Commercial Chp 2 Flashcards Preview

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Flashcards in Commercial Chp 2 Deck (7)
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1

Proof of loss

A statement of facts about a loss for which the insured is making a claim

2

Actual cash value (ACV)

Cost to replace property with new property of like kind and quality less depreciation.

3

Agreed Value optional coverage

Optional coverage that suspends the Coinsurance condition if the insured carries the amount of insurance agreed to by the insurer and insured.

4

Inflation Gaurd optional coverage

Coverage for the effects of inflation that automatically increases the limit of insurance by the percentage of annual increase shown in the declarations.

5

Replacement Cost optional coverage

Coverage for losses to most types of property on a replacement cost basis (with no deduction for depreciation or obsolescence) instead of on actual cash value basis.

6

Subrogation

The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.

7

External exposure

A property outside the area owned or operated by the insured that increases the probability of loss to the insured's building and its contents.