Vocab

Question 1

Rebating

Answer 1

Key Words:Refund,discount, promise/offer
Offering or promising a discount or refund of part of the premium, agent’s commission, earnings, profits, dividends, benefits, special advantages, or anything of value not specified in the policy
Other Info: Payment and acceptance of rebate is prohibited = class B misdemeanor

Question 2

Defamation

Answer 2

Key Words: injure, false, maliciously, reputation
to make, issue, or circulate any pamphlet, circular, article, literature, or verbal or written statement that contains false or maliciously critical statements made with the intent to injure any company doing business in Illinois in its reputation or business.
Other Info: is punishable by a fine of $200 to $10,000

Question 3

Discrimination

Answer 3

Key Words: unfair, prejudicial, based, perceived
The process of making unfair or prejudicial distinctions between people based on the groups, classes, or other categories to which they belong or are perceived to belong, such as race, gender, age, religion, physical attractiveness or sexual orientation.

Question 4

Non renewal

Answer 4

Key Words: ends, policy term, expiration, renew
When the insurer chooses not to renew the policy, and coverage ends at the expiration of the policy term
Other Info: Notice of non renewal must be provided in advance, with requirements set by state law

Question 5

Misrepresentation

Answer 5

Key Words: false statement
A false statement contained in the application, that usually does not void coverage or the policy as long as it is immaterial.
Other Info: If the statement is material to the issuance of coverage= coverage doesn’t apply. Material misrepresentation may cause the insurer to void the policy.

Question 6

Mine subsidence

Answer 6

Key Words: ground, mine level, underground, failure, damage
Ground movement caused by a failure initiated at the mine level of man made underground mines that directly damage residences or commercial buildings
Other Info: Does not include earthquake, landslide, volcanic eruption, roots of trees/shrubs, rapid transit tunnels, collapse of storm/sewer drains, soil conditions, erosion, freezing/thawing, improperly compacted soil, construction defects.
Can be applied to buildings and to service structures(driveways, sidewalks, septic systems).
Mine subsidence coverage must be included in every policy issued or renewed insuring a residence, commercial building, or living unit on a direct basis, at a separately stated premium, unless waived in writing by the insured.

Question 7

Actual Cash Value

Answer 7

Key Words: repair/replace, minus depreciation
The policy will pay for the cost to repair or replace the damaged property at the time of loss, minus depreciation.

Question 8

Replacement Cost

Answer 8

Key Words: replace, property, like kind/quality, current pricing
The cost to replace property with property of like kind and quality, at current pricing, without a deduction for depreciation
Other Info:

Question 9

Market Value

Question 10

Salvage Value

Question 11

Blanket Limit

Question 12

Specific Limit

Question 13

Scheduled Limit

Question 14

Deductible

Question 15

Open Perils

Question 16

Named Perils

Question 17

Theft

Question 18

Burglary

Question 19

Mysterious Disappearance

Question 20

Robbery

Question 21

Unoccupancy

Question 22

Vacancy

Question 23

Bailee

Question 24

Bailor

Question 25

Proximate Cause

Question 26

Concurrent Causation

Question 27

Inherit Vice

Question 28

Direct Loss

Question 29

Indirect Loss

Question 30

Contract

Question 31

Representations

Question 32

Misrepresentations

Question 33

Principle of Indemnity

Question 34

Binder

Question 35

Insurable Interest

Question 36

Accident

Question 37

Occurence

Question 38

Certificate of Insurance

Question 39

Contribution by Equal Shares

Question 40

Subrogation

Question 41

Liberalization

Question 42

Flat Cancellation

Question 43

Short-rate Cancellation

Question 44

Pro rata Cancellation

Question 45

Policy Period

Question 46

Policy Territory

Question 47

Nonrenewal

Question 48

Named Insured

Answer 48

Fi

Question 49

First Named Insured

Question 50

Additional Insured

Question 51

Primary Insurance

Question 52

Excess Insurance

Question 53

Concurrent Policies

Question 54

Nonconcurrent Policies

Question 55

Notice of Loss

Question 56

Proof of Loss

Question 57

Cancellation

Question 58

Earned Premium

Question 59

Unearned Premium

Question 60

Waiver

Question 61

Estoppel

Question 62

Fraud

Question 63

Concealment

Question 64

Declarations

Question 65

Insuring Agreement

Question 66

Conditions

Question 67

Exclusions

Question 68

Limitations

Question 69

Endorsements

Question 70

Additional Coverages

Question 71

Definitions

Question 72

Risk

Question 73

Pure Risk

Question 74

Speculative Risk

Question 75

Loss

Question 76

exposure

Question 77

peril

Question 78

hazard

Question 79

physical hazard

Question 80

moral hazard

Question 81

morale hazard

Question 82

risk sharing

Question 83

risk transfer

Question 84

risk avoidance

Question 85

risk reduction

Question 86

risk retention

Question 87

law of large numbers

Question 88

adverse selection

Question 89

reinsurance

Question 90

residual markets

Question 91

domestic Insurer

Question 92

insurer domicile

Question 93

foreign insurer

Question 94

alien insurer

Question 95

certificate of authority

Question 96

admitted(authorized) insurers

Question 97

non-admitted(unauthorized) insurers

Question 98

rate

Question 99

premium

Question 100

executives

Question 101

marketing/sales department

Question 102

claims department

Question 103

actuarial department

Answer 103

und

Question 104

underwriting department

Question 105

agreed value