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Study sets matching "insurance terms cpcu"

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Study sets matching "insurance terms cpcu"

150 terms
CPCU 553 Personal Insurance
Loss exposure
Cause of loss (peril)
Property loss exposure
Real property (realty)
Any condition or situation that presents a possibility of los…
The actual means by which property is damaged or destroyed.
A condition that presents the possibility that a person or an…
Tangible property consisty of land, all structures permanentl…
Loss exposure
Any condition or situation that presents a possibility of los…
Cause of loss (peril)
The actual means by which property is damaged or destroyed.
150 terms
CPCU 553 Personal Insurance
Loss exposure
Cause of loss (peril)
Property loss exposure
Real property (realty)
Any condition or situation that presents a possibility of los…
The actual means by which property is damaged or destroyed.
A condition that presents the possibility that a person or an…
Tangible property consisty of land, all structures permanentl…
Loss exposure
Any condition or situation that presents a possibility of los…
Cause of loss (peril)
The actual means by which property is damaged or destroyed.
28 terms
CPCU 520 Insurance Operations
Independent agency and brokerage marke…
Direct writer marketing system
Exclusive agency marketing system
Distribution channel
An insurance marketing system under which producers (agents o…
An insurance marketing system that uses sales agents who are…
An insurance marketing system under which agents contact to s…
Channel used by the producer of a product or service to trans…
Independent agency and brokerage marke…
An insurance marketing system under which producers (agents o…
Direct writer marketing system
An insurance marketing system that uses sales agents who are…
39 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 4
Policyholder's Surplus
Capacity
Underwriting Authority
Line Underwriter
Under statutory accounting principles (SAP), an insurer's tot…
The amount of business an insurer is able to write, usually b…
The scope of decisions that an underwriter can make without r…
Underwriter who is primarily responsible for implementing the…
Policyholder's Surplus
Under statutory accounting principles (SAP), an insurer's tot…
Capacity
The amount of business an insurer is able to write, usually b…
31 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 7
Data Mining
Ratemaking
Rate
Premium
The process of extracting hidden patterns from data that is u…
The process insurers use to calculate insurance rates, which…
The price per exposure unit for insurance coverage.
The price of the insurance coverage provided for a specified…
Data Mining
The process of extracting hidden patterns from data that is u…
Ratemaking
The process insurers use to calculate insurance rates, which…
30 terms
CPCU 520 Insurance Operations - Overview of Insurance Operations
Classification of Property and Casualt…
Legal forms of ownership
Proprietary Insurers
Cooperative Insurers (Mutual Insurer)
1. Legal form of ownership... a. Proprietary - profit motive... b…
a. Proprietary - profit motive... b. Cooperative - member benefi…
Governing board of directors elected by stockholders. Subject…
Every policyholder is a member of the company and shares the…
Classification of Property and Casualt…
1. Legal form of ownership... a. Proprietary - profit motive... b…
Legal forms of ownership
a. Proprietary - profit motive... b. Cooperative - member benefi…
98 terms
CPCU 551.07 Business Income Insurance
business income insurance
net income
profit
net loss
insurance that covers the reduction in an organization's inco…
the difference between revenues and expenses
net income that results when revenues exceed expenses
net income that results when expenses exceed revenues
business income insurance
insurance that covers the reduction in an organization's inco…
net income
the difference between revenues and expenses
58 terms
CPCU 530 LAW FOR INSURANCE PROFESSIONALS
Doctrine of Stare Decisis
Equity
Criminal Law
Civil law
The principle that lower courts must follow precedents set by…
Fairness or a body of principles constituting what is fair an…
The branch of the law that imposes penalties for wrongs again…
A classification of law that applies to legal matters not gov…
Doctrine of Stare Decisis
The principle that lower courts must follow precedents set by…
Equity
Fairness or a body of principles constituting what is fair an…
59 terms
CPCU 552.04 Business Auto Insurance
commercial auto insurance
commercial auto coverage part
ISO commercial auto coverage forms
employers nonownership liability
covers liability loss exposures, property loss exposures, and…
consists of an appropriate declarations form, a coverage form…
Business Auto Coverage Form (BACF); Auto Dealers Coverage For…
an employer's liability for its employees' operation of their…
commercial auto insurance
covers liability loss exposures, property loss exposures, and…
commercial auto coverage part
consists of an appropriate declarations form, a coverage form…
22 terms
CPCU 552.11 Excess and Umbrella Liability Insurance
issues in liability insurance
layers of insurance
underlying insurance
excess liability policy
difficulty in estimating maximum possible loss (MPL) for liab…
a primary liability policy and corresponding excess or umbrel…
insurance that applies below an excess or umbrella liability…
a policy that covers liability claims in excess of the limits…
issues in liability insurance
difficulty in estimating maximum possible loss (MPL) for liab…
layers of insurance
a primary liability policy and corresponding excess or umbrel…
43 terms
CPCU 552.09 Environmental Loss Exposures and Insurance
environmental loss exposures
bases of tort liability for pollution
intentional torts in environmental cla…
nuisance
liability for bodily injury to others or damage to their prop…
negligence; intentional torts; strict liability
nuisance; trespass
interfering with the peaceful enjoyment of someone else's own…
environmental loss exposures
liability for bodily injury to others or damage to their prop…
bases of tort liability for pollution
negligence; intentional torts; strict liability
45 terms
CPCU 551.10 Equipment Breakdown Insurance
equipment breakdown insurance
causes of equipment breakdown losses
categories of equipment covered under…
initiating causes of EB losses
covers loss resulting from the accidental breakdown of covere…
heat, pressure, electrical energy, centrifugal force, recipro…
boilers and pressure vessels; electrical equipment; mechanica…
operator error; faulty maintenance; faulty design or installa…
equipment breakdown insurance
covers loss resulting from the accidental breakdown of covere…
causes of equipment breakdown losses
heat, pressure, electrical energy, centrifugal force, recipro…
15 terms
CPCU Insurance Operations - section 1
Proprietary Insurer
Mutual Insurer
Reciprocal insurance exchange (interin…
Fair access to insurance requirements…
Insurer formed for the purpose of earning a profit for its ow…
An Insurer that is owned by its policyholders and formed as a…
An Insurer owned by its policyholders, formed as an unincorpo…
An insurance pool through which private insurers collectively…
Proprietary Insurer
Insurer formed for the purpose of earning a profit for its ow…
Mutual Insurer
An Insurer that is owned by its policyholders and formed as a…
56 terms
CPCU 552.01 Introduction to Commercial Liability Insurance
liability loss
legal liability
civil law bases for legal liability
liability insurance policy
any loss that a person or an organization sustains as a resul…
the legally enforceable obligation of a person or an organiza…
torts; contracts; statutes
obligates the insurer to pay damages for which the insured is…
liability loss
any loss that a person or an organization sustains as a resul…
legal liability
the legally enforceable obligation of a person or an organiza…
20 terms
CPCU - Insurer Capital (section 9)
Insurer's capital
Solvency
Risk-based capital (RBC)
Risk-based capital categories of risk
assets available from policyholders' surplus plus any long te…
measures the ability to meet financial obligations as they co…
the measurement developed by the NAIC that uses a risk-based…
1. Asset risk... 2. Credit risk... 3. Underwriting risk... 4. Business…
Insurer's capital
assets available from policyholders' surplus plus any long te…
Solvency
measures the ability to meet financial obligations as they co…
84 terms
CPCU 551.01 Introduction to Commercial Property Insurance
Commercial Property Insurance - broad
Commercial Property Insurance - narrow
categories of loss exposures
property loss exposure
all types of commercial property insurance covering property…
one particular type of commercial property insurance that cov…
property; liability; personnel; net income
a condition that presents the possibility that a person or an…
Commercial Property Insurance - broad
all types of commercial property insurance covering property…
Commercial Property Insurance - narrow
one particular type of commercial property insurance that cov…
30 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 9
Database
Endorsement
Business Intelligence (BI)
Retention
A collection of information stored in discrete units for ease…
A document that amends an insurance policy.
The skills, technologies, applications, and practices used to…
The percentage of policies in force that are renewed at the p…
Database
A collection of information stored in discrete units for ease…
Endorsement
A document that amends an insurance policy.
95 terms
CPCU 551.09 Commercial Crime Insurance
commercial crime insurance
financial institution bonds
ISE commercial crime program
Discovery Form
covers money, securities, and other property against a variet…
used to meet the crime insurance needs of banks, insurance co…
includes crime coverage forms that can be added to a commerci…
form that covers losses discovered during the policy period e…
commercial crime insurance
covers money, securities, and other property against a variet…
financial institution bonds
used to meet the crime insurance needs of banks, insurance co…
55 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 8
Reinsurance
Primary Insurer
Reinsurer
Reinsurance Agreement
The transfer of insurance risk from one insurer to another th…
In reinsurance, the insurer that transfers or cedes all or pa…
The insurer that assumes some or all of the potential costs o…
Contract between the primary insurer and reinsurer that stipu…
Reinsurance
The transfer of insurance risk from one insurer to another th…
Primary Insurer
In reinsurance, the insurer that transfers or cedes all or pa…
16 terms
CPCU520 - INSURANCE OPERATIONS: Chapter 2
National Association of Insurance Comm…
Model Law
Model Regulation
Domestic Insurer
An association of insurance commissioners from the fifty U.S.…
A document drafted by the NAIC, in a style similar to a state…
A draft regulation that may be implemented by a state insuran…
An insurer doing business in the jurisdiction in which it is…
National Association of Insurance Comm…
An association of insurance commissioners from the fifty U.S.…
Model Law
A document drafted by the NAIC, in a style similar to a state…
20 terms
CPCU 520 INSURANCE OPERATIONS: Chapter 3
Producer
Captive Insurer, or Captive
Risk Retention Group
Market Intelligence
Any of several kinds of insurance personnel who place insuran…
A subsidiary formed to insure the loss exposures of its paren…
A group captive formed under the requirements of the Liabilit…
Information gathered and analyzed regarding a company's marke…
Producer
Any of several kinds of insurance personnel who place insuran…
Captive Insurer, or Captive
A subsidiary formed to insure the loss exposures of its paren…
22 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 10
Strategic Management Process
Mission Statement
SWOT Analysis (Strengths Weaknesses Op…
Functional Structure
The process an organization uses to formulate and implement i…
A broad express of an entity's goals.
A method of evaluating the internal and external environments…
An organizational structure in which departments are defined…
Strategic Management Process
The process an organization uses to formulate and implement i…
Mission Statement
A broad express of an entity's goals.
57 terms
CPCU 553 - Chp 1 - Overview of Personal Insurance
Loss exposure
Cause of loss (peril)
Property loss exposure
Real Property (realty)
Any condition that creates the possibility of financial loss
the agent that causes an asset's reduction in value
the chance of property's decline in value caused by its damag…
what you'd leave behind if you sold your home; includes the l…
Loss exposure
Any condition that creates the possibility of financial loss
Cause of loss (peril)
the agent that causes an asset's reduction in value
30 terms
CPCU 540.08 Insurer Investment Portfolio Management
quantitative measures of risk
variability of rates of return
variance
variance formula
variance; standard deviation; coefficient of variation; value…
the likelihood that the actual return will be higher or lower…
a measure of dispersion; a measure of the deviation of each v…
variance = sum of squared deviations / (n-1), where n = numbe…
quantitative measures of risk
variance; standard deviation; coefficient of variation; value…
variability of rates of return
the likelihood that the actual return will be higher or lower…
52 terms
CPCU 540.04 Insurer Statutory Accounting
statutory accounting principles (SAP)
policyholders' surplus
accounting equation
policyholders' surplus formula
more conservative than GAAP in reporting the financial positi…
under statutory accounting principles (SAP), an insurer's tot…
the equation that relates assets to liabilities and owners' e…
admitted assets - liabilities
statutory accounting principles (SAP)
more conservative than GAAP in reporting the financial positi…
policyholders' surplus
under statutory accounting principles (SAP), an insurer's tot…
32 terms
CPCU 540.09 Insurer Capital: Needs and Sources
return on equity (ROE)
solvency
risk-based capital (RBC)
methods to generate or conserve capita…
calculated by dividing the net income by the capital; often c…
the ability of an insurer to meet its financial obligations a…
a method developed by the NAIC that establishes a minimum amo…
through underwriting and investments (business operations); r…
return on equity (ROE)
calculated by dividing the net income by the capital; often c…
solvency
the ability of an insurer to meet its financial obligations a…
43 terms
CPCU 530.03 Contract Law: Insurance Applications
conditional contract
elements of a legally enforceable cont…
utmost good faith
concealment
a contract that one or more parties must perform only under c…
agreement; capacity to contract; consideration; legal purpose
an obligation to act in complete honesty and to disclose all…
an intentional failure to disclose a material fact
conditional contract
a contract that one or more parties must perform only under c…
elements of a legally enforceable cont…
agreement; capacity to contract; consideration; legal purpose
39 terms
CPCU 553: Chp 9 - Life Insurance Planning
Premature Death
Needs Approach
Human Life Value Approach
Term Life Insurance
occurs during one's economically productive years when one st…
sets the amount of life insurance needed as the difference be…
sets the amount of life insurance needed based on an individu…
provides level protection during the policy period at a premi…
Premature Death
occurs during one's economically productive years when one st…
Needs Approach
sets the amount of life insurance needed as the difference be…
46 terms
CPCU 530 Business Law for Insurance Professionals
Doctrine of stare decisis
Equity
Criminal Law
Civil Law
The principle that lower courts must follow precedents set by…
Fairness, or a body of principles constituting what is fair a…
The branch of the law that imposes penalties for wrongs again…
A classification of law that applies to legal matters not gov…
Doctrine of stare decisis
The principle that lower courts must follow precedents set by…
Equity
Fairness, or a body of principles constituting what is fair a…
41 terms
CPCU 552.02 Commercial General Liability Insurance, Part I
Commercial General Liability Coverage…
versions of the CGL coverage form
CGL coverages
insurer's duties under CGL Coverage A…
a coverage form commonly used for insuraing an organization's…
occurrence; claims-made
Coverage A -- Bodily Injury and Property Damage Liability; Co…
a duty to pay damages on behalf of the insured and a duty to…
Commercial General Liability Coverage…
a coverage form commonly used for insuraing an organization's…
versions of the CGL coverage form
occurrence; claims-made
34 terms
CPCU 520 - INSURANCE OPERATIONS: Chapter 8
Reinsurance
Primary Insurer
Reinsurer
Reinsurance Agreement
The transfer of insurance risk from one insurer to another th…
In reinsurance, the insurer that transfers or cedes all or pa…
The insurer that assumes some or all of the potential costs o…
Contract between the primary insurer and reinsurer that stipu…
Reinsurance
The transfer of insurance risk from one insurer to another th…
Primary Insurer
In reinsurance, the insurer that transfers or cedes all or pa…
94 terms
CPCU 552.03 Commercial General Liability Insurance, Part II
CGL Coverage B -- Personal and Adverti…
personal and advertising injury
injury
coverage trigger for Coverage B
addresses a variety of loss exposures related to communicatio…
injury, including bodily injury, arising out of false arrest,…
includes not only bodily injury but also any other type of in…
covered offense committed during the policy period
CGL Coverage B -- Personal and Adverti…
addresses a variety of loss exposures related to communicatio…
personal and advertising injury
injury, including bodily injury, arising out of false arrest,…
38 terms
CPCU 552- Chapter 9 Environmental Loss Exposures and Insurance
Give an example of pollution liability…
Give an example of pollution liability…
Give an example of pollution liability…
How do some environmental statutes cre…
Careless driving by the driver of an oil tank truck resulted…
A factory discharged untreated chemicals into a stream, and p…
A toxic waste handler was held liable for injuries resulting…
They contain provisions that make certain parties responsible…
Give an example of pollution liability…
Careless driving by the driver of an oil tank truck resulted…
Give an example of pollution liability…
A factory discharged untreated chemicals into a stream, and p…
111 terms
CPCU 552.10 Marine and Aviation Loss Exposures and Insurance
marine liability loss exposures
carrier
common carrier
tramp shipping
liability for injury, illness, or death of members of the ves…
a vessel owner or operator that transports property of others…
offers its services to the general public and is required by…
ocean shipping by cargo vessels that have no fixed schedule o…
marine liability loss exposures
liability for injury, illness, or death of members of the ves…
carrier
a vessel owner or operator that transports property of others…
78 terms
CPCU 552.05 Auto Dealers and Motor Carrier Insurance
Auto Dealers Coverage Form (ADCF)
organizations eligible for the ADCF
franchised dealer
nonfranchised dealer
the ISO coverage form designed to meet the auto, general liab…
franchised and nonfranchised auto and trailer dealers
a dealer that is authorized by one or more auto manufacturers…
has no franchise agreement with an auto manufacturer and typi…
Auto Dealers Coverage Form (ADCF)
the ISO coverage form designed to meet the auto, general liab…
organizations eligible for the ADCF
franchised and nonfranchised auto and trailer dealers
17 terms
CPCU 520 / Chapter 2: Insurance Regulation
National Association of Insurance Comm…
Model Law
Model Regulation
Systemic Risk
An association of insurance commissioners from the fifty U.S.…
A document drafted by the NAIC, in a style similar to a state…
A draft regulation that may be implemented by a state insuran…
the potential for a major disruption in the function of an en…
National Association of Insurance Comm…
An association of insurance commissioners from the fifty U.S.…
Model Law
A document drafted by the NAIC, in a style similar to a state…
21 terms
CPCU 552.08 Professional Liability Loss Exposures and Insurance
categories of damage recoverable for b…
compensatory damages
consequential damages
liquidated damages
compensatory damage; consequential damages; liquidated damage…
intended to indemnify a person for injury or damage sustained
a payment awarded by a court to indemnify an injured party fo…
a reasonable estimation of the actual damages, agreed to by c…
categories of damage recoverable for b…
compensatory damage; consequential damages; liquidated damage…
compensatory damages
intended to indemnify a person for injury or damage sustained
82 terms
CPCU 520- Chapter 2 Insurance regulation
3 Primary reasons for insruance regula…
Common complaints about market fraud/u…
Goal of Regulation and Insolvency
Destructive Competition
1) Protect consumers 2) Maintain insurer solvency 3) Prevent…
Producer: sold unecessary insurance, misrepresented nature of…
Not to prevent all insolvency but to minimize the number. If…
prices too low lead sto insurer solvency and insurer shortage
3 Primary reasons for insruance regula…
1) Protect consumers 2) Maintain insurer solvency 3) Prevent…
Common complaints about market fraud/u…
Producer: sold unecessary insurance, misrepresented nature of…
46 terms
Insurance Law CPCU 530 TEST 1
Doctrine of Stare Decisis
Equity
Difference between common and civil law
NAIC
"To stand on decided" ... -lower courts must follow precedents s…
What is right or fair
Common-derived from court decisions ... Civil- rely on scholarl…
National association of insurance commissioners... -coordinate i…
Doctrine of Stare Decisis
"To stand on decided" ... -lower courts must follow precedents s…
Equity
What is right or fair
57 terms
CPCU 552.07 Management Liability Loss Exposures and Insurance
D&O
board of directors
fiduciary duty
fiduciary duties
directors and officers
establishes corporate policy, makes major business and financ…
the duty to act in the best interests of another
duty of care; duty of loyalty; duty of disclosure; duty of ob…
D&O
directors and officers
board of directors
establishes corporate policy, makes major business and financ…
102 terms
CPCU 552.06 Workers Compensation and Employers Liability Insurance
occupational injury
common-law defenses for employers
assumption-of-risk defense
contributory negligence defense
either injury or disease arising out of an in the course of t…
assumption-of-risk; contributory negligence; fellow-servant r…
prevented injured employees from recovering damages for occup…
prevented injured employees from recovering damages for occup…
occupational injury
either injury or disease arising out of an in the course of t…
common-law defenses for employers
assumption-of-risk; contributory negligence; fellow-servant r…
27 terms
CPCU 552 Chapter 4: Business Auto Insurance
What are the three commercial auto los…
What are the 5 situations where busine…
What are the three components of comme…
What is the business auto coverage for…
1. Property Loss Exposures - loss in value or loss of use... 2.…
1. Owned Autos - negligent PD or BI by employee in course of…
1. Declarations - one for each coverage form + schedules of a…
Covers commercial auto exposures of businesses other than aut…
What are the three commercial auto los…
1. Property Loss Exposures - loss in value or loss of use... 2.…
What are the 5 situations where busine…
1. Owned Autos - negligent PD or BI by employee in course of…
19 terms
CPCU 520 /Chapter 1: Overview of Insurance Operations
Proprietary Insurer
Mutual Insurer
Reciprocal Insurance Exchange (interin…
Fair Access to Insurance Requirements…
Insurer formed for the purpose of earning a profit for its ow…
An insurer that is owned by its policyholders and formed as a…
An insurer owned by its policyholders, formed as an unincorpo…
An insurance pool through which private insurers collectively…
Proprietary Insurer
Insurer formed for the purpose of earning a profit for its ow…
Mutual Insurer
An insurer that is owned by its policyholders and formed as a…
17 terms
CPCU 520/ Chapter 3: Insurance Marketing and Distribution
Producer
Market Intelligence
Underwriting Cycle
Focus Group
Any of several kinds of insurance personnel who place insuran…
Information gathered and analyzed regarding a company's marke…
A cyclical pattern of insurance pricing in which a soft marke…
a small group of customers or potential customers brought tog…
Producer
Any of several kinds of insurance personnel who place insuran…
Market Intelligence
Information gathered and analyzed regarding a company's marke…
122 terms
CPCU Test 1 Foundations of Risk Management and Insurance
Probability
Pure risk
Speculative risk
credit risk
the likelihood that an outcome or event will occur
a chance of loss or no loss but no chance of gain
a chance of loss, no loss, or gain
the risk that customers or other creditors will fail to make…
Probability
the likelihood that an outcome or event will occur
Pure risk
a chance of loss or no loss but no chance of gain
41 terms
Insurance Operations (The Institutes CPCU): Assignment 1Overview of Insurance Operations
insurance
insurer
credit benefits
PROPERTY AND CASUALTY CLASSIFICATIONS
a system under which participants (individuals, families, and…
facilitates in the pooling of funds and they payment of benef…
because the risk of loss to property is transferred to the in…
legal form of ownership ... place of incorporation ... licensing st…
insurance
a system under which participants (individuals, families, and…
insurer
facilitates in the pooling of funds and they payment of benef…
31 terms
CPCU 552 Chapter 6: WC and EL Insurance
What are the three major defenses used…
What were the 4 goals the US had in mi…
What are the four cases when an employ…
WC Eligibility Issues 1: What is the d…
1. The assumption of risk rule - employee knew the risk... 2. Co…
1. Prompt payment of adequate benefits to injured employees a…
1. employee was outside the scope of relevant WC statute... 2. e…
WC laws apply only to employees.... An employee is under the dir…
What are the three major defenses used…
1. The assumption of risk rule - employee knew the risk... 2. Co…
What were the 4 goals the US had in mi…
1. Prompt payment of adequate benefits to injured employees a…
49 terms
CPCU 540 - Chapter 4 (Insurer Statutory Accounting)
What is the SAP?
What are the two main concepts that un…
In what three ways does SAP encourage…
What are the ten differences between G…
Statutory Accounting Principles, the accounting principles us…
1. Valuation - policyholders surplus must always be enough fo…
1. Valuing assets at the amount they would bring in a quick s…
1. Purpose... 2. Nonadmitted assets... 3. Bonds... 4. Premium balances…
What is the SAP?
Statutory Accounting Principles, the accounting principles us…
What are the two main concepts that un…
1. Valuation - policyholders surplus must always be enough fo…
15 terms
CPCU 540 - FINANCE AND ACCOUNTING FOR INSURANCE PROFESSIONALS: Chapter 11
Merger
Acquisition
Consolidation
Takeover
A type of acquistion in which two or more business entities a…
The purchase of one company's stock by another company.
A combination of two or more business entities into a new ent…
The assumption of control by one corporation over another thr…
Merger
A type of acquistion in which two or more business entities a…
Acquisition
The purchase of one company's stock by another company.
52 terms
CPCU 540 - FINANCE AND ACCOUNTING FOR INSURANCE PROFESSIONALS: Chapter 7
Financial Market
Securities
Money Market
Capital Market
A mechanism used for trading securities.
Written instruments representing either money or other proper…
A financial market in which short-term securities are traded.
A financial market in which long-term securities are traded.
Financial Market
A mechanism used for trading securities.
Securities
Written instruments representing either money or other proper…
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