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Arizona Personal Lines Insurance
These are flashcards containing terms used in personal insurance
27
Insurance
Not Applicable
03/27/2017

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Term
EXCLUSIONS
Definition
THE SECTION OF AN INSURANCE POLICY THE DETAILS THE PERILS, PERSONS & PROPERTY NOT INSURED.
Term
D - DECLARATIONS

I - INSURING AGREEMENT

C - CONDITIONS

E - EXCLUSIONS

D - DEFINITIONS
Definition
D.I.C.E.D.
Term
VICARIOUS LIABILITY
Definition
THIS TRANSFERS THE LIABILITY FOR ONE PERSON TO ANOTHER THAT PROBABLY HAS A GREATER CHANCE OF PAYING
Example: Parent of a child that breaks a window.
Term
PUNITAVE DAMAGE
Definition
A FORM OF PUNISHMENT FOR OUTRAGEOUS BEHAVIOR, GROSS NEGLIGENCE OR WILLFULL INTENT
Term
JUDGEMENT RATING
Definition
USED WHEN CREDIBLE STATISTICS ARE LACKING OR SO VARIED THAT IT IS IMPOSSIBLE TO CREAT A CLASS
Term
ASSIGNMENT
Definition
THE TRANSFER OF A LEGAL RIGHT OR INTEREST TO AN INSURANCE POLICY. ITS ONLY VALID WITH WRITEN CONSENT OF THE INSURER
Term
EXPERIENCE RATING
Definition
THE INSURED'S OWN PAST LOSS EXPERIENCE ENTERS INTO THE DETERMINATION OF THE FINAL PREMIUM
Term
CONTRACT OF ADHESION
Definition
A CONTRACT THAT IS OFFERED ON A TAKE IT OR LEAVE IT BASIS.
Term
LOSS RATIO
Definition
A FORMULA USED BY INSURANCE COMPANIES TO COMPARE INCOME TO LOSS
Term
STRICT LIABILITY
Definition
THIS COMMONLY APPLIES IN PRODUCT CASES

Example: A company's defective product.
Term
NAMED INSURED
Definition
THE INDIVIDUAL(S) WHO'S NAME APPEARS ON THE DECLARATION PAGE
Term
ACTUAL CASH VALUE
(A. C. V.)
Definition
REPLACEMENT COST LESS DEPRECIATION
Term
Consideration
Offer
Acceptance
Legal Purpose
Definition
C. O. A. L.
Term
THE TWO CLASSES OF COMPENSATORY DAMAGES
Definition
SPECIAL DAMAGES ARE SPECIFIC OUT OF POCKET EXPENSES LIKE MEDICAL, LOSS OF WAGES OR MISC. EXPENSES.

GENERAL DAMAGES COMPENSATE THE INSURED PERSON FOR PAIN & SUFFERING, MENTAL ANGUISH, DISFIGUREMENT AND OTHER SIMILAR TYPES OF LOSSES
Term
MERIT RATING
Definition
A RATING NOT BASED ON THE ACTUAL LOSS RECORD , BUT ON THE OTHER FACTORS THAT THAT INCLUDE THE PROBABILITY THAT LOSS WILL OCCUR.

Example: Disappearing Deductible or Good Driver Rewards
Term
EXCESS LIABILITY
Definition
THIS MIRRORS THE UNDERLYING POLICY AND INCREASES THE LIMIT OF LIABILITY BASED ON THE INSURED'S CHOICES.
Term
ABANDONMENT
Definition
THE ABDICATION (SURRENDER) OF INSURED PROPERTY INTO THE HANDS OF ANOTHER, OR THE POSSESSION OF NO ONE IN PARTICULAR
Term
ACCIDENT
Definition
A SUDDEN UNPLANED AND UNEXPECTED EVENT THAT IS OUT OF THE INSURED'S CONTROL RESULTING IN UNEXPECTED INJURY OR DAMAGE.

Example: A car crash.
Term
ADDITIONAL COVERAGE
Definition
A PROVISION IN INSURANCE POLICY THAT PROVIDES ADDITIONAL AMOUNTS OF COVERAGE FOR LOSS AT NO ADDITIONAL PREMIUM
Term
RETROSPECTIVE RATING
Definition
A SELF-RATING PLAN UNDER WHICH THE ACTUAL LOSSES DURING THE POLICY PERIOD DETERMINE THE FINAL PREMIUM
Term
UNDERWRITING
Definition
THE PROCESS OF REVIEWING APPLICATIONS FOR INSURANCE
Term
PROXIMATE CAUSE
Definition
AN ACT OR EVENT THAT IS THE IMMEDIATE OR ACTUAL CAUSE OF LOSS
Term
SCHEDULE RATING
Definition
RATE ARE DEVELOPED BY APPLYING A SCHEDULE OF CHARGES AND CREDITS TO SOME BASE RATE.
Term
CONDITIONS
Definition
THE SECTION OF AN INSURANCE POLICT THAT INDICATES THE GENERAL RULES OR PROCEDURES THAT THE INSURER AND INSURED AGREED UPON.
Term
INSURANCE AGREEMENT (CLAUSE)
Definition
THE SECTION OF THE POLICY CONTAINING THE INSURER'S PROMISE TO PAY, PARTIES TO THE CONTRACT, EFFECTIVE & RENEWAL DATES, DESCRIPTION OF COVERAGE PROVIDED AND PERILS
Term
DEFINITIONS
Definition
THE PART OF AN INSURANCE POLICY THAT CLARIFIES THE TERMS USED IN THE POLICY
Term
DECLARATION
Definition
ALWAYS THE FIRST PAGE OF THE INSURANCE POLICY. IT CONTAINS THE BASIC UNDERWRITING INFORMATION LIKE THE NAMED INSURED, ADDRESS, COVERAGE, PREMIUMS AND DESCRIPTION OF INSURED LOCATIONS.
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