unit3 Flashcards

1
Q

what are first party losses

A

covered losses to the property.

ex: insured property can be buildings (called real property) or personal property (stuff)

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2
Q

what two things does property insurance protect

A
  1. loss caused by damage from a covered peril

2. insured property

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3
Q

1st, 2nd, 3rd party in casualty insurance

A
  1. me-insured
  2. my insurer
  3. the other guy
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4
Q

casualty insurance pays who

A

the other guy

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5
Q

casualty = ?

A

liability

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6
Q

what does casualty policies protect?

A

businesses when found legally liable for negligent acts or omissions that cause injury or property damage to others

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7
Q

casualty insurance pays which party

A

3rd party losses

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8
Q

what is a needs analysis

A

way to identify exposures and insurance needs to estimate and find funds necessary to pay for those needs

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9
Q

what is a hazard

A

a situation or factor that increases the possibility of a loss

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10
Q

in the insurance business, the insurance company is also known as the?

A

principal

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11
Q

what is consideration

A

exchange of value

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12
Q

a reciprocal company is managed by who?

A

attorney-in-fact

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13
Q

risk retention groups have what type of insurance

A

liability

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14
Q

which department within an insurance company is responsible for helping to cover exposure to loss

A

reinsurance

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15
Q

contract with ambiguous language, and insured sue can win on what bases

A

contract of adhesion. cause solely written by insurance company

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16
Q

who is the principal who is the agent

A

principal-insurer

producer-agent

17
Q

independent and captive agents sell insurance products for whom

A

several companies

18
Q

independent contractors are also known as what and sell insurance for whom

A

captive agents and sell for only one company

19
Q

independent agents do what?

A

represent the insurer (insurance company)

20
Q

brokers or consultants do what?

A

represent the insured (customer)

21
Q

what is a personal contract

A

protects the individual who owns the property. cannot be transferred