Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

NY Property and Casualty > P & C Insurance Basics > Flashcards

P & C Insurance Basics Flashcards

1
Q

Negligence:
Failure to do what a normal prudent person would have done under the same or similar circumstances.
E.g. knowing that it snowed and not shoveling the sidewalk causing a pedestrian an accident.

A

Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Negligence:
Says that each party pays for guilt or fault.
E.g. McDonald’s Case where the woman was 20% at fault and McDonald’s was 80% at fault.

A

Comparative Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Negligence:
Written or printed untrue statements.
E.g. think of LIBrary = ________

A

Libel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Negligence:
A purposeful act that harms someone in some way.

A

Tort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Negligence:
Oral or verbal untrue statements.

A

Slander

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Negligence:
Says that the person suing must be completely free of fault.

A

Contributory Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Elements of Negligence:
Must be an actual loss or damage/injury.

A

Loss or Damage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Elements of Negligence:
An unbroken chain of events.
E.g. a direct loss (fire happening to a home - water from a firetruck gets on the TV)

A

Proximate Cause of Loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Elements of Negligence:
E.g. failing to observe traffic signals breaches the duty to drive safely and prudently.

A

Breach of Duty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Elements of Negligence:
The obligation to provide another party with a certain standard of conduct.
E.g. homeowner has a duty to their guests but not trespassers.

A

Legal Duty of Care

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Damages:
A policy that covers a certain thing or its own amount of coverage.
E.g. a diamond ring

A

Specific Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Damages:
Old English law that states that the master is responsible for the acts of the servant.

A

Vicarious Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Damages:
- Undoubtedly guilty
- NO NEED to prove fault because it is obvious
E.g. swimming pool, tiger, explosives

A

Absolute Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Damages:
A single policy that covers multiple classes.
E.g a bunch of pieces of jewelry

A

Blanket Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Damages:
A policy that will only cover perils that are named/listed on the policy.
“If it ain’t named, it ain’t covered”

A

Named Peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Damages:
The law will allow damages to be awarded in addition to compensatory damages in order to punish and discourage a wrongdoer.

A

Punitive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Compensatory Damages:
- Are awarded to an injured party for tangible and known expenses.
- Specific amounts unique to the claimant
E.g. bills, loss of earnings, costs of repairing or replacing damaged property.

A

Special Damages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Compensatory Damages:
To compensate for non-economic losses that are difficult to calculate.
E.g. payments for pain and suffering, mental anguish, disfigurement, etc.

A

General Damages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Damages:
- Are the cause of loss, the reason you file a claim
- Insurance doesn’t cover all possible ______
E.g. fire, lightening, wind, hail

A

Perils

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Damages:
Only about a product regardless of faults or negligence.

A

Strict Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Damages:
- The losses as a consequence of the direct loss
- The aftermath
E.g. the house burned down - having to stay at a hotel or a loss of profit from your business
Excludes flood

A

Indirect Loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Damages:
- A policy that will cover only perils, except what’s included
- Lists out what is not covered

A

Open Peril

23
Q

Damages:
- The direct physical damage to property (e.g. raging fire)
- which includes proximate cause of loss (e.g. during a fire the furniture gets damaged)

A

Direct Loss

24
Q

Damages:
A building that is made out of wood which is flammable.

A

Frame

25
Q

Damages:
A house that is built with material that can resist burning down for up to 2 hours
BEST RATING

A

Fire Resistive

26
Q

Loss Valuation:
A policy that sets a limit an insurer will pay based on fair valuation.
E.g. YOU agreed + I agreed = Fair Valuation

A

Agreed Value

27
Q

Loss Valuation:
Less commonly used, the price the willing buyer would pay for property purchased from a willing selling under fair market conditions.

A

Market Value

28
Q

Loss Valuation:
An endorsement that guarantees the insurer will rebuild the house to the full value after a loss.
- Often in homeowners
E.g. shortage of eggs or toilet paper during the pandemic (guaranteed it will be replaced)

A

Guaranteed Replacement Cost

29
Q

Loss Valuation:
- The brand new price to replace things at today’s prices
- The original price paid is irrelevant

A

Replacement Cost

30
Q

Loss Valuation:
- The USED value of replacing things
- Calculated by knowing the replacement value and then subtracting wear and tear
RC = replacement value (-) depreciation

A

Actual Cash Value

31
Q

Loss Valuation:
Using modern, less expensive construction material
E.g. in an HO-8 policy OR Plaster v.s. Drywall

A

Functional Replacement Cost

32
Q

Loss Valuation:
A policy that determines the MAXIMUM value the insurer will pay

A

Stated Value

33
Q

Loss Valuation:
“EVALUATING the Loss”
- A factor in determining the premium

A

Loss Valuation

34
Q

Other Insurance:
Coverage for certain perils or causes of loss that is provided only after the limits of a primary insurance policy are exhuasted.

A

Excess Insurance

35
Q

Other Insurance:
Any type of coverage that responds to loss first, before all other coverage responds.

A

Primary Insurance

36
Q

Other Insurance:
A provision in the policy that expires if there is more than one policy covering a loss.

A

Other Insurance

37
Q

Limits of Liability:
The most the policy will pay for loss to any one person injured in any one loss.

A

Per Person Limit

38
Q

Limits of Liability:
Separately stated limits for each person for Bodily Injury (BI) and Property Damage (PD).
Higher limits are better that way you’re not underinsured

A

Split Limit

39
Q

Limits of Liability:
25/50/10
25 - Bodily Injury (per person)
50 - Bodily Injury (in total)
10 - Property Damage (max)

A

Minimum Limits of Liability in NY

40
Q

Limits of Liability:
The most the policy will pay for all losses arising out of any one occurrence.

A

Per Occurrence Limit

41
Q

Limits of Liability:
- A house that has stuff, but no people, however, the people do intend to come back; like going on vacation.
- Applies to those with a second residence with the intent to return

A

Unoccupancy

42
Q

Limits of Liability:
Part of, rather than in addition to, the limit that would otherwise apply to the loss.
E.g. a home and contents policy includes $100,000 of contents cover but the ___________ for jewelry is $2,500.

A

Sublimit

43
Q

Limits of Liability:
“MAXIMUM” available amount of money for all claims in a policy period

A

Aggregate

44
Q

Limits of Liability:
Thr most the policy will pay for all losses of all types resulting from any one occurrence, regardless of other limits. (Usually more expensive)
E.g. 300k

A

Combined Single Limit

45
Q

Limits of Liability:
- no people, no stuff
- at 61 days of being _____a house will begin to lose coverage

A

Vacancy

46
Q

Insurer Provisions:
- The insurer’s legal right to recover damages from the responsible third party
E.g. insurer (State Farm) goes after at-fault driver = _______________
- Insured cannot collect twice and can’t sue

A

Subrogation

47
Q

Insurer Provisions:
The right of the insurer to take possession of the damaged property after paying for its loss. The __________ belongs to the insurer.

A

Salvage

48
Q

Insurer Provisions:
Specifies that if the insurer broadens coverage with no increase in premium, that broadening of coverage will apply to existing policies without the need for an endorsement.

A

Liberalization

49
Q

Insurer Provisions:
- The rule says an insured needs to carry at least 80% of the replacement cost of the home to have a full claim covered.
- If an insured carries less than 80%, then they use the __________ co-insurance equation to reduce the amount they pay for a claim.

A

Co-insurance`

50
Q

This condition specifies which loss valuation method will apply to the property insured under the policy.

A

Loss Settlement

51
Q

Third-Party Provision:
An important provision in a property insurance policy that ensures that the insurance company will pay the mortgagee if the loss or damage occurs to a mortgagor’s property.

A

Mortgage Clause

52
Q

Third-Party Provision:
Loss Payee = a party that is paid first in the event of a loss to property in which it has insurance interest.
_______ __________ ________ designates a loss payee as a beneficiary of the policy.

A

Loss Payable Clause

53
Q

Third-Party Provision:
A bailee is someone who holds (but does not own) another party’s personal property. Coverage does not apply if loss payment benefits a bailee.

A

No Benefit to Bailee

NY Property and Casualty (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions