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FRED LOYA > CLASS GAME > Flashcards

CLASS GAME Flashcards

To better understand Chapters 1-6

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
Q

Agent

A

> represents the insurance company

>captive/exclusive

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26
Q

Broker

A

> represents the client

>works with several companies

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27
Q

adverse selection

A

> choosing to cover a high risk driver

*covering someone with a bad driving record

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28
Q

how do companies protect themselves from adverse selection?

A

> charging high premiums
*high risk=high rate
not offering coverage

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29
Q

self-funded insurance

A

when an individual chooses to pay for damages themselves instead of going through the insurer

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30
Q

admitted

A

> insurer has meet state requirements & is licensed to sell in that state
state license

31
Q

non-admitted

A

> insurer has not met state requirements & cannot sell in that state
must go through a surplus lines broker

32
Q

libel

A

> letter/written gossip that injures a person/company’s reputation/livelihood
johnny depp vs magazines

33
Q

assumption of risk

A

> doing dangerous things for fun

>skydiving/roller coasters

34
Q

insolvency

A

> when the insurer doesn’t have the funds to pay out a claim

>insurer is bankrupt

35
Q

waiver

A

> 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
Q

gross negligence

A

> purposely putting yourself & others at risk
drunk driving with friends in the same car
*directly puts friends at risk

37
Q

open peril

A

> covers anything that’s not excluded

>”i can cover all damages, except those caused by theft/fire”

38
Q

named peril

A

> 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
Q

5 ways to manage risk

A 
S hare
T ransfer
A void
R educe
R etention
40
Q

4 types of hazards

A

L egal
M oral
M orale
P hysical

41
Q

4 types of hazards

A

L egal
M oral
M orale
P hysical

42
Q

utmost good faith

A

> exchanging trust
exchanging insured’s representations for insurer’s coverage
trust

43
Q

indemnity

A

=payout
>insurer is to pay for damages
>payout to fix/total loss
>company pays

44
Q

comparative negligence

A

> % of payment depending on who is more at fault

>in comparison to how at fault everyone was

45
Q

contributory negligence

A

> when parties involved are all at fault, no one gets paid

>when i contributed, i won’t be paid

46
Q

special/surplus lines brokers

A

> middle man

47
Q

reinsurance

A

> multiple insurance companies come together to cover the loss
Twin Towers covered by multiple insurances to pay for damages (commercial/auto/medical/etc)

48
Q

expressed authority

A

written/said duties as an agent

*selling insurance

49
Q

implied authority

A

assumed duties as an agent

*cleaning the restroom

50
Q

warranty

A

=contract

51
Q

authority

A

=agent

52
Q

insurance solicitor

A

> does all the office work, but not the actual sale

>receptionist

53
Q

unilateral contract

A

> one party is legally responsible

>the insurer is responsible for paying out losses, not the insured

54
Q

peril

A

> the actual cause for a loss
reason for a loss
natural disasters/pothole/tree/accidents

55
Q

moral hazard

A

> being dishonest

>people’s ACTIONS

56
Q

physical hazard

A

> anything you can see, touch, hear

>potholes/debris

57
Q

morale hazard

A

> being careless because you have insurance
the way people THINK
tony’s kids

58
Q

GAP coverage (beast)

A

> insurance for the loan on the vehicle

>when beast got totaled

59
Q

CAARP

A

> only certified agents can sell it
must be done through EEDP
INSURANCE FOR THE UNINSURABLE

60
Q

CAIP

A

> commercial version of CAARP
only certified agents can sell it
no limit on car’s worth

61
Q

Medical payments

A

> 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
Q

Physical Damage

A

> alternative to Collision & comprehension (OTC)

>Actual Cash Value is the payout

63
Q

4 features of liability

SOS/E

A

Supplementary payments
Out of state coverage
Split/combined limits
Exclusions

64
Q

Share the expense

A

> driving with friends

>carpool

65
Q

For hire

A

> paying for a driving service

>uber/lyft

66
Q

3 principles of rating factor

DMY

A

Driving record
Mileage (annual)
Years of experience driving

67
Q

audio, visual, media & data

A

> covers $200 for damages

>examples: disks, dvds, tapes, records, dj equipment

68
Q

Remission

A

> 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
Q

Towing & labor coverage

A

> covers $25 or up to an hour of labor for repairs done to car where it was disabled

70
Q

Split limit

A 
>$ amount is itemized
>$ each is max 
>per person/per occurrence/property damage
>person/occurrence is for BI
>90% common
71
Q

Combined limit

A

> one $ amount
is for entire accident, regardless of bi & pd amounts
one max amount total
less common

72
Q

Split vs Combined

A

> is one or the other/not both
payout depends on company
payout is on an “up to” basis

73
Q

Nonstandard physical coverage

A

> alternative to COLL/OTC

>THEFT & FIRE ONLY

FRED LOYA (7 decks)

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