Study 9-10: Key Terms

Question 1

Policy period

Answer 1

Duration of policy, most often one year in property and casualty insurance. Also called “policy term.”

Question 2

Advance premiums

Answer 2

(1) The premium charged at the inception of the policy is the advance, provisional, or deposit premium. (2) The premium paid at the inception of a policy but subject to adjustment during the policy period or at the end of the term.

Question 3

Employers liability insurance

Answer 3

Coverage for the legal liability imposed on an employer to pay damages to an employee injured by the employer’s negligence. This is not workers’ compensation insurance, where special acts of legislation set out specifically the relationship between the employer and employees in certain circumstances and the formula by which awards in each case are computed.

Question 4

Voluntary compensation insurance

Answer 4

Protection that an employer may purchase to cover employees who are not covered by workers’ compensation insurance.

Question 5

Cyber risk

Answer 5

Any risk of financial loss, disruption of business, or damage to an organization’s reputation due to a failure of its information technology systems.

Question 6

Sharing economy

Answer 6

A collaborative system where participants share access to services and products rather than owning them individually; generally facilitated through an online platform.

Question 7

Ridesharing

Answer 7

An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee.

Question 8

Carsharing

Answer 8

An arrangement set up by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services.

Question 9

Transportation network

Answer 9

An online-enabled application or website used by persons to prearrange the transportation of passengers for compensation by a transportation network driver. Also called ridesharing services.

Question 10

Accommodation sharing

Answer 10

An arrangement set up by means of a website or mobile app in which a property primarily occupied by its owner is rented for a short time period to a third party.