Chapter 10 Vocab (Text) Flashcards Preview

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Flashcards in Chapter 10 Vocab (Text) Deck (25):
1

Declarations

statements that provide information about the particular property or activity to be insured

2

Insuring Agreement

summarizes the major promises of the insurer

3

Named-Perils Policy

only those perils specifially named in the policy are covered

4

Open-Perils Policy

all losses are covered except those losses specifically excluded

5

Special Coverage Policy

An Open-Perils Policy

6

Exclusions

basic part of any insurance contract; exceptions to an insurance contract

7

Conditions

provisions in the policy that qualify or place limitations on the insurer's promise to perform

8

Named Insured

person or party named on the declarations page of the policy

9

First Named Insured

first name that appears on the declarations page of the policy as an insured

10

Other Insureds

persons or parties who are not insured under the named insured's policy even though they are not specifically named in the policy

11

Additional Insured

a person or party who is added to the named insured's policy by an endorsement

12

Endorsements and Riders

In property and casualty insurance, means a written provision that adds to, deletes from, or modifies the provisions in the original contract. In life and health insurance, a rider is a provision that amends or changes the original policy

13

Deductible

a provision by which a specified amount is subtracted from the total loss payment that otherwise would be payable

14

Straight Deductible

the insured must pay a certain number of dollars of loss before the insurer is required to make a payment

15

Aggregate Deductible

all losses that occur during a specified time period, usually a policy year, are accumulated to satisfy the deductible amount

16

Calendar Year Deductible

Type of aggregate deductible that is found in individual and group medical expense policies

17

Elimination/Waiting Period

stated period fo time at teh beginning of a loss ruing which no insurance benefits are paid

18

Coinsurance Clause

in a property contract, encourages the insured to insure the property to a stated percentage of its insurable value. if it is not met at the time a loss, the insured must share in the loss as a coinsurer

19

Equity in Rating

fundamental purpose of coinsurance

20

Coinsurance Clause

a provision that requires the insured to pay a specified percentage of covered medical bills in excess of the deductible

21

Other-insurance provisions

typically present in property and casualty insurance and health insurance contracts; apply when more than one contract covers the same loss; purpose is to prevent profiting from insurance and violation of the principle of indemnity

22

Pro Rata Liability

generic term for a provision that applies when two ore more policies of the same type cover the same insurable interest in the property

23

Contribution by Equal Shares

another type of other-insurance provision that often appears in liability insurance contracts

24

Primary and Excess Insurance

Another type of other-insurance provision. The primary insurer pays first and the excess insurance pays only after the policy limits under the primary policy are exhausted

25

Coordination of Benefits

provision is designed to prevent overinsurance and the duplication of benefits if one person is covered under more than one group health insurance plan