Ch. 3 Property Insurance Basics Flashcards

(29 cards)

1
Q

A fire that burns outside of its intended boundaries or becomes uncontrollable

A

Hostile Fire

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2
Q

Fire that was intentionally set and that stays within its intended boundaries

A

Friendly Fire

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3
Q

Any act of stealing, including burglary and robbery

A

Theft

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4
Q

The taking of property from inside the premises, a locked safe, or a locked vault by a person who forcibly enters or exits the property

A

Burglary

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5
Q

The taking of property from the care and custody of a person who has been threatened with bodily harm or has been harmed

A

Robbery

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6
Q

Sometimes property goes missing and the cause of loss is not known

A

Mysterious Disappearance

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7
Q

A property that contains personal property, but has no occupants

A

Unoccupied

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8
Q

A property that contains no personal property and has no occupants

A

Vacancy

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9
Q

A person or organization that has taken the property of another into their care, custody, or control for servicing, repair, or storage

A

Bailee

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10
Q

The person who retains the ownership of the property that has been taken into a bailee’s care, custody, or control

A

Bailor

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11
Q

Loss from the immediate result of a peril

A

Direct Loss

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12
Q

A consequence of a direct physical loss

A

Indirect Loss

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13
Q

The primary cause of loss is known as…

A

Proximate Cause

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14
Q

When two perils simultaneously cause a loss (in other words, both perils are the proximate cause), the insurer must pay for the loss even if one of the perils is excluded by the policy

A

Concurrent Causation

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15
Q

A quality within a property that causes it to damage or destroy itself

A

Inherent Vice

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16
Q

A type of coverage that only provides insurance for the causes of loss that are listed in the policy

17
Q

Provides insurance for all causes of loss that are not specifically excluded under the policy

18
Q

The policy will pay for the cost to repair or replace the damaged property at the time of loss, minus depreciation

A

Actual Cash Value (ACV)

19
Q

The full cost to repair damaged property or replace damaged property with property of like kind and quality, at current pricing, without a deduction for depreciation

A

Replacement Cost

20
Q

Some properties, like older dwellings or Victorian homes, use outmoded or obsolete materials and construction techniques that would make replacing them in their original condition too cost-prohibitive

A

Functional Replacement Cost

21
Q

The value stated by an insured

22
Q

The value of an item agreed upon by both the insurer and the insured

23
Q

The price a willing buyer would pay for property purchased from a willing seller under fair market conditions

24
Q

The amount for which property can be sold at the end of its useful life is…

A

Salvage Value

25
One limit of liability for multiple types of property at the same location or the same type of property at multiple locations
Blanket Limit
26
One specific limit of liability for one specific type of property
Specific Limit
27
The amount the insured is responsible for before the insurer pays on a loss
Deductible
28
Exists to make sure that a property is insured close to its value
Coinsurance
29
Coinsurance only applies to...
Partial losses