Going over exams Flashcards by Makayla Giff

Mold, fungus and other biological hazards

are not covered.

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Risk management

Science of loss prevention

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Tenants improvements and betterments

Is under equipment

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Commercial general liability covers

premises, operations, products and completed operations liability

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If you can’t get insurance on regular market can get it from

Facility association

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3-D policy two important elements

Crime and fidelity coverage

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Legal liability

careless act

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personal injury coverage on CGL policy covers liability from

Slander or libel of a person or an organization

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Tenants legal liability coverage

Fire, explosion, water escape and smoke

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Two main coverages of person liability policy

Personal and premises liability

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Utmost good faith

the disclosure of material information is required by all parties

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Adversely affect good client service

Limited capacity

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Type of damages that liability policies will pay

Special damages

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Claim under personal liability policy must be reported

within one year of occurrence

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Obligee in a fidelity bond is the

Employer

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What does endorsement do

Alters the provisions of the policy

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Who has right to cancel a policy

Insured, Insurer

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RETROCESSION

Reinsurance purchased by a reinsurance company

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signatures of the applicant are

Preferred

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Theft by employee is covered if you have what package

Comprehenive dishonesty, disappearance and destruction policy

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Farm animals are not covered

At a stockyard

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won’t be covered if you travel pregnant

within 8 weeks of due date

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Surety Bonds are not

NOT INSURANCE

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Subrogation

The right of the insurance company to recover payments made under the policy from another person who is legally responsible for the loss

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Franchise Clause means

If the loss exceeds the deductible or other specified amount, the deductible totally disappears.

Insurance terms

Black Law Dictionary

Insurance contracts are regulated by the following legiatlation in common law provinces

The insurance acts, the stat conditions

Auto insurance

Only applicant needs to sign the application

Min liability in Alberta

$200,000

Commerical building

temporary fixtures and fittings are not covered under building.

stat conditions which are found in all fire policies

impose obligation on both the insured and the insurer

Right of the mortgagee

The right to share in the loss payment, as long as the insured owes something on the mortgage.

Wood outside that is going onto house

would be fully covered under dwelling building

Data problem defined as

erasure, destruction, or misinterpretation of data

Freezer food

Expenses incurred to store freezer food in a cold storage unit while the freezer is being repaired.

Endorsement added to cover farm mach and equipment

all risk coverage

Mobile homes optional emergency removal expense

5% of the amount of insurance under coverage A

A claims made policy

Covers only claims made during the term of the contract

Section F of homeowner policy

Voluntary medical payments

Coverage E homeowners Property damage

Physical los or damage to tangible property, including the loss of use of such property

Person who owns 25 power units

get owners form policy

Non-owned automobile policy provides

third party liability

if they lease automobile for long time

standard owners automobile policy, suitably endorsed.

under the third party liability section of the automobile policy, the insured agrees to

reimburse the insurer for all amounts the insurer has to pay because of the absolute liability law, but which the insurer would not otherwise be liable to pay

Pure risk

the chance of loss

Binding limits outlined in the agency agreement

Act as a cntrol on brokers binding powers

Can only use personal information for

purpose that are reasonable

insurance agent or broker is resposible for providing info that

materially affects the insurer's interest

E and O

Act only within the scope of your authority and competence

E and O policy

must be issued by a licensed insurer approved by the ministry

reinsurance

is insurance for insurance companies

who sells insurance to the general public is under control of

the provincial government

underwriter

employed by an insurer to accept and reject risk on their behalf

Stock companies are owned by

the shareholders

Superintendent of insurance

administering the insurance act in each province is responsibility of the superintendent of insurance

No fault portion of automobile insurance is called

Accident benefits coverage

Common law is based on

the premise that current court decisions should follow previous decisions whenever the circumstances are similar

Condsideration

The subject of matter of the policy

Comprehensive coverages doesnt cover

Collison or upset

Total disability must occur within

60 days from date of accident

Moral hazard

A subjective characteristic of the applicant that could cause a peril to occur.

warranty is

a promise by insured's that certain facts are true and will remain so.

Death benefits, the death must occur

2 years from date of accident

If you need glass coverage get

Limitation of glass endorsement

Accident benefits proof of loss must be within

90 days

all risks policies cover

all losses unless they are specifically excluded by the policy

agent represents the interest of the

insurer

Total disability benefit not payable for the first

7 days from the date of accident

Stat conditions which are found in all fie polices

impose obligations on both in insured and the insurer

Mobile homes, optional emergency removal expense

5% of the amount of insurance under coverage A

Residual markets, from an underwriting standpoint, refer to

special programs to ensure insurance availability to less desirable or more hazardous risks

Third party liability of auto

insured agrees to, reimburse the insurer for all amounts that insurer has to pay because of the absolute liability law, but which the insurer would not otherwise be liable to pay

Large loss principle

if possible, devastating exposes to loss should be transferred through non-insurance or insurance transfer

Binding limits outlined in the agency agreement

act as a control on brokers binding powers

trust account is used to deposit

premiums collect to pay insurers for policies issued

Net premiums

Premiums are after the producer's commission has been deducted

E and O's

$500,000 MIN

You have an ethical duty recommending insurance to advise all insurance available, even if its beyond what your insurers

provide

Insurance defined as

A contractual relationship where one party for consideration agrees to reimburse another for a loss

Caveat emptor refers to

The doctrine of | "buyer's beware"

Rebating

A broker agrees to accept less money than the premium shown on the policy

Proportional reinsurance

Quota share

Consequential Loss

A loss that is an indirect result of an occurrence