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Risk Management
Topic 10
10
Insurance
Undergraduate 4
04/04/2012

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Cards

Term
Purpose of Subrogation?
Definition
-Holds 3rd party at fault
-Control Moral Hazard
-Insurance premium rate for driver hit stays low.
Term
Suborgation Issues
Definition
>Insured can't stop insurer right to suborgate
>Insurer can't surbogate on their own insured
>Insured must be fully indemnified before suborgation takes place
Term
II. Principle of Good Faith
Definition
-Insured are held to high standard of honesty
-Violation leads to void coverage or denied claim
Term
What is representation?
Definition
Statement made by applicant
Term
What is misrepresentation?
Definition
False statement made by applicant
>Leads to denied claim.. etc..
Term
What is innocent misrepresentation?
Definition
-Lack of knowledge as a defense.. no defense by insured.
-Applicant speaks at own risk
Term
What is concealment?
Definition
-Failed to provide info to provider
-Material facts not revealed
-Volunteer material facts
Term
What are Warranties?
Definition
-Condition agreed to by insured to get insurance
Term
Warranties con't

What is condition of coverage?
Definition
Insured grantees coverage is under insurance contract
Term
Breach of warranty
Definition
Leads to void contract, even if unintentional
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