unit3 Flashcards
what are first party losses
covered losses to the property.
ex: insured property can be buildings (called real property) or personal property (stuff)
what two things does property insurance protect
- loss caused by damage from a covered peril
2. insured property
1st, 2nd, 3rd party in casualty insurance
- me-insured
- my insurer
- the other guy
casualty insurance pays who
the other guy
casualty = ?
liability
what does casualty policies protect?
businesses when found legally liable for negligent acts or omissions that cause injury or property damage to others
casualty insurance pays which party
3rd party losses
what is a needs analysis
way to identify exposures and insurance needs to estimate and find funds necessary to pay for those needs
what is a hazard
a situation or factor that increases the possibility of a loss
in the insurance business, the insurance company is also known as the?
principal
what is consideration
exchange of value
a reciprocal company is managed by who?
attorney-in-fact
risk retention groups have what type of insurance
liability
which department within an insurance company is responsible for helping to cover exposure to loss
reinsurance
contract with ambiguous language, and insured sue can win on what bases
contract of adhesion. cause solely written by insurance company