Definitions Flashcards
1
Q
Defendant
A
In civil matters, the person or organization that is being sued
2
Q
In civil matters, the person or organization that is being sued
A
Defendant
3
Q
The party who brings a legal action against another, called the defendant
A
Plaintiff
4
Q
Plaintiff
A
The party who brings a legal action against another, called the defendant
5
Q
Accident Benefits
A
Indemnity provided to an insured on a first-party basis towards the cost of medical and rehabilitative care for the treatment and recovery of injuries, arising out of the use or operation of an insured’s automobile. Accident Benefits may include provisions for the partial reimbursement of wage loss and home care expenses. Such benefits may also include funeral expenses and survivor’s benefits in the event of a loss that involves an insured’s fatality
6
Q
Indemnity provided to an insured on a first-party basis towards the cost of medical and rehabilitative care for the treatment and recovery of injuries, arising out of the use or operation of an insured’s automobile. Accident Benefits may include provisions for the partial reimbursement of wage loss and home care expenses. Such benefits may also include funeral expenses and survivor’s benefits in the event of a loss that involves an insured’s fatality
A
Accident Benefits
7
Q
At Fault
A
Where an insured is held legally liable for damage or injury (a term usually used in automobile or casualty insurance); a concept used in direct compensation in determining the degree of liability and amount of compensation.
8
Q
Where an insured is held legally liable for damage or injury (a term usually used in automobile or casualty insurance); a concept used in direct compensation in determining the degree of liability and amount of compensation.
A
At Fault
9
Q
An endorsement added to a written document, particularly an agreement between parties, altering its provisions
A
Endorsement
10
Q
Endorsement
A
An endorsement added to a written document, particularly an agreement between parties, altering its provisions
11
Q
Additional optional vehicle insurance, available as a package policy or customized insurance, purchases by insureds to provide higher coverage limits, lower coverage deductibles, or coverage for additional perils in provinces with mandatory government insurance plans for basic coverage.
A
Extension Insurance
12
Q
Extension Insurance
A
Additional optional vehicle insurance, available as a package policy or customized insurance, purchases by insureds to provide higher coverage limits, lower coverage deductibles, or coverage for additional perils in provinces with mandatory government insurance plans for basic coverage.
13
Q
An automobile owned by the insured
A
Owned Automobile
14
Q
Owned Automobile
A
An automobile owned by the insured
15
Q
A policy that protects the insured against third party claims arising out of some other person using his own vehicle in the business of the insured.
A
Non-owned Automobile Insurance
16
Q
Non-owned Automobile Insurance
A
A policy that protects the insured against third party claims arising out of some other person using his own vehicle in the business of the insured.
17
Q
Insurance that does note participate until all other similar insurance on the same subject is exhausted, or until the loss exceeds a previously agreed- upon amount. Where there are two policies on a risk and both contain a provision that they are “excess to all other insurance”
A
Excess Insurance
18
Q
Excess Insurance
A
Insurance that does note participate until all other similar insurance on the same subject is exhausted, or until the loss exceeds a previously agreed- upon amount. Where there are two policies on a risk and both contain a provision that they are “excess to all other insurance”
19
Q
A type of potential replacement insurance company policy that indemnifies the insured only in the absence of another primary policy
A
Contingent Insurance
20
Q
Contingent Insurance
A
A type of potential replacement insurance company policy that indemnifies the insured only in the absence of another primary policy
21
Q
An online-enabled application or website used by persons to prearrange the transportation of passengers for compensation by a transportation network driver.
A
Transportation Network
22
Q
Transportation Network
A
An online-enabled application or website used by persons to prearrange the transportation of passengers for compensation by a transportation network driver.
23
Q
A contract under which one party (the surety) guarantees the performance of certain obligations of second party (the principal) to a third party (the obligee)
A
Surety Bond
24
Q
Surety Bond
A
A contract under which one party (the surety) guarantees the performance of certain obligations of second party (the principal) to a third party (the obligee)
25
A legal wrong arising from a duty fixed by law. A breach of this duty that causes injury to persons or property is repressible by legal action for damages. Liability for tort involves a private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual
Tort
26
Tort
A legal wrong arising from a duty fixed by law. A breach of this duty that causes injury to persons or property is repressible by legal action for damages. Liability for tort involves a private or civil wrong or injury and is distinct from that under contract in that the duty is owed to people, generally, rather than to a specified individual
27
Negligence
Failure to use the degree of care expected from a reasonable and prudent person
28
Failure to use the degree of care expected from a reasonable and prudent person
Negligence
29
Insurance that agrees to indemnify the insured for sums the insured may be required by law to pay to third parties as damages for bodily injury or damage to property. The maximum amount of insurance provided under a policy of liability insurance
Liability Insurance
30
Liability Insurance
Insurance that agrees to indemnify the insured for sums the insured may be required by law to pay to third parties as damages for bodily injury or damage to property. The maximum amount of insurance provided under a policy of liability insurance
31
The burden or responsibility of proof and is sometimes referred to by its Latin Term, Onus Probandi
Onus of Proof
32
Onus of Proof
The burden or responsibility of proof and is sometimes referred to by its Latin Term, Onus Probandi
33
Driver’s fault chart
A set of accident scenarios to determine fault or liability between drivers involved in an accident and the compensation payable. It takes into account the Highway Traffic Code and case law.
34
A set of accident scenarios to determine fault or liability between drivers involved in an accident and the compensation payable. It takes into account the Highway Traffic Code and case law.
Driver’s fault chart
35
A legal decision that serves as a bass to resolve subsequent disputes in similar cases
Precedent
36
Precedent
A legal decision that serves as a bass to resolve subsequent disputes in similar cases
37
In the event of an accident, each insured will obtain compensation from his or her insurer according to the insured’s degree of fault for an accident
Direct Compensation
38
Direct Compensation
In the event of an accident, each insured will obtain compensation from his or her insurer according to the insured’s degree of fault for an accident
39
To provide compensation for loss or expenses incurred
Indemnify
40
Indemnify
To provide compensation for loss or expenses incurred
41
Covers damage to, or the loss of use of, an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident. It is called “direct compensation” because even though someone else caused the damage, the insured person collects directly from his or her insurer instead of from the person who caused the accident
Direct Compensation-property damage
42
Direct Compensation-property damage
Covers damage to, or the loss of use of, an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident. It is called “direct compensation” because even though someone else caused the damage, the insured person collects directly from his or her insurer instead of from the person who caused the accident
43
Liability imposed by law on individuals or corporations to pay for harm done to others. Such law may be the common law, statute law, or customs that over a period of time have taken on the same status of law. Legal liability may also be assumed under the terms of a contract
Legal Liability
44
Legal Liability
Liability imposed by law on individuals or corporations to pay for harm done to others. Such law may be the common law, statute law, or customs that over a period of time have taken on the same status of law. Legal liability may also be assumed under the terms of a contract
45
Any person (including a corporation) covered by an insurance policy. In some policies, the term may be defined exhaustively to limit the coverage or defined broadly to expand coverages
Insured
46
Insured
Any person (including a corporation) covered by an insurance policy. In some policies, the term may be defined exhaustively to limit the coverage or defined broadly to expand coverages
47
A term used in auto and liability policies meaning physical injury, including sickness, disease, mental injury, shock, or death
Bodily Injury
48
Bodily Injury
A term used in auto and liability policies meaning physical injury, including sickness, disease, mental injury, shock, or death
49
The person or party designed in the policy as the insured, who has certain rights under the policy, as opposed to someone who may be covered by the policy but is not specifically named and does not have the same rights as the named insured
Named Insured
50
Named Insured
The person or party designed in the policy as the insured, who has certain rights under the policy, as opposed to someone who may be covered by the policy but is not specifically named and does not have the same rights as the named insured
51
A person other than the named insured who is protected by the terms of the policy. The additional insured may be named or unnamed
Additional Insured
52
Additional Insured
A person other than the named insured who is protected by the terms of the policy. The additional insured may be named or unnamed
53
The smallest amount of third-party liability insurance that may be purchased in any Canadian Jurisdiction
Minimum Limits
54
Minimum Limits
The smallest amount of third-party liability insurance that may be purchased in any Canadian Jurisdiction
55
Priorities of payment
A system that specifies how much of the minimum policy limit will apply to bodily injury claims and how much will apply to property damage claims in situations where there is not enough insurance to coverage all the combined claims
56
A system that specifies how much of the minimum policy limit will apply to bodily injury claims and how much will apply to property damage claims in situations where there is not enough insurance to coverage all the combined claims
Priorities of payment
57
Absolute Liability
Liability associated with very dangerous actions. Often found in cases involving explosives and in many automobile laws. Negligence does not have to be proven
58
Liability associated with very dangerous actions. Often found in cases involving explosives and in many automobile laws. Negligence does not have to be proven
Absolute Liability
59
Special prescribed and standardized conditions that the provincial and territorial insurance acts require to be included in insurance policies
Statutory Conditions
60
Statutory Conditions
Special prescribed and standardized conditions that the provincial and territorial insurance acts require to be included in insurance policies
61
Non-Economic Loss
Payment for loss or harm that is not assessable in money. Where personal injury occurs, compensation may be payable for non-economic loss in the form of pain and suffering during serious illness and also physical defects, disfigurement, or other permanent aftereffects. Also called non-pecuniary loss
62
Payment for loss or harm that is not assessable in money. Where personal injury occurs, compensation may be payable for non-economic loss in the form of pain and suffering during serious illness and also physical defects, disfigurement, or other permanent aftereffects. Also called non-pecuniary loss
Non-Economic Loss
63
Damages or loss that can be quantified in money. Also known as pecuniary loss
Economic Loss
64
Economic Loss
Damages or loss that can be quantified in money. Also known as pecuniary loss
65
The words or language describing the nature and type of injury that must be suffered in order to be able to commence a legal action against the responsible party
Verbal Threshold
66
Verbal Threshold
The words or language describing the nature and type of injury that must be suffered in order to be able to commence a legal action against the responsible party
67
An agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is agreed upon by both the insurer
Deductible
68
Deductible
An agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is agreed upon by both the insurer
69
Many accidents are the partial fault of both parties who are involved in the accident. The plaintiff who sues another party for damages who also be guilty of some negligence, which is a concurrent cause of the damage, and is therefore guilty of contributory negligence
Contributory Negligence
70
Contributory Negligence
Many accidents are the partial fault of both parties who are involved in the accident. The plaintiff who sues another party for damages who also be guilty of some negligence, which is a concurrent cause of the damage, and is therefore guilty of contributory negligence
71
A wrongdoer- A party guilty of tort
Tortfeasor
72
Tortfeasor
A wrongdoer- A party guilty of tort
73
Damage to the insured’s own vehicle
Own Damage
74
Own Damage
Damage to the insured’s own vehicle
75
Legal process by which an insurance company, after the payment of a loss, is assigned the rights of the insured to recover the amount of the loss from those who are legally liable for it
Subrogation
76
Subrogation
Legal process by which an insurance company, after the payment of a loss, is assigned the rights of the insured to recover the amount of the loss from those who are legally liable for it
77
Simply, it means paying certain claims without reference to who was at fault. Used to describe a system for improving the compensatory process for automobile accident victims by eliminating costly and lengthy litigation. An automobile insurance system where accident victims are compensated by their insurer regardless of fault
No-Fault
78
No-Fault
Simply, it means paying certain claims without reference to who was at fault. Used to describe a system for improving the compensatory process for automobile accident victims by eliminating costly and lengthy litigation. An automobile insurance system where accident victims are compensated by their insurer regardless of fault
79
Rules set out in automobile insurance legislation that are used by insurers to determine fault or responsibility for direct compensation property damage claims, but not for injury claims
Fault Determination rules
80
Fault Determination rules
Rules set out in automobile insurance legislation that are used by insurers to determine fault or responsibility for direct compensation property damage claims, but not for injury claims
81
An unusual, fortuitous, unexpected, or unforeseen event or occurrence
A mishap that is not expected or designed
Accident
82
Accident
An unusual, fortuitous, unexpected, or unforeseen event or occurrence
A mishap that is not expected or designed
83
One who has a right because of possession in or control over certain property or premises; one who acquires title by occupancy; a person who lives in or is the established user of a place such as a home or office or automobile; includes the driver who is in or on a vehicle or getting into, on, out of, or off of a vehicle.
Occupant
84
Occupant
One who has a right because of possession in or control over certain property or premises; one who acquires title by occupancy; a person who lives in or is the established user of a place such as a home or office or automobile; includes the driver who is in or on a vehicle or getting into, on, out of, or off of a vehicle.
85
Consumer price index (CPI)
An index that measures changes in the price level of a market basket of consumer goods and service purchased by households
86
An index that measures changes in the price level of a market basket of consumer goods and service purchased by households
Consumer price index (CPI)
87
One who enlists others to act as “claimants” in a scheme to commit fraud in exchange for a monetary benefit. The people recruited pay a fee to participate in the scam and in return, are offered a portion of the accident benefits
Recruiter
88
Recruiter
One who enlists others to act as “claimants” in a scheme to commit fraud in exchange for a monetary benefit. The people recruited pay a fee to participate in the scam and in return, are offered a portion of the accident benefits
89
Uninsured Automobile
One for which neither the owner nor driver has liability insurance to coverage bodily injury or property damage arising out of its ownership, use, or operation, or the insurance is not collectible. This does not include an automobile owned by or registered in the name of the insured person or his or her spouse
90
One for which neither the owner nor driver has liability insurance to coverage bodily injury or property damage arising out of its ownership, use, or operation, or the insurance is not collectible. This does not include an automobile owned by or registered in the name of the insured person or his or her spouse
Uninsured Automobile
91
One whose owner or driver cannot be determined for example, in a hit and run. It is deemed to be in fact “uninsured”
Unidentified automobile
92
Unidentified automobile
One whose owner or driver cannot be determined for example, in a hit and run. It is deemed to be in fact “uninsured”
93
A fund used to pay losses arising out of automobile accidents in which there is no applicable insurance. In most cases, the fund is financed by the government from general taxes and license fees; in some jurisdictions, it is financed and underwritten by insurance companies as a group
Unsatisfied judgement fund
94
Unsatisfied judgement fund
A fund used to pay losses arising out of automobile accidents in which there is no applicable insurance. In most cases, the fund is financed by the government from general taxes and license fees; in some jurisdictions, it is financed and underwritten by insurance companies as a group
95
The event that caused a loss covered by the policy; for example- fire, windstorm
Peril
96
Peril
The event that caused a loss covered by the policy; for example- fire, windstorm
97
An item of coverage in an automobile physical damage policy insuring against loss or damage resulting from numerous miscellaneous causes such as fire, theft, windstorm, flood, or vandalism. Usually, does not include loss by collision or upset
Comprehensive automobile coverage
98
Comprehensive automobile coverage
An item of coverage in an automobile physical damage policy insuring against loss or damage resulting from numerous miscellaneous causes such as fire, theft, windstorm, flood, or vandalism. Usually, does not include loss by collision or upset
99
A term used in marine insurance for a loss that is shared by interests such as the owner of the ship, owners of the cargo, receivers of the freight charges, etc. that arises from a voluntary sacrifice for the benefit of all. For example, a part of the cargo may be jettisoned to save the ship and the rest of the cargo from sinking
General average
100
General average
A term used in marine insurance for a loss that is shared by interests such as the owner of the ship, owners of the cargo, receivers of the freight charges, etc. that arises from a voluntary sacrifice for the benefit of all. For example, a part of the cargo may be jettisoned to save the ship and the rest of the cargo from sinking
101
The remaining value of property after severe damage by fire and other peril. The overall loss is reduced by the salvage value. Undamaged property may be quite saleable and some property may be only partially damaged, thus repairable and then saleable
Salvage
102
Salvage
The remaining value of property after severe damage by fire and other peril. The overall loss is reduced by the salvage value. Undamaged property may be quite saleable and some property may be only partially damaged, thus repairable and then saleable
103
An automobile that is used by an insured temporarily because the described automobile is out of service because of breakdown, repairs, servicing, theft, sale, or destruction. The TSA cannot be owned by the insured or by anyone living in the same dwelling with the insured. The coverage of described automobile applies to the TSA, even though the vehicle may be insured by its owner
Temporary substitute automobile (TSA)
104
Temporary substitute automobile (TSA)
An automobile that is used by an insured temporarily because the described automobile is out of service because of breakdown, repairs, servicing, theft, sale, or destruction. The TSA cannot be owned by the insured or by anyone living in the same dwelling with the insured. The coverage of described automobile applies to the TSA, even though the vehicle may be insured by its owner
105
A declaration made under statutory authority before a justice of the peace or commissioner of oaths asserting knowledge of a circumstance, event, or fact. This may be substituted for a statement under oath or affirmation
Statutory declaration
106
Statutory declaration
A declaration made under statutory authority before a justice of the peace or commissioner of oaths asserting knowledge of a circumstance, event, or fact. This may be substituted for a statement under oath or affirmation
107
The fair market value of property, taking into account factors that might augment or reduce the value of the property in question. Actual cash value (ACV) is usually calculated in one of 3 ways; 1. cost to repair or replace, less depreciation
2. fair market value
3. consideration of all relevant evidence of the value of the damaged property
Actual Cash Value (ACV)
108
Actual Cash Value (ACV)
The fair market value of property, taking into account factors that might augment or reduce the value of the property in question. Actual cash value (ACV) is usually calculated in one of 3 ways; 1. cost to repair or replace, less depreciation
2. fair market value
3. consideration of all relevant evidence of the value of the damaged property
109
A vehicle that does not exist or is already wrecked
Phantom vehicle
110
Phantom vehicle
A vehicle that does not exist or is already wrecked
111
When parties conspire to create the illusion of a legitimate accident using either pre-damaged vehicles or by intentionally and covertly inflicting damage on the suspect’s vehicle(s). Generally, law enforcement is not called to the scene of the accident
Paper Collision
112
Paper Collision
When parties conspire to create the illusion of a legitimate accident using either pre-damaged vehicles or by intentionally and covertly inflicting damage on the suspect’s vehicle(s). Generally, law enforcement is not called to the scene of the accident
113
Methods used to deceive to cause an unwarranted favorable decision for one’s own benefit
Deliberate misrepresentation or misstatement
Concealment of facts that should at the time be made known
Fraud
114
Fraud
Methods used to deceive to cause an unwarranted favorable decision for one’s own benefit
Deliberate misrepresentation or misstatement
Concealment of facts that should at the time be made known
115
The number usually found on the dashboard of a vehicle on the driver’s side, usually listed on the vehicle registration and title. The VIN is a combination of letters and numbers 17 characters in length that can be used to identify the made, model and year of the car.
Vehicle identification number (VIN)
116
Vehicle identification number (VIN)
The number usually found on the dashboard of a vehicle on the driver’s side, usually listed on the vehicle registration and title. The VIN is a combination of letters and numbers 17 characters in length that can be used to identify the made, model and year of the car.
117
One who recovers or assists in recovering damage property, especially property damage by fire
Salvor
118
Application
A request by an insured for insurance. Applications may be done verbally, in writing, or online. The insured provides information relating to the subject for insurance. The insurer then assesses this information and decides whether to accept the risk for insurance and on the terms of such acceptance
119
Salvor
One who recovers or assists in recovering damage property, especially property damage by fire
120
A request by an insured for insurance. Applications may be done verbally, in writing, or online. The insured provides information relating to the subject for insurance. The insurer then assesses this information and decides whether to accept the risk for insurance and on the terms of such acceptance
Application
121
The person or firm requesting insurance. That party answers oral questions or completes and signs written forms that contain information to assess the risk
Applicant
122
Applicant
The person or firm requesting insurance. That party answers oral questions or completes and signs written forms that contain information to assess the risk
123
A legal principle calling for the highest standards of integrity on the part of the insured and the insurer
Utmost good faith
124
Utmost good faith
A legal principle calling for the highest standards of integrity on the part of the insured and the insurer
125
Incorrect or missing information about a material fact that is offered, or not, by an applicant or insured with or without the intent to mislead
Misrepresentation
126
Misrepresentation
Incorrect or missing information about a material fact that is offered, or not, by an applicant or insured with or without the intent to mislead
127
The price of insurance protection for a specified risk for a specified period of time
Premium
128
Premium
The price of insurance protection for a specified risk for a specified period of time
129
A three-year record of a driver. Includes information such as driver’s name and license number, class, expiry date, conditions/ restrictions, and or license status information
Driver Abstract
130
Driver Abstract
A three-year record of a driver. Includes information such as driver’s name and license number, class, expiry date, conditions/ restrictions, and or license status information
131
Amount charged to an insured that reflects the expectation of loss for a covered risk, insurance company expenses, and profit. In other words, it is the basis of premium calculation for the insurance provided for the exposure.
Rate
132
Rate
Amount charged to an insured that reflects the expectation of loss for a covered risk, insurance company expenses, and profit. In other words, it is the basis of premium calculation for the insurance provided for the exposure.
133
Duration of policy, most often one year in property and casualty insurance. Also called policy term
Policy period
134
Policy period
Duration of policy, most often one year in property and casualty insurance. Also called policy term
135
One who holds a registered claim (referred to as a “lien”) against a given property as security or collateral against a loan or workmanship performed in relation to that property. The financial commitment associated with a registered lien must be fully discharged and satisfied before the property in question may be liquidated, sold or transferred to another party
Lienholder
136
Lienholder
One who holds a registered claim (referred to as a “lien”) against a given property as security or collateral against a loan or workmanship performed in relation to that property. The financial commitment associated with a registered lien must be fully discharged and satisfied before the property in question may be liquidated, sold or transferred to another party
137
An interest that the insured must have in the subject matter of the insurance purchased so that if the event insured against occurs, the insured will suffer a pecuniary loss
Insurable interest
138
Insurable interest
An interest that the insured must have in the subject matter of the insurance purchased so that if the event insured against occurs, the insured will suffer a pecuniary loss
139
A premium discount or rebate given under private passenger automobile insurance for all new drivers who have successfully completed an approved driver training program
Driver training credit
140
Driver training credit
A premium discount or rebate given under private passenger automobile insurance for all new drivers who have successfully completed an approved driver training program
141
A premium specified on an individual policy that is the minimum amount retained by the insurer in the event that the policy is cancelled midterm by the insured
Minimum retained premium
142
Minimum retained premium
A premium specified on an individual policy that is the minimum amount retained by the insurer in the event that the policy is cancelled midterm by the insured
143
That portion of premium earned or charged for the period of time a policy remained effective. For Example, an annual policy paid for in advance would be one-twelfth “earned” at the end of the first full month of its term
An amount calculated by taking the earned premium written during the period, less the unearned premium reserve at the end of the period
Premium actually exposed to loss
Earned premium
144
Earned premium
That portion of premium earned or charged for the period of time a policy remained effective. For Example, an annual policy paid for in advance would be one-twelfth “earned” at the end of the first full month of its term
An amount calculated by taking the earned premium written during the period, less the unearned premium reserve at the end of the period
Premium actually exposed to loss
145
Underwrite
To insure. More commonly, to scrutinize a risk and then decide on its eligibility for insurance
146
To insure. More commonly, to scrutinize a risk and then decide on its eligibility for insurance
Underwrite
147
An entity established by the Canadian automobile insurance industry to ensure that automobile insurance is available to all owners and licensed drivers of motor vehicles where such owners or drivers are unable to obtain automobile insurance through the voluntary insurance market
Facility Association
148
Facility Association
An entity established by the Canadian automobile insurance industry to ensure that automobile insurance is available to all owners and licensed drivers of motor vehicles where such owners or drivers are unable to obtain automobile insurance through the voluntary insurance market
149
A manual containing rates and underwriting rules for use by a company’s staff, agents, and or brokers
Rate manual
150
Rate manual
A manual containing rates and underwriting rules for use by a company’s staff, agents, and or brokers
151
The amount of liability the ceding company (primary insurer) retains for its own account. It may be a percentage or a dollar amount of each risk
Also refers to the part of the risk retained by clients without insuring it (either because insurance is deemed to expensive of the loss is not insurable)
Retention
152
Retention
The amount of liability the ceding company (primary insurer) retains for its own account. It may be a percentage or a dollar amount of each risk
Also refers to the part of the risk retained by clients without insuring it (either because insurance is deemed to expensive of the loss is not insurable)
153
The chance of loss. Specifically, the possible loss or destruction of property or the possible incurring of a liability. Sometimes referred to as the subject of an insurance contract
Risk
154
Risk
The chance of loss. Specifically, the possible loss or destruction of property or the possible incurring of a liability. Sometimes referred to as the subject of an insurance contract
155
A hazard arising from the character, interest, habits, and lack of integrity of the insured or person concerned; for example, the failure of individuals to pay bills on time or manage their finances
Moral Hazard
156
Moral Hazard
A hazard arising from the character, interest, habits, and lack of integrity of the insured or person concerned; for example, the failure of individuals to pay bills on time or manage their finances
157
A hazard arising from the physical condition or characteristics of the object that is insured; for example, using and storing volatile materials and substances on the premises
Physical Hazard
158
Physical Hazard
A hazard arising from the physical condition or characteristics of the object that is insured; for example, using and storing volatile materials and substances on the premises
159
The hazard threatening a risk because of external or internal physical conditions
Exposure
160
Exposure
The hazard threatening a risk because of external or internal physical conditions
161
The rules used by insurance companies to assess the insurability companies and may differ for each class of business
Underwriting rules
162
Underwriting rules
The rules used by insurance companies to assess the insurability companies and may differ for each class of business
163
A pricing method in which an insurer uses rates that are based on its own experience rather than on that of a specific group for which it is calculating a premium
Manual rating
164
Manual rating
A pricing method in which an insurer uses rates that are based on its own experience rather than on that of a specific group for which it is calculating a premium
165
An additional charge including in an insurance rate to reflect a hazard not contemplated in the basic rate for the class
Loading
166
Loading
An additional charge including in an insurance rate to reflect a hazard not contemplated in the basic rate for the class
167
The mathematical premise that states that the degree of uncertainty is reduced as the number of events increases
Law of large numbers
168
Law of large numbers
The mathematical premise that states that the degree of uncertainty is reduced as the number of events increases
169
Portion of total premium that is needed to pay expected losses. It does not take into account money needed for company expenses
Pure premium
170
Pure premium
Portion of total premium that is needed to pay expected losses. It does not take into account money needed for company expenses
171
The part of a premium rate that represents the cost to the insurer of producing and maintaining the policy
Expense loading
172
Expense loading
The part of a premium rate that represents the cost to the insurer of producing and maintaining the policy
173
The cost of putting a business on the books and acquiring the premium. The items involved are not standard with all insurers but generally include agents/ brokers commissions, field representatives costs, premium tax, and perhaps some of the relevant head office acquisition costs of operation
Acquisition cost
174
Acquisition cost
The cost of putting a business on the books and acquiring the premium. The items involved are not standard with all insurers but generally include agents/ brokers commissions, field representatives costs, premium tax, and perhaps some of the relevant head office acquisition costs of operation
175
Compensation based upon the amount of production; example, independent insurance agents are compensated on basis of a percentage of the premium. The percentage varies with different lines of insurance
Commission
176
Commission
Compensation based upon the amount of production; example, independent insurance agents are compensated on basis of a percentage of the premium. The percentage varies with different lines of insurance
177
Insurance purchased by an insurance company form another insurance company (reinsurer) to provide it protection against large losses on cases it has already insured; essentially, insurance for insurance companies. A transition in which one party, the reinsurer, in consideration of a premium paid to it, agrees to indemnify another party, the reinsured, for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued. The reinsured may also be referred to as the “original” or “primary” insurer or the ceding company.
Reinsurance
178
Reinsurance
Insurance purchased by an insurance company form another insurance company (reinsurer) to provide it protection against large losses on cases it has already insured; essentially, insurance for insurance companies. A transition in which one party, the reinsurer, in consideration of a premium paid to it, agrees to indemnify another party, the reinsured, for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued. The reinsured may also be referred to as the “original” or “primary” insurer or the ceding company.
179
A collection of statistical information that all automobile insurers who write business in Canada must record and file as prescribed by the superintendent of insurance. Commonly known as the Green Book.
Automobile Statistical Plan (ASP)
180
Automobile Statistical Plan (ASP)
A collection of statistical information that all automobile insurers who write business in Canada must record and file as prescribed by the superintendent of insurance. Commonly known as the Green Book.
181
A manual that sets out the statistical data reporting requirements of each participating jurisdiction. Currently, on Ontario participates in this plan
Commercial Liability Statistical Plan-Ontario (CLSP)
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Commercial Liability Statistical Plan-Ontario (CLSP)
A manual that sets out the statistical data reporting requirements of each participating jurisdiction. Currently, on Ontario participates in this plan
183
Every insurer that writes automobile insurance in Ontario must report its data in accordance with the OSABSP manual. The OSABSP was introduced in 1994 to Provide insight into the cost drivers of accident benefits claims
Ontario Statutory Accident Benefits Statistical Plan (OSABSP)
184
Ontario Statutory Accident Benefits Statistical Plan (OSABSP)
Every insurer that writes automobile insurance in Ontario must report its data in accordance with the OSABSP manual. The OSABSP was introduced in 1994 to Provide insight into the cost drivers of accident benefits claims
185
In automobile insurance, a policy insuring a number of cars for one owner
Fleet policy
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Fleet policy
In automobile insurance, a policy insuring a number of cars for one owner
187
Four- Wheeled motor vehicle of the private passenger, station wagon, or van type, designed for use on public highways and subject to motor vehicle registration
Private passenger vehicle
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Private passenger vehicle
Four- Wheeled motor vehicle of the private passenger, station wagon, or van type, designed for use on public highways and subject to motor vehicle registration
189
The amount actually paid in losses during a specified period of time
Paid losses
190
Paid losses
The amount actually paid in losses during a specified period of time
191
Losses that have been incurred but have not yet been paid
Outstanding losses
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Outstanding losses
Losses that have been incurred but have not yet been paid
193
An estimate of the amount of an insurer’s (or self-insurer’s) liability for claim-generating events that have taken place but have not yet been reported to the insurer or self-insurer. The sum of IBNR losses plus incurred losses provide an estimate of the insurer’s eventual liabilities for losses during a given period.
Incurred but not reported (IBNR) losses
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Incurred but not reported (IBNR) losses
An estimate of the amount of an insurer’s (or self-insurer’s) liability for claim-generating events that have taken place but have not yet been reported to the insurer or self-insurer. The sum of IBNR losses plus incurred losses provide an estimate of the insurer’s eventual liabilities for losses during a given period.
195
Lost costs
The proportion of the insurance rate that covers costs claims. Rates generally also include proportions for expenses, profit, and contingencies
196
The proportion of the insurance rate that covers costs claims. Rates generally also include proportions for expenses, profit, and contingencies
Lost costs
197
The total amount of paid claims and loss reserves associated with a particular period of time, usually a policy year. Incurred losses are customarily computed in accordance with the following formula: losses incurred during the period, plus outstanding losses at the end of the period, loss outstanding losses at the beginning of the period. This does not ordinarily include incurred but not reported (IBNR) losses
Incurred losses
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Incurred losses
The total amount of paid claims and loss reserves associated with a particular period of time, usually a policy year. Incurred losses are customarily computed in accordance with the following formula: losses incurred during the period, plus outstanding losses at the end of the period, loss outstanding losses at the beginning of the period. This does not ordinarily include incurred but not reported (IBNR) losses
199
One who specializes in the mathematics of insurance, mortality rates and the like
Actuary
200
Actuary
One who specializes in the mathematics of insurance, mortality rates and the like
201
The process of adjusting statistics for premiums and losses to current or anticipated future levels to represent changes in insurance experience from economic and demographic forces, and to use data to determine present and anticipated future levels of cost
Trending
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Trending
The process of adjusting statistics for premiums and losses to current or anticipated future levels to represent changes in insurance experience from economic and demographic forces, and to use data to determine present and anticipated future levels of cost
203
A method for classifying different models of cars for insurance purposes by using historical claims data, including collision, comprehensive, direct compensation-property damage, and accident benefits coverages.
Canadian Loss Experience Automobile Rating (CLEAR)
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Canadian Loss Experience Automobile Rating (CLEAR)
A method for classifying different models of cars for insurance purposes by using historical claims data, including collision, comprehensive, direct compensation-property damage, and accident benefits coverages.
205
The trade association of the property/casualty insurance industry in Canada. It concerns itself with such matters as public relations, the collection of statistics, the promulgation of forms, etc. It has a substantial permanent staff but also many committees made up of volunteers from the senior ranks of insurance companies
Insurance Bureau of Canada (IBC)
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Insurance Bureau of Canada (IBC)
The trade association of the property/casualty insurance industry in Canada. It concerns itself with such matters as public relations, the collection of statistics, the promulgation of forms, etc. It has a substantial permanent staff but also many committees made up of volunteers from the senior ranks of insurance companies
207
Insurance coverage to pay compensation to anyone who sustains loss or damage resulting from an insured’s negligent conduct or omission
Third-party liability
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Third-party liability
Insurance coverage to pay compensation to anyone who sustains loss or damage resulting from an insured’s negligent conduct or omission
209
Occurs when those with higher risks may purchase insurance in greater amounts than those with lower risks. Much of insurance law and practice is designed to control adverse selection. Insurers protect themselves from adverse selection by attempting to measure risk and either charging more for the higher risks or refusing to cover them at all
Adverse selection
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Adverse selection
Occurs when those with higher risks may purchase insurance in greater amounts than those with lower risks. Much of insurance law and practice is designed to control adverse selection. Insurers protect themselves from adverse selection by attempting to measure risk and either charging more for the higher risks or refusing to cover them at all
211
A federal statute that governs the collection and use of personal information. It states that personal information to be collected must be relevant, and that all information that has been collected, is being collected, or will be collected must be held in the strictest of confidence
Personal information protection and electronic documents act (PIPEDA)
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Personal information protection and electronic documents act (PIPEDA)
A federal statute that governs the collection and use of personal information. It states that personal information to be collected must be relevant, and that all information that has been collected, is being collected, or will be collected must be held in the strictest of confidence
213
Those changes that would influence a reasonable and prudent insurer to decide whether to stay on the risk or influence the terms on which the risk is retained. The general context of this condition can, however, encompass a wide range of possible changes
Material Change
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Material Change
Those changes that would influence a reasonable and prudent insurer to decide whether to stay on the risk or influence the terms on which the risk is retained. The general context of this condition can, however, encompass a wide range of possible changes
215
A court document commanding the defendant to enter an appearance within a specified number of days if he wishes to dispute the claimant’s claim
Writ
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Writ
A court document commanding the defendant to enter an appearance within a specified number of days if he wishes to dispute the claimant’s claim
217
A written statement by a plaintiff detailing the facts that support the claim against the defendant and the relief sought
Statement of Claim
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Statement of Claim
A written statement by a plaintiff detailing the facts that support the claim against the defendant and the relief sought
219
Notification received by the insurance company from the insured that a loss has occurred. Failure to give such notice has been held to be a bar against recovery
Notice of Loss
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Notice of Loss
Notification received by the insurance company from the insured that a loss has occurred. Failure to give such notice has been held to be a bar against recovery
221
A formal statement of facts about a loss, attested to by the claimant, in a form specified by the insurer. A proof of loss may need to be notarized. An insurer must respond to a proof of loss after a specified time period with a formal disposition of the claim (approved or denied)
Proof of Loss
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Proof of Loss
A formal statement of facts about a loss, attested to by the claimant, in a form specified by the insurer. A proof of loss may need to be notarized. An insurer must respond to a proof of loss after a specified time period with a formal disposition of the claim (approved or denied)
223
The maximum amount , as stated in the policy, that an insurer is bound to pay in a case of a loss
Limit of Liability
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Limit of Liability
The maximum amount , as stated in the policy, that an insurer is bound to pay in a case of a loss
225
Refers to the replacement of damaged, destroyed, or lost property with used property of similar type and condition
Like, kind, and quality (LKQ)
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Like, kind, and quality (LKQ)
Refers to the replacement of damaged, destroyed, or lost property with used property of similar type and condition
227
Loss of all the insured property
| A loss involving the maximum amount for which a policy is liable
Total loss
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Total loss
Loss of all the insured property
| A loss involving the maximum amount for which a policy is liable
229
Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy
Pro- rata cancellation
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Pro- rata cancellation
Cancellation of an insurance policy or bond with the return premium credit being the full proportion of premium for the unexpired term of the policy
231
The cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium that is less than the proportionate part that remains unearned
Short rate cancellation
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Short rate cancellation
The cancellation by the insured of a policy before its natural expiration; the insurer pays a return premium that is less than the proportionate part that remains unearned
233
The charge required for insurance or bonds taken for less than one year
Short rate
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Short rate
The charge required for insurance or bonds taken for less than one year
235
The vehicle identified in an insurance policy
Described automobile
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Described automobile
The vehicle identified in an insurance policy
237
An automobile or trailer an insured newly owns that is not covered by any other insurance policy. It must be a replacement or an additional automobile (not a rental or one belonging to a household member); the insured will be covered automatically for a specified number of days after the delivery for the same coverage under the existing policy if the insurer is informed of the new automobile and is paid the required premium
Newly acquired automobile
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Newly acquired automobile
An automobile or trailer an insured newly owns that is not covered by any other insurance policy. It must be a replacement or an additional automobile (not a rental or one belonging to a household member); the insured will be covered automatically for a specified number of days after the delivery for the same coverage under the existing policy if the insurer is informed of the new automobile and is paid the required premium
239
An automobile that is used by an insured temporarily because the described automobile is out of service because of breakdown, repairs, servicing, theft, sale, or destruction. The TSA cannot be owned by the insured of by anyone living in the same dwelling with the insured. The coverage of the described automobile applies to the TDA even though it may have insurance.
Temporary substitute automobile (TSA)
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Temporary substitute automobile (TSA)
An automobile that is used by an insured temporarily because the described automobile is out of service because of breakdown, repairs, servicing, theft, sale, or destruction. The TSA cannot be owned by the insured of by anyone living in the same dwelling with the insured. The coverage of the described automobile applies to the TDA even though it may have insurance.
241
A non-owned automobile: that is, not owned by anyone in the household and does not have insurance coverage
Other automobile
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Other automobile
A non-owned automobile: that is, not owned by anyone in the household and does not have insurance coverage
243
Written document stating that insurance is in effect. Includes general statement of policy’s coverage
Certificate of insurance
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Certificate of insurance
Written document stating that insurance is in effect. Includes general statement of policy’s coverage
245
The maximum operating weight/mass of a vehicle as specified by the manufacturer, including the vehicle’s chassis, body, engine, engine fluids, fuel, accessories, driver, passengers, and cargo carried, but excluding that of any trailers. Also referred to as gross vehicle mass (GVM)
Gross vehicle weight rating (GVWR)
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Gross vehicle weight rating (GVWR)
The maximum operating weight/mass of a vehicle as specified by the manufacturer, including the vehicle’s chassis, body, engine, engine fluids, fuel, accessories, driver, passengers, and cargo carried, but excluding that of any trailers. Also referred to as gross vehicle mass (GVM)
247
A situation in which one party- for example, an employer- is held partly responsible for the unlawful actions of a third party, an employee. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party, and is negligent in carrying out that responsibility and exercising that control
Vicarious liability
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Vicarious liability
A situation in which one party- for example, an employer- is held partly responsible for the unlawful actions of a third party, an employee. Vicarious liability can arise in situations where one party is supposed to be responsible for (and have control over) a third party, and is negligent in carrying out that responsibility and exercising that control
249
An arrangement set up by means of a website or mobile app in which a passenger travels in private vehicle driven by its owner, for free or for a fee
Ridesharing
250
Ridesharing
An arrangement set up by means of a website or mobile app in which a passenger travels in private vehicle driven by its owner, for free or for a fee
251
An arrangement set up by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services
Carsharing
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Carsharing
An arrangement set up by means of a website or mobile app that links renters and car owners. Sometimes called vehicle sharing or peer-to-peer car rental services
253
One that holds real or personal property under a lease, for example, a tenant of a rented premises
Lessee
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Lessee
One that holds real or personal property under a lease, for example, a tenant of a rented premises
255
A contract by which one party called the lessor, conveys to another, called the lessee, real estate, equipment, or facilities for a specified term and for a specified rent
Lease
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Lease
A contract by which one party called the lessor, conveys to another, called the lessee, real estate, equipment, or facilities for a specified term and for a specified rent
257
To bring together
| The total sum, mass or assemblage; overall total
Aggregate
258
Aggregate
To bring together
| The total sum, mass or assemblage; overall total
259
The exposure for injury or death to occupants of public automobiles
Passenger hazard
260
Passenger hazard
The exposure for injury or death to occupants of public automobiles
261
Underinsured motorist coverage
An optional bodily injury and property damage coverage that applies in an accident involving a third party who does not carry adequate liability insurance
262
An optional bodily injury and property damage coverage that applies in an accident involving a third party who does not carry adequate liability insurance
Underinsured motorist coverage
263
A charge upon real or personal property as security for some debt or duty. Also, the security interest created by a mortgage. The conditions of an insurance policy require the disclosure to the insurer of any existing lien on the insured property
Lien
264
Lien
A charge upon real or personal property as security for some debt or duty. Also, the security interest created by a mortgage. The conditions of an insurance policy require the disclosure to the insurer of any existing lien on the insured property
265
A statute that requires motorists to be able to establish their financial responsibility. Essentially, it assures the availability of money to pay damages awarded to the victim of an automobile accident. The most usual form of proof is an insurance policy.
Financial responsibility law
266
Financial responsibility law
A statute that requires motorists to be able to establish their financial responsibility. Essentially, it assures the availability of money to pay damages awarded to the victim of an automobile accident. The most usual form of proof is an insurance policy.
267
Special programs to ensure insurance availability for risks that, from an underwriting standpoint, are less desirable and more hazardous
Residual Markets
268
Residual Markets
Special programs to ensure insurance availability for risks that, from an underwriting standpoint, are less desirable and more hazardous
269
A measurement of an insurer’s exposure. It means an automobile insured for a period of 12 months. For example, a single policy providing coverage on three automobiles for a six-month term would represent an exposure to the insurer of 1.5 car years
Vehicle years (or car years)
270
Vehicle years (or car years)
A measurement of an insurer’s exposure. It means an automobile insured for a period of 12 months. For example, a single policy providing coverage on three automobiles for a six-month term would represent an exposure to the insurer of 1.5 car years
271
A method where a group of individuals form a network to pool their premiums to insure against a risk
Peer to Peer ( P2P) insurance
272
Peer to Peer ( P2P) insurance
A method where a group of individuals form a network to pool their premiums to insure against a risk
273
Damages awarded by a court of law for the pain and suffering of an individual; applies in a third-party injury claim
General damages
274
General damages
Damages awarded by a court of law for the pain and suffering of an individual; applies in a third-party injury claim
275
Actual loss from the natural, not the necessary, consequences of the subject of complaint; for example, specific payments for medical bills or car repairs. In third-party claims, it means the damages that may be proved with documents
Special damages
276
Special damages
Actual loss from the natural, not the necessary, consequences of the subject of complaint; for example, specific payments for medical bills or car repairs. In third-party claims, it means the damages that may be proved with documents
277
Trending
Trending is the process of adjusting statistics for premiums and losses to current or anticipated future levels to represent changes in insurance experience from economic and demographic forces and to use data to determine present and anticipated future levels of cost
