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Property and Casualty - One-liners > Insurance Terms - One Liners > Flashcards

Insurance Terms - One Liners Flashcards

1
Q

What has a separate aggregate limit under CGL?

A

Products completed

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2
Q

Deductible

A

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

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3
Q

What is embezzlement?

A

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

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4
Q

Broker

A

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

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5
Q

Errors & Omissions insurance

A

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

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6
Q

Code: Section 770

A

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

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7
Q

Law of Large Numbers

A

The greater the number of insured the more accurately the prediction

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8
Q

Standard Risk

A

Classification of risk that is normal

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9
Q

Loss Sustained Form

A

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

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10
Q

Discovery Form

A

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

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11
Q

Substandard Risk

A

Classification of risk that is more than the normal acceptable risk

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12
Q

Underwriter

A

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

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13
Q

Surplus Lines

A

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

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14
Q

Non-admitted Insurer

A

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

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15
Q

Section 2 on homeowner’s Policy

A

Liability and medical payments. Paid to others only

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16
Q

Pay excess liability amounts

A

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

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17
Q

Worker’s Compensation Insurance

A

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

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18
Q

Admitted Insurer

A

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

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19
Q

Parking lots, dealerships, and repair garages need

A

Garagekeepers

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20
Q

Tort

A

A wrongful act other than breach of contract or a crime

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20
Q

What is the midi-tail on claims made CGL?

A

Provides 5 years coverage fo something reported during mini-tail

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22
Q

What is excluded under CGL?

A

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

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23
Q

Liquor liability

A

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

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24
Q

What is the mini-tail on claims made CGL?

A

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

25
Q

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

A

Unlimited durations for reporting costs extra

26
Q

Builder’s risk

A

Building under construction and materials

27
Q

Symbol #7

A

Specifically described autos

28
Q

Retroactive date

A

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

29
Q

Symbol #4

A

Owned autos, other than private passenger vehicles

30
Q

Under crime insurance, the employee dishonesty endorsement never covers

A

Shortages of inventory

31
Q

Worker compensation in a yacht policy

A

Part of the protection and indemnity (the liability portion)

32
Q

Symbol #9

A

Non-owned autos

33
Q

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

A

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

34
Q

“Protection and Indemnity” on ocean marine or yacht

A

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

35
Q

Hull covers

A

Physical damage to insured’s ship or yacht

36
Q

Peril

A

The cause of loss

37
Q

Open Peril

A

All perils except those specifically excluded

38
Q

Subrogate

A

The insured transfers the right to sue TO the insurance company

39
Q

Vicarious liability

A

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

40
Q

Risk

A

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

41
Q

Pure risk

A

Chance of loss or no loss

42
Q

Third party

A

The injured party. To whom liability pays claims

43
Q

Hazard

A

Anything that increases a chance for loss

44
Q

Collision

A

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

45
Q

Absolute liability

A

Liability imposed when hazardous materials or dangerous animals are involved

46
Q

Strict liability

A

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

47
Q

The FAIR plan

A

Distributes the risk among the companies equitably

48
Q

Real property

A

Land, buildings anything attached (does not move)

49
Q

Physical hazard

A

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

50
Q

Declarations

A

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

51
Q

Personal property

A

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

52
Q

Physical hazard

A

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

53
Q

Declarations

A

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

54
Q

Personal property

A

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

55
Q

Ordinance of law

A

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

56
Q

Exclusions

A

Things that are not covered

57
Q

Insurable interest

A

Financial interest

58
Q

Judgment rating

A

Based on best judgment of underwriter in classifying a risk

Property and Casualty - One-liners (1 decks)

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