Snapshot Questions Flashcards
1
Both are types of property losses, but property insurance only covers direct losses (direct, physical damage to buildings and/or personal property)
Indirect are considered results of direct losses ; usually result bc of time it takes to repair/replace damaged property (extra living expenses incurred by insured while home is repaired or loss of business)
2
Blanket insurance; all properties insured are written for 1 total amt of insurance & no single insured item is assigned specific amt of insurance
3 (limits of liability)
Aggregate limit is max limit of coverage available under liability policy during a policy year
Per occurrence involves accidents, which are sudden, unplanned, unexpected events (not under control of insured) that result in unintended/unexpected injury/damage
4
Carelessness; negligence is failure to use care that a reasonable/prudent person would have taken under same/similar circumstances
5 (element of negligent act)
Natural act/event that is a reasonably foreseeable cause of damage or injury to plaintiff (negligence must have been cause, otherwise accident wouldn’t have happened)
6
Both may arise from tort (wrongful act that causes injury but excludes criminal/contractual wrongs)
Property: extent of loss measured by actual monetary loss that injured party suffered (measured by value of property damaged/destroyed & loss of use of that asset)
Bodily: injury to person; policies often pay for damage the insured is legally obligated to pay due to an accident
7
Rates may be developed by payroll, receipts, or property values
8
1-4 unit residential dwellings that aren’t eligible for coverage under regular homeowners program (bc of age, location, value, etc.)
9
Created by federal govt to fill gap left by private insurance industry (flood causes more property damage in US than any other type of natural disaster)
10
Someone driving car w/ no auto liability insurance or w/ an auto liability policy issued by insurer who has become bankrupt; unidentified hit-&-run driver; someone w/ auto liability policy w/ limits lower than those required by law
11
One w/ auto liability coverage @least w/ legally required minimums, but too low to pay for all damage done to another
12
Prompt notification; cooperate w/ insurer; forward any legal papers; submit to physical exam under oath when requested; allow insurer access to medical records; submit proof of loss; notify police of hit/run or stolen vehicle; protect property from further loss; allow insurer 2 inspect/appraise damaged property
13
It insures not only property/liability exposures of business, but also may include personal residential exposures of property/liability of family living on farm premises
What are surety bonds & 14
Surety bonds do not expect to pay for losses; guarantee specific duties/obligations will be fulfilled
Principal: one who promises 2 fulfill duty & purchases bond
Obligee: one to whom promise had been made & to whom bond is payable in event that principle defaults on their obligation
Guarantor/Surety: provides financial backing for guarantee (bond penalty); pays specified amt in bond to obligee
15
Purpose: issued for executors/administrators of estate, guardians or trustees; guarantees that fiduciary will perform/act in best interest of party they represent
Fiduciary: one who handles property/money for another & has duty to do so in responsible manner
