Brainscape's Knowledge GenomeTM

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


See full index

Property And Casualty > Property and Liability Insurance Concepts > Flashcards

Property and Liability Insurance Concepts Flashcards

1
Q

What type of policy’s wording is standardized through state law?

A

Statutory Policies

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

What type of insurance applies a single amount to two or more coverage items which are subject to specific rating, with any part of the full amount available to apply to any item?

A

Blanket insurance

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

What type of liability policy liability limit is expressed in two figures?

A

Split limits

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

What type of policy is that for given coverage is substantially like the policies written by all or a majority of companies in the field?

A

Standard Policy

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

What type of interest refers to insurance giving the lender the needed protection to make the loan, by assuring that the collateral may be restored if it is damage?

A

Lender Interest

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

When referring to personal contracts a property and liability insurance covers____________, not property or operations.

A

Persons

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

What is the type of contract where the obligation of the insurer to perform may be conditioned upon the insured satisfying certain condition?

A

Conditional Contract

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

What part of an insurance policy defines broadly the coverage given under the policy?

A

The insuring agreement

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

In order for an insurance policy to respond, what must exist?

A

Insurable interest

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

What term means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction , or pecuniary damage or impairment?

A

Insurable interest

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

What is the failure of the insured to reveal relevant facts known to the insured in applying for insurance?

A

concealment

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

What type of waiver may result from some act of neglect on the part of the adjuster?

A

Implied waiver

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

An insurance arrangement must be written to constitute a _______________________.

A

To constitute a policy

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

What clause states the insured cannot “dump” damaged property on the insurer and demand its full value?

A

Abandonment clause

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

For liability insurance to pay, the one who is legally liable must have what status under the policy?

A

Status of an insured

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

All policies provide that any changes to the policy must be made by the insurer in what format?

A

Must be made in writing

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

What condition states that coverage applies only to losses or occurrences that take place during the policy period?

A

The Policy Period Condition

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

The are 2 elements that constitute the consideration for a valid insurance contract. One of these is the agreement to the terms and conditions in the policy by both insurer and the insured. What is the other element?

A

Premium (actual payment or the promise to pay)

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

What term describes the current costs to replace an item, less an allowance for depreciation?

A

Actual cash value (ACV)

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

What type of deductible requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits?

A

Percentage Deductibles

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

What part of an insurance policy is necessary to eliminate coverages which would; duplicate in other policies which may be available to the insured, or be uninsurable perils, or be coverages of a specifies nature that the insurer can not insure?

A

Exclusions

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

What condition, found in many standard policies, states that if the insured adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period (typically, 60 days) or during the policy period, the insured receives the benefit of such broadened coverage?

A

Liberalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What may be defined as a contingency that may cause a loss (such as fire or windstorm)?

A

Peril

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What part of the policy documents includes descriptive material relating to the subjects covered, persons insured, the premium to be paid, period of coverage, and policy limits or amounts of insurance?

A

The declarations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What type of law states, in part, that if there is a total loss by a covered peril to a peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid?

A

Value policy law

26
Q

What type of insurance liability limit means a limit is applied which presents the total insurance coverage that will be paid for the policy term, for the perils to which the aggregate limit applies?

A

Aggregate limits

27
Q

What principle states that one should not profit from the response provided by an insurance policy?

A

Principle of indemnity

28
Q

What policy condition limits coverage to occurrences or losses that take place only within a stated geographical region; for example, the United States, its possessions, and Canada?

A

Policy Territory Condition

29
Q

Contracts for temporary property, marine, casualty or surety insurance may be made in writing, or in what other way?

A

Orally

30
Q

In a single limit liability policy, a single amount is the _____________________liability of the insurer with respect to any one accident or occurrence.

A

maximum

31
Q

A___________ is a condition that introduces or increases the likelihood of loss from a peril.

A

Hazard

32
Q

Name the type of policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.

A

valued policy

33
Q

What type of contract describes a contract wherein the parties are of unequal bargaining power, and one party (the insured) cannot negotiate the terms, having to take the offer of the other party (the insurer) as made?

A

Contract of Adhesion

34
Q

An insurer shall give how many days prior notice of cancellation of a binder, unless the binder is replaced by a policy or another binder in the same or another company?

A

5 day notice

35
Q

Virtually All property and liability insurance contracts are comprised of four fundamental parts. What are these for parts?

A

The declarations, the insuring agreement, the exclusions, and the conditions

36
Q

What term means a written contract of or written agreement for or effecting insurance, or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements, and papers which are a part thereof?

A

insurance policy / Insurance contract

37
Q

What term means the chance of financial loss?

A

Risk

38
Q

What type of insurance policies pay on behalf of the insured all sums the insured becomes legally obligated to pay as damages?

A

Liability insurance policy

39
Q

What type of deductibles specify that no payment shall be made until the loss equals or exceeds a prescribed amount, then the loss is paid in full?

A

franchise deductibles

40
Q

What type of deductibles specify the deduction of a flat amount from a loss payment, regardless of the size of the loss?

A

Straight deductibles

41
Q

Insured cannot ___________________ by intentionally causing damage to their own property.

A

Cannot profit

42
Q

What doctrine is a fundamental doctrine in property insurance which holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence.

A

Doctrine of proximate cause

43
Q

What method is used to provide equity in premiums by granting lower rates to those insureds who accept the responsibility of insuring for amounts which reflect a high percentage of the value of the subject property?

A

coinsurance

44
Q

What are the three ways in which the limits of a liability policy can be expressed?

A

single limit, split limits, aggregate limit

45
Q

What type of hazard stems from the conscious mental attitude of the insured (e.g., intentional loss)?

A

moral hazard

46
Q

What type of loss means economic loss which flows as a consequence of direct loss?

A

indirect loss

47
Q

What is an untrue statement by the insured made in an application for insurance but which does not become part of the insurance contract?

A

misrepresentation

48
Q

What term is used to describe when insurance applies separately to each insured as if other insureds did not exist?

A

severability

49
Q

What type of loss means physical harm to tangible property?

A

direct loss

50
Q

What policy condition states that, generally, the insured may cancel at any time, but the insurer must give some degree of advance notice?

A

cancellation condition

51
Q

What type of hazard is a condition stemming from the physical characteristics of an object that increases the probability and severity loss from given perils?

A

physical hazard

52
Q

What impact is insurance designed to offset when an insured experiences such losses?

A

Financial impact

53
Q

Temporary insurance is effected through the use of what?

A

binders

54
Q

What type of insurance means payment will be on behalf of the insured to another, based upon the insured’s legal responsibility to the recipient?

A

Liability Insurance

55
Q

what term means the failure to exercise that degree of care that the law requires to protect others from unreasonable risk of harm?

A

negligence

56
Q

What condition exists to resolve differences between insurer and insured about the amount of the loss?

A

appraisal condition

57
Q

What type of hazard stems from the unconscious mental attitude of the insured (e.g., accident proneness)?

A

morale

58
Q

There are property insurance policies that are issued subject to separate limits for each building, the contents of each building, the indirect loss exposure at each building, the amount in each safe covered or in possession of each person away from the premises for crime exposures, etc. Coverage subject to such separate limits is called what type of insurance?

A

Specific Insurance

59
Q

What type of waiver occurs when the insurer or its representative knowingly gives up a known right under the insurance contract?

A

express waiver

60
Q

What type of insurance refers to any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests?

A

Property Insurance

61
Q

What term describes a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies?

A

Insurance

Property And Casualty (1 decks)

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