Terms Flashcards
(35 cards)
Accident frequency
Rate Of occurrences of accidents
Actuary
A mathematics professional whose job is to apply probability to insurance and advising situations involving probability
Adjustments
Process of determining the amount payable by one or more insurers to an insured 
“All-risks” insurance
Insurance that covers loss caused by perils except those excluded in the contract
American agency system
System of selling insurance through agents
Attractive nuisance
A dangerous place or instrumentality attractive to children and the owner has a legal duty of taking unusual care to guard them from it
Bailee
A person who goods are delivered to be held in trust
Benefits
Amounts to be paid by the insurer under the provisions of an insurance contract
Breach of warranty endorsement
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 
Coverage
The extent of the insurance afforded under an insurance contract
Deductible clause
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
Exclusion
A provision in an insurance contract stating a situation in which perils is not afforded under the insurance contract
Exposure
The state of being exposed to the risk of loss
Financial- responsibility clause
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
Floater policy
An insurance contract that covers property in any location within a specified territory
Grace period
A period following the premium due date during which payment of the premium may be made without penalty
Incontestable clause
A clause in a contract providing that the insurer may not after a specified time contest the validity of the contract
Indemnify
To make good of someone’s loss
Indemnity
The replacement, repair, or payment of value of a loss
Insurence
A pooling of hazards in order to indemnify those who experience loss
Loss
Injury or damage sustained by an insured
Loss payable endorsement
An endorsement required to be placed in a policy be the lien-holder, requiring any payment made to name the lien-holder
Managing general agency
An agency empowered to write insurance in the name of an insurance company
Mortgage clause
A clause in an insurance contract making the proceeds payable to a named mortgage, states the terms of the contract
