Terms and Definitions Flashcards
(25 cards)
What is actual cash value? How does it differ from replacement cost?
What is an appraisal?
What is meant by the term ‘‘cancellation’’?
What is a contract?
When does a constructive total loss exist?
What is meant by the term ‘‘coverage’’ ?
What is a deductible ?
What is the difference between ‘‘direct loss’’ and ‘‘indirect loss’’ ?
What is the purpose of an endorsement?
What does an endorsement do?
Who requires errors and omissions insurance?
What is the role and responsibilities of a fiduciary?
Explain the principle of indemnity.
Who has insurable interest?
Define ‘‘insurance’’;.
What is the difference between ‘‘an insurer’’ and ‘‘an insured’’ ?
Fro where does legal liability arise?
What separates a ‘‘material fact’’ from an ‘‘ordinary fact’’ ?
How does ‘‘misrepresentation’’ occur?
Explain the term ‘‘negligence’’ in your own words.
An event that causes a loss covered by the policy is called a ________. Give an example.
To whom is a premium paid? Why ?
Define ‘‘risk’’.
What is ‘‘salvage’’ ?
