Insurance Terms - One Liners

Question 1

What has a separate aggregate limit under CGL?

Answer 1

Products completed

Question 2

Deductible

Answer 2

A specified amount of money that is paid by the insured before the insurer pays any money on the claim

Question 3

What is embezzlement?

Answer 3

Employee dishonesty, which is not covered by a crime policy unless an Employee Dishonesty form is attached (does not cover shortages, theft only)

Question 4

Broker

Answer 4

A person who represents the client in transaction: Property and Casualty only

Question 5

Errors & Omissions insurance

Answer 5

Liability insurance that covers agents and insurance companies if they make mistakes or forget to included information in a contract

Question 6

Code: Section 770

Answer 6

When buying property that is financed, a lender cannot force the purchaser to buy insurance from a particular agent or broker

Question 7

Law of Large Numbers

Answer 7

The greater the number of insured the more accurately the prediction

Question 8

Standard Risk

Answer 8

Classification of risk that is normal

Question 9

Loss Sustained Form

Answer 9

Covers losses that occur during the policy period and losses are discovered and reported during the policy period or up to one year after the policy expires

Question 10

Discovery Form

Answer 10

Covers losses that occur either prior to the policy inception or during the policy period and losses are discovered and reported during the policy period or up to 60 days after the policy expires

Question 11

Substandard Risk

Answer 11

Classification of risk that is more than the normal acceptable risk

Question 12

Underwriter

Answer 12

A person whose job it is to assess risk and determined classification of the insured (an agent is a field underwriter)

Question 13

Surplus Lines

Answer 13

Found in property and casualty insurance. A surplus line broker places insurance with a non-admitted insurer

Question 14

Non-admitted Insurer

Answer 14

An insurer that is not licensed to business in a particular state (a surplus lines broker works with non-admitted carriers)

Question 15

Section 2 on homeowner’s Policy

Answer 15

Liability and medical payments. Paid to others only

Question 16

Pay excess liability amounts

Answer 16

Umbrella, after underlying policy or retention is paid. Liability only; does not cover property

Question 17

Worker’s Compensation Insurance

Answer 17

Insurance purchased by employers to cover their employees in case the worker is hurt on the job

Question 18

Admitted Insurer

Answer 18

Recognized by the Department of Insurance to transact insurance: approved or authorized

Question 19

Parking lots, dealerships, and repair garages need

Answer 19

Garagekeepers

Question 20

Tort

Answer 20

A wrongful act other than breach of contract or a crime

Question 20

What is the midi-tail on claims made CGL?

Answer 20

Provides 5 years coverage fo something reported during mini-tail

Question 22

What is excluded under CGL?

Answer 22

Pollution - with the exception of fuel spilled during normal operations. Pollution is normally covered under CPP policies or Builder’s risk

Question 23

Liquor liability

Answer 23

Need for a dram shop, liquor, or “package store”

Question 24

What is the mini-tail on claims made CGL?

Answer 24

Automatically gives 60 days to report a claim after the policy period

Question 25

Full-tail optional, or extended coverage on claims made CGL

Answer 25

Unlimited durations for reporting costs extra

Question 26

Builder's risk

Answer 26

Building under construction and materials

Question 27

Symbol #7

Answer 27

Specifically described autos

Question 28

Retroactive date

Answer 28

The first date an occurrence would be covered under a claim made CGL policy

Question 29

Symbol #4

Answer 29

Owned autos, other than private passenger vehicles

Question 30

Under crime insurance, the employee dishonesty endorsement never covers

Answer 30

Shortages of inventory

Question 31

Worker compensation in a yacht policy

Answer 31

Part of the protection and indemnity (the liability portion)

Question 32

Symbol #9

Answer 32

Non-owned autos

Question 33

A, B and C of Commercial Liability (CGL) are:

Answer 33

a. Bodily injury and property damage b. Personal and advertising injury c. Medical payments

Question 34

"Protection and Indemnity" on ocean marine or yacht

Answer 34

Liability & workers comp. portion of ocean marine or yacht policies

Question 35

Hull covers

Answer 35

Physical damage to insured's ship or yacht

Question 36

Peril

Answer 36

The cause of loss

Question 37

Open Peril

Answer 37

All perils except those specifically excluded

Question 38

Subrogate

Answer 38

The insured transfers the right to sue TO the insurance company

Question 39

Vicarious liability

Answer 39

Someone not directly, but still held responsible (an employer has vicarious liability for employees)

Question 40

Risk

Answer 40

Uncertainty of loss. A risk must be uncertain to be insurable

Question 41

Pure risk

Answer 41

Chance of loss or no loss

Question 42

Third party

Answer 42

The injured party. To whom liability pays claims

Question 43

Hazard

Answer 43

Anything that increases a chance for loss

Question 44

Collision

Answer 44

Colliding with another car, an object, or upset (rolling)

Question 45

Absolute liability

Answer 45

Liability imposed when hazardous materials or dangerous animals are involved

Question 46

Strict liability

Answer 46

Another term for ABSOLUTE LIABILITY when a product causes injury or death

Question 47

The FAIR plan

Answer 47

Distributes the risk among the companies equitably

Question 48

Real property

Answer 48

Land, buildings anything attached (does not move)

Question 49

Physical hazard

Answer 49

Distinct characteristic arising from material, structural, or operational features that increase a chance for loss i.e. being next to explosives

Question 50

Declarations

Answer 50

Contract section stating who or what is covered, amount of coverage, policy period, and premium

Question 51

Personal property

Answer 51

Distinct characteristic arising from material, structural, or operational features that increase a chance for loss i.e. being next to explosives

Question 52

Physical hazard

Answer 52

Distinct characteristic arising from material, structural, or operational features that increase a chance for loss i.e. being next to explosives

Question 53

Declarations

Answer 53

Contract section stating who or what is covered, amount of coverage, policy period, and premium

Question 54

Personal property

Answer 54

Property that can move e.g. furniture, clothes, paintings

Question 55

Ordinance of law

Answer 55

A limitation in a Homeowner's policy (10% of A) - an exclusion in Commercial Property policies

Question 56

Exclusions

Answer 56

Things that are not covered

Question 57

Insurable interest

Answer 57

Financial interest

Question 58

Judgment rating

Answer 58

Based on best judgment of underwriter in classifying a risk