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V. Insurance Terms and Related Concepts
Terms in this set (38)
A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
Any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance from loss or destruction or financial damage or impairment
1. Actual Cash Value
2. Replacement Cost
3. Market Value
4. Stated/Agreed Value
5. Salvage Value
Actual Cash Value
The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss.
The Cost to replace a damaged or destroyed item of property without deduction for depreciation; may be the basis of reimbursement for some losses.
The amount property could be sold for at the time of loss, May be used to determine the amount of reimbursement for a loss.
Condition found in some property insurance policies that stipulates a certain value that will meet the coinsurance requirement if the policy limit equals or exceeds this amount. The insured will not be assessed a coinsurance penalty.
Damaged property that can be retrieved, reconditioned, and sold to reduce an insured loss.
careless neglect, often resulting in injury
Oral or written statement that provides immediate insurance protection for a specified period; designed to provide temporary coverage until a policy is issued or denied.
A specific agreement the insured and the insurer that becomes a part of the insurance policy; a breach of warranty can void policy.
Statements on an insurance application that the applicant believes are true; a representation is not considered a matter to which the parties contract, so a policy cannot be voided on the basis of a representation.
The withholding of a material fact involved in the contract on which the insurer relies.
Premium that is paid at the beginning of the policy period that is based on an estimate of what the final premium will be; this premium is adjusted based on reports submitted by the insured to the insurer; also called an estimated premium.
Certificate of Insurance
A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided.
Law of Large Numbers
the larger the number of individuals that are randomly drawn from a population, the more representative the resulting group will be of the entire population
Damages that reimburse an injured party for losses that were actually sustained
Types of compensatory damages that reimburse the injured party for direct and specific expenses involved in the loss, such as medical expenses and lost wages.
Type of damages intended to punish the defendant and make an example out of her to discourage others from behaving the same way.
compliance with provisions of Fair Credit Reporting Act
Federal Law that provides benefits to injured railroad workers who are exempt under state worker's comp laws
Section of an insurance contract that shows who is insured, what property or risk is covered, when and where the coverage is effective, and how much coverage applies.
Section of the insurance policy that describes what is covered and the perils the policy insures against.
Portion of an insurance policy that describes the rights and duties of the insured and the insurance company under the policy
Exclusions and Limitations
conditions, situations, and services not covered by the insurance carrier
Definitions of the insured
Duties of the insured after a loss
Cancellations and non-renewal provisions
Provide extra coverage over and above the insured's limits of liability, Used for defense costs, first aid expenses, bond premiums, and post judgement interest.
Proof of Loss
A statement of facts about a loss for which the insured is making a claim.
Notice of Claim
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
a third party makes a decision that is binding on both parties
a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk
The transfer to the insurance company of the insured's right to collect damages from another party.
Loss Settlement provisions
Following an occurrence covered by a liability insurance policy, the insured is required to: promptly give written notice describing the accident to the insurer or agent, promptly forward all notices or legal papers relating to the accident and cooperate with the insurer in the investigation of a claim or suit
Terrorism Risk Insurance Act (TRIA)
Requires insurance companies to offer terrorism insurance to their commercial policyholders.
Comercial General Liability (CGL)
A part of the commercial package policy that provides liability coverage for businesses.
Type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement
Other sets by this creator
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