Study 5: Managing Fraud Risk at the Point of Sale - Key terms Flashcards
Direct writer
Insurance company selling directly to the public and not through independent agents or brokers.
Moral hazard
A hazard arising from the character, interest, habits, and lack of integrity of the insured or person concerned.
Named insured
The person or party designated in the policy as the insured, who has certain rights under the policy, as opposed to someone who may be covered by the policy but is not specifically named and does not have the same rights as the named insured.
Insurable interest
An interest that the insured must have in the subject matter of the insurance purchased so that if the event insured against occurs, the insured will suffer an economic loss.
Effective date
The date of inception of an insurance policy, or the date additional coverages become effective.
Expiry date
The date on which a policy ends.
Loss payee
A person or an entity other than the named insured to whom the proceeds of insurance will be paid.
Mortgagee
A special class of loss payee that has a registered interest on real property offered as security for the money that the mortgagee has loaned the property owner.
Mortgage clause
A clause in an insurance policy that stipulates the rights and obligations of the insurer and the mortgagee.
Physical hazard
A hazard arising from the physical condition or characteristics of the object that is insured.
Phantom vehicle
A vehicle that does not exist or is already wrecked.
Salvage
The remaining value of property after severe damage by fire or other peril. The overall loss is reduced by the salvage value. Undamaged property may be quite saleable, and some property ay be only partially damaged, thus repairable and then saleable.
