Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

CAIB 1 > Key Terms > Flashcards

Key Terms Flashcards

(83 cards)

Start Studying
1
Q

Fiduciary

A

One who occupies a position of special trust or confidence in the handling or supervising of the affairs or funds of another

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

Risk

A

Chance of financial loss to which an object of insurance is exposed

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

Speculative Risk

A

The chance of financial loss or gain

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

Pure Risk

A

The chance of financial loss but no chance of financial gain

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

Insurance

A

To pay a sum of money or other thing of value upon the happening of a certain event

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

Contract

A

An agreement between two or more persons which creates an obligation to do or not to do something

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

Consideration

A

An exchange of something of value between parties

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

Insurable Interest

A

One has an insurable interest in the subject matter of the insurance when they will suffer financially by a loss

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

Utmost Good Fatih

A

The law requires insurance contracts maintain a higher standard of honesty than is needed of other contracts

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

Indemnity

A

Application of the principle of indemnity ensures people receive the actual amount of their loss, no more and no less

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

Insurance Binder

A

A temporary agreement in which the insurer agrees to provide certain coverages pending the issuance of the policy

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

Agency Agreement

A

A written agreement or contract between the insurer and the brokerage which acknowledges their relationship

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

Void Contract

A

One which is unable in law to support the purpose for which it was intended. Such contracts are deemed never to have existed

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

Voidable Contract

A

A contract that may be voided at the option of the wronged party only and not the wrongdoer

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

Peril

A

The cause of a loss

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

Direct Loss

A

Occurs when the peril insured actually attacks the object of insurance

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

Indirect Loss

A

Losses which arise as a consequence of a direct loss

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

Actual Cash Value

A

New or replacement cost of property at the time of the loss, less depreciation

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

Replacement Cost

A

The cost to repair the lost or damaged property with new property of like kind and quality, without dedcution for depreciation

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

Valued Policy

A

Both the insured and insurer agree at the time the policy is issued as to the cash value of the property. In the event of a loss, the agreed amount would be paid

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

Blanket Coverage

A

Policy provided a single limit of insurance for all property falling within a specific class

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

Scheduled Coverage

A

Covered property is itemized on the policy

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

Unearned Premiums

A

Premiums not yet earned by insurer, held in trust in order to refund insureds in the event that the policy is cancelled

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

Fire

A

Involves the presence of a visible flame or glow, actual ignition or burning is required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Friendly Fire
A fire that is contained in its proper receptacle
26
Hostile Fire
A fire that passes outside of the limits assigned to it
27
Proximate Result
Damage which arises from a natural or continuous sequence of the peril causing the loss
28
Material Change
Any changes within the control and knowledge of the insured, and which arises after the policy has been issued and serves to increase the chance of loss
29
Pro Rata
Basis or return premium calculation when the insurer cancels the policy
30
Short Rate
Basis or return premium calculation when the insured cancels the policy
31
Notice of Loss
Immediate report of loss to insurer by insured or their agent in writing
32
Proof of Loss
A formal verification, under oath, of the details and amounts being claimed under the policy
33
Fraud
A deliberate attempt to deceive, with a view to securing some profit
34
Deductible
The amount the insured is required to absorb for each loss for which insurance coverage is provided before receiving any payment from insurer
35
Subrogation
When insurer pays a claim for a loss caused by a third party, the Insurance Acts allow the insurer to place itself "in the insureds shoes" in respect of their right to recover the amount of loss from the responsible Party
36
Proprietary Insurers
Insurance companies which exist to make a profit or return on their investment
37
Non-Proprietary Insurers
Insurance companies which are organized for reasons other than profit. Owned and controlled by policyholders and their mandate is to secure insurance at as low a cost as possible
38
Personal Property
Contents of the insured's dwelling and other personal property owned, worn, or used by the insured while on the premises, which is usual to the ownership or maintenance of a dwelling
39
Additional Living Expenses
Coverage that provides for additional cost of living elsewhere when the dwelling is damaged by an insured peril and the damage is sufficient to make the dwelling unfit for occupancy or requires the insured to move out while repairs are being made. Also provides for loss of fair rental value if part of the dwelling was rented or being held for rental at the time of the loss
40
Vandalism
The wilful or ignorant destruction of property
41
Malicious Act
Wrongful act done without legal justification or excuse
42
Vacant
Regardless of the presence of furnishings, all occupants have moved out with no intention to return, and no new occupant has taken up residence
43
Theft
Includes means of taking property without the owner's consent
44
Mobile Home
A home that is factory built on its own chassis and which can be easily moved
45
Condominium
A system of separate ownership of individual units in a multiple unit building
46
Endorsement
An extra sheet or slip of paper attached to the policy indicating in writing that the insured and insurer have agreed to a change in the terms of the insurance contract
47
Fine Arts
Traditionally includes paintings, pictures, and other bona fide works of art of rarity, historical value, or artistic merit
48
Criminal Law
Category of law that deals with wrongs against society
49
Civil Law
Law that concerns itself with settling disputes between individuals or other legal entities in matters not involving a criminal act
50
Plantiff
The party making the complaint
51
Defendant
The party who allegedly committed the wrong
52
Tort
A wrong done to another in breach of a duty laid down by law
53
Strict Liability
Doctrine in law in which "a person is guilty until proven innocent"
54
Negligence
The omission to do what a reasonable person would do, or the doing of something which a reasonable person would not do
55
Special Damages
Damages which can be accurately measured, and which are intended to reimburse the plaintiff for out-of-pocket expenses
56
General Damages
Damages which cannot be exactly determined but which reflect an amount the court believes necessary to compensate the aggreived party fairly
57
Trespasser
One who is on another's premises for their own purpose without the express or implied permission of the occupier
58
Licensee
Someone who comes onto the premises for his own purpose but with the occupier's consent
59
Invitee
Somone who enters by invitation, be it express or implied, where there is benefit to the owner or mutual benefit
60
Visitor
Classification given to a licensee or invitee under provincial Occupier's Liability Acts
61
Joint Liability
When two or more people act together so as to cause injury or damage, they are held to be jointly liable
62
Farming
Ownership, maintenance, or use of premises for the production of crops or the raising or care of livestock, including all necessary operations
63
Custom Farming
Use of insured's farm machinery or equipment for others away from insured's farm premises for compensation - does not include work done for others in return for work done for them
64
Residence Employee
Those whose duties are exclusively in connection or maintenance and use of the residence premises
65
Farm Employee
Those paid for their work and who are hired to perform duties principally connected with farming activities outside the insured's dwelling OR Persons engaged in farm related work on behalf of the insured in a neighborly exchange of assistance for which the insured is not obliged to pay any money
66
Pink Card
In provinces where automobile insurance is provided by private insurers, a PINK CARD is used to provide proof of financial responsibility
67
Facility Association
An insurance pool in which all licensed automobile insurers participate, and which provides insurance to those who may be refused insurance by private insurers
68
Driver's Abstract
A record of the driver history of the applicant and other drivers which can be obtained from provincial licensing authorities
69
Uninsured Automobile
One in which neither the driver nor the owner has collectible bodily injury liability insurance
70
Unidentified Automobile
One in which the identity of either the owner or driver cannot be ascertained and which causes bodily injury or death to an insured person arising out of actual contact of that automobile with the automobile in which the insured is an occupant
71
General Average
Designed to provide payment for ocean marine losses voluntarily incurred for the safety of the entire venture. The insurers of the parties whose property was saved shall contribute to the losses of the parties whose property was sacrificed
72
Temporary Substitute Automobile
One which is temporarily being used as a substitute for the automobile described on the policy. It qualifies only if the described automobile cannot be used because of its breakdown, repair, servicing, loss, destruction or sale
73
Occupant
Any person who drives the automobile OR is being carried on or upon or entering into or leaving the automobile
74
Newly Acquired Automobile
One which replaces an automobile described on the policy or is in addition to others owned by the insured which are all insured by the same insurer
75
Step Licensing
A step licensing system is a system which requires a higher degree of knowledge for each increasing step
76
Ethics
The principles of conduct governing an individual or group
77
Professional
A professional is one who possess special skills or knowledge
78
Self Regulation
The right of an industry to govern its own affairs
79
Insured
An Insured Applicant, their Spouse and any Dependent Children
80
Insured Applicant
A Canadian resident underage 65, insured under the government health insurance plan of his Province or Territory or Residence, who has been named on an invoice/application issued by his broker
81
Extended Family
The dependent child, spouse, parent, guardian, brother, sister, and grandparent of the Insured Applicant or Spouse
82
Accident
An unforeseen and unintended occurrence due to external, violent, sudden fortuitous causes beyond the Insured's control
83
Sickness
Bodily Sickness or disease, contracted and commencing after the policy is issued and while the policy is in effect

CAIB 1 (9 decks)

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