Terms and Definitions Flashcards
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’’ ?
