Vocab- Insurance

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