Chapter 2 Flashcards
(37 cards)
Must exist at time of loss 3 elements -financial -blood (family) -business
Insurable interest
Risk selection and evaluation process
Establishes terms, rates, and conditions
Underwriting
Amount charged for coverage
Rates
Failure to use reasonable and prudent care 4 elements; -legal duty -standard of care -unbroken chain of events -actual loss or damage
Negligence
Compromise of bodily injury or property damage
Damages
Out of pocket expenses for medical, miscellaneous expenses, or loss of wages
Special damages
Compensate for pain and suffering, mental anguish, or disfigurement
General damages
Punishment for extreme behavior, gross negligence or willful intent
Punitive damage
Often applied to product Liability cases
Strict liability
Liability imposed on one party as a result of another
Vicarious liability
Basic underwriting information (name, address, coverage amount)
Declarations
Clarifies terms of the policy
Policy components
Established insured perils, parties to the contract, effective and renewal dates
Insuring agreement/clause
Additional amount of coverage for specific laws expenses with no additional premium
Additional and supplementary coverage
Detail perils not insured against and persons not insured
Exclusions
Time period in which the policy provides coverage
Policy period
Location where coverage is provided
Policy territory
Termination of in force policy prior to expiration date
Cancellation
Termination of policy at its expiration date
Non-renewal
Dollar amount that must be made prior to the policy providing coverage
Deductibles
Maximum amount of money and insurance will pay for a particular loss
Limits of liability
Set amount for all claims arising from a single accident/occurrence
Per occurrence
Maximum amount payable for bodily injury of a single person
Per person
Maximum limit of coverage available during a policy year
Aggregate