Study 1 Flashcards
property insurance is
First party that indemnifies the owner for its loss or loss of income-producing ability when the loss is caused by a covered peril
What is property insurance
First party insurance that that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is covered by an insured peril, such as fire or explosion.
what is insurable interest
a party who, if loss were to occur to that property, they would suffer an economic loss
indemnity
to return the insured as nearly as possible to the financial position they enjoyed immediately prior to a loss
contract (Civil)
an agreement between two or more parties that is intended to be legally enforceable, constituted by an offer to perform a specific act in exchange for consideration
contract (Quebec)
an agreement of wills by which one or several persons obligate themselves to one or several other persons to perform a duty/payment/service
uberrimae fidei
utmost good faith, which requires an insures to act with a high standard of honesty and disclose material facts
peril
an insured cause of loss
deductible
the insured’s portion of a covered loss to avoid the expense of handling small, frequent losses
fire insurance
coverage for fire, lightning, and explosion, as well as resulting damage from smoke and water
exclusion
remove certain losses from the policy’s coverage
flashpoint
statutory conditions
extended coverage insurance
mortgage clause
first-party insurance
third-party insurance
direct loss (or damage)
plain-language policy
warranty
proximate cause
concurrent causation
actual cash value (ACV)
replacement insurance
