Terms and Concepts

Question 1

Peril

Answer 1

cause of loss

Question 2

Named Peril v Open Peril

Answer 2

named - specifically listed
open - all perils unless excluded

Question 3

Specific v Blanket Coverage

Answer 3

spec - one property at 1 location
blank - multiple pieces of property

Question 4

ACV

Answer 4

actual csv
cost of replacing damaged prop. with comparable new minus depreciation

Question 5

Mortgagee

Answer 5

person provided a loan with which to buy property

Question 6

Loss Payee

Answer 6

person listed on ins doc. to which check will be issued

Question 7

Breach of Warranty

Answer 7

violation of agreement between seller and buyer, condition, content, or quality of product

Question 8

Concealment

Answer 8

withholding relative info about risk from ins. comp

Question 9

Personal Injury

Answer 9

damage through libel, slander, false arrest, defamation of character, leading to financial judgement of person

Question 10

Accident

Answer 10

unexpected, unforseen

Question 11

Occurrence

Answer 11

event that results in an insured loss but not necessarily from an accident

Question 12

Deposit Premium (commercial)

Answer 12

amount required by an ins. comp for ins. policies subject to premium adjustment

Question 13

Audits (commercial)

Answer 13

used to determine the actual liability exposure to the insurer

Question 14

Aggregate Limit

Answer 14

maximum dollar amount of coverage available in the policy

Question 15

certificate of ins

Answer 15

document providing evidence of the existence of a particular policy

Question 16

binder

Answer 16

temp. ins policy issued until permanent policy issued (60 days)

Question 17

endorsement

Answer 17

addition or subtraction to ins policy

Question 18

Liberalization clause

Answer 18

if the state expands a policy, all similar policies and endorsements will automatically have expanded coverage

Question 19

Monoline Policy

Answer 19

cover one risk

Question 20

Package poiicy

Answer 20

combines 2 or more forms of risks

Question 21

Direct loss v Indirect loss

Answer 21

Direct loss v Indirect loss

Question 22

Release

Answer 22

once claim is paid
cl or in, agree to give up any future claims against the insurer for the occurrence (double jeopardy)