Important Terms

Question 1

Insurer

Answer 1

the one who provides insurance

Question 2

Insured

Answer 2

pays premium from insurer for coverage

Question 3

First named insured

Answer 3

first person named on declarations page and only one allowed to authorize changes in policies

Question 4

Policy period

Answer 4

policy in effect from inception to expiration date usually ends at 12:01 on termination date

Question 5

Binder

Answer 5

temporary coverage until policy is issued

Question 6

specific limit

Answer 6

limits to one specific property

Question 7

Blanket coverage

Answer 7

multiple properties under 1 policy

Question 8

Representation

Answer 8

the truths

Question 9

Misrepresentation

Answer 9

untruthful fact or opinion that could lead to policy being voided ( saying something untrue)

Question 10

Guarantees

Answer 10

guarantees that certain condition will be met that are in the contract

Question 11

Concealment

Answer 11

Deliberately withholding information
(hiding truth)

Question 12

Waiver

Answer 12

give up right, claim, or privilege

Question 13

What are the two types of waivers?

Answer 13

Express and implied

Question 14

Express waiver

Answer 14

in writing

Question 15

Implied

Answer 15

assumed based on actions

Question 16

Estoppel

Answer 16

prevents insurer from denying coverage if the policyholder has been led to believe , in good faith, that coverage applies