Term
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Definition
| In property insurance, it states that the insured cannot abandon damaged property to the insurer and then demand to be reimbursed at full value. |
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Term
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Definition
| Liability w/o having to prove negligence. |
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Term
| Accounts Receivable Coverage Form |
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Definition
| Inland Marine form that insures against loss the insured suffers because of the inability to collect from customers when acct. receivable records are destroyed. |
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Term
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Definition
| The cost to replace an item, less appreciation. AKA Replacement Cost Depreciation) |
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Term
| Admitted Aircraft Liability Coverage |
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Definition
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Term
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Definition
| Total policy limits within a specific time frame 9one year). |
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Term
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Definition
| Used in PROPERTY INSURANCE, waives co-insurance and requires insured to carry ins. at 80% of values of the company |
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Term
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Definition
Physical damage to the actual aircraft.
AKA Aviation Insurance that can also be written for hangarkeepers and/or airport operator companies. |
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Term
| Aircraft Liability Insurance |
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Definition
Coverage for:
1. Public liability
2. Passenger liability
3. Property damage
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Term
| Airport and Air Meet Liability |
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Definition
| Protection to AIRPORTS for bodily injury and property damage |
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Term
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Definition
| AKA Open Perils, means it covers any peril. Opposite of Named Perils. |
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Term
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Definition
Property coverages related to fire insurance for:
1. Dwelling insurance
2. Earthquake insurance
3. Sprinkler Leakage
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Term
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Definition
| Inland Marine ins that covers the PROPERTY OWNER for goods being tansported |
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Term
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Definition
| Allows for up to 3 appraisals when insurer and insured disagree. 2 of 3 prevail. |
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Term
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Definition
| Transfer of a policy must be in writing |
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Term
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Definition
| Assurance that the principle will show up to court. |
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Term
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Definition
| One who has temporary custody of property belonging to another. Think dry cleaners. |
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Term
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Definition
| Ins for person who has temporary custody of another's property. Think dry cleaners. Falls under Inland marine Ins. |
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Term
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Definition
| Ocean Marin PERIL of illegal acts to damage a ship or cargo )hijacking, theft, embezzlement, abandonment) |
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Term
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Definition
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Term
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Definition
| Failure of the insured to reveal relevant facts known to the insured in applying for insurance |
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Term
| Contract Bond: Supply Contract Bond |
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Definition
| A supplier will supply goods and materials and installation. |
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Term
| Contract Bonds: Bid Bonds |
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Definition
| Contract bond that if a a contractor receives a bid, he will supply a performance bond |
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Term
| Contract Bonds: Labor and Materials Bond |
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Definition
| Surety bond that will guarantee payment of labor and materials. |
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Term
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Definition
One party (the insured) cannot negotiate the terms, having to take the offer of the other party (the insurer) as made.
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Term
| Contractors Equipment Coverage Form |
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Definition
| Part of Inland Marine and part of a COMMERCIAL PACKAGE POLICY, it covers the contractor'sMOBILE equipment. |
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Term
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Definition
Part of Inland Marine, part of the Commercial Package Policy:
1. Accts Receivable
2. Cameras and musical equipment
3. Commercial Articles
4. Equipment Dealers 5. Film
6. Jewelry 7. Mail Coverage
8. Dr and surgeons equipment 9. Theatrical
10. Valuable papers
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Term
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Definition
| The first date that property damage or bodily injury occurred |
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Term
| Dealers Drive Away Collision |
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Definition
| For garage policies when a dealer is delivering a vehicle greater than 50 miles. |
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Term
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Definition
Paid UP TP 25% of loss amount less deductible
Automatic add'l limit is $10,000
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Term
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Definition
Who
What
When
Where
How Much |
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Term
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Definition
Direct from the peril but can also include unavoidable events after the peril.
Physical damage to tangible peroperty. |
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Term
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Definition
| In CRIME ins, for losses that occured during the policy period but were not discovered until a later date. |
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Term
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Definition
| Endorsement to the Biz Auto Policy that covers NAMED personsfor NON biz use. When a business provides a car to an employee who does not have their own auto ins. |
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Term
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Definition
DP1-Basic-limited perils and ACV loss settlement
DP2-Broad-adds burglary, ice, falling objects, AC and appliance, hot water, plumbing freezing
DP3-Special-everything in 1 and 2 plus "all perils" |
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Term
Dwelling Coverages from the Declarations
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Definition
A-Dwelling
B-Other Structures
C-Personal Preperty
D-Fair Rental Value
E-Add'l Living Expenses |
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Term
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Definition
1. 1-4 family dwellings
2. Rented to others
3. Owned by corps
4. Possible lower values than HO ins.
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Term
| Electronic Data Processing Coverage |
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Definition
| Inland marine ins for hardware and software |
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Term
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Definition
| A document attached to a policy that modifies or changes the original policy |
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Term
Equal Shares Clause
vs. Pro Rata Shares Clause
vs. Excess Share
vs. primarily Share of the Cost |
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Definition
ES: When multiple policies are involved, the loss payment is equally shred by each policy
PR: The policy will pay the proportion which its limits bear to all limits
Excess: The policy will pay after the limits of the other policies are exhausted
Primary: The policy will pay first up to its limit before other policies apply |
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Term
Excess Liability on the Commercial general Liability:
Free Form
Stand Alone
Umbrella |
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Definition
Free Form: Must have another underlying policy and matches it dollar to dollar, term to term.
Stand Alone: Must have another underlying policy but sets different terms
Umbrella: Like a stand-alone but may have additional coverages |
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Term
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Definition
| Part of Boiler Ins for quick and temporary repairs to get back in biz |
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Term
FAJUA
FL Auto Joint Underwriters Assoc |
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Definition
| For those who are uninsurable w/auto |
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Term
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Definition
| In a garage policy, covers losses due to illegal titles |
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Term
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Definition
| Same as PIP Personal Injury protection. Follows the insured, not the vehicle. |
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Term
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Definition
| Guarantees employee honesty |
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Term
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Definition
| Peron or entity responsible for money, property and affairs of someone else |
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Term
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Definition
| Judicial bond for administrators, guardians and trustees |
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Term
| Financial Responsibility Law |
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Definition
| State law that requires drivers to prove the have money for accidents. Car insurance is best way yo prove this. |
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Term
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Definition
| No payments made at all until the loss equals the deductible, then it is paid in full |
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Term
| Garage keeper's Liability |
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Definition
| Like a bailee, it cover's the garage owner who has temp possession of someone else's vehicle |
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Term
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Definition
| Health ins that must be renewed to a certain age, premiums can go up. |
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Term
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Definition
A-Dwelling
B-Other Structures (detached buildings, fences)
C-Personal Property
D-Loss of Use (costs if home unlivable)
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Term
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Definition
HO2-Broad Form-Broad Form
HO3-Special Form
HO4-Contents Broad Form (Renters)
HO5-Comprehensive Form
HO6-Condo Form
HO8-Modified Coverage
HO2,3,5,8 are for owner occupants, 1-4 units
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Term
| Hospital indemnity Insurance |
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Definition
| Flat payment per day for hospital |
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Term
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Definition
| States that the insured will be restored to the condition before the loss occurred, not more or not less. |
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Term
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Definition
| For people in bankruptcy, protects creditors and assets |
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Term
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Definition
| An uncontrolled IM form that covers property in transit and the premises where it is to be installed |
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Term
| Instrumentaltiies of Transportation and Communication |
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Definition
| iM ins that covers bridges and tunnels |
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Term
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Definition
| A voluntary action to remove cargo to prevent further damage. |
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Term
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Definition
| If the insurer broadens coverage, the insured receives those extra benefits without add'l premiums. If The insured narrows coverage, it does not take effect until the next policy period. |
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Term
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Definition
| Used for property transporting over land and sea. |
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Term
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Definition
| An untrue statement by the insured, made in an application but which does not become a part of the policy |
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Term
Moral Hazard
Vs.
Morale Hazard
Vs.
Physical Hazard |
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Definition
Moral: Conscious
Morale: Unconscious
Physical: Physical |
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Term
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Definition
| IM insurance that covers the CARRIER for domestic shipments in its care. |
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Term
| Need for Adequate Insurance |
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Definition
100% Coinsurance Requirement
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Term
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Definition
Failure to exercise that degree of care that the law requires to protect others from reasonable harm.
Failure to act as a prudent person would have acted under similar circumsatnces. |
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Term
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Definition
| Part of the Boiler and Machinery Coverage. Detail objects covered. |
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Term
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Definition
| A CGL form that states that coverage applies to BI and PD that occurred during the policy period, regardless of when the claim is made. |
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Term
Office of Insurance Regulation
AKA Department of Financial Services |
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Definition
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Term
PAP (Personal Auto Policy)
Sections: |
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Definition
A-Liability
B-Med Payments
CUninsured Mororists
D-Coverage for YOUR Auto Damage
E-Duties After an Accident
F-General Provisions
PIP added as an ENDORSEMENT-Follows the person |
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Term
PAP Endorsements
Named Non-Owner
Extended Non-owned
Extended PIP
Add'l PIP (0nly after extended PIP is bought) |
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Definition
NNO: Liability, Medical and UM for named individuals who do NOT own a vehicle. For the operation of autos owned by others.
Extended: Liability and opt Med for a non-owner using a car on a reg basis.
Extended PIP: 80-100% and work loss 60-80%
Add'l PIP: $10 K to 25K, $40K, $90K |
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Term
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Definition
| In Biz Income Coverage, it is the 72 hour "deductible" after the direct damage one must wait before being reimbursed. |
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Term
| Position Schedule Coverage |
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Definition
| For dishonest employees who fill specific positions within a company. |
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Term
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Definition
| An unbroken connection between an occurrence and the damage |
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Term
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Definition
| A fundamental doctrine in property insurance that holds that when there is an unbroken connection between and occurrence and damage, then the resulting damage is a part of the occurrence. |
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Term
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Definition
| Loss or no loss occurs but also no gain. Pure risks are generally insurable. |
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Term
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Definition
| used when exposures are difficult to calculate "before the fact".Instead of paying a flat premium, insured set up a deposit acct, and premiums are debited based on what is periodically reported about the exposure. |
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Term
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Definition
| An organization created by legislature to provide required insurance that is generally unavailable in the voluntary market (think Citizens). |
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Term
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Definition
| A form filed BY the ins company stating that a person HAS a PAP (Personal Auto Policy). For people who were previously in an accident and did not have insurance or was unable to show financial responsibility. |
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Term
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Definition
1-Any Auto
2-Owned Auto Only
3-Owned Priv Passenger Only
4-Owned OTHER THAN PP Only
5-Sublect to No Fault 6-Subject to UM
7-Secifically Described 8-Hired Autos Only
9-Non-Owned 19-Mobile Equip Subject
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Term
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Definition
21-Any auto
22-Owned autos
23-Owned private passenger only
24-Owned, other than pp only
25-Owned, subject to N0 Fault
26-Owned subject to UM (not valid in Florida)
27-Specifically described 28-HIRED Autos Only
29-Non-owned autos used in a garage
30-Autos left for svc, repair, storage, safekeeping 31- Dealers autos
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Term
Scheduled Insurance
AKA Specific Insurance |
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Definition
| Specifically listed items and coverage amounts. |
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Term
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Definition
| Clause that states insurance applies SEParately to each insured. |
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Term
Split Limits
AKA Dual Limits |
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Definition
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Term
Strict Liability
AKA Absolute Liability |
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Definition
| Product liability from a manufacturer to a third party regardless of degree of care exercised by the manufacturer. |
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Term
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Definition
| A transfer TO the insurance company of the insured's right to collect for damages. |
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Term
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Definition
| In Ocean Marine, that staes the insured has taken all necessary steps to save and preserve goods from loss, or to minimize that a loss has occurred. |
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Term
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Definition
| in Liability contracts, this is EXTRA insurance to pay for legal defense, first aid, bonds and accrued interest on judgments. |
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Term
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Definition
| An agreement by the insurer that they will be responsible for a loss as a result that their principle did not keep their promise. |
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Term
| Third-Party Insurance Coverage |
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Definition
| Ins for BI or PD to to others. (Slip and fall). |
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Term
| Trailer Interchange Insurance |
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Definition
| Trucker policy that covers a specific trailer that is in the possession of the trucker and the time of loss AND trucker is liable AND is from a specifically named peril. |
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Term
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Definition
| Non-standardized Commercial Inland Marine coverages. |
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Term
| Unfair Insurance Trade Practices Act |
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Definition
| Prohibiting misrepresentation, denial of claims. |
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Term
Unscheduled Coverage
AKA Blanket Insurance |
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Definition
| A single coverage amount for personal property. |
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Term
| Value Reporting Endorsement |
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Definition
| An endorsement that allow add'l insurance for peak values (more inventory being held during peak season). Must be reported regularly. |
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Term
Vicarious Liability
AKA Contingent Liability |
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Definition
| NOT directly liable, but indirectly liable in some way. |
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Term
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Definition
| Staes that if an insured becomes permanently disabled, premiums are waived but coverage remains in force. |
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Term
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Definition
| A policy condition, either based on information in the insured's application or inserted by the insurer |
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Term
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Definition
| Inland Marine, where there is a partial loss to save the remaining cargo. |
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Term
Free Along Side
Free On Board |
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Definition
IM insurance
Along Side-Seller takes responsibility
On Board-Buyer takes responsibility |
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Term
Cost Insurance and Freight
Cost and Freight |
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Definition
Cost Insurance and Freight-Seller
Cost and Freight-Buyer |
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Term
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Definition
Loss Settlement = Loss X Limit of insurance/Value of Property X Coinsurance %
Loss Settlement = $24000 X $50000/$100000 X 80%
Loss Settlement = $24000 X $50000/$80000
Loss Settlement = $24000 x .625 = $15000
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Term
CGL
Commercial General Lines |
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Definition
Intangible
Claims Made vs Occurrence
ie-Malpractice
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