Definitions Flashcards
(24 cards)
Contract bw an insured & insurance company which agrees to pay insured 4 loss caused by specific events
Insurance policy
Company who issues policy of insurance
Insurer/principal
Person covered by policy of insurance
Insured
Person who pays for policy
Policyowner
Person who receives benefits from policy of insurance
Beneficiary
Money paid to insurance company for the policy of insurance
Premium
Amt paid when claim is issued against a policy of insurance
Death benefit (face amt/value or coverage)
Uncertainty or chance of loss occurring
Risk
Unit of measure used to determine rates charged for insurance coverage
Exposure
Conditions/situations that increase probability of an insured loss occurring
Hazards
Insuring if risks that are if a poorer class (more prone to losses) than the ave risk
Adverse selection
Insurance organizations owned by policyholders; profits returned as non-taxable dividends
Mutual companies
Insurance resulting from interchange of reciprocal agreements of indemnity among subscribers; attorney-in-fact manages/operates exchange
Reciprocal
Provides support facilities for underwriters or ppl that accept insurance risk
Lloyd’s associations
Producer who handles insurer funds In a trust capacity
Fiduciary
Elements of a legal contract
Offer & acceptance
Consideration
Compete t parties
Legal purpose
Provision in policy that states tat in event of loss, insured is not permitted to collect only to extent of financial loss (not allowed to gain financially)
Indemnity/reimbursement
Statements believed to be true to the best of ones knowledge
Representation
Intentional, untruthful statements
Misrepresentations
Absolutely true statement upon which validity if policy depends
Warranty
Legal term for intentional withholding of info of a material fact which is crucial in making a decision
Concealment
Intentional misrepresentation/concealment of material fact used to induce another party to make or refrain from making a contract (or to cheat/deceive)
Fraud
Intentional act of relinquishing a known right, claim or privilege
Waiver
Legal process that can be used to prevent a party to a contract from reasserting a right/privilege after it has been waived
Estoppel
