Study 6-9: Key terms Flashcards
Recruiter
One who enlists others to act as “claimants” in a scheme to commit fraud in exchange for a monetary benefit. The people recruited pay a fee to participate in the scam and in return are offered a portion of the accident benefits.
Paper collision
When parties conspire to create the illusion of a legitimate accident using either pre-damaged vehicles or by intentionally and covertly inflicting damage on the suspect’s vehicle(s). Generally, law enforcement is not called to the scene of the accident.
Forensic expert
Someone connected to a court of law who can be hired by an insurer or an insured to appear in court as a witness. This expert combines knowledge of legal cases with the principles of a profession. The expert can help to prove or contradict the cause of a claim.
Statutory conditions
Special prescribed and standardized conditions that the provincial and territorial insurance acts require to be included in insurance policies.
Risk management
Analyzing a risk to quantify the potential for losses in a specific investment and to decide what is the appropriate action to take (or whether not to take action)
Endorsement
An amendment added to a written document, particularly an agreement between parties, altering its provisions
Business interruption insurance
Insurance against loss of profits and continuing fixed expenses resulting from a fire or other insured peril that prevents a business from continuing its normal operations.
Accident benefits
Indemnity provided to an insured on a first-party basis towards the cost of medical and rehabilitative care for the treatment and recovery of injuries arising out of the use or operation of an insured’s automobile. Accident benefits may include provisions for the partial reimbursement of wage loss and home care expenses. Such benefits may also include funeral expenses and survivor’s benefits in the event of a loss that involves an insured’s fatality.
Like, kind and quality (LKQ)
Refers to replacement of damaged, destroyed, or lost property with used property of similar type and condition.
Rapport
Confirms a common bond in a relationship between people that often leads to agreement and harmony, occurring naturally as people spend time together and share common experiences or growing out of shared interests, heritage, background, or common behaviours.
Burden of proof
The standard by which a claim must be proven to prevail. The burden of proof is typically borne by one party or another.
Privity of contract
Relationship that exists between two parties or more by virtue of their having entered into a contract.
Good faith
Most ordinary contracts are good faith contracts. Insurance contracts are agreements made in the utmost good faith. This implies a standard of honesty greater than that usually required in most ordinary commercial contracts.
Ab initio
A Latin term meaning “to go back to the beginning.” When a policy is rejected or made void ab initio, premium is refunded entirely, and the contract is treated as though it never existed.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent cause, produces an event and without which the event would not have happened.
