Key Words Flashcards
Property of Every Description
Refers to policy used to insure building, stock and equipment under a single limit of insurance
All property (Blanket)
A policy under which all property owned by the insurer is covered or “blanketed” by a single limit of insurance
Tenants Improvements
Building improvements, alterations and betterments made at the expense of or purchased by the insured to a building occupied by the insured and which are not otherwise insured, providing the insured is not the actual owner of the building
Actual Cash Value
The replacement or repair cost less depreciation
Replacement Value
Represents the cost to repair, replace or rebuild the lost or damaged property- without deduction for depreciation
Reinsurance
Involves an insurer ceding part of the risk it has assumed to one or more other insurers
Subscription
An insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverages
Condition
Something imposed by the insurer which requires the insured to do or not do to something
Subrogation
Refers to the right of the insurer to “ step into the shoes” of the party whom it has compensated and sue any party whom the compensated party could have sued
Warranty
A promise that certain facts are as they are represented to be and that they will remain so
Material fact
Facts which if communicated to the insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid
Fraudulent
To act willfully, and with the specific intent to deceive or cheat
Void contract
One which has no “legal or binding force” and as such, “is incapable of being enforced by law”
Non-Combustible
All structural members, including floors, roofs, and their supports are constructed of steel, iron, concrete or other no combustible materials. Falls just short of fire resistive.
Fire Resistive
Buildings which have met minimum standards in term of hours it will withstand a specific, carefully controlled test fire
Common Hazards
Conditions common to all buildings which influence their potential for loss
H
O
P
E
D
Heatting,occupency, protection, electrical services, detachment
Detachment
Refers to the proximity of the building insured or containing the property insured to other commercially rated building
Adverse Selection
Occurs when the applicants for insurance are largely those most likely to suffer a loss
Risk Classification
Refers to the grouping or classifying of risks according to established criteria which, in large part, is based on their probability for loss as a class
Soft Market
Characterized by intense competition between insurers resulting in low rates and broader coverages
Hard market
Occurs when low profit margins force out some of the competition resulting in a more disciplined underwriting approach where insurers receive little or nothing in rate discount
Hazard
A condition which may cause a peril to occur
Physical hazard
Conditions relating to the use of tangible property which could cause a peril to occur
Moral hazard
Subject characteristics of the application for that causes a peril to occur
Accommodation business
Business which is marginal or substandard but which the insurer agrees to accept as a favor or accommodation to the broker
Supporting business
Existence of other policies the applicant has with the same insurer
Vacant
Empty, or when the normal occupant is absent and the contents have been removed
Unoccupied
Lack of habitual presence of human beings, or the premises are complete with its contents,except that such person who normally occupies the premises is temporarily away
Loading
An additional rate charged over and above the fire rate
( 5cent/$100)
Centrifugal Force
The inertia of a body that tends to move it away from the centre around which it revolves
Mechanical Breakdown
A failure in the working mechanism of the machinery…. A functional defect in the moving parts of the equipment which cause the latter to cease function or to function improperly
Electrical Breakdown
Failure in the electrical mechanism of the machinery, appliance or device
Trade Losses
Types of losses which might be expected as a part of the every day operation of a business
Wear and Tear
Deterioration or depreciation in value by ordinary and reasonable use of the subject matter
Gradual Deterioration
Deterioration of an object which arises naturally over time
Latent Defect
Hidden or concealed defect. One which could not be discovered by reasonable and customary inspection. A defect not apparent on the face of the goods
Inherent Vice
Somethings within a commodity, or other kind of property that causes its demise over time
Mysterious Disappearance
Disappearance under circumstances which cannot be explained
Endorsement
Changes the terms or conditions of the policy
Rider
Adds additional coverages to those all ready in place
Media
Material such as diskettes, tapes, punch cards and compact disks upon which data is stored
Data
Information stored on media
Temporary Location
Location not specified on the policy which is not owned, rented or controlled in whole or in part by the insured
Newly Acquired Location
Location acquired by insured for a period of 30 days from acquisition
Replacement Cost
Cost of repairing or replacing the property of the same site with new property of like kind and quality and for like occupancy without deduction for depreciating
Bailee For Hire
One who has temporary custody of the personal property of another for purposes other than sale and who is compensated as a condition of such custody
Ordinary Care
Legal duty imposed upon Bailee’s which requires them to take the same care of the goods of others as would be taken by a prudent and diligent owner of such goods
Common Carrier
Includes airline, railroads,trucking companies and others that furnish transportation to any member of the public seeking their services
Standard (ordinary) bill of landing
Bill of landing used to reflect the amount for which the common carrier will be held legally liable under the tariff
Valued Bill of Landing
Serves to increase carriers liability- normally request by the owner of goods when their value exceeds the value stated in the standard bill of lading
Released bill of lading
Bill of lading used to release a carrier from any liability for the goods being transported
Contact carrier
One that carries, for pay, the goods of certain customers only as contrasted to a common carrier that carries the goods of the public in general
Private Carrier
One who hails their own good or goods entrusted to them as Bailees or leases and includes shippers who own or lease their vehicles and carry their own goods
Catastrophic limit
Maximum amount an insurer will pay in only one disaster or occurrence
Physical protection
Physical protection is concerned with setting up physical barriers to restrict unauthorized access to property
Electronic protection
Electrical protection is concerned with setting up electronic barriers to restrict unauthorized access to property
Perimeter protection
Refers to methods used by owners to secure access to the premises when the business is closed
Area protection
Refers to the protection provided to areas within the building where valuable property is being stored
Point protection
Provides direct security for individual items such as safes, vaults, chest, filling cabinets display cases or expensive equipment
Money
Currently and coins in current use and having a face value
Line security
Refers to the ability of a telephone line withstand tampering
Securities
Means all negotiable and non negotiable instruments or contracts representing money or other property and includes stamps in current use, tokens and tickets but does not include money
Burglary
The unlawful taking of property by a person unlawfully entering or leaving the premises as evidence by marks of forceable entry or exit
Robbery
Taking of insured property from a custodian by a person who has
- caused or threatened to cause the custodian bodily harm
- committed an overt unlawful act witnessed by the custodian
- taken such property from a custodian who has been killed or rendered unconscious
Custodian
Includes the insured, their partners or any employee authorized by them to have the care and custody of the insured property
Scheduled Coverage
Refers to policy on which coverage is provided only on that property which is specifically identified or scheduled
