Study 7 Flashcards
a request by an insured for insurance
application
an applicant is obligated to disclose _______ and uphold ____________
Material Facts, Utmost good faith
A factual statement about risk
Representation
Non Disclosure =
Concealment
Staying Silent when you know you should say something
Non Disclosure
Not asking so not telling
Non Disclosure
The person or party designated in the policy as the insured.
Named Insured
Effective date, Expiry Date and Term are all listed on the
Policy Term
What is being insured, where it is located and it’s use are located on the
Subject of Insurance
Someone other then the named insured who the proceeds will be paid
Loss Payee
This is a special class of payee
Mortgagee
A clause in an insurance policy that stipulates the rights and obligations of the insurer and the mortgagee
Mortgage Clause
A record of frequency and type of loss
Loss history
This must be reported in the loss history even if there was no claim
Loss
Prior insurance is one of the eight questions asked about on an insurance application. True/False
True
what two reasons would an underwriter be interested in Prior insurance
if there was a gap in insurance, and if previous insurance was declined, or refused renewal
Summary from a broker including previous communication or relationship between them and the client, a time where the broker can advocate for a client or advise of known risks
Brokers Summary
The law requires all ____________ be signed
Auto insurance
The process of establishing rates for each class of insurance
Ratemaking
Ratemaking is done by __________
Actuary
A classification of risks is established based on
Types of objects insured and Hazards of exposure
Portion of the total premium that is needed to pay the expected losses. It does not take into account money needed for company expenses
Pure Premium
an additional charge included in an insurance rate to reflect a hazard not contemplated in the basic rate for the class
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Underwriters review risks and decide one of three possible options
Accept the risk, Accept the risk subject to certain conditions or Reject the risk
Danger of loss is
Exposure
