Vocab 4

Question 1

Rate of occurrence of accidents; e.g. number of accidents per million man-hours worked.

Answer 1

Accident Frequency

Question 2

An even that is caused by the forces of nature, without human intervention, and that could not have been prevented by reasonable care, e.g. flood, lightning, earthquake and hurricane.

Answer 2

Act of God

Question 3

A person trained in mathematics whose job is to apply the theory of probability tot he business of insurance, and to advise in situations involving questions of probability.

Answer 3

Actuary

Question 4

Increased expense of providing a home due to damage to the property insured, e.g. extra cost of living in a hotel.

Answer 4

Additional Living Expense

Question 5

Usually one who represents the insurer in settling claim with insureds or with third party claimants. Sometimes a representative of the insured.

Answer 5

Adjuster

Question 6

(1) The process of determining the amount payable or service to be rendered by one or more insurers to an insured or other claimant under an insurance contract, and the rights and obligations incident thereto. (2) The accomplishment of (1).

Answer 6

Adjustment

Question 7

Insurance that covers loss caused by all perils except those specifically excluded in the contract.

Answer 7

“All-Risk” Insurance

Question 8

The system of selling insurance through agents compensated by commissions, the agents having the sole right to solicit insureds on expiration of their policies.

Answer 8

American Agency System

Question 9

Determination of the value of property, or of the extent of damage, usually by impartial experts.

Answer 9

Appraisal

Question 10

A dangerous place of instrumentality attractive to children, the owner of which has the legal duty of taking unusual care to guard them from it.

Answer 10

Attractive Nuisance

Question 11

One to whom goods are delivered to be held in trust in accordance with a contract, express or implied.

Answer 11

Bailee

Question 12

Amounts to be paid by the insurer under an insurance contract.

Answer 12

Benefits

Question 13

A temporary insurance contract pending execution of the policy contract. Except for specific difference, the terms of the binder are by implication those of the contract which is intended to replace it.

Answer 13

Binder

Question 14

An arrangement under which the insured shares in losses in the proportion that his insurance is less than a specific percentage of value of the property insured.

Answer 14

Coinsurance

Question 15

A loss not directly caused by a peril insured against but arising indirectly.

Answer 15

Consequential Loss

Question 16

The extent of the insurance afforded under an insurance contract. Often used to mean insurance or insurance contract.

Answer 16

Coverage

Question 17

A clause in an insurance contract providing that the insurer will pay only that amount of any loss that is in excess of a specified amount.

Answer 17

Deductible Clause

Question 18

An amendment in writing (including print or stamping), added to and made a part of the insurance contract.

Answer 18

Endorsement

Question 19

A provision in an insurance contract stating situations in which, perils against which, or persons or things upon which, insurance is not afforded under the contract.

Answer 19

Exclusion

Question 20

(1) The state of being exposed to the chance of loss. (2) The extent of exposure to loss as measured in payroll, gate receipts, area, etc. (3) The chance of fire being communicated to an insured risk from its surroundings.

Answer 20

Exposure

Question 21

A clause in an automobile-liability-insurance contract subjecting the contract to the requirements of any financial responsibility law and requiring the insured to reimburse the insurer for disbursements it would not be required to make except for this clause.

Answer 21

Financial-Responsibility Clause

Question 22

An agent that produces heat and a flow or glow.

Answer 22

Fire

Question 23

A fire which is not outside the place where it was intended to be.

Answer 23

Fire Friendly

Question 24

A fre outside the place where it was intended to be.

Answer 24

Fire Hostile

Question 25

An insurance contract that covers property in any location within a specified territory.

Answer 25

Floater policy

Question 26

A period following the premium due date during which payment of the premium may be made without penalty or suspension of coverage.

Answer 26

Grace Period

Question 27

A clause in a contract proving that the insurer may not, after a specified time from the inception of the contract, contest the validity of the contract.

Answer 27

Incontestable Clause

Question 28

To make good a loss.

Answer 28

Indemnify

Question 29

Replacement, repair or payment of value of a loss.

Answer 29

Indemnity

Question 30

(1) A pooling of hazards in order to indemnify those who experience losses. (2) The contractual relationship between the insured and the insurer who agrees, in return for a premium, to indemnify the insured for losses due to specified causes; in some cases, includes specified services.

Answer 30

Insurance

Question 31

(1) Injury or damage sustained by an insured. (2) The amount for which the insurer becomes liable on occurrence of the event insured against.

Answer 31

Loss

Question 32

A clause in an insurance contract making the proceeds payable to named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee.

Answer 32

Mortgagee Clause

Question 33

The cause of possible loss.

Answer 33

Peril

Question 34

Particular location or portion thereof as defined by the policy insurance.

Answer 34

Premises

Question 35

The amount charged for insurance.

Answer 35

Premium

Question 36

A formal written statement of a claim for payment of a loss, with supporting data.

Answer 36

Proof of Loss

Question 37

(1) A promise of payment of indemnity or of a specified sum or sums by an insurer. (2) Guarding persons or things against loss.

Answer 37

Protection

Question 38

(1) The subject of insurance, whether a person or thing. (2) Chance of loss.

Answer 38

Risk

Question 39

The unlawful taking of property by violence, force, or intimidation.

Answer 39

Robbery

Question 40

(1) Property taken over by the insurer on payment of loss. (2) In maritime law, the award to persons who voluntarily render services to maritime property in peril, with resulting benefit thereto.

Answer 40

Salvage

Question 41

An insurance policy that covers, under separate insuring agreements, several enumerated causes of loss.

Answer 41

Schedule Policy

Question 42

A contract form in general use by insurers, adopted by a group of insurers, approved by a state insurance department or prescribed by statute.

Answer 42

Standard Form

Question 43

The corporation or individual guaranteeing performance or faithfulness under a bond.

Answer 43

Surety

Question 44

(1) A person whose duty is to select risks for insurance and to determine in what amounts and on what terms they will be accepted by an insurer. (2) An insurer.

Answer 44

Underwriter

Question 45

At the inception of disability, a period in respect of which benefits are not payable.

Answer 45

Waiting Period

Question 46

A statute imposing liability on employers to pay benefits and furnish care to employees injured, and to pay benefits to dependents of employees killed, in the course of and because of their employment. The employer is generally relieved of liability for common-law damages.

Answer 46

Workmen's Compensation Law

Question 47

A person legally entitled to authorize the cremation of human remains.

Answer 47

Authorizing Agent(s)

Question 48

Limbs or other portions of the anatomy that are removed from a person or human remains for medical purposes during treatment, surgery, biopsy, autopsy or medical research; or human bodies or any portion of bodies that have been donated to science for medical research purposes.

Answer 48

Body Parts

Question 49

This form of insurance is fading fast from the funeral scene. It is life insurance payable in merchandise and service or as a credit toward merchandise and service, with a lesser benefit often payable in cash when the person dies and final disposition occurs outside the service area of the funeral establishment that services that burial association.

Answer 49

Burial Insurance

Question 50

A rigid container that is designed for the encasement of human remains; is usually constructed of wood, metal or like material and ornamented and lined with fabric, and which may or may not be combustible.

Answer 50

Casket

Question 51

A transfer of more than 50 percent of the stock or assets of a crematory authority.

Answer 51

Change of Ownership

Question 52

Any container in which cremated remains can be placed and closed in a manner so as to prevent leakage or spillage of remains or the entrance of foreign material.

Answer 52

Closed Container

Question 53

The enclosed space within which the cremation process takes place. Cremation chambers covered by these procedures shall be used exclusively for the cremation of human remains.

Answer 53

Cremation Chamber

Question 54

The container in which the human remains are transported to the crematory and placed in the cremation chamber for a cremation. A cremation container should meet substantially all of the following standards:(1) Be composed of readily combustible materials suitable for cremation;(2) Be able to be closed in order to provide a complete covering for the human remains;(3) Be resistant to leakage or spillage;(4) Be rigid enough for handling with ease; and(5) Be able to provide protection for the health, safety and personal integrity of crematory personnel.

Answer 54

Cremation Container

Question 55

A rigid outer container that, subject to a cemetery’s rules and regulations, is composed of concrete, steel, fiberglass or some similar material in which an urn is placed prior to being interred in the ground, and which is designed to withstand prolonged exposure to the elements and to support the earth above the urn.

Answer 55

Cremation Interment Container (Urn Vault)

Question 56

The legal entity, or the authorized representative of the legal entity, that is licensed by the state to operate a crematory and perform cremation.

Answer 56

Crematory Authority

Question 57

The state agency that administers this law.

Answer 57

Department

Question 58

These synonymous terms indicate that the funeral which has been prearranged and prefunded will be provided whether or not the funds entrusted plus any accrual on them are sufficient to pay for the funeral selected regardless of its price at the time death occurs.

Answer 58

Fixed Price (Guaranteed price)

Question 59

A person known by the title of “funeral director,” “funeral director and embalmer” or other similar words or titles, defined by state law and licensed by the state to practice funeral directing or funeral directing and embalming.

Answer 59

Funeral Director

Question 60

A building or separate portion of a building having a specific street address and location and devoted to activities relating to the shelter, care, custody and preparation of a deceased human body and which may contain facilities for funeral, memorial and visitation services.

Answer 60

Funeral Establishment

Question 61

Life insurance payable in cash to any designated beneficiary for use in any manner chosen, but not necessarily intended to be applied toward funeral expenses. Most such insurance is provided by carriers not owned by a funeral home although many funeral homes endorse a specific carrier or plan. When the proceeds of the policy are used to pay for the funeral, the funeral director receives an assignment of the future death benefit. In a few jurisdictions, the funeral director may be named the beneficiary. The funeral arranged can be either guaranteed or non-guaranteed.

Answer 61

Funeral Insurance

Question 62

An area within or adjacent to the crematory facility designated for the retention of human remains prior to cremation that shall:(1) Comply with any applicable public-health law;(2) Preserve the dignity of the human remains;(3) Recognize the integrity, health and safety of the crematory authority personnel operating the crematory; and(4) Be secure from access by anyone other than authorized personnel.

Answer 62

Holding Facility

Question 63

The body of a deceased person, or part of a body or limb that has been removed from a living person, including the body, part of a body or limb in any stage of decomposition.

Answer 63

Human Remains

Question 64

You can put property into this while you are still alive. When you die, the property automatically goes to your heirs without going through probate court which can be very time consuming and expensive. You can revoke a living trust at any time if you change your mind.

Answer 64

Living Trust

Question 65

A legally binding document that dictates one's wish not to be kept alive by artificial life support systems in the event of a terminal illness. By limiting treatment, a living will sets limits on hospital bills which can drain and even wipe out your assets so that there is little left in your estate for your heirs.

Answer 65

Living Will

Question 66

Contracts which are portable provide that when death occurs and the funeral is conducted by a firm other than the one with which there is a contract, the contract and funds will be transferred to the other establishment to be fulfilled.

Answer 66

Portability of a Contract

Question 67

The reduction of identifiable bone fragments after the completion of the cremation process to unidentifiable bone fragments by manual means.

Answer 67

Processing

Question 68

An individual or firm providing the services, facilities, and merchandise for the funeral which has been prearranged and/or prefunded.

Answer 68

Provider

Question 69

The reduction of identifiable bone fragments after the completion of the cremation and processing to granulated particles by manual or mechanical means.

Answer 69

Pulverization

Question 70

A book signed by those attending a visitation/service.

Answer 70

Register Book (Memorial Book)

Question 71

A designated area for the scattering of cremated remains usually in a cemetery and located on dedicated cemetery property where cremated remains, which have been removed from their container, can be mixed with, or placed on top of, the soil or ground cover or buried in an underground receptacle on a commingled basis.

Answer 71

Scattering Area

Question 72

A person or firm who contracts to have available funeral services and/or merchandise. A seller may or may not be a provider.

Answer 72

Seller

Question 73

A receptacle for cremated remains usually made of cardboard, plastic or similar material designed to hold the cremated remains until an urn or other permanent container is acquired.

Answer 73

Temporary Container

Question 74

Agreement entered into by two parties for the benefit of another.

Answer 74

Third Party Beneficiary Contracts

Question 75

Contracts entered into by two parties for the benefit of another.

Answer 75

Third Party Contracts

Question 76

A Federal agency that administers benefits provided by law for veterans of the armed forces.

Answer 76

Veterans Administration

Question 77

A legal document that dictates how your property is to be distributed after death. It may also designate guardians for your children. Your will must pass through probate court before your estate can be distributed to your heirs.

Answer 77

Will