Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Insurance CAIB 2 > Glossary Of Terms > Flashcards

Glossary Of Terms Flashcards

1
Q

Accommodation Business

A

Substandard risks taken on by underwriters as a favour to the broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Actual Cash Value

A

Replacement Cost Minus Depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Actual Loss Sustained (Business interruption)

A

Loss of income that you would have earned otherwise had the business interruption not occurred.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Adverse Selection

A

When an underwriter picks a poor risk (either too risky or unprofitable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

All Property

A

Coverage where all property owned by the insured is covered under 1 limit

Note: can even extend to cover multiple locations & still subject to exclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Area Protection

A

Used to restrict unauthorized access to certain areas (protects the interior)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Bailee For Hire

A

Some who has custody of the property of others for purpose other than sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Burglary

A

Unlawful taking of property by someone illegally entering or leaving the premises with evidence of forced entry or exit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Catastrophe Limit

A

The maximum payable for 1 occurrence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Centrifugal Force

A

The tendency of an object to move away from the centre of rotation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Common Carrier

A

Someone who carries goods for the general public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Common Hazards

A

Hazards common to all buildings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Condition

A

A Requirement to do or not do something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Contract Courier

A

Carries, for compensation, the goods for their customers only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Contributing Property

A

A major supplier or manufacture that your business depends on for continued operation.

Note: If the contributing property has a loss, it may affect your business’ ability to continue operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Custodian

A

Insured, partner or their employee authorized to have custody of insured property excluding guards, janitors, porters or watchman

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Data

A

Information stored on media

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Detachment

A

Proximity to nearby commercial exposures (buildings)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Discovery Period

A

The time starting after policy expiry, that the insured has to discover a claim for it to be covered under the policy.

Example Crime Policy 1 Year after expiry.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Electrical Breakdown

A

The failure of an electrical component

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Electronic Protection

A

Electronic barriers to restrict unauthorized access

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Employee Dishonesty

A

A dishonest or fraudulent act committed by an employee action alone of with others.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Endorsement

A

A document issued by the insurance company to change the terms of the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Fire Resistive

A

The material is tested to be able to withstand 2-3 hours of a controlled fire

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Fixed Expenses
Expenses that continue during a business inteription
26
Forgery
Unauthorized altering of writing to do something while purporting to be the act of another who did not authorize that act
27
Fraudulent / Fraud
A wilful act intended to cheat and cause loss to others to a gain to self.
28
Gradual Deterioration
The deterioration that occurs naturally over time
29
Gross Profit
Net Sales minus cost of goods sold
30
Hard market
Low investment returns lead to low margins, strict underwriting and higher prices
31
Hazard
Condition that can cause a peril to occur
32
Income
All monies earned by providing sales or services
33
Latent defect
a defect hidden from reasonable inspection
34
Line Securty
The ability of a phoneline to resist tampering
35
Loading
The additional rate changed on top of the basic fire rate to insure against additional perils.
36
Magnet Proprty
An anchor or leader property that attracts traffic to your store Note: A loss to a magnet property leads to deduced customer traffic to your area meaning reduced income for the businesses in that area.
37
Material Face
Insurer would change decision if known. Includes matters inherent in property and personal information.
38
Mechanical Breakdown
Failure of a working mechanism
39
media
Material that data is stored on
40
Messenger
Insured, partner, or employee who is allowed by the insured to have custody of the insured property outside the premises.
41
Money
Currency and coins in current use that have face value
42
Morale Hazard
Attitude of the applicant that can cause a peril to occur
43
Mysterious Disappearance
Disappeared under circumstances that can't be explained (no justified reason).
44
Net Profit
Gross profit minus operating costs
45
Moral Hazard
Subjective characteristics of the applicant that can cause a peril to occur
46
Newly Acquired Location
A new location owned, rented or controlled by the insured
47
Non-Combustible
The structural members of the building are made with materials that do not catch fire. Note: Not a good a Fire Resistive
48
Ordinary Care
Acting in the same manner or showing the same level of care as a prudent and diligent owner of the property.
49
Ordinary Payroll Expense
All payroll expenses minus those attributed to officers, contractors, and other key personnel (people you cannot dispense with during the business interruption)
50
Perimeter Protection
Methods used to secure the premises while the business is closed
51
Physical Hazard
Conditions relating to use of tangible property that can cause a peril to occur.
52
Physical Protection
Physical barriers to restrict unauthorised access.
53
Point Protection
Provides direct security to individual items
54
Private Carrier
A party that carries their own goods
55
Recipient Property
A major customer for the goods you produce (especially if you operate in an industry where there is a limited market for your goods) Note: You depend on the continued operations of your customers to purchase the products you make/sell
56
Reinsurance
An insurer cedes part of the risk to their reinsurers
57
Released Bill of Lading
Releases the carrier of all liability
58
Replacement Cost
The insurance option that will pay you up to replacement value.
59
Replacement Value
The cost to replace for repair the property with materials of like kind and quality (No depreciation is applied)
60
Rider
A document issued by the insurance company to add coverage to the policy
61
Risk Classification
Classifying risks based on probability of loss
62
Robbery
Taking of insured property from a custodian by someone who caused or threatened bodily harm to a custodian, committed an unlawful act witnessed by a custodian, or took the property from a custodian killed or rendered unconscious
63
Scheduled Coverage
Coverage where the insured property is specifically identified (scheduled) onto a policy. Note: No Coverage for property or categories not identified Can Specify limits for each
64
Securities
Negotiable or Non-negotiable instruments representing money or other property (including: revenues, stamps, tokens, tickets)
65
Semi-Variable Expenses
Expenses that may or may not continue during a business interruption.
66
Soft Market
Good investment returns lead to high competition between insurers leading to looser underwriting and lower prices.
67
Standard (Ordinary) Bill of Lading
The carrier's liability is limited to the tariff for the class of goods.
68
Subrogation
To "step into the shoes" of another and assume their legal rights (ie to recover damages)
69
Subscription
A group of insurers come together and agree to insure a risk.
70
Supporting Business
Other business the applicant has with the insurer Note: Used to support his application
71
Temporary Location
A location not named on the policy, is not owned, rented or controlled by the insured, and is not in transit.
72
Tenants' Improvements
Betterments made or paid for by tenants
73
Theft
All means of taking property without the owner's consent
74
Trade Lossses
Losses expected as part of everyday operations
75
Unoccupied
Lack of habitual human presence
76
Void Contract
A contract the is no longer legally enforceable
77
Vacant
Lack of normal occupancy (the occupants have left with no intention to return)
78
Valued Bill of Lading
Increases the carrier's liability to the negotiated amount
79
Warranty
A promise that certain material facts are true and shall remain true
80
Wear & Tear
Deterioration cased by ordinary and reasonable use
81
Inherent Vice
Something within a commodity or other kind of property that causes its demise over time.

Insurance CAIB 2 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions