Study 6: Underwriting the Risk: Automobile - Key Terms Flashcards
Other automobile
A non-owned automobile; that is, not owned by anyone in the household and does not have insurance coverage.
Lessee
One that holds real or personal property under a lease; for example, a tenant of a rented premises.
Risk sharing plan
A self-insurance method of managing or reducing exposure to risk by spreading the burden of loss among several units of an enterprise or business syndicate. Risk retention pools formed with the contributions of participants are often utilized as a way to self-insure risks among multiple entities.
Canadian Loss Experience Automobile Rating (CLEAR)
A method for classifying different models of cars for insurance purposes by using historical claims data, including collision, comprehensive, direct compensation–property damage, and accident benefits coverages.
Facility association
An entity established by the Canadian automobile insurance industry to ensure that automobile insurance is available to all owners and licensed drivers of motor vehicles where such owners or drivers are unable to obtain automobile insurance through the voluntary insurance market.
Lessor
One that conveys property by lease.
Lienholder
One who holds a registered claim (referred to as a “lien”) against a given property as security or collateral against a loan or workmanship performed in relation to that property. The financial commitment associated with a registered lien must be fully discharged and satisfied before the property in question may be liquidated, sold, or transferred to another party.
Non-owned automobile insurance
A policy that protects the insured against third-party claims arising out of some other person using their own vehicle in the business of the insured.
Manufacturer’s suggested retail price (MSRP)
The price for a product as recommended by the manufacturer of that product.
