Study 9 Key Terms Flashcards
Define claim
The assertion of a demand made by one party against another for indemnity or restitution for personal injury or property damage arising out of negligence or a contractual right.
Define loss
A word often used in place of the word “claim.” It refers to the amount an insurer must pay because one of the possibilities of loss insured against under a policy has happened.
Define direct loss (or damage)
Damage to property by direct action of a peril insured against, as distinguished from contingent or indirect damage.
Define indirect loss
Loss resulting from direct damage to property; for example, income and expense loss resulting from the inability to use damaged property.
Define forfeiture
The loss of a right as a result of the non-performance of some obligation or condition.
Define prescription
(1) In law, a limitation of time within which legal action can be taken by a claimant.
(2) In insurance, the period of time in which a claim may be brought by the policyholder.
Define statute of limitations
A law that determines the time period within which parties can take a specific legal action to enforce their rights. This time period usually begins to run when the injury or damage occurs or was discovered.
Define attest
To swear or declare, either verbally or in writing, that a particular document or testimony about an event is a true and accurate representation of the facts. The witnessing of signatures. Where a document is signed, a witness who has seen the document signed before her may “attest” that the signatures on the document are genuine.
Define sworn statement
Oral or written assertion of fact(s) stated under oath. An affidavit, for example, is a sworn statement.
Define claims examiner
An employee of an insurer who handles and is responsible for the adjudication of claims.
Define adjuster
One who investigates insurance claims, makes recommendations regarding the payment of benefits from insurance policies, and negotiates payments and settlements.
