Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Insurance CAIB 2 > Glossary Of Terms > Flashcards

Glossary Of Terms Flashcards

1
Q

Accommodation Business

A

Substandard risks taken on by underwriters as a favour to the broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Actual Cash Value

A

Replacement Cost Minus Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Actual Loss Sustained (Business interruption)

A

Loss of income that you would have earned otherwise had the business interruption not occurred.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Adverse Selection

A

When an underwriter picks a poor risk (either too risky or unprofitable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

All Property

A

Coverage where all property owned by the insured is covered under 1 limit

Note: can even extend to cover multiple locations & still subject to exclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Area Protection

A

Used to restrict unauthorized access to certain areas (protects the interior)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Bailee For Hire

A

Some who has custody of the property of others for purpose other than sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Burglary

A

Unlawful taking of property by someone illegally entering or leaving the premises with evidence of forced entry or exit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Catastrophe Limit

A

The maximum payable for 1 occurrence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Centrifugal Force

A

The tendency of an object to move away from the centre of rotation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Common Carrier

A

Someone who carries goods for the general public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Common Hazards

A

Hazards common to all buildings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Condition

A

A Requirement to do or not do something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Contract Courier

A

Carries, for compensation, the goods for their customers only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Contributing Property

A

A major supplier or manufacture that your business depends on for continued operation.

Note: If the contributing property has a loss, it may affect your business’ ability to continue operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Custodian

A

Insured, partner or their employee authorized to have custody of insured property excluding guards, janitors, porters or watchman

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Data

A

Information stored on media

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Detachment

A

Proximity to nearby commercial exposures (buildings)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Discovery Period

A

The time starting after policy expiry, that the insured has to discover a claim for it to be covered under the policy.

Example Crime Policy 1 Year after expiry.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Electrical Breakdown

A

The failure of an electrical component

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Electronic Protection

A

Electronic barriers to restrict unauthorized access

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Employee Dishonesty

A

A dishonest or fraudulent act committed by an employee action alone of with others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Endorsement

A

A document issued by the insurance company to change the terms of the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Fire Resistive

A

The material is tested to be able to withstand 2-3 hours of a controlled fire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Fixed Expenses

A

Expenses that continue during a business inteription

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Forgery

A

Unauthorized altering of writing to do something while purporting to be the act of another who did not authorize that act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Fraudulent / Fraud

A

A wilful act intended to cheat and cause loss to others to a gain to self.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Gradual Deterioration

A

The deterioration that occurs naturally over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Gross Profit

A

Net Sales minus cost of goods sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Hard market

A

Low investment returns lead to low margins, strict underwriting and higher prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Hazard

A

Condition that can cause a peril to occur

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Income

A

All monies earned by providing sales or services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Latent defect

A

a defect hidden from reasonable inspection

34
Q

Line Securty

A

The ability of a phoneline to resist tampering

35
Q

Loading

A

The additional rate changed on top of the basic fire rate to insure against additional perils.

36
Q

Magnet Proprty

A

An anchor or leader property that attracts traffic to your store

Note: A loss to a magnet property leads to deduced customer traffic to your area meaning reduced income for the businesses in that area.

37
Q

Material Face

A

Insurer would change decision if known. Includes matters inherent in property and personal information.

38
Q

Mechanical Breakdown

A

Failure of a working mechanism

39
Q

media

A

Material that data is stored on

40
Q

Messenger

A

Insured, partner, or employee who is allowed by the insured to have custody of the insured property outside the premises.

41
Q

Money

A

Currency and coins in current use that have face value

42
Q

Morale Hazard

A

Attitude of the applicant that can cause a peril to occur

43
Q

Mysterious Disappearance

A

Disappeared under circumstances that can’t be explained (no justified reason).

44
Q

Net Profit

A

Gross profit minus operating costs

45
Q

Moral Hazard

A

Subjective characteristics of the applicant that can cause a peril to occur

46
Q

Newly Acquired Location

A

A new location owned, rented or controlled by the insured

47
Q

Non-Combustible

A

The structural members of the building are made with materials that do not catch fire.

Note: Not a good a Fire Resistive

48
Q

Ordinary Care

A

Acting in the same manner or showing the same level of care as a prudent and diligent owner of the property.

49
Q

Ordinary Payroll Expense

A

All payroll expenses minus those attributed to officers, contractors, and other key personnel (people you cannot dispense with during the business interruption)

50
Q

Perimeter Protection

A

Methods used to secure the premises while the business is closed

51
Q

Physical Hazard

A

Conditions relating to use of tangible property that can cause a peril to occur.

52
Q

Physical Protection

A

Physical barriers to restrict unauthorised access.

53
Q

Point Protection

A

Provides direct security to individual items

54
Q

Private Carrier

A

A party that carries their own goods

55
Q

Recipient Property

A

A major customer for the goods you produce (especially if you operate in an industry where there is a limited market for your goods)

Note: You depend on the continued operations of your customers to purchase the products you make/sell

56
Q

Reinsurance

A

An insurer cedes part of the risk to their reinsurers

57
Q

Released Bill of Lading

A

Releases the carrier of all liability

58
Q

Replacement Cost

A

The insurance option that will pay you up to replacement value.

59
Q

Replacement Value

A

The cost to replace for repair the property with materials of like kind and quality (No depreciation is applied)

60
Q

Rider

A

A document issued by the insurance company to add coverage to the policy

61
Q

Risk Classification

A

Classifying risks based on probability of loss

62
Q

Robbery

A

Taking of insured property from a custodian by someone who caused or threatened bodily harm to a custodian, committed an unlawful act witnessed by a custodian, or took the property from a custodian killed or rendered unconscious

63
Q

Scheduled Coverage

A

Coverage where the insured property is specifically identified (scheduled) onto a policy.

Note: No Coverage for property or categories not identified Can Specify limits for each

64
Q

Securities

A

Negotiable or Non-negotiable instruments representing money or other property (including: revenues, stamps, tokens, tickets)

65
Q

Semi-Variable Expenses

A

Expenses that may or may not continue during a business interruption.

66
Q

Soft Market

A

Good investment returns lead to high competition between insurers leading to looser underwriting and lower prices.

67
Q

Standard (Ordinary) Bill of Lading

A

The carrier’s liability is limited to the tariff for the class of goods.

68
Q

Subrogation

A

To “step into the shoes” of another and assume their legal rights (ie to recover damages)

69
Q

Subscription

A

A group of insurers come together and agree to insure a risk.

70
Q

Supporting Business

A

Other business the applicant has with the insurer

Note: Used to support his application

71
Q

Temporary Location

A

A location not named on the policy, is not owned, rented or controlled by the insured, and is not in transit.

72
Q

Tenants’ Improvements

A

Betterments made or paid for by tenants

73
Q

Theft

A

All means of taking property without the owner’s consent

74
Q

Trade Lossses

A

Losses expected as part of everyday operations

75
Q

Unoccupied

A

Lack of habitual human presence

76
Q

Void Contract

A

A contract the is no longer legally enforceable

77
Q

Vacant

A

Lack of normal occupancy (the occupants have left with no intention to return)

78
Q

Valued Bill of Lading

A

Increases the carrier’s liability to the negotiated amount

79
Q

Warranty

A

A promise that certain material facts are true and shall remain true

80
Q

Wear & Tear

A

Deterioration cased by ordinary and reasonable use

81
Q

Inherent Vice

A

Something within a commodity or other kind of property that causes its demise over time.

Insurance CAIB 2 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions