Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

512 - Module 1 - Vocabulary > Terms_and_Meanings_with_Definitions > Flashcards

Terms_and_Meanings_with_Definitions Flashcards

(92 cards)

Start Studying
1
Q

Term

A

Meaning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

abandonment

A

The voluntary surrender of property or rights without assigning them to anyone else.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

absolute liability

A

Liability for damages regardless of fault or negligence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

acceptance

A

Agreement to the terms of an offer, leading to a contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

actual cash value (ACV)

A

The value of property after accounting for depreciation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

adjuster

A

A person who investigates insurance claims and determines the insurer’s liability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

adverse selection

A

The tendency of those at higher risk to seek insurance coverage more than those at lower risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

aleatory contract

A

A contract in which the performance depends on an uncertain event, such as an insurance contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

attractive nuisance

A

A property condition that can attract and harm children, such as a swimming pool.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

authority

A

The legal power or right granted to act on behalf of another entity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

bilateral

A

A contract involving mutual obligations from both parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

broker

A

A person or firm that acts as an intermediary between buyers and sellers, or insured and insurers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

captive agents

A

Insurance agents who work exclusively for one insurance company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

career agents

A

Agents employed by an insurance company who sell and service its products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

coinsurance

A

A cost-sharing arrangement where the insured pays a portion of the expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

collateral source rule

A

A legal doctrine preventing defendants from reducing damages by the amount received by the plaintiff from other sources, such as insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

comparative negligence

A

A legal concept where damages are apportioned based on the degree of fault of each party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

concealment

A

The deliberate withholding of material facts in an insurance contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

conditional consideration

A

A situation where the validity of a contract depends on the occurrence of a certain event.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

contract

A

A legally binding agreement between two or more parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

contract disputes

A

Disagreements regarding the terms, performance, or validity of a contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

contract law

A

The body of law governing the formation, enforcement, and interpretation of contracts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

contract of adhesion

A

A contract drafted by one party (usually the insurer), with little or no negotiation by the other party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

contributory negligence

A

A legal doctrine where a party’s own negligence contributes to their harm, reducing or eliminating their ability to recover damages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
deductible
The amount of money the insured must pay out-of-pocket before the insurance company covers the remaining costs.
26
doctrine of estoppel
A legal principle preventing a party from arguing something contrary to what was implied by their previous actions or statements.
27
doctrine of waiver
The intentional relinquishment of a known right.
28
dynamic risks
Risks that result from changes in the economy, such as inflation or recessions.
29
equitable remedies
Non-monetary remedies granted by courts, such as injunctions or specific performance.
30
federal regulation
The body of laws and rules established by the federal government to regulate industries and activities.
31
field underwriting
The initial risk assessment done by agents or brokers in the field before submitting an application to an underwriter.
32
fundamental risks
Risks that affect a large portion of society, such as natural disasters or economic downturns.
33
hazard
A condition that increases the likelihood of a loss occurring.
34
indemnification
The process of compensating for a loss or damage.
35
indemnity
A contractual obligation where one party agrees to compensate for the losses incurred by another party.
36
independent agents
Insurance agents who represent multiple insurance companies.
37
insurable interest
A legal or financial stake in the continued existence of the insured property or person.
38
insurable risk
A risk that meets the criteria for being covered by insurance.
39
insurance contracts
Agreements between the insured and the insurer where the insurer promises to indemnify the insured against specified risks.
40
insurance producers
Licensed individuals or businesses authorized to sell, solicit, or negotiate insurance contracts.
41
last clear chance
A legal doctrine allowing a plaintiff to recover damages even if they were partially at fault, as long as the defendant had the last opportunity to avoid the accident.
42
law of large numbers
A principle stating that larger sample sizes lead to more accurate predictions of future outcomes.
43
legal object
The subject matter of a contract that must be lawful.
44
loss adjustment process
The procedure of determining the amount of compensation owed in an insurance claim.
45
misrepresentation
False statements made by an applicant or policyholder that can void the insurance policy.
46
moral hazard
The tendency for insured individuals to take greater risks because they are protected by insurance.
47
morale hazard
Indifference to risk because of insurance protection.
48
morbidity
The rate of disease or disability in a population, often used in health and life insurance.
49
mortality
The rate of death in a population, used in life insurance underwriting.
50
mutual companies
Insurance companies owned by policyholders.
51
NAIC
An organization that helps regulate and coordinate insurance regulation among states.
52
negligence per se
An act that is considered negligent because it violates a statute or regulation.
53
offer
A proposal to enter into a contract.
54
pair or set option
An insurance policy option that covers the loss of a pair or set of items, compensating for either the replacement of the set or for the individual loss.
55
parol evidence rule
A legal rule that prevents the introduction of outside evidence to contradict or alter the terms of a written contract.
56
particular risks
Risks that affect specific individuals or properties.
57
peril
The cause of a loss, such as fire, flood, or theft.
58
personal contracts
Insurance contracts that cover individuals and their property.
59
private insurance
Insurance provided by private companies rather than the government.
60
producing general agents (PGAs)
Agents who manage the production of insurance for an insurer but are independent contractors.
61
proximate cause
The primary cause of a loss in a chain of events leading to that loss.
62
public insurance
Insurance provided by government programs.
63
pure risks
Risks that only involve the possibility of loss, not gain.
64
ratification
Approval or confirmation of a previous act, making it valid.
65
reformation
A legal remedy that allows a contract to be rewritten to reflect the true intentions of the parties.
66
rescission
The cancellation of a contract, returning all parties to their original positions.
67
risk
The chance of loss or injury.
68
risk control
Actions taken to minimize the potential for loss.
69
risk financing
The process of securing funds to cover potential losses.
70
salvage
The residual value of damaged property after a loss.
71
self-insurance
A risk management strategy where an entity sets aside its own funds to cover potential losses.
72
social insurance
Government-provided insurance programs, such as Social Security or Medicare.
73
speculative risks
Risks that involve both the possibility of loss and the possibility of gain.
74
state regulation
The oversight of insurance activities by state governments.
75
static risks
Risks that are not affected by economic changes, such as natural disasters.
76
stock companies
Insurance companies owned by shareholders.
77
strict liability
Liability without the need to prove negligence or fault.
78
subrogation
The legal right for an insurer to recover the amount it has paid for a loss from a third party responsible for that loss.
79
surplus-and excess-line
Insurance provided by companies not licensed in the insured’s state, covering high-risk or unusual exposures.
80
tort
A civil wrong that causes harm or loss to another person.
81
tort law
The area of law governing civil wrongs and the compensation of damages to victims.
82
tortfeasor
The individual or entity responsible for committing a tort.
83
underwriters
Individuals who evaluate risks and decide whether to issue insurance policies.
84
unilateral
A contract in which only one party makes a promise, such as insurance policies where only the insurer promises to pay in case of loss.
85
unintentional torts
Harm caused by negligence or carelessness rather than intentional actions.
86
utmost good faith
A legal principle requiring all parties in a contract to act honestly and disclose all relevant information.
87
vicarious liability
Legal responsibility imposed on one party for the actions of another, such as an employer being liable for the actions of an employee.
88
void contract
A contract that is not legally enforceable.
89
voidable
A contract that can be legally voided by one of the parties.
90
voidable contract
A valid contract that can be voided at the option of one of the parties.
91
waiver provision
A clause in a contract that allows one party to relinquish a right.
92
warranty
A guarantee.

512 - Module 1 - Vocabulary (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions