Module 1-F - Important Terms

Question 1

Binder

Answer 1

A temporary contract provided by an insurer, which ensures coverage until the
complete, permanent policy is issued.

Question 2

Concealment

Answer 2

The act of withholding relevant material facts from an insurer.

Question 3

Estoppel

Answer 3

Legal principal that prevents an insurer from denying coverage if the insured has reasonably come to believe they have the coverage based on insurer’s practices. This is a form of “implied waiver”; for
example, if the insurer regularly accepts late payments, it waives its right to deny
coverage due to late payment.

Question 4

First Named Insured

Answer 4

The first person or entity named as insured on the declarations page of a policy.

Question 5

Misreprentation

Answer 5

Any false or misleading statement.

Question 6

Policy Period

Answer 6

The beginning and end dates of coverage. Found on the Declarations Page.

Question 7

Waiver

Answer 7

Voluntary surrender of a right

Question 8

Expressed Waiver

Answer 8

An explicit relinquishment of a right.

Question 9

Implied Waiver

Answer 9

Assumed based on actions

Question 10

Warranty

Answer 10

Guarantees that certain conditions will be made. If a policyholder makes a warranty and does not meet it, the insurer may void the contract. Found on Dec. page