Definitions Flashcards

1
Q

Risk

A

The chance of loss

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2
Q

Insurance

A

The premiums of the many pay the losses of the few

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3
Q

An event that may cause a loss

To occur

A

Peril

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4
Q

The immediate and effective cause of loss

A

Proximate Cause

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5
Q

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

A

Indemnity

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6
Q

What is General Insurance?

A

All insurance other than life & health

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7
Q

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

A

Negligence

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8
Q

What is Lloyds of London?

A

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

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9
Q

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

A

Manuscript Wording

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10
Q

What is re-insurance?

A

It is insurance for insurance companies

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11
Q

Who is the first party?

A

The Insured

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12
Q

Who is the second party?

A

The Insurer

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13
Q

Frequency

A

The number of times something happens

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14
Q

Severity

A

The average cost of the loss

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15
Q

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

A

Consideration

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16
Q

What is a legal entity?

A

Someone who can sue or be sued

17
Q

What is Actual Cash Value?

A

Today’s price, less depreciation

18
Q

You can not deny what you’ve already said

19
Q

When you’ve legally wronged someone

20
Q

Silence when there’s an obligation to speak

A

Concealment or non-disclosure

21
Q

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

22
Q

Three or more persons acting unlawfully

23
Q

What is a list policy voucher?

A

A one-page of the cancellation agreement

24
Q

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

25
Damage to property without regard of ownership
Vandalism
26
Damage to property due to ownership
Malicious Act
27
Monetary compensation to the plaintiff for bodily injury or property damage due to the negligence of the defendant
Damages
28
What is the definition of Insured?
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
29
What is the definition of Vacant?
The occupant(s) has moved out with no intent to return
30
What is Contribution?
Insurance under more than one policy
31
What is fair rental value?
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.
32
What are statutory conditions?
They are the rules of the game between the first and second party
33
What is a standard mortgage clause?
The rules of the game between the insurer and the bank