Property and Casualty Terms Flashcards
(24 cards)
Accident
is a sudden, unplanned and unexpected event, not under the control of the insured.
Occurrence
is broader definition of loss than accident because it includes those losses caused by continuous or repeated exposure to condition resulting in injury to a persons or damager to property that is neither intended or nor expected.
There are 2 types of property losses.
Direct and indirect loss
property insurance ONLY covers direct losses.
Direct loss
Direct physical damage to buildings and / or personal property. Includes other damage where the insured peril was the proximate cause of loss.
Indirect losses
also known as consequential losses. are losses considered a result of direct loss. such losses usually result from the time it takes to repair or replace a damage property.
Named Peril
is a term used in property insurance to describe the breadth of coverage provided under an insurance policy form that lists specific covered perils. No coverage is provided for unlisted perils.
Opens Peril
is a term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against any risk of loss that is not specifically excluded. ( this term replaced the use therm of “all risks”.
Property Damage
The extent of the loss is usually simple to determine. Is measured by the value of the property damaged or destroyed and the loss of use of that asset.
Bodily injury
May lead to claims by the injured party not only for medical expense and lost wages but also for mental, pain etc.
Two classes of compensatory damages
are special and general damages.
Special damages
are specific out - of- pocket expenses for medical and miscellaneous expenses and loss of wages.
General damages
compensate the injured person for pain and suffering, mental anguishing etc.
Punitive damages
which is form of punishment for extreme outrageous behavior, gross negligence or willful intent.
Contributory Negligence
the injured party must be completely free of fault in order to collect.
A variation of contributory negligence is known as
The last clear chance rule.
Comparative negligence
The other party’s negligence or fault will not necessarily defeat the claim. Both parties are at fault.
Burglary
is the crime of forced entry into or out of the premises of another by a persons with felonious intent. Must be visible signs of forced entry or exit for insurance to cover.
Robbery
is taking of property from the care and custody of a person by one who has caused or threatened to cause that person bodily harm, or committed an obviously unlawful act witnessed by that person.
Theft
is any act of stealing and encompassed both burglary and robbery.
Mysterious disappearance
is the disappearance of property without knowledge as to the location, time or how the property was lost.
Losses by mysterious disappearance are excluded from most insurance policies.
Vacancy
refers to an insured structure in which no people have been living or working and no property has Benn restored for the period of time. (usually 60 days)
unoccupancy
(nonocupacy) refers to an insured structure in which no people have been living or working, within the required period of time, but some property is stored.
Blanket Coverage
is a single property insurance policy that provides coverage for multiple classes of property at one location for one or more classes of property at multiple locations.
Specific insurance
is a property insurance policy that covers a specific kind of property for a specific amount of insurance.
