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Definition
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Term
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Definition
| what is the risk of driving a car |
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Definition
| things that increase the risk |
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Definition
| Result from material or structural features of a risk; oily rag left by furnace. |
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Definition
| circumstances of habits that increase probability of a loss from an insured peril; such as an insured previously convicted of arson. >dishonesty |
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Term
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Definition
| an increase in the hazards presented by a risk arising from the insured's indifference to loss because of the existence of insurance. >Failure to repair faulty wiring, believing it is less expensive to pay insurance premiums than electrician |
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Definition
| to restore you to where you were financially prior to the loss. Not to profit from loss. |
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Term
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Definition
| based upon economics or an equity position. It is required at the lime of loss in order to recover on a policy. |
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Definition
| replacement cost (at time of loss) minus depreciation (based on the age of structure), if any, equals this = |
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Definition
| failure to act as a reasonable person would in the same set of circumstances |
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Definition
covers bodily injury BI and property damage PD to others caused by the negligent acts of the insured.
-fire policies dont have liability coverage
-all homeowners policies do |
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Term
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Definition
| something occurring over a period of time, but still covered by the policy |
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Term
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Definition
a temporary insurance contract that may be verbal or written
-deemed to include all usual terms of the policy for which it was given, plus endorsements. |
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Term
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Definition
| guarantee of truth, sprinklers/fire alarms/ burglar alarms |
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Definition
insurance company ill require that the applicant tell the truth to the best of their knowledge on the application
-lies told are misrepresentations |
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Term
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Definition
| the omission of a material fact. May have the effect of voiding the policy. |
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Term
Deposit premium/audit
(Worker's compensation and CGL) |
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Definition
| the premium you pay is a deposit; you will be subject to audit annually and premium adjustments |
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Term
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Definition
| states who is the insured, who is the insurer, what the policy coverage is for, including limits. Doesn't have the premium listed on it. Does have the policy effective time and date |
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Term
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Definition
the larger the number of separate risks of a like nature combined into one group, the more predictable the number of future losses of that group within a given time period.
-It is essential that a large number of exposure units be combine.
-exposure unit in pnc is the car, home, or other item to be insured.
-insurance predict for groups not individuals |
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Term
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Definition
no chance of gain, only chance of loss.
-Can only insure this |
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Term
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Definition
| you may gain, you may lose; investing in the stock market is this, can't be insured |
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Term
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Definition
| something added to a policy to modify its terms |
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Term
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Definition
| most jurisdictions permit courts to award these to parties injured due to the negligent acts of others. These may be either specific, general or punitive |
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Term
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Definition
consist of medical expenses and lost wages.
-costs a claimant incurs, out of pocket expenses
-exact and verifiable figures. |
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Term
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Definition
| do not directly relate to an expense or an amount of lost income. By paying these, the insurer is attemplting to compensate the injured party for his or her mental and physical distress -pain and suffering, disfigurement, and loss of consortium. |
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Term
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Definition
| awarded when the injury was caused by the gross negligence of the defendant. Often they are triple the amount of general damages awarded and are sometimes not covered by insurance. |
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Term
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Definition
willful and wanton negligence.
For ex: a defendant knew their product was faulty, and continued to sell it. |
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Term
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Definition
| a tort, a civil wrong, it is grounds for a lawsuit, the failure to act as a reasonable person would in the same set of circumstance |
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