Chapter 1 Flashcards

Question

Property Insurance

Answer 1

Insures against the loss of physical property or the loss of it's income-producing abilities

Answer 2

Insures against the loss and/or damage of property and resulting liabilities

Answer 3

the reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril. Insurance provides a means to transfer loss.

Answer 4

a provision in an insurance policy that states that in the event of loss, an insured or a beneficiary is permitted to collect only to the extent of the financial loss and is not allowed to gain financially because of the existence of an insurance contract.

Answer 5

cannot recover more than their loss.

Answer 6

the insurer's legal right to seek damages from third parties, after it has reimbursed the insured for the loss.

Answer 7

a sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended

Answer 8

a broader definition of loss than "accident" because it includes those losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected.

Answer 9

Direct and Indirect

Answer 10

Proximate cause of loss (Building catches fire, put out with water, now there is water damage. This is paid under peril of fire because the fire was the proximate cause.)

Answer 11

direct loss.

Answer 12

specific cause of loss.

Answer 13

a term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against any risk of loss that is not specifically excluded. (replaced the use of the term "all risks"

Answer 14

the failure to use the care that a reasonable, prudent person would have under the same or similar circumstances.

Answer 15

the injured party must be completely free of fault in order to collect. Any negligence on the part of the injured party that contributed to the injury, however slight, normally will defeat the claim.

Answer 16

The last chance rule. It may be used as a defense by a negligent party who can show the injured party had the last chance to avoid the loss but did not.

Answer 17

Comparative Negligence

Answer 18

the plaintiff (the party who brings the lawsuit) to revoker the damages as long as he or she is not 100% negligent.

Answer 19

"Equal to or greater than" rule, the injured party may only recover damages if his or her fault is less than that of the defendant

Answer 20

the crime of forced entry into or out of the premises of another by a person or persons with felonious intent.

Answer 21

the taking of property from the care and custody of a person by one who has caused or threatened to cause that person bodily harm, or committed an obviously unlawful act witnessed by that person.

Answer 22

any act of stealing and compasses both burglary and robbery.

Answer 23

the disappearance of property without knowledge as to the location, time or how the property was lost. Losses by mysterious disappearance are excluded from most insurance policies.

Answer 24

an insured structure in which no people have been living or working, and no property has been stored for the period of time required as stated in the policy (usually 60 days)

Answer 25

an insured structure in which no people have been living or working within the required period of time, but some property is stored.

Answer 26

a single property insurance policy that provides coverage for multiple classes of property at one location, or for one or more classes of property at multiple locations.

Answer 27

a property insurance policy that covers a specific kind of unit or property for a specific amount of insurance.

Answer 28

Bodily injury and property damage.

Answer 29

the extent of the loss is usually simple to determine

Answer 30

it is more difficult to determine the loss monetarily.

Answer 31

Special and general damages.

Answer 32

specific out-of-pocket expenses for medical, miscellaneous expenses, and loss of wages.

Answer 33

compensate the injured person for pain and suffering, mental anguish, disfigurement, and other similar types of losses.

Answer 34

Punitive damage.

Answer 35

a form of punishment for extreme outrageous behavior, gross negligence, or willful intent.

Answer 36

reinforces the principle of indemnity because it recognizes the reduction of value of property as it ages and becomes subject to wear and tear of obsolescence.

Answer 37

Current Replacement Cost - Depreciation = ACV

Answer 38

the cost to replace damaged property with link kind and quality at today's price, without any deduction for depreciation.

Answer 39

a seldom-used method of valuing a loss based upon the amount a willing buyer would pay to a willing seller for the property prior to the loss.

Answer 40

an amount of insurance scheduled in a property policy that is not subject to an coinsurance requirements in the event of a covered loss.

Answer 41

the estimated value an asset will realize upon its sale at the end of its useful life.

Answer 42

Imposed upon a person or company engaged in hazardous or potentially dangerous business who, by negligence or by an omission, causes harm or injury to another person or property.

Answer 43

commonly applied in product liability cases. A person or business that manufactures or sells a product makes an implied warranty that the product is safe.

Answer 44

the master was liable for the acts of their servants.

Answer 45

the insurer's liability for payment as stated in an insurance policy. Limits of liability is the maximum amount of money the insurance company will pay for a particular loss, or for loss during a period of time.

Answer 46

a sub-limit in a liability policy that puts a ceiling on the payment for all claims that arise from a single accident/occurrence

Answer 47

the maximum amount available for payment of bodily injury to a single person in an accident, regardless of the policy limit stated in the policy for bodily injury claims.

Answer 48

the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims made or the number of accidents that occur.

Answer 49

Separately stated limits of liability for different coverages. the limits may be stated on a per person, per occurrence, or per policy period basis, or can be split between bodily injury and property damage.

Answer 50

a single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence.

Chapter 1 Flashcards

(74 cards)