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FRED LOYA > CLASS GAME > Flashcards

CLASS GAME Flashcards

To better understand Chapters 1-6 (73 cards)

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1
Q

Materiality

A

questions to find facts about both the insurer & the insured before a contract is made

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2
Q

Speculative Risk

A

chance of loss, but also chance of an insured gaining
FREE MONEY
NOT FAVORABLE TO COVER

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3
Q

Pure Risk

A

chance of a loss, but no chance of a gain

More favorable to cover

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4
Q

Absolute Liability

A

having a risky job
when you’re an absolute liability because of your job
Steve Irving

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5
Q

4 Elements of a Contract

A

C onsideration
L egal purpose
O ffer & acceptance
C ompetent parties

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6
Q

Concealment

A

hiding facts
hiding working for Uber/Lyft from insurer
CONCEALER

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7
Q

Recission

A

Revoking a contract

cancelling an existing policy because of failure of payment or fraud

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8
Q

Unintentional Tort

A

> accidentally injuring someone else without meaning to do so

>negligence

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9
Q

Intentional Tort

A

> purposely injuring someone else
knowingly doing something to hurt another
gross negligence

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10
Q

expressed warranty

A

> written coverage

>specifically related contracts

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11
Q

implied warranty

A

> assumed coverage

>relates to contracts

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12
Q

law of large number

A

> statistics
asking a large number of people for information, vs. asking a small number of people for information
the more input (info) the better the outcome
fboys sending a lot of dm’s for a reply

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13
Q

strict liability

A

> manufacturer provides a fix because of a faulty product after too many complaints
deals with products
manufacturer takes care of the problem
airbag recalls

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14
Q

independent rating organizations

A

> ISO Insurance Services Office
AAIS American Association of Insurance Services
regulate insurance industry

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15
Q

misrepresentation

A

a lie

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16
Q

insurable interest

A

Me as a client having something I want to protect

>mi raptor/house

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17
Q

legal hazard

A

loss resulting from legal actions

>going to court & then losing $

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18
Q

Error & Omission Insurance

A

protects the insurance company from an agent’s negligence

>agent writes the wrong VIN number & the payout is for a non-owned vehicle

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19
Q

3 elements of negligence

A

D uty
I njury
B reach

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20
Q

slander

A

> spoken gossip that injures a person/company’s reputation/livelihood
amber heard talking smack

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21
Q

deductible

A

what you need to pay first before the insurance company pays their part

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22
Q

vicarious liability

A

assuming responsibility for another person’s actions

>parents paying for damages child did

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23
Q

ideally insurable risk

A

> a risk a company wants to cover because there’s a low chance of it happening
something (person/thing) that I as a company want to insure because the chance of a loss is low
*hurricane insurance in California

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24
Q

Estoppel

A

> legal action taken after a waiver
once you have waived a right/etc, you can’t collect benefits from what you have denied, & it must be enforced by law
saying no to getting insurance for a TV, TV breaks & you can’t get it fixed because you said no to the insurance

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25
Agent
>represents the insurance company | >captive/exclusive
26
Broker
>represents the client | >works with several companies
27
adverse selection
>choosing to cover a high risk driver | *covering someone with a bad driving record
28
how do companies protect themselves from adverse selection?
>charging high premiums *high risk=high rate >not offering coverage
29
self-funded insurance
when an individual chooses to pay for damages themselves instead of going through the insurer
30
admitted
>insurer has meet state requirements & is licensed to sell in that state >state license
31
non-admitted
>insurer has not met state requirements & cannot sell in that state >must go through a surplus lines broker
32
libel
>letter/written gossip that injures a person/company's reputation/livelihood >johnny depp vs magazines
33
assumption of risk
>doing dangerous things for fun | >skydiving/roller coasters
34
insolvency
>when the insurer doesn't have the funds to pay out a claim | >insurer is bankrupt
35
waiver
>the voluntary act of relinquishing a legal right, claim, or privilege >signing a waiver for the slingshot, where you can't sue if you get hurt
36
gross negligence
>purposely putting yourself & others at risk >drunk driving with friends in the same car *directly puts friends at risk
37
open peril
>covers anything that's not excluded | >"i can cover all damages, except those caused by theft/fire"
38
named peril
>covers anything that's listed, nothing else | >"i can only cover damages caused by flooding" that's it. i can't cover any other damages
39
5 ways to manage risk
``` S hare T ransfer A void R educe R etention ```
40
4 types of hazards
L egal M oral M orale P hysical
41
4 types of hazards
L egal M oral M orale P hysical
42
utmost good faith
>exchanging trust >exchanging insured's representations for insurer's coverage >trust
43
indemnity
=payout >insurer is to pay for damages >payout to fix/total loss >company pays
44
comparative negligence
>% of payment depending on who is more at fault | >in comparison to how at fault everyone was
45
contributory negligence
>when parties involved are all at fault, no one gets paid | >when i contributed, i won't be paid
46
special/surplus lines brokers
>middle man
47
reinsurance
>multiple insurance companies come together to cover the loss >Twin Towers covered by multiple insurances to pay for damages (commercial/auto/medical/etc)
48
expressed authority
written/said duties as an agent | *selling insurance
49
implied authority
assumed duties as an agent | *cleaning the restroom
50
warranty
=contract
51
authority
=agent
52
insurance solicitor
>does all the office work, but not the actual sale | >receptionist
53
unilateral contract
>one party is legally responsible | >the insurer is responsible for paying out losses, not the insured
54
peril
>the actual cause for a loss >reason for a loss >natural disasters/pothole/tree/accidents
55
moral hazard
>being dishonest | >people's ACTIONS
56
physical hazard
>anything you can see, touch, hear | >potholes/debris
57
morale hazard
>being careless because you have insurance >the way people THINK >tony's kids
58
GAP coverage (beast)
>insurance for the loan on the vehicle | >when beast got totaled
59
CAARP
>only certified agents can sell it >must be done through EEDP >INSURANCE FOR THE UNINSURABLE
60
CAIP
>commercial version of CAARP >only certified agents can sell it >no limit on car's worth
61
Medical payments
>Who: me, my passengers, family >What: medical & funeral expenses in an accident & as a pedestrian >is paid out regardless of who's at fault
62
Physical Damage
>alternative to Collision & comprehension (OTC) | >Actual Cash Value is the payout
63
4 features of liability | SOS/E
Supplementary payments Out of state coverage Split/combined limits Exclusions
64
Share the expense
>driving with friends | >carpool
65
For hire
>paying for a driving service | >uber/lyft
66
3 principles of rating factor | DMY
Driving record Mileage (annual) Years of experience driving
67
audio, visual, media & data
>covers $200 for damages | >examples: disks, dvds, tapes, records, dj equipment
68
Remission
>why I, as a company, would want to break up our contract with you, the client >increase in risk >failure to pay first payment >finding fraud/concealment >registration/ drivers license gets revoked/suspended
69
Towing & labor coverage
>covers $25 or up to an hour of labor for repairs done to car where it was disabled
70
Split limit
``` >$ amount is itemized >$ each is max >per person/per occurrence/property damage >person/occurrence is for BI >90% common ```
71
Combined limit
>one $ amount >is for entire accident, regardless of bi & pd amounts >one max amount total >less common
72
Split vs Combined
>is one or the other/not both >payout depends on company >payout is on an "up to" basis
73
Nonstandard physical coverage
>alternative to COLL/OTC | >THEFT & FIRE ONLY

FRED LOYA (7 decks)

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