Terms Flashcards
The voluntary relinquishment of a known right
Waiver
The involuntary relinquishment. If the agent says it’s covered it’s covered
Estoppel
A written condition in the policy that must be true at the time of the loss
Warranties
Insured or prospect deliberately withholds material information from the insurer; this voids coverage
Concealment
Insured or prospect giving incorrect material information to the insurer; this voids coverage
Material misrepresentation
The principle to restore the insured to the pre-loss economic or financial condition
Indemnity
The maximum amount that can be paid for covered loss
Limit of liability
Proof that someone stands to lose financially if a loss occurs; must exist at the time of the loss in property and casualty insurance
Insurance interest
Attitude or carelessness or indifference to loss
Morale hazard
Declarations
Premium Limits of liability Deductible Lien holder policy Named insured Property description
Conditions
Territory Insureds duties Subrogation rights Pro data liability clause Assignment Insurers duties
Exclusions
Property no covered
Perils not covered
Nothing the insured does, not even dishonestly, can prevent_____ from collecting under the policy
Mortgagee
Blanket
If an apartment complex with multiple building is written with a single amount of insurance, it is said to be written on a blanket form
Liability
Is the legal obligation to pay for damages caused to another
If the insurer does not abide by the terms and spirit of the policy, the court My consider this to be a breach on contract and award monetary damages to the insured.
Involves duties owed to the other parties
Bad faith
Conditional contract
Thee contract may be voided if app policy conditions are not met
Contract of adhesion
This is a contract degree by the insurer in which all parties must agree
Aleatory
This is the contract in which the values exchanged are not equal
Misrepresentation
Does not affect coverage of providing incorrect information
Deductibles
Amount of loss the insured agrees to assume before the policy limits are paid
Subrogation
The rights of the insurer, who hA settled the insureds loss,to recover from an at fault third party
Cancelation clause
Pro rata refund provided if cancelled by the insurer
Pro rata liability clause
This is used when one or more insurance policies provides coverage on the same property
Primary policy
When multiple policies cover the loss
Excess policy
When multiple policies cover the loss, the excess policy is used to pay after the primary coverage has been exhausted
Suing
Must be started within 2 years and one day
The principle that states that an insured should be restored after a loss to approximately the same financial position as before the loss is known as?
Indemnity
An insurance policy is prepared by the insurance company, with little or no input from the insured. This means that an insurance policy is?
An adhesion contract
In liability policies, supplementary payments are
Payable in addition to the policy limit of liability
All of the following are common supplementary payments provides by liability insurance policies EXCEPT
Defense cost subject to 10% of the applicable policy limit
Standard fire policy
Fire Lightening Removal Civil commotion Riot Explosion Hail Windstorm
Standard fire policy
Does not cover vandalism more than 30 consecutive days
Covered building is vacant
60 consecutive days
The blank can not abandon partially damaged property to the insurance company and demand payment for total loss
Insured
Coinsurance formula
Insurance carried/ insurance required *loss
Property damage
Damage caused by the loss of property including loss of use owed by someone other than the insured
Personal injury
Damages caused by libel slander invasion of privacy and other torts
Actual loss
An actual injury or property damage must occur
Proximate cause
Drunk driver runs a sign and injured pedestrian
Liability coverage
Aggregate limit 100/300
100,000 occurrence and 300,000 per policy period
How will claimant be handled if a dwelling is insured to at least 80 percent of its value?
Replacement cost
Which of the following statements about the standard mortgage clause is correct?
Nothing the insured does can prevent the mortgagee from collecting
All of the following accurately describe comparative negligence EXCEPT?
Both parties contribute equally to the loss
Which is a liability loss?
A fire that was caused by the insured negligence burns a neighboring building. The owner sued the insured
Denial coverage
When the claims investigation reveals that the insurer is not a liable party
Total
Cost to repair is greater than the value of the property pre loss value
Valued policy
Pays the face amount of the policy in the Event of a total loss
Replacement cost
Provides a settlement to the insured to replace property with property of like kind and quality
Release
A contractual agreement stating that after the claimant has been paid for a loss, he cannot collect addition damages arising from the loss
Arbitration involves
Involves coverage issues
Subrogation
Which of the following legal principles allows insurance companies to collect from a negligent third party damage
Surety
Pays the losses under a bond contract
Which of the following losses would be paid under the business auto coverage forms comprehensive coverage
A covered auto is stolen and never recovered
Which one of the following covered a carried for liability for loss to cargo while it being transported In a truck
Motor truck cargo policy
Trailer interchange coverage is a part of
The Tucker’s coverage form and motor carrier coverage form
The business owners policy
Provides a prepackaged policy of property and liability coverage for certain types of small businesses
The owner of an auto dealership wants coverage for her liability for damage to vehicles left in the dealership service department
Garage keepers coverage
The insured lefty’s bar wants coverage for liability arising out of selling and serving alcoholic beverages.
A liquor liability coverage form
Under the CGL coverage form liability assumed under contract is
Excluded except for contracts specifically defined as insured
The aggregate limit of the commercial general liability policy is the most the insurer will pay per?
Policy period regardless of the number of claimed filed
Business auto policy
Provides protection for risk exposure arising out of the use of an automobile for commercial or business use
The cause of loss special dorm of the commercial property coverage part insured against
All risk of direct physical loss unless specifically excluded
Business wants property insurance for a new warehouse it is building. Business wants the policy limit of insurance to gradually increase as the value of the building under construction increases
Builders risk reporting form
Under the commercial property coverage part, the cause of loss briar form insured against
The perils in the cause of loss and basic form and additional perils
The primary purpose of the business income coverage form is to reimburse the insurer for
Loss of income resulting from property damage at the insurers property
Which of the following is a coverage extensions that’s is available in the building and personal property coverage form
Property off premises
Truckers cargo form
This insured the liability of the carrier for damage or transported property of others
Commercial package policy CPP
Any business is eligible for it. Combines two or more separate coverages into one insuring contract
Extra expense
Any expenses incurred to minimize the suspension of business and continue operations
What endorsement is used to provide open perils coverage on a specific expensive piece of personal property
Scheduled personal property
Special limits per occurrences
Money $200 Watercraft etc $1500 Theft of jewelry furs $1500 Theft guns $2500 Property $500 Business property $2500
Under Texas personal injury protect (pip) coverage the injured first party to an auto accident
Reimbursed by his own insurance company
