Chapter 1 Flashcards
Scheduled Coverage
Refers to policy on which coverage is provided
only on that property which is specifically
identified or scheduled
Property of Every Description
Refers to policy used to insure building, stock and
equipment under a single limit of insurance
All Property (Blanket)
A policy under which all property owned by the
insured is covered or “blanketed” by a single limit
of insurance
Tenants Improvements
Building improvements, alterations and
betterments made at the expense of or purchased
by the insured to a building occupied by the
insured and which are not otherwise insured,
providing the insured is not the actual owner of
the building
Actual Cash Value
The replacement or repair costs less
depreciation
Replacement Value
Represents the costs to repair, replace or rebuild
the lost or damaged property without deduction
for depreciation
Reinsurance
Involves an insurer ceding part of the risk it has
assumed to one or more other insurers
Subscription
An insurance policy under which a group of
insurers has agreed to participate in providing
policy insurance coverages
Condition
Something imposed by the insurer which requires
the insured to do or not to do something
Subrogation
Refers to the right of the insurer to “step into
the shoes” of the party whom it has compensated
and sue any party whom the compensated party
could have sued
Warranty
A promise that certain facts are as they are
represented to be and that they will remain so
Material Fact
Facts which if communicated to the insurer
would induce it either to decline the insurance
altogether, or not accept it unless a higher
premium is paid
Fraudulent
To act willfully, and with the specific intent to
deceive or cheat
Void Contract
One which has no “legal or binding force” and
as such, “is incapable of being enforced by law
