DEFINE BURGLARY

Burglary- the forced entry into another's premises with felonious intent.

Burglary insurance covers property taken of destroyed by by breaking and entering into the insured's premises. The break in must be with felonious intent and visible signs of forced entry should be present in order for indemnification.

Indemnity- a provision in an insurance policy that, in the event of loss, and insured is permitted to collect only to the extent of their financial loss and is not allowed to gain financially because of the exsistence of an insurance contract.

Insurance can RESTORE but not REWARD.

Insurable interest- the financial interest in property to be insured.

There are 3 requirements to prove insurable interest:

1. Legitimate financial interest in preserving the property to be insured.

2. There must be no potential gain.

3. There must be a potential for loss.

The Actual Cash Value method of valuation reinforces the principle of indemnity because it recognizes the reduction of value of property as it ages and becomes subject to wear and tear.

Current replacement cost - depreciation = ACV

Absolute liability is imposed on defendants engaged in hazardous activities, such as harboring wild animals, using explosives, etc.

The injured party does not need to prove negligence.

Negligence- the failure to use the care that a reasonable, prudent person would have taken under the same or similar circumstances.

Accident- a sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither intended nor expected.

Occurrence- is a broader definition of loss that accident because it includes those losses cause by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected.

What does representation mean and how does it differ from misrepresentation?

Representations- statements that are believed to be true to the best of one's knowledge, but they are not gauranteed to be true.

For insurance purposes, representations are the answers the insured gives in response to the questions on the insurance application.

Misrepresentations- when the insured intentionally answers any of the questions untruthfully, and could void the contract.

To be considered fraud, and grounds for void, the info must be material to the risk and must have been made in attempt to defraud the insurance co. The question that has to be answered is whether the insurance co. would have rejected the applicant or modified the policy terms had it known the truth. If the answer is "yes", there is possible fraud and the policy may be voided.

If the insured intentionally answers any questions on the application for the insurance untruthfully, and the info. is material to the insurance, what type of statements are these?

MISREPRESENTATIONS

Compare: Bodily injury liability and Personal injury liability.

Bodily Injury Liability- legal liability arising from physical trauma to a person or death arising from the negligent or purposeful act and omissions by an insured.

Personal Injury Liability- Incluedes injury to the character of another person caused by libel, slander, false arrest, invasion of privacy and other acts. The injury is less physical than those covered by bodily injury liability.

Certificate of insurance- written evidence showing that an insurance policy or policies have been issued. The certificate indicates both the amounts and types of insurance provided, but the certificate does not obligate the insurer to the person to which the certificate was issued.

(ex: Declarations Page)