Property And Casualty Insurance Flashcards
What is actual cash value?
The cost to replace an item of property at the time of the loss, less an allowance for deprecation. Often used to determine the amount of reimbursement for a loss.
What is absolutely liability?
Liability that arises from an extremely dangerous situation. Absolutely ability is often found in cases involving explosives. Also known as strict liability. For example you are absolutely liable if you keep a wild animal as your pet.
Define additional insured.
A person, firm or corporation other than the named insured on the policy, or a lender named in a mortgage clause, who is protected against lost by the terms of the policy.
What are additional living expenses?
A coverage designed to reimburse the insured for an increase in living expenses necessitated by loss to the dwelling. This indirect lost must be the result of direct lost by a covered peril.
What is an adjuster?
A person who represents the insurance company and acts for the company in working on agreement as to the amount of the loss of the liability of the company.
What is an admitted company?
The company that means the state insurance department’s standards and is authorized by the director to do business in the state.
Define aggregate limit.
A type of policy limit found in the liability policies that limits coverage to a specified total amount for the all losses occurring within the policy.
What is Allied line?
Property coverages that are closely associated with infrequently sold a fire insurance.
Define all-risk insurance
Insurance protecting the insured from loss arising from any peril other than those specifically excluded by name. This contrasts with named peril insurance, which names the peril or perils insured against.
What is an application?
A questionnaire that is filled out by an agent and the prospect seeking insurance. The form contains waiting on underwriting information. The applicant is expected to make representations by answering questions to the best of his knowledge.
What is an appraisal?
If the insured and insurer cannot agree on the amount of loss either may demand an appraisal if demanded, each will select an appraiser, it will jointly select an umpire. The appraisers will appraise the loss and either agree or submit differences to the umpire. Agreement by any two of the three will be binding. Each party will pay it’s own appraiser and share equally the expenses of the appraisal and the umpire.
What is an appurtenant structure?
A structure belonging to the insured, such as a toolshed this coverage is often called other structures or outbuildings.
What is an assigned risk?
There are some applicants that underwriters do you not care to ensure, but because of state law or otherwise, must be provided protection. To become authorized, casualty Company must agree to participate in the assigned risk pool and take it’s turned in providing auto insurance to high-risk drivers. Also known as the auto insurance plan.
What is an audit?
A survey of the financial records of the insured conducted to determine exposures limits etc. which are needed to calculate the premium. The initial premium is only a deposit.
What is a Bailee?
A person who has temporary custody of property belonging to another person.
What is Bailee’s customers policy?
Insurance obtained by a Bailee to cover loss or damage to customers property in the Bailee’s custody without regard to liability.
What is a binder?
Temporary insurance contracts that may be made orally or in writing. It’s binder is deemed to include all usual terms of the policy for which it was given plus endorsements. Life or disability insurance utilizes conditional receipt instead binders.
What is a blanket position bond?
Fidelity bond that specifies a single limit of liability applicable to each employee involved in a loss.
What is Boiler and machinery policy?
Insurance that covers the insured against loss arising out of the use of steam boilers or other machinery.
What is a bond?
An obligation of the insurance company to protect one against financial loss caused by the act of others.
What is a broker?
One who represents an insured in the solicitation, negotiation, or procurement of contract of insurance, and he may render services incidental to those functions. They may also be a licensed as agents.
What is business owners policy?
A commercial package policy designed for certain types of small businesses combining property and liability coverages.
What is casualty insurance?
A type of insurance that is primarily concerned with losses caused by injury to persons and legal liability imposed upon the insured for such injury or damage to property of others.
What is coinsurance?
And property insurance, a clause under which the insured shares and losses to the extent that she is under insured at the time of loss.
What is a commercial package policy?
A multi-parol, multi line policy that provides a broad spectrum of property and casualty coverages for businesses in addition to require a basic property and liability insurance answered me add additional Marine, boiler and machinery, glass, crime, business auto or farm coverages.
What is comparative negligence?
A doctrine that a defendant is liable only for the amount of damages I located to the defendant in direct proportion to the defendants percentage of fault; if not 51% or more at fault defendant is not held liable.
What is a competitive state fund?
A state-funded writing Worker’s Compensation insurance in competition with private insurers.
