C81 Part 1: Study 2

Question 1

Indemnity

Answer 1

To provide compensation for loss or expenses incurred

Question 2

Premium

Answer 2

Price of insurancr protection for a specified risk for a specified period of time

Question 3

Contract

Answer 3

An agreement/promise between two or more parties that is intended to be legally enforceable & is constituted by the acceptance by one oarty of an offer made by another party

Question 4

Agent

Answer 4

A person lisenced and authorized/employed to on behalf of another

Question 5

Broker

Answer 5

A lisenced independent person or firm who acts in behalf of an insured in placing buisness with insurancr companies

Question 6

Adjuster

Answer 6

One who investigates insurance claims, makes reccomendations regarding the payments of benefits from insurance policied and negotiates payments and settlements

Question 7

Independent Adjuster

Answer 7

One who adjusts losses on behalf of the insurance companies but is not employed by any one insurance comoany

Question 8

Public Adjuster

Answer 8

An insurance claims adjuster representing an insured on a fee basis in a claims settlement

Question 9

Telematics

Answer 9

An interdisciplinary field w/ telecommunications, vehicular technologies, road transportation, road safety, electrical engineering & computer science

Question 10

Unearned Premium Reserve

Answer 10

A reserve fund of an inshrsncr company/ representing the unearned premiums

Question 11

Property Insurance

Answer 11

First party insurance that indemnifies the owner or user of property for its loss, or the loss of its income producing ability, when the loss or damage is caused by a covered pril, such as a fire or explosion

Question 12

Earned Premium

Answer 12

1) Portions if premium earned/charged for the period of time a policy is effective.
2) An amount calculated by taking the earned premium reserve at the beginning of the period plus the premium written during thr period, less the unearned premium at the end of the period
3) Premium actually exposed to loss

Question 13

Casualty Insurance

Answer 13

Loosely used to descrive an area of insurance not particularly/ directly concerned either life insurance, fire insurance, or automobile insurance. Most frequently refers to liability, burglary and plate glass insursncr but may include fidelity & surety