Terms

Question 1

Accident frequency

Answer 1

Rate Of occurrences of accidents

Question 2

Actuary

Answer 2

A mathematics professional whose job is to apply probability to insurance and advising situations involving probability

Question 3

Adjustments

Answer 3

Process of determining the amount payable by one or more insurers to an insured 

Question 4

“All-risks” insurance

Answer 4

Insurance that covers loss caused by perils except those excluded in the contract

Question 5

American agency system

Answer 5

System of selling insurance through agents

Question 6

Attractive nuisance

Answer 6

A dangerous place or instrumentality attractive to children and the owner has a legal duty of taking unusual care to guard them from it

Question 7

Bailee

Answer 7

A person who goods are delivered to be held in trust

Question 8

Benefits

Answer 8

Amounts to be paid by the insurer under the provisions of an insurance contract

Question 9

Breach of warranty endorsement

Answer 9

An endorsement required to be attached to the policy by the lienholder, specifying that no act of the insured will impair the ability of the lienholder to recover the money under the policy 

Question 10

Coverage

Answer 10

The extent of the insurance afforded under an insurance contract

Question 11

Deductible clause

Answer 11

A clause in an insurance contract providing that the insurer will pay only that amount of any loss That is an excess of a specific amount

Question 12

Exclusion

Answer 12

A provision in an insurance contract stating a situation in which perils is not afforded under the insurance contract

Question 13

Exposure

Answer 13

The state of being exposed to the risk of loss

Question 14

Financial- responsibility clause

Answer 14

A clause in an insurance contract subjecting it to the requirements of any financial responsibility law & requires insureds to reimburse insurers for any reimbursements it’s not required to make

Question 15

Floater policy

Answer 15

An insurance contract that covers property in any location within a specified territory

Question 16

Grace period

Answer 16

A period following the premium due date during which payment of the premium may be made without penalty

Question 17

Incontestable clause

Answer 17

A clause in a contract providing that the insurer may not after a specified time contest the validity of the contract

Question 18

Indemnify

Answer 18

To make good of someone’s loss

Question 19

Indemnity

Answer 19

The replacement, repair, or payment of value of a loss

Question 20

Insurence

Answer 20

A pooling of hazards in order to indemnify those who experience loss

Question 21

Loss

Answer 21

Injury or damage sustained by an insured

Question 22

Loss payable endorsement

Answer 22

An endorsement required to be placed in a policy be the lien-holder, requiring any payment made to name the lien-holder

Question 23

Managing general agency

Answer 23

An agency empowered to write insurance in the name of an insurance company

Question 24

Mortgage clause

Answer 24

A clause in an insurance contract making the proceeds payable to a named mortgage, states the terms of the contract

Question 25

Notice of policy termination endorsement

Answer 25

An endorsement required to be placed in a policy by the lien-holder, giving lien holder specific amount of time before insurer terminates coverage

Question 26

Peril

Answer 26

The cause of possible loss

Question 27

Premises

Answer 27

A particular location defined by the insurance policy

Question 28

Premium

Answer 28

The amount charged for insurence

Question 29

Proof of loss

Answer 29

A formal written statement of a claim for payment of a loss with supporting data

Question 30

Protection

Answer 30

A promise of payment of indemnify

Question 31

Salvage

Answer 31

Property taken over by insurer on payment of loss

Question 32

Standard form

Answer 32

A contract form in general use by insurers approved by a state insurance department

Question 33

Surety

Answer 33

The bond itself
Guaranteeing faithfulness under a bond

Question 34

Waiting period

Answer 34

A period during which benefits are not payable when in peril

Question 35

Workers compensation law

Answer 35

A statute imposing liability on employers to pay benefits to employees in peril & benefits to dependents of employees killed