Property And Liability Basics Flashcards
Define Pro-Rata Liability
Used when there is more than 1 policy; each pays a portion of the loss in proportion to its limit in relationship to all applicable insurance.
Define Concurrent policies
Policies that do not provide the same coverages or do not insure against the same perils.
Types of Cancellations.
Pro-rata: insurer cancels and premium must be returned proportionally.
Short rate: insurer will return unearned minus an additional amount to cover expenses
Flat cancellation - insurer returns all premium.
(Blank) unbroken/uninterrupted chain of events that ends in damage/loss.
Proximate Cause
Define Contributory Negligence
Prevents recovery for damages caused by a negligent party if the claimant was also negligent.
Damages are reduced in proportion to the degree of negligence.
Comparative Negligence
This device is used by insurers to encourage insureds to insure to value and results in a better premium best describes…
Coinsurance
Policy provision that allows the mortgages to still be paid even though claim was denied is called?
Mortgage Clause
System in which damages are diminished in proportion to the person’s degree of negligence is…
Comparative Negligence
When insurer cancels premium is refunded…
Pro-rata
The terms “you” and “your” in Personal lines policies refers to XXX and XXX.
Named insured; resident spouse
The formula for actual cash value..
Replacement Cost - depreciation
A (blank) is a temporary contract between the insured and the insurer policy that provides protection only for the perils stated.
Binder
To be held responsible for acts of another is what type of liability?
Vicarious liability
Which homeowner policy covers mysterious disappearance of personal property?
HO-5
