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Terms Flashcards

(66 cards)

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1
Q

Agent

A

Person authorized to represent insurer dealing with 3rd parties in matters relating to insurance.

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2
Q

Bailee for Hire

A

Has temporary possession of personal property of others for a purpose other than sale and who is compensating for caring for it.

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3
Q

Binder

A

Written or oral agreement from the insurer giving temporary protection to insured pending issue of the policy.

Ex: you bought insurance from broker but not given the full contract/wording but payment made

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4
Q

Bodily Injury

A

Defined in liability policies to mean bodily Injury, sickness or disease sustained by a person, including death from any of these.

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5
Q

Broker

A

Independent middleman, not tied to a particular company, who obtains insurance for clients from insurance companies or their agents.

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6
Q

Burglary

A

In insurance policies: unlawful taking of property from within the premises by a person unlawfully entering or leaving the premise as evidenced by marks of forcible entry or exit.

Ex: break in not let in

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7
Q

Commission

A

Sum paid as remuneration to the broker for business placed with an insurer

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8
Q

Condition

A

A condition imposed upon the insureds under the policy requires then to do or not do something during the policy term

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9
Q

Condominium

A

A system of seperate ownership of individual units in a multiple unit building

Apartments building

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10
Q

Consideration

A

In a contract, an exchange of something of value between the parties

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11
Q

Contract

A

An agreement between two or more parties which is enforceable at law

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12
Q

Damages

A

An amount of money awarded to the person injured by another’s tort (a legal wrong where court remedies the wrong)

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13
Q

Deductible

A

The specific dollar amount or percentage of the insured value to be borne by the insured before he is entitled to recovery from the insurer.

Ex: pay this before they fix your car for the rest of the damage.

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14
Q

Disability

A

For accident and sickness insurance: a physical or mental inability to work

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15
Q

Dwelling

A

The building occupied as a private residence

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16
Q

Endorsement

A

Acknowledges a change in the terms of the contact

“I endorse this change”

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17
Q

Ethics

A

Relating to moral character. Conforming to professional standards of conduct.

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18
Q

Exclusion

A

Provision specifying the situations, occurrences or persons not covered by the policy

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19
Q

Fiduciary

A

One who manages money or property for another

“The guy who manages my money is a real douche. Fiduciary.”

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20
Q

Fire

A

Loss of property due to ignition or burning

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21
Q

Floater

A

Insurance document used to provide coverage for property having high degree of mobility.

Think auto insurance (Cass) or marine cause it floats

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22
Q

Forthwith

A

Without delay. Forthwith = immediately

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23
Q

Fraud

A

A deliberate attempt to deceive, with a view to securing some profit.

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24
Q

Friendly fire

A

Fire where it is supposed to be.

Aka in the fire place

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25
Hazard
A condition which may cause a peril to occur
26
Hold harmless
A contractual agreement whereby one party assumes legal responsibility for the acts of another. Humans are most harmless because aliens hold them
27
Hostile fire
Fire that becomes uncontrollable or breaks out from where it should be. Becomes a hostile element
28
Indemnity (principle of)
Insurance principle which aims at ensuring the victim of loss recieves the actual amount of the loss. No more and no less. Cannot profit from loss. Under paid means incomplete
29
Insurance interest
People have an insurable interest when they are able to show that they would suffer financially from a loss. Required for contracts. Ex: if I hit someone I can't pay for their injuries.
30
Insurance
The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril the object of insurance may be exposed. Pay sum or other thing of value upon the happening of a certain event. Ex: house fire destroys jewelry. Pay or receive equal value
31
Loading
The rate over and above the fire rate which is charged by the insurer to provide additional policy coverages "Load on more coverages for my home"
32
Material fact
A fact which, if known to the insurer, would cause it to decline the insurance altogether. Or charge a higher premium. Ex: your house is next to a firework factory or is on a fault line
33
Minimum retained premium
The minimum amount of premium an insurer will retain in the event the policy is cancelled prior to its expiry. Ex: pay for how many days you've had insurance so far
34
Negligence
Failure to use degree of care a reasonable prudence person would under the given circumstance Ex: negligent to not check equipment before use
35
Partial loss
A loss under an insurance policy which does not either completely destroy or render worthless the insured property. Or which does not exhaust the insurance limits for it. Ex: car is damaged but still driveable and can be fixed for less than replacement.
36
Payee
One to whom insurance monies are payable in the event of a loss to insured property. Payee.... Pay meeeee
37
Peril
The cause of loss. Ex: fire, wind, flood.... Help I'm in peril and about to lose
38
Premises
The land contained within lot lines
39
Premium
The money or consideration paid by the insured to the insurer for insurance protection. Pay this premium protection money to be covered
40
Private protection
Refers to the things a person has done internally to prevent or reduce loss. Ex fire alarms, deadbolts, etc
41
Property damage
In commercial liability insurance policies generally defined as "physical injury tangible to property, including all resulting loss of use of that property, or loss of use of tangible property that is not physically injured." A flood caused our office to close but my computer is fine on the upper floors but I can't get to it.
42
Public protection
Refers to the protection provided to insured property from outside sources. Ex: fire station nearby, neighbourhood watch?
43
Pure risk
Involves the chance of financial loss with no chance of financial gain. only insurable risk
44
Rebate
Discount or reduction in stipulated premium of policy generally by agent or broker and intended as an enticement Ex: get insurance from us and we'll give you a rebate on the first 3 months
45
Relative
One person connected to another by blood or affinity
46
Repair
The act of restoring a damaged structure or thing to a condition as close as possible to the original existence
47
Replacement cost
Cost of replacing, repairing, constructing or reconstructing. Whichever is the least cost for the property on the same site with new property of a like kind and quality and for like occupancy without deduction for depreciation. Ex: RCC for ICBC. Pay the price of the car when it was new or market value. No depreciation
48
Retention
Self insurance. Meaning generating funds from within organization to pay for losses. Ex: Air Canada just pays for lost luggage. Or something similar
49
Rider
Adds additional coverage to existing contract. More riders on this bus of an insurance contract!!
50
Risk control
Risk management technique concerned with taking measures to reduce the frequency and severity of losses. Install railings so guests don't fall off walkways as much. Reducing the liability costs
51
Risk
The chance of financial loss to which the object of insurance may be exposed
52
Robbery
Felonious taking of property from the possession of another against his will, accomplished by means of force or fear.
53
Subrogation
Lawful substitution of a third party in place if a party having a claim against another party. Insurers have the right to step in the shoes of the party whom it compensated and sue any party whom the compensated could have sued. Ex: insurer is going Rogue and suing the guilty party for damaging a major business and costing millions
54
Theft
The taking of property without the owners consent Not the same as burglary or robbery
55
Third party
One who is not a party to the insuring agreement but who may have rights therein Ex: pedestrian hit by ICBC client has rights to be covered under offender's insurance
56
Tort
A legal wrong, other than a breach of contract, for which the court will provide a remedy in the form of a suit for damages. Examples: assualt, false arrest... Something you have the right to sue the other over
57
Tortfeasor
Person who commits a tort. A wrong doer. Ex: an criminal
58
Total loss
Complete destruction of insured property
59
Underwriter
A. The one assuming a risk in return for the payment of a premium. B. The person within the insurance company authorized to accept or reject applications for insurance.
60
Utmost good faith
A requirement for insurance contracts; implies complete honesty. Concealing nothing.
61
Valued policy
One in which the insured and insurer agree as to th value of property insured in advance of any loss. Such amount is to be paid in the event of total loss of the covered property.
62
Void
Having not legal force or binding effect. Insurance is void so no obligation to pay for a loss
63
Voidable
That which is capable of being declared void
64
Waive
To voluntarily give up a right
65
Waiver
The unilateral and voluntary relinquishment of a known right Ex: sign a liability waiver for a boat tour. Give up right to sue
66
Waiver of coinsurance
Clause in commercial property insurance policies which provide that the coinsurance penalty will not be applied in situations involving small losses even though insured may not be in compliance with coinsurance requirements. Eg. Penalty waived for losses which are less than 2% of amount of insurance and less than $5000

Insurance terms (1 decks)

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