Chapter 9 Vocab (Notes) Flashcards Preview

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Flashcards in Chapter 9 Vocab (Notes) Deck (19):
1

Actual Cash Value (ACV)

The actual cash value of the property at the time of loss

2

Fair Market Value

price a willing buyer would pay a willing seller in a free market

3

Broad Evidence Rule

means the determination of ACV should include all relevant factors an expert would use topen determine the value of property

4

Valued Policy

pays the face amount of insurance if a total loss occurs

5

Valued Policy Law

requires payment of the face amount of insurance to the insured if a total loss to real property occurs form a peril specified in the law

6

Replacement Cost Insurance

means there is no deduction for depreciation in determining the amount paid for a loss

7

Representations

statements made by the applicant for insurance

8

Material

false representation that is relied on by the insurer; if the insurer knew the true facts, the policy would not have been issued or would have been issued on different terms

9

Concealment

intentional failure of the applicant for insurance to reveal a material fact to the insurer

10

Warranty

statement that becomes part of the insurance contract and is guaranteed by the maker to be true in all respects

11

Aleatory

values exchanged are not equal

12

Unilateral

only the insurer makes a legally enforceable promise

13

Conditional

policyowner must comply with all policy provisions to collect for a covered loss

14

Personal

Property insurance policy can't be validly assigned to another party without insurers consent

15

Contract of Adhesion

the insured must accept the entire contract with all its terms and conditions

16

Agent

someone who has the authority to act on behalf of a principle

17

Nonwaiver cluase

insurers can place limitations on the power of agents

18

Waiver

defined as the voluntary relinquishment of a known legal right

19

Estoppel

occurs when a representation of fact made by one person to another person to such an extent that it would be inequitable to allow the first person to deny the truth of the representation