Homeowners Liability, Conditions, Coverage Forms, and Endorsements Flashcards
Bodily injury
Physical injury to a person, including sickness, disease, and death.
Property damage
Physical injury to, destruction of, or loss of use of tangible property.
Occurrence
An accident, including continuous or repeated exposure to substan- tially the same general harmful conditions.
Loss assessment
A charge by the condominium association against the unit owners for the cost of uninsured losses.
Severability of insurance condition
Policy condition that applies insurance separately to each insured; does not increase the insurer’s limit of liability for any one occurrence.
Waiver
The intentional relinquishment of a known right.
Apparent authority
A third party’s reasonable belief that an agent has authority to act on the principal’s behalf.
Binding authority
An insurance agent’s authority to effect coverage on behalf of the insurer.
Condominium or cooperative units
Housing unit in a complex owned by a corporation, the stockholders of which are the building’s residents; the corporation owns the real estate title; each unit owner owns corporation stock and has the right to occupy a specific unit.
Moral hazard
A condition that increases the likelihood that a person will inten- tionally cause or exaggerate a loss.
Scheduled coverage
Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item.
Third party
A person or business who is not a party to the insurance contract but who asserts a claim against the insured.
