Study 8

Question 1

A word often used in place of the word “Claim”. It refers to the amount an insurer must pay because one the possibilities of loss insured against under a policy happened.

Answer 1

Loss

Question 2

Damage to property by direct action of a peril insured against.

Answer 2

Direct Loss (or damage)

Question 3

Loss resulting from direct damage to property

Answer 3

Indirect Loss

Question 4

Without this there would be no need for insurance

Answer 4

Claims

Question 5

A process in which an insurer makes good on it’s promise to pay money to, or on behalf of an insured if a certain event takes place

Answer 5

Claim

Question 6

Insurance until you make a claim is

Answer 6

Peace of Mind

Question 7

The loss of a right as a result of the non performance of some obligation or condition

Answer 7

Forfeiture

Question 8

In law a limitation in time which legal action can be taken by a claimant. In insurance, the period of time in which a claim may be brought by the policyholder

Answer 8

Prescription

Question 9

This refers to the remaining value of the property after it is severely damaged by fire or other perils

Answer 9

Salvage

Question 10

This clause is common to commercial risk

Answer 10

Co-Insurance

Question 11

Oral or written assertation of facts stated under oath

Answer 11

Sworn Statement

Question 12

This only comes into play when you are underinsured

Answer 12

Co-Insurance

Question 13

To have experienced a disadvantage or detriment

Answer 13

Prejudice

Question 14

These people deal with claim settlements

Answer 14

Adjusters

Question 15

This type of Adjuster is a salaried employee of an insurer who investigate, negotiates and settles claims for their employer

Answer 15

Staff Adjuster

Question 16

These types of Adjusters operate as independent business people, they accept assignments from as many insurers as choose to use their services

Answer 16

Independent Adjuster

Question 17

This Adjuster usually deals with small, straightforward losses that do not require the adjuster to see the damaged article or to visit the loss location

Answer 17

Telephone Adjuster

Question 18

These Adjusters are hired by insured when having disputes with their own insurer and feel that an experienced adjuster who is not answerable to the insurer would be able to help negotiate a more favorable settlement.

Answer 18

Public Adjuster

Question 19

An unusual, fortuitous, unexpected, or unforeseen even or occurrence

Answer 19

Accident

Question 20

The happening or the continual exposure to an unfavorable situation, neither intended or excepted

Answer 20

Occurrence

Question 21

A provision in some insurance and reinsured contracts covering only claims made during the term of the contract

Answer 21

Claims-Made Basis