Property and Casualty TERMS Flashcards Preview

Insurance Training Class > Property and Casualty TERMS > Flashcards

Flashcards in Property and Casualty TERMS Deck (23):
1

Risk

The chance of financial loss- Uncertainty of a loss to happen

2

Assumed Risk

Amount of risk the insured is willing to absorb

3

Speculative Risk

Uncertainty about an event under consideration that could produce either a profit or a loss

4

Pure Risk

involves a situation that present the opportunity for loss but no opportunity for gain.

5

Law of Large Numbers

theory stating the larger the number of similar exposure the more predictable the estimate of expected losses

6

Policy

Written contract or agreement for insurance including clauses, riders and endorsements

7

Declarations Page

Incclude named insured and address, Policy period, , limits and loss payee

8

Insuring Agreement

the portion of the policy which insurer promisis to make payments for covered perils

9

Conditional Contract

Insured satisfying certain conditions

10

Exclusion

Section of polity which lists property, perils, losses, persons or situation which are not covered

11

Endorsements

alteration to policy coverage, terms and conditions

12

Binders

Temporary Insurance

13

Certificate of Insurance

evidence that insurance and limits have been purchased

14

Contract of Adhesion

contract is created by ins co - insured cannot negotiate

15

Unilateral Contract

only one party makes enforceable promise

16

Personal Contract

financial loss loss suffered by a PERSON

17

Definition of Insured

specifically designated by name as an insurec

18

Insurable interest

One who has an economic interest

19

Limits of Liability

Max amount insurance will pay for loss

20

Casualty Insurance

All insurance other than life and Health

21

Non-Admitted Carrier

company not licensed in a state

22

Mail Order Insurance

Insurance sold through mail

23

Reinsurance

a transaction where ins co indemnify another ins co