Insurance Policy Analysis Flashcards Preview

Course 2 Vocab > Insurance Policy Analysis > Flashcards

Flashcards in Insurance Policy Analysis Deck (16):
1

Contract of indemnity

A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss.

2

Collateral source rule

A legal doctrine that provides that the damages owed to a victim should not be reduced because the victim is entitled to recover money from other sources, such as an insurance policy.

3

Contract of adhesion

Any contract in which one party must either accept the agreement as written by the other party or reject it.

4

Reasonable expectations doctrine

A legal doctrine that provides for an ambiguous insurance policy clause to be interpreted in the way that an insured would reasonably expect.

5

Consideration

Something of value or bargained for and exchanged by the parties to a contract.

6

Conditional contract

A contract that one or more parties must perform only under certain conditions.

7

Self-contained policy

A single document that contains all the agreements between the insured and the insurer and that forms a complete insurance policy.

8

Monoline policy

Policy that covers only one line of business.

9

Package policy

Policy that covers two or more lines of business.

10

Modular policy

An insurance policy that consists of several different documents, none of which by itself forms a complete policy.

11

Manuscript form

An insurance form that is drafted according to terms negotiated between a specific insured (or group of insureds) and an insurer.

12

Declarations page (declarations, or dec.)

An insurance policy information page or pages providing specific details about the insured and the subject of the insurance.

13

Insuring agreement

A statement in an insurance policy that the insurer will, under described circumstances, make a loss payment or provide a service.

14

Exclusion

A policy provision that eliminates coverage for specified exposures.

15

Policy condition

Any provision that qualifies an otherwise enforceable promise made in the policy.

16

Principle of indemnity

The principle that insurance policies should provide a benefit no greater than the loss suffered by an insured.