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Chapter 2 Flashcards

(37 cards)

1
Q
Must exist at time of loss
3 elements
-financial 
-blood (family)
-business
A

Insurable interest

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2
Q

Risk selection and evaluation process

Establishes terms, rates, and conditions

A

Underwriting

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3
Q

Amount charged for coverage

A

Rates

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4
Q
Failure to use reasonable and prudent care
4 elements; 
-legal duty
-standard of care
-unbroken chain of events
-actual loss or damage
A

Negligence

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5
Q

Compromise of bodily injury or property damage

A

Damages

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6
Q

Out of pocket expenses for medical, miscellaneous expenses, or loss of wages

A

Special damages

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7
Q

Compensate for pain and suffering, mental anguish, or disfigurement

A

General damages

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8
Q

Punishment for extreme behavior, gross negligence or willful intent

A

Punitive damage

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9
Q

Often applied to product Liability cases

A

Strict liability

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10
Q

Liability imposed on one party as a result of another

A

Vicarious liability

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11
Q

Basic underwriting information (name, address, coverage amount)

A

Declarations

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12
Q

Clarifies terms of the policy

A

Policy components

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13
Q

Established insured perils, parties to the contract, effective and renewal dates

A

Insuring agreement/clause

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14
Q

Additional amount of coverage for specific laws expenses with no additional premium

A

Additional and supplementary coverage

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15
Q

Detail perils not insured against and persons not insured

A

Exclusions

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16
Q

Time period in which the policy provides coverage

A

Policy period

17
Q

Location where coverage is provided

A

Policy territory

18
Q

Termination of in force policy prior to expiration date

19
Q

Termination of policy at its expiration date

20
Q

Dollar amount that must be made prior to the policy providing coverage

21
Q

Maximum amount of money and insurance will pay for a particular loss

A

Limits of liability

22
Q

Set amount for all claims arising from a single accident/occurrence

A

Per occurrence

23
Q

Maximum amount payable for bodily injury of a single person

24
Q

Maximum limit of coverage available during a policy year

25
Separately stated limits of liability for different coverages
Split
26
Single dollar limit which applies to combine damages for bodily injury or property damage as a result of one accident/recurrence
Combined single
27
Brought her legislated or regulated coverage is extended to current policies at no additional premium
Liberalization
28
Insurers right to seek damages from third-party, after reimbursing insured
Subrogation
29
Insurers requirement to defend insured and lawsuit arising out of covered liability
Duty to defend
30
Temporary agreement offering temporary coverage prior to issuing of policy
Binders
31
Temporary federal program | Intended to share risk of loss from terrorist attacks with insurers
Terrorism risk insurance act
32
Reduction in value, particularly due to wear and tear
Deprecation
33
Used as a measure of the rating units or the premium base of a risk
Exposure units
34
The degree to which items are similar
Homogeneity
35
A legal term meaning that a product is suitable for its intended purpose and that it fits in ordinary buyers expectations
Implied warranty
36
The day I watch the insurance policy goes into affect
Inception
37
Deprecation in the value of the property due to becoming outdated
Obsolescence