Section 3 Flashcards
Declarations page
States the who, what,when,where & how much
Insuring agreements
States the promise to pay and the perils covered
Conditions
States the rules for the policy
Endorsements
States the changes to the original policy
Add- on
Exclusions
States the items not covered
Named Insured
The person, business, or other entity names in the declarations to which the policy is issued
The first-named insured
The person listed first on the deck page when there is more than one named insured
Additional insured
Another individual or business may be listed as an additional insured by endorsement
Policy territory
States that a loss will not be covered unless it occurred within the territory. Typically includes USA, Canada & PR
NOT MEXICO
Deductible
The amount that must be paid out of pocket by the policy owner before an insurer pays any expenses.
Purpose of deductible
It’s to prevent small insurance claims and overuse of insurance claims
Indemnity
To restore the insured to their original pre-loss condition — no better or worse
Other insurance
Defines how reimbursement will occur when more than one of multiple policies covers the same loss or claim
Primary Insurance
Attaches immediately upon the occurrence or loss
Excess coverage
Pays whatever is not paid by the primary policy up to the amount of the loss or excess coverage limit, whichever is less
