PROPERTY AND LIABILITY INSURANCE Flashcards
ACTUAL CASH VALUE
THE DEPRECIATED VALUE OF PERSONAL PROPERTY
ASSUMPTION OF RISK
THE INJURED PARTY FULLY UNDERSTOOD AND RECOGNIZED THE DANGERS THAT WERE INVOLVED IN AN ACTIVITY AND VOLUNTARILY CHOSE TO PROCEED
BASIC PERILS COVERAGE
PROTECTS THE HOMEOWNER FROM LOSSES ASSOCIATED WITH SPECIFICALLY NAMED PERILS
BODILY INJURY
OCCURS WHEN AN INSURED DRIVER CAUSES BODILY HARM TO A THIRD PARTY AND THE INSURED DRIVER IS DEEMED RESPONSIBLE FOR THE INJURIES
BROAD PERILS COVERAGE
PROVIDES PROTECTION FOR THE PERILS COVERED IN BASIC COVERAGE, PLUS ADDITIONAL PROTECTION FOR NAMED PERILS NOT COVERED UNDER BASIC COVERAGE
COINSURANCE
THE PERCENTAGE OF FINANCIAL RESPONSIBILITY THE INSUREDAND THE INSURER MUST UPHOLD IN ORDER TO ACHIEVE EQUITY IN RATING. COINSURANCE IN PROPERTY INSURANCE ENCOURAGES INSUREDS TO COVER THEIR PROPERTY TO AT LEAST A STATED PERCENTAGE OF THE PROPERTYS VALUE, OR ELSE SUFFER A FINANCIAL PENALTY
COLLATERAL SOURCE RULE
HOLDS THAT DAMAGES ASSESSED AGAINST A NEGLIGENT PARTY SHOULD NOT BE REDUCED SIMPLY BECAUSE THE INJURED PARTY HAS OTHER SOURCES OF RECOVERY AVAILABLE, SUCH AS INSURANCE OR EMPLOYEE BENEFITS (HEALTH OR DISABILITY INSURANCE)
COLLISION
AUTO INSURANCE COVERAGE THAT PROTECTS THE INSURED AGAINST UPSET AND COLLISION DAMAGES, SUCH AS THOSE SUSTAINED IN AN ACCIDENT INVOLVING OTHER VEHICLES, OR THOSE SUSTAINED WHEN THE AUTO RUNS OFF THE ROAD AND INTO A LAKE
COMBINED SINGLE LIMIT POLICY
AN AUTO INSURANCE POLICY THAT HAS A FIXED AMOUNT OF COVERAGE THAT THE INSURANCE COMPANY PAYS, WHETHER THE LOSS IS ATTRIBUTABLE TO BODILY INJURY OR PROPERTY DAMAGE
COMPARATIVE NEGLIGENCE
THE AMOUNT OF DAMAGE IS ADJUSTED TO REFLECT THE INJURED PARTYS PROPORTION OF CONTRIBUTION TO THE CAUSE OF INJURY
COMPREHENSIVE (OR OTHER THAN COLLISION)
AUTO INSURANCE COVERAGE THAT PROTECTS THE INSUREDS AUTO AGAINST PERILS OUT OF THE INSUREDS CONTROL, SUCH AS MISSLES OR FALLING OBJECTS, FIRE, THEFT, EARTHQUAKE, HAIL, FLOOD, AND VANDALISM
CONTRIBUTORY NEGLIGENCE
NEGLIGENCE ON THE PART OF THE INJURED PARTY THAT CONTRIBUTES TO THE HARM AND, THEREFORE, REQUIRES THE INJURED TO BEAR SOME RESPONSIBILITY FOR THE INJURY
DWELLING
RESIDENTIAL STRUCTURE COVERED UNDER A HOMEOWNERS INSURANCE POLICY
ENDORSEMENT
ATTACHMENT OR ADDITION TO AN EXISTING INSURANCE POLICY THAT CHANGES THE ORIGINAL TERMS
HOMEOWNERS INSURANCE
A PACKAGE INSURANCE POLICY THAT PROVIDES BOTH PROPERTY AND LIABILITY COVERAGE FOR THE INSUREDS DWELLING, OTHER STRUCTURES, PERSONAL PROPERTY, AND LOSS OF USE
INTENTIONAL INTERFERENCE
INTENTIONAL ACT COMMITTED AGAINST ANOTHER THAT CAUSES INJURY
LAST CLEAR CHANCE RULE
THIS RULE STATES THAT A CLAIMANT WHO IS ENDANGERED BY HIS OWN NEGLIGENCE MAY RECOVER IF THE DEFENDANT HAS A “LAST CLEAR CHANCE” TO AVOID THE ACCIDENT AND FAILED TO DO SO
LIABILITY COVERAGE
COVERS BODILY INJURY OR PROPERTY DAMAGE TO OTHERS FOR WHICH THE INSURED DRIVER IS DEEMED TO BE RESPONSIBLE
LIBEL
A WRITTEN STATEMENT THAT CAUSES HARM TO ANOTHER
LOSS OF USE
UNDER HOMEOWNERS INSURANCE COVERAGE, LOSS OF USE IS A COMBINATION OF ADDITIONAL LIVING EXPENSES AND LOSS OF RENTAL INCOME
MEDICAL PAYMENTS
A NO-FAULT, FIRST-PARTY INSURANCE COVERAGE DESIGNED TO PAY FOR BODILY INJURIES SUSTAINED IN AN AUTO ACCIDENT
NEGLIGENCE
HARM CAUSED BY FAILURE TO USE REASONABLE CARE
OPEN PERILS POLICY
ALL-RISK COVERAGE FOR PERSONAL PROPERTY THAT PROVIDES FOR A MUCH BROADER AND MORE COMPREHENSIVE PROTECTION PROGRAM THAN NAMED-PERILS COVERAGE
OTHER STRUCTURES
SMALL DETACHED STRUCTURES ON THE INSUREDS PROPERTY NOT ATTACHED TO THE MAIN HOUSE, SUCH AS DETACHED GARAGES, GREENHOUSES, OR STORAGE BUILDINGS
PERSONAL AUTOMOBILE POLICY
INSURANCE POLICY THAT COVERS LIABILITY FOR INJURIES AND DAMAGES TO PERSONS INSIDE AND OUTSIDE THE VEHICLE AND COVERS THE COST TO REPAIR/REPLACE A DAMAGED OR STOLEN VEHICLE
PERSONAL LIABILITY UMBRELLA POLICY (PLUP)
COVERAGE DESIGNED TO PROVIDE A CATASTROPHIC LAYER OF LIABILITY COVERAGE ON TOP OF THE INDIVIDUALS HOMEOWNERS AND AUTOMOBILE INSURANCE POLICIES
PERSONAL PROPERTY
VALUABLE ITEMS OWNED BY THE INSURED THAT ARE COVERED UNDER HOMEOWNERS INSURANCE
REPLACEMENT COST
THE AMOUNT NECESSARY TO PURCHASE, REPAIR, OR REPLACE THE DWELLING WITH MATERIALS OF THE SAME OR SIMILAR QUALITY AT CURRENT PRICES
RES ISPA LOQUITUR
A DOCTRINE OF THE LAW OF NEGLIGENCE THAT IS CONCERENED WITH THE CIRCUMSTANCES AND THE TYPES OF ACCIDENTTS, WHICH AFFORDS RESONABLE EVIDENCE IF A SPECIFIC EXPLANATION OF NEGLIGENCE IS NOT AVAILABLE
SCHEDULE
ATTACHMENT OR ADDITION TO AN EXISTING INSURANCE POLICY THAT LISTS INDIVIDUAL ITEMS
SCHEDULED PERSONAL PROPERTY ENDORSEMENT
AN ENDORSEMENT TO A HOMEOWNER POLICY THAT COVERS SPECIFIED ITEMS OF PERSONAL PROPERTY AT AN AGREED-UPON VALUE IN EXCESS OF THE STANDARD COVERAGE LIMITS FOR THE TYPE OF PROPERTY
SLANDER
VERBAL STATEMENT THAT CAUSES HARM TO ANOTHER
SPLIT LIMIT POLICY
AN AUTO INSURANCE POLICY WITH THREE SEPERATE LIABILITY COVERAGE LIMITS COVERING BODILY INJURY (PER PERSON AND PER OCCURRENCE) AND PROPERTY DAMAGE
STRICT AND ABSOLUTE LIABILITY
LIABILITY RESULTING FROM LAW. STRICT LIABILITY ALLOWS FOR DEFENSE, ABSOLUTE LIABILITY DOES NOT
UNINSURED / UNDERINSURED MOTORIST
A MOTORIST WITHOUT LIABILITY COVERAGE OR WHOSE INSURER CAN/WILL NOT PAY CLAIM, SUCH AS A HIT-AND-RUN DRIVER, OR MOTORIST WITH INSUFFICIENT LIABILITY COVERAGE ACCORDING TO STATE LAW
VICARIOUS LIABILITY
ONE PERSON MAY BECOME LEGALLY LIABLE FOR THE TORTS OF ANOTHER (E.G., PARENT/CHILD, EMPLOYER WHOSE EMPLOYEE IS ACTING IN THE SCOPE OF EMPLOYMENT
