

Severity

Answer 14

The average cost of the loss

Question 15

Payment or a promise to pay for an exchange of something of value

Answer 15

Consideration

Question 16

What is a legal entity?

Answer 16

Someone who can sue or be sued

Question 17

What is Actual Cash Value?

Answer 17

Today’s price, less depreciation

Question 18

You can not deny what you’ve already said

Answer 18

Estoppel

Question 19

When you’ve legally wronged someone

Answer 19

Tort

Question 20

Silence when there’s an obligation to speak

Answer 20

Concealment or non-disclosure

Question 21

The policy never existed and any premium must be refunded in its entirety

Answer 21

Void

Question 22

Three or more persons acting unlawfully

Answer 22

Riot

Question 23

What is a list policy voucher?

Answer 23

A one-page of the cancellation agreement

Question 24

A condition that may cause a peril to occur or make the loss more severe

Answer 24

Hazard

Question 25

Damage to property without regard of ownership

Answer 25

Vandalism

Question 26

Damage to property due to ownership

Answer 26

Malicious Act

Question 27

Monetary compensation to the plaintiff for bodily injury or property damage due to the negligence of the defendant

Answer 27

Damages

Question 28

What is the definition of Insured?

Answer 28

Insured means the person(s) named as Insured on the Coverage Summary Page and, while living in the same household:

• his or her spouse
• the relatives of either; and
• any person under 21 in their care

Question 29

What is the definition of Vacant?

Answer 29

The occupant(s) has moved out with no intent to return

Question 30

What is Contribution?

Answer 30

Insurance under more than one policy

Question 31

What is fair rental value?

Answer 31

It’s an optional extension of coverage that protects the rental income an insured receives from an insured building. If a building that is usually rented to others is damaged by a hazard named in the policy, this coverage will pay the rental value.

Question 32

What are statutory conditions?

Answer 32

They are the rules of the game between the first and second party

Question 33

What is a standard mortgage clause?

Answer 33

The rules of the game between the insurer and the bank