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Lines of Authority & Property/Casualty > Terminology > Flashcards

Terminology Flashcards

1
Q

Coverage for sickness, bodily injury or accidental death & may include disability income

A

Sickness, Accident & Health

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2
Q

Coverage for direct & consequential loss/damage to property of every kind

A

Property

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3
Q

Coverage against legal liability

A

Casualty

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4
Q

Coverage under variable life &/or variable annuities

A

Variable

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5
Q

Non-commercial property and/or casualty

A

Personal lines

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6
Q

Debt insurance

A

Credit

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7
Q

Any other type of insurance as determined by the Commissioner

A

Limited line

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8
Q

Property insurance policy that covers specific kind/unit of property for specific amount of insurance

A

Specific insurance

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9
Q

Single property insurance policy that provides coverage for multiple classes of property @ 1 location (or provides coverage for 1+ classes of property @ multiple locations)

A

Blanket insurance

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10
Q

Current replacement cost, minus depreciation

A

Actual Cash Value

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11
Q

Cost to replace damaged property w/ like kind & quality @ today’s replacement cost (w/out any deduction for depreciation)

A

Replacement cost

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12
Q

Allows insurer (@ time of a loss) to adjust loss on basis of functional replacement cost, the cost to replace damaged property w/ less expensive & more modern construction/equipment

A

Functional Replacement Cost

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13
Q

Based upon amt a willing buy would pay to willing seller for property prior to loss

A

Market value

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14
Q

Property policy w/ previous agreed upon by insurer & insured as to amt of insurance that represents fair valuation for property @ time insurance is written & eliminates any coinsurance or other contribution clauses in policy

A

Agreed value

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15
Q

An amt of insurance scheduled in property policy which isn’t subject to any coinsurance requirements in event of a covered loss

A

Stated amt

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16
Q

Policy that pays 1st in event of covered loss (or in layered program of insurance, policy that covers 1st layer of loss)

A

Primary policy

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17
Q

Policy that only pays loss after primary policy or amt has paid its limit

A

Excess policy

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18
Q

Provision which provides for sharing of loss w/ other insurance companies

A

Pro Rata

19
Q

Doctrine that bars/reduces recovery to injured person if intervening cause interrupted chain of events & sets in motion new chain of events

A

Intervening Clause

20
Q

Time limit; injured party may bring legal action against another party for certain types of injuries

A

Statue of Limitations

21
Q

Formula used to relate income from loss expenses

A

Loss ratio (incurred losses + loss adjusting expense/earned premium)

22
Q

Unit of cost that’s applied against rating basis from which policy premium is developed

A

Rate

23
Q

Rates published by insurance company or rating organization for a unit of insurance

A

Manual rates

24
Q

Rates developed by underwriter based upon skills & experience, rather than using actuarial analysis

A

Judgement rates

25
Q

Rates established by judgment & don’t have loss experience statistics as foundation for their development

A

‘A’ rates

26
Q

Rating method that provides insurer w/ that portion of rate that doesn’t include provisions of expenses (other than adjusting expense) or profit; based on historical aggregate loss & loss adjustment expenses projected thru development

A

Loss costs

27
Q

In property, any interest an insured may have that is subject of insurance, so that damage/destruction would cause financial loss

A

Insurable interest

28
Q

How may insurable interest in property be created?

A

1) Ownership of a property

2) Custody/control (leaseholder) & mortgagees for remaining balance due on property sold to them

29
Q

Factor in determining premium & amt of insurance required for property policy

A

Loss valuation

30
Q

Insured has several options as to how a loss to insured property will be valued at time of loss…what are they?

A 
Actual Cash Value
Replacement cost
Functional Replacement Cost
Market value
Agreed value
Stated amt
31
Q

What are the 7 limits of liability (insurer’s liability for payment)

A 
Per Occurrence
Per Person
Aggregate Limit
Split
Combined single
Policy limits
Coinsurance
32
Q

Accident is sudden, unplanned, unexpected; not under control of insured & results in injury/damage

A

Per Occurrence

33
Q

Amt available for payment of bodily injury to single person in accident, regardless of policy limit stated in policy for bodily injury claims

A

Per Person

34
Q

Max limit of coverage available under liability policy during policy year

A

Aggregate Limit

35
Q

Separately stated limits of liability for diff coverages; may be stated on per person, per occurrence, per policy pd basis, or can be split b/w bodily injury & property damage

A

Split

36
Q

Single $ limit of liability applying to total of damages for bodily injury & property damage, combined, resulting from 1 accident or occurrence

A

Combined single

37
Q

Max amt insured may collect, or for which insured is protected under terms of policy

A

Policy limits

38
Q

In consideration of reduced rate, insured agrees to maintain certain minimum amt of self insurance on insured property

A

Coinsurance

39
Q

What are the 4 elements of a negligent act?

A

Legal Duty
Standard of Care
Proximate cause
Actual Loss or damage

40
Q

What are the 5 defenses against negligence?

A 
Assumption of Risk
Comparative Negligence
Contributory negligence
Intervening Clause
Statute of Limitations
41
Q

3rd class of damage; form of punishment for extreme outrageous behavior, gross negligence or willful intent

A

Punitive damage

42
Q

What are the 3 coverage forms for a Dwelling Policy?

A 
Basic (no minimum amt of insurance required; losses paid on actual cash value basis)
Broad (losses covered on replacement cost bais as long as insured maintains min of 80% coverage of dwelling replacement cost)
Condominium Association (Coverage form for common building property & Unit-Owners Coverage form for owner's personal property)
43
Q

Physical damage coverage for auto includes….

A

Both collision & other than collision coverage

Lines of Authority & Property/Casualty (2 decks)

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