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Flashcards in Property Insurance CONCEPTS Deck (28):
1

Peril

Cause of Loss

2

Hazard

Increases chance of loss from a Peril/Aumenta las posibilidades de pérdida de un peligro

3

Proximate Cause Doctrine

Unbroken connection between a covered occurrence and the damage from the occurrence.Conexión ininterrumpida entre una ocurrencia cubierta y el daño de la ocurrencia.

4

Direct loss

physical harm to tangible property/daño físico a la propiedad tangible

5

Indirect Loss

Economic loss as a consequence of Direct Loss (frecuently underestimated) /Pérdida económica como consecuencia de la pérdida directa (frecuentemente subestimada)

6

Consequential Damage / Daño consecuencial

Damage from Direct Loss i.e loss of spoilage from lack of power. / Daño por pérdida directa, es decir, pérdida de deterioro por falta de energía.

7

Lenders Interest/ Interés del prestamista

insurance assures lenders that collateral property is covered "mortgage clause" or "mortgagee clause" or "mortgage Holders" /"loss payable clause" (loss payee)/El seguro asegura a los prestamistas que la propiedad colateral está cubierta por una "cláusula hipotecaria" o una "cláusula hipotecaria" o por "tenedores de hipoteca" / "cláusula por pérdida vencida" (beneficiario de la pérdida)

8

Lenders Interest 1,2,3,4

1) Make lender a payee in any covered loss
2) gives mortgagee advance notice of cancellation/nonrenewal/reduction of coverage
3) mortgagee is covered even if insured is engages in act or omission preventing payment
4) mortgagee can continue policy if premium is not paid.
1) Hacer que el prestamista sea beneficiario en cualquier pérdida cubierta
2) dar aviso anticipado al acreedor hipotecario de cancelación / no renovación / reducción de cobertura
3) el acreedor hipotecario está cubierto incluso si el asegurado participa en actos u omisiones que impiden el pago
4) el acreedor hipotecario puede continuar con la póliza

9

Principle of indemnity

one should not profit. Actual cash value (ACV)=Replacement cost (R/C) Less Depreciation

10

Departures: Replacement Cost/ Salidas: costo de reemplazo

New for old, required to replace; Florida Value Policy Law, if a total loss, the co. must pay the policy limit.

11

Departures: b) Agreed: Valued policy:

insurer agrees in advance to a stated amount/ la aseguradora acuerda por adelantado una cantidad establecida.

12

Market Value

the price that would have to be paid to purchase an asset in that market.

13

COINSURANCE

DID (limit of insurance) * LOSS = Recovery
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SHOULD (Property value) * Coinsurance

14

Coinsurance

Insured agrees to carry a certain percentage (80%, 90% or 100%) of the property value (i.e ACV or Replacement Cost) in insurance, if they do, we will pay the loss; if not we will penalize them.

15

Specific Insurance

separate limit for each building and contents or item

16

Blanket Insurance

Single limit of two or more covered items - full limit applies to any one item

17

Vacancy

Absence of people and personal property from a building. coverage may be restricted after a period of vacancy.

18

Unoccupied

Without occupants, with personal property in building.

19

Theft

Any unlawful taking of property

20

Robbery

Taking property by causing or threating body harm

21

Burglary

Taking of property by breaking & entering, leaving visible signs of forcible entry or exit

22

Mysterious Disappearance

The vanishing of insured property in an unexplained manner.

23

Premium

The amount of money an insurer charges to provide the coverage described in the policy or bond. /La cantidad de dinero que una aseguradora cobra para proporcionar la cobertura descrita en la póliza o fianza.

24

Deposit Premium

Required by the insurer on forms of insurance subject to periodic premium adjustment.

25

Earned Premium

That portion of a policy"s premium that applies to the expired portion of the policy.

26

Premium Financing

Involves the lending of funds to a person or company to cover the cost of an insurance premium.

27

Premium Finance Company

Has power of attorney, can cancel the policy, must return unearned premium.

28

Audit

A review of the financial records of a person/ organization conducted annually to determine exposures, premiums etc.