Insurance Terminology Flashcards
Rate of occurrence of accidents; e.g. a number of accidents per million man-hours worked
Accident Frequency
An event that is caused by the forces of nature, without human intervention, and that could not have been prevented by reasonable care e.g., flood, lightning, earthquake, and hurricane
Act of God
A person trained in mathematics whose job is to apply the theory of probability to the business of insurance, and to advise in situations involving questions of probability
Actuary
Increased expense of providing a home due to damage to the property insured, e.g. extra cost of living in a hotel
Additional Living Expense
Usually one who represents the insurer in settling claims with insureds or with third party claimants
Sometimes a representative of the insured
Adjuster
The process of determining the amount payable or service to be rendered by one or more insurers to an insured or other claimant under an insurance contract, and the rights and obligations incident thereto
Adjustment
Insurance that covers loss caused by all perils except those specifically excluded in the contract
All Risk Injury
The system of selling insurance through agents compensated by commissions, the agents having the sole right to solicit insureds on expiration of their policies
American Agency System
Determination of the value of property, or of the extent of damage, usually by impartial experts
Appraisal
A dangerous place of instrumentality attractive to children, the owner of which has the legal duty of taking unusual care to guard them from it
Attractive Nuisance
One to whom goods are delivered to be held in trust in accordance with a contract, express or implied
Bailee
Amounts to be paid by the insurer under an insurance contract
Benefits
A temporary insurance contract pending execution of the policy contract Except for specific difference, the terms of the binder are by implication those of the contract which is intended to replace it
Binder
An arrangement under which the insured shares in losses in the proportion that his insurance is less than a specific percentage of value of the property insured
Coinsurance
A loss not directly caused by a peril insured against but arising indirectly
Consequential Loss
The extent of the insurance afforded under an insurance contract
Often used to mean insurance or insurance contract
Coverage
A clause in an insurance contract providing that the insurer will pay only that amount of any loss that is in excess o a specified amount
Deductible Clause
An amendment in writing (including print or stamping), added to and made a part of the insurance contract
Endorsement
A provision in an insurance contract stating situation in which, perils against which, or persons or things upon which, insurance is not afforded under the contract
Exclusion
The state of being exposed to the chance of loss
Exposure
A clause in an automobile-liability-insurance contract subjecting the contract to the requirements of any financial responsibility law and requiring the insured to reimburse the insurer for disbursements it would not be required to make except for this clause
Financial-Responsibility Clause
An agent that produces heat and a flame or glow
Fire
A fire which is not outside the place where it was intended to be
Fire Friendly
A fire outside the place where is was intended to be
Fire Hostile
An insurance contract that covers property in any location within a specified territory
Floater Policy
A period following the premium due date during which payment of the premium may be made without penalty or suspension of coverage
Grace Period
A clause in a contract proving that the insurer may not, after a specified time from the inception of the contract, contest the validity of the contract
Incontestable Clause
To make good a loss
Indemify
Replacement, repair or payment of value of a loss
Indemnity
A pooling of hazards in order to indemnify those who experience losses
Insurance
The contractual relationship between the insured and the insurer who agrees, in return for a premium, to indemnify the insured for losses due to specified causes; in some cases, includes specified services
Insurance
Injury or damage sustained by an insured
Loss
The amount for which the insurer becomes liable on occurrence of the event insured against
Loss
A clause in an insurance contract making the proceeds payable to named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee
Mortgagee Clause
The cause of possible loss
Peril
Particular location or portion thereof as defined by the policy insurance
Premises
The amount charged for insurance
Premium
A formal written statement of a claim for payment of a loss, with supporting data
Proof of Loss
A promise of payment of indemnity or of a specified sum or sums by an insurer
Protection
Guarding persons or things against loss
Protection
The subject of insurance whether a person or thing
Risk
Chance of loss
Risk
The unlawful taking of property by violence, force, or intimidation
Robbery
Property taken over by the insurer on payment of loss
Salvage
In maritime law, the award to persons who voluntarily render services to maritime property in peril, with resulting benefit thereto
Salvage
An insurance policy that covers, under separate insuring agreements, several enumerated causes of loss
Schedule Policy
A contract form in general use by insurers, adopted by a group of insurers, approved by a state insurance department or prescribed by statute
Standard Form
The corporation or individual guaranteeing performance or faithfulness under a bond
Surety
A person whose duty is to select risks for insurance and to determine in what amounts and on what terms they will be accepted by an insurer
Underwriter
At the inception of disability, a period in respect of which benefits are not payable
Waiting Period
A statute imposing liability on employers to pay benefits and furnish care to employees injured, and to pay benefits to dependents of employees killed, in the course of an because of their employment
Employer is generally relieved of liability for common-law damages
Workmen’s Compensation Law
