Term
|
Definition
| spreading risk to make losses more manageable |
|
|
Term
| 2 parties involved with property insurance contract |
|
Definition
1. the insured
2. the insurance company |
|
|
Term
| 3 parties involved in liability insurance contract |
|
Definition
1. you
2. insurance company
3. the injured party |
|
|
Term
| money paid in exchange for insurance |
|
Definition
|
|
Term
|
Definition
| oral or written agreement that provides temp evidence of insurance until a policy can be issued. |
|
|
Term
|
Definition
| the possibility or uncertainty of loss |
|
|
Term
|
Definition
| offers the chance of loss as well as the opportunity for gain |
|
|
Term
|
Definition
| only offers the possibility of loss, no opportunity for gain or profit |
|
|
Term
| characteristic of insurable risks |
|
Definition
1.be a predictable loss
2. be a chance occurance
3. not a catastrophic
4. be measurable and definitive
5. be affordable |
|
|
Term
|
Definition
| as a condition or situation that presents the possibility of a loss |
|
|
Term
|
Definition
| the amount of financial damage to your property caused by perils for which you are insured |
|
|
Term
|
Definition
| physical loss that occurs to your property by a covered peril such as a fire damaging your home in an auto collision involving your covered auto |
|
|
Term
|
Definition
| indirect or consequential loss occurs as the result of a direct loss |
|
|
Term
|
Definition
| tells us that it is possible to accurately predict what will happen to a large group with similar risks |
|
|
Term
|
Definition
|
|
Term
|
Definition
| only perils listed in the policy are covered |
|
|
Term
|
Definition
| condition or the source that increases the chance and/or severity of a peril |
|
|
Term
|
Definition
| results from a decision to do something wrong or to be less conscious of your actions since you know your insurance will pay for the loss |
|
|
Term
|
Definition
| created when your careless and/or reckless actions or attitudes cause a loss to occur |
|
|
Term
|
Definition
| physical sources that cause or increase the chances of a loss |
|
|
Term
|
Definition
| which is a sudden and unexpected event |
|
|
Term
|
Definition
| both the absence of people and personal property from the insured premises |
|
|
Term
|
Definition
| provides coverage for different classes of property under one policy |
|
|
Term
|
Definition
| when you insure a specific item or specific kind of property |
|
|
Term
|
Definition
| must be evidence of forced entry or exit |
|
|
Term
|
Definition
| policy is legal binding on the insurance company only |
|
|
Term
|
Definition
| the amt paid by either you or the insurance company is unequal or one sided |
|
|
Term
|
Definition
| the insured must meet certain conditions before the insurer is required to pay any benefit |
|
|
Term
|
Definition
| statement that is guaranteed to be true |
|
|
Term
|
Definition
| applicant fails to reveal a fact that materially affects the contract |
|
|
Term
|
Definition
| intentional deception or misrepresentation for the purpose of gaining an advantage over another person |
|
|
Term
|
Definition
|
|
Term
|
Definition
| voluntarily giving up a known right |
|
|
Term
|
Definition
| loss of legal defense- act of preventing an insurer from making a claim or a denial that contradicts what the insurer had previously stated as a fact |
|
|
Term
|
Definition
| controls the relationship between an agent and the insurance company- authority for an agent to conduct business is defined in an agency contract between the producer and the insurance company |
|
|
Term
|
Definition
| person who acts for another person or entity |
|
|
Term
|
Definition
the other person or entity
insurer is the principal
producer is the agent |
|
|
Term
|
Definition
| explicit authority the principal gives to an agent typically granted by means of a written contractual agreement between the agent and the insurer |
|
|
Term
|
Definition
| authority that is not expressly granted in writing, but that the agent is assumed to have being in the position of an agent |
|
|
Term
|
Definition
| the perception by a third party that the producer has been given the authority by the insurer to transact business on behalf of the insurer |
|
|
Term
| 3 primary coverages under a property policy |
|
Definition
| building, contents and loss of use |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| names of lists all the perils covered in the policy such as wind, hail, fire or lightening |
|
|
Term
|
Definition
| all perils are covered unless excluded |
|
|
Term
|
Definition
1.who is insured
2. what property is covered and where it is located
3. how much the property is insured for
4. premium amount |
|
|
Term
|
Definition
| defines the policy period, coverage territory |
|
|
Term
|
Definition
| part of the policy that defines the meaning of certain terms used in the policy |
|
|
Term
| insuring agreement (clause) |
|
Definition
| contains insurers promise to pay, explanation of what property is covered and the perils insured against |
|
|
Term
|
Definition
| lists any additional coverages that are a part of the policy |
|
|
Term
|
Definition
| general duties or producers that the insurer and insured agree to follow under the terms of the policy |
|
|
Term
| exclusions and limitations |
|
Definition
| eliminates coverage for certain perils |
|
|
Term
|
Definition
| modifying or changing the original policy |
|
|
Term
|
Definition
| insurable interest, policy limits, actual cash value, cost to repair, replacement cost |
|
|
Term
|
Definition
| todays replacement cost minus the depreciation |
|
|
