Term
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Definition
| The uncertainty or chance of loss? |
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Term
| What are the methods of Managing Risk |
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Definition
Avoidance
Retention
Transfer |
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Term
| By spreading the risk, and costs, of insurance across large numbers of people or business entities, insurance carriers achieve what objective? |
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Definition
| Reduce the financial cost or impact of premiums and loss at any one individual. |
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Term
| insurance is considered which method of managing risk? |
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Definition
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Term
| Identify the insurance marketing system that serves as a source of last resort for firms and individuals who have been rejected by voluntary market insurers. |
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Definition
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Term
| Examples of governmental insurers include |
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Definition
NFIP(National Flood Insurance Program)
State Ran FAIR plans
Medicare/Medicaid |
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Term
| A "direct writing" insurance company sells its policies through____? |
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Definition
| Agents employed by the company |
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Term
| This type of producer represents insured's and /or prospective insured's and does not represent and insurance company: |
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Definition
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Term
| Authority granted to an agent that is granted in oral or written form by an insurer is considered which type of authority? |
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Definition
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Term
| Insurance contracts are often referred to as "conditional contracts". What does this mean? |
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Definition
| This means that a policyholder has certain duties and responsibilities that must be met if a loss occurs. |
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Term
| How will Any ambiguities in a "contract of adhesion" will be interpreted? |
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Definition
| This will be interpreted in favor of the party who did not control its terms.(the policyholder) |
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Term
| The voluntary relinquishment or "giving up" of a known right is known as |
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Definition
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Term
| the principle of insurance that states that an insured should be restored back to the same financial position enjoyed before the loss, without gain, is known as what? |
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Definition
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Term
| In which of the following would you have an insurable interest in? |
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Definition
| Your auto that your sister borrowed while hers was being repaired |
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Term
| An insurance binder provides a consumer with what? |
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Definition
| Provides an insurer with temporary insurance until a policy is provided |
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Term
| What are the four fundamental parts of an insurance policy? |
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Definition
Declarations page
Insuring Agreement
Conditions |
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Term
| The part of an insurance policy that describes what the insurer has agreed to do, or its obligations to the policyholder in the event of a loss is known as what? |
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Definition
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Term
| The part of an insurance policy that describes what is not covered is known as what? |
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Definition
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Term
| which on one of the following is one of the duties of an insured following a loss? |
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Definition
| Giving prompt notice of loss to the insurer. |
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Term
| What would be provided as a supplemental payment under an insurance policy? |
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Definition
Post-judgement interest on an verdict
Premium for an appeal bond
Defense attorney fees |
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Term
| When two or more overages or policies apply to the same loss, the one that pays first, up to its limits of liability or the amount of the loss is considered to be? |
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Definition
| Its considered to be Primary coverage/policy |
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Term
| Identify the condition created by two or more policies covering the same loss exposure that do not have identical inception and expiration: |
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Definition
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Term
| Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property at the time of the loss. This loss valuation is known as? |
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Definition
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Term
| The standard mortgage clause protects the interests of a financial institution who has an interest in property held or pledged as collateral. This clause does not establish? |
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Definition
| Requires the mortgage holders to consent, prior to issuing any property damage claim settlement payment directly to policyholder |
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Term
| When the cost to return or repair property to its pre-loss condition would be equal to or greater than the actual cash value of the item, its known as what? |
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Definition
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Term
| Describe the difference between a peril and a hazard. |
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Definition
| A peril is a cause of loss, like fire. A hazard is a condition that increases the likelihood of such a loss, like messy store-room or garage containing oily rags, etc. |
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Term
| When a loss caused by an insured peril creates a series of events that flow to a subsequent loss and results in the payment of covered damages to an insured is known as? |
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Definition
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