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Study sets matching "terms general insurance"

General Insurance Terms
Contract Law
Tort Law
Contract of Utmost Good Faith
Estoppel
Pertains to the formation and enforcement of contracts
Torts are Civil Wrongs (NOT crimes or breaches of contract)
Both parties in good faith when forming and entering a contra…
"Prevents" the denial of a fact if the the fact was admitted…
Contract Law
Pertains to the formation and enforcement of contracts
Tort Law
Torts are Civil Wrongs (NOT crimes or breaches of contract)
39 terms
Beginner level General Insurance terms
Insurance
General insurance
Insurance company
Insurance broker
Seguros
Seguros generales
Compañía de seguros
Corredor de seguros
Insurance
Seguros
General insurance
Seguros generales
22 terms
General Insurance terms
Actuarial Table
Actuary
Beneficiary
Benefits
a table of premium rates based on ages and life expectancies
a specialist in insurance calculations and statistics
a person named on an insurance policy to receive the benefits…
sums of money to be paid for specific types of losses under t…
Actuarial Table
a table of premium rates based on ages and life expectancies
Actuary
a specialist in insurance calculations and statistics
General Insurance: Terms to know
Agent/Producer
Applicant/Proposed Insured
Broker
Insurance Policy
A legal representative of an insurance company; producer usua…
A person Applying for Insurance.
An insurance producer NOT appointed by an insurer and is deem…
A contract between a policyowner (and/or an Insured) and an i…
Agent/Producer
A legal representative of an insurance company; producer usua…
Applicant/Proposed Insured
A person Applying for Insurance.
50 terms
General Insurance Terms [Review]
Contract
Agency
Agent
Principal
An agreement enforceable by law - one or more parties bind th…
A relationship in which one person is authorized to represent…
A person who is authorized to act on behalf of another person…
Insurance company
Contract
An agreement enforceable by law - one or more parties bind th…
Agency
A relationship in which one person is authorized to represent…
22 terms
General Insurance terms
CIC
CCR
Benefits of Insurance
Property Loss
California Insurance Code - state laws & changed by legislation
California Code of Regulations - Commission write the regulat…
Recover from an unexpected loss, secure credit, satisfy legal…
Direct or indirect to tangible property
CIC
California Insurance Code - state laws & changed by legislation
CCR
California Code of Regulations - Commission write the regulat…
13 terms
General Insurance Terms
Uberrimae Fidei
Principle of Indemnity
Contract of Indemnity
Valued contract
"Utmost good faith"; an insurance contract law principle that…
Principle that the insured should not profit from a from a lo…
Type of insurance cover (such as property insurance, but not…
Insurance contract (such as a life ins policy) that pays a sp…
Uberrimae Fidei
"Utmost good faith"; an insurance contract law principle that…
Principle of Indemnity
Principle that the insured should not profit from a from a lo…
31 terms
General Insurance Terms
Claim
Coverage
Deductible
Hazard
formal request asking for payment
risks that are protected insured
amount you pay before insurance pays
increases the likelihood of a loss
Claim
formal request asking for payment
Coverage
risks that are protected insured
78 terms
General Insurance terms
Agency Contract
Agent/Producer
Applicant or proposed insured
Beneficiary
A contract that is held between an insurer and an agent/produ…
A person who acts for another person or entity with regard to…
A person who requests or seeks insurance form an insured.
The person who receives the benefits from the policy of insur…
Agency Contract
A contract that is held between an insurer and an agent/produ…
Agent/Producer
A person who acts for another person or entity with regard to…
30 terms
General Key Terms Insurance
Risk
Pure Risk
Speculative Risk
Indemnity
is the chance of a financial loss or the uncertainty as to a…
This deals only with the possibility of a reduction in the va…
there is a possibility of gain or loss. is not insurable
indemnifies the insured for covered losses. It is to restore…
Risk
is the chance of a financial loss or the uncertainty as to a…
Pure Risk
This deals only with the possibility of a reduction in the va…
43 terms
General Insurance Terms
Moral Hazard
Morale Hazard
Physical Hazard
Legal Hazard
a situation which involves dishonest acts, lies, etc.
a situation in which the insured is careless or does not care…
something that you can see, touch, smell, etc which may incre…
the tenancy of people to sue
Moral Hazard
a situation which involves dishonest acts, lies, etc.
Morale Hazard
a situation in which the insured is careless or does not care…
9 terms
General insurance terms to know
Agent/producer
Applicant or proposed insured
Broker
insurance policy
A legal representative of an insurance company
a person applying for insurance
an insurance producer not appointed by an insurer and is deem…
a contract between a policy owner and an insurance company wh…
Agent/producer
A legal representative of an insurance company
Applicant or proposed insured
a person applying for insurance
15 terms
General Insurance Terms
Adverse Selection
Agent or Producer
Applicant or Proposed Insured
Hazard
Insuring of risks more prone to loss than the average risk
Legal representative of an insurance company
A person applying for insurance
Conditions that increase probability of a loss... -Physical (Con…
Adverse Selection
Insuring of risks more prone to loss than the average risk
Agent or Producer
Legal representative of an insurance company
35 terms
General Insurance Terms and Definitions
premium
deductible
copayment
coinsurance
Amount paid for insurance coverage
A set amount that the holder of an insurance policy must pay…
a set dollar amount you have to pay to receive service
a percentage of cost incurred that the insured has to pay
premium
Amount paid for insurance coverage
deductible
A set amount that the holder of an insurance policy must pay…
41 terms
General Insurance Terms I
Risk
Pure Risk
Speculative Risk
Peril
the possibility (uncertainty) that a loss might occur and is…
Chance of loss, with no possibility of gain. For example, you…
Type of risk where you have a Chance to gain opportunity or l…
Cause of loss, Life insurance policies insure against the ___…
Risk
the possibility (uncertainty) that a loss might occur and is…
Pure Risk
Chance of loss, with no possibility of gain. For example, you…
14 terms
General insurance
Indemity
Exposure
Moral hazard
• Reduce expenses ... • improve cash flow…
To restore same condition prior to loss; make whole
Unit of measure to determine rates
Tendency to be dishonest
List 4 characteristics of risk Retention:
Indemity
To restore same condition prior to loss; make whole
Exposure
Unit of measure to determine rates
8 terms
AINS 21: General Insurance Terms
loss exposure
risk management
loss prevention
loss reduction
any condition or situation that presents a possibility of los…
process of making and implementing decisions that will minimi…
risk control technique that reduces the frequency of a partic…
risk control technique that reduces the severity of a particu…
loss exposure
any condition or situation that presents a possibility of los…
risk management
process of making and implementing decisions that will minimi…
60 terms
General Insurance
Insurer
Insured
Producer/agent ... "Represent the insurer"
Risk
Insurance company
Person covered by the insurance
Me
Chance of loss
Insurer
Insurance company
Insured
Person covered by the insurance
11 terms
Property & Casualty General Insurance terms
ACV
RC
Market Value
Valued Policy
Actual Cash Value = Replacement cost - depreciation or use (A…
Replacement Cost (New for old)
Purchase or sale price of a property (includes the land and a…
...
ACV
Actual Cash Value = Replacement cost - depreciation or use (A…
RC
Replacement Cost (New for old)
90 terms
Chapter 1 - General Insurance - Terms
insurance
personal lines insurance
mono-line (single sine) policies
package (multi-line) policies
The transfer of risk.
Insurance coverage that is written to protect the customer or…
A policy which provides coverage for one line of insurance.
A policy that combines both Property and Liability coverage i…
insurance
The transfer of risk.
personal lines insurance
Insurance coverage that is written to protect the customer or…
413 terms
General insurance terms MUST KNOW
The tax treatment of policy premiums a…
must be requested within three years f…
If the insured changes to a more hazar…
Metal Levels (PPACA) (what are the 4?)
Disability Income Insurance Taxation
Reinstatement Provision
Change of Occupation Provision
Platinum plan (best)—90% of expenses paid by plan/10% paid by…
The tax treatment of policy premiums a…
Disability Income Insurance Taxation
must be requested within three years f…
Reinstatement Provision
35 terms
GENERAL INSURANCE
WHAT IS INSURANCE ?
WHAT IS RISK?
HAZARDS
WHAT IS A PERIL?
TRANSFERS THE RISK OF LOSS FROM AN INDIVIDUAL OR BUSINESS ENT…
IS THE UNCERTAINTY OR CHANCE OF A LOSS OCCURRING.
ARE CONDITIONS OR SITUATIONS THAT INCREASE THE THE PROBABILIT…
ARE THE CAUSE OF LOSS INSURED AGAINST IN AN INSURANCE POLICY.
WHAT IS INSURANCE ?
TRANSFERS THE RISK OF LOSS FROM AN INDIVIDUAL OR BUSINESS ENT…
WHAT IS RISK?
IS THE UNCERTAINTY OR CHANCE OF A LOSS OCCURRING.
157 terms
Part 1: General Insurance
Define Insurance
Define Life Insurance
What does insurance transfer?
What would happen if there were no ins…
a contract in which one party - the insurance company- agrees…
the policy protects survivors from losses suffered after an i…
The risk of loss from an individual or business entity to an…
The cost of a loss would have to be borne solely by the indiv…
Define Insurance
a contract in which one party - the insurance company- agrees…
Define Life Insurance
the policy protects survivors from losses suffered after an i…
73 terms
General Insurance
Risk
Pure risk
Speculative risk
Hazards
the uncertainty or chance of a loss occurring
a loss or no change (only type of risk... that insurance compani…
loss or gain (example... of speculative risk is gambling)
conditions or situations that increase the probability of an…
Risk
the uncertainty or chance of a loss occurring
Pure risk
a loss or no change (only type of risk... that insurance compani…
10 terms
General Insurance - Key Term and Concepts
Agent Contract
Agent/ Producer
Application or proposed insured
Beneficiary
A contract that is held between an insurer and an agent, cont…
A person who acts for another person or entity with regard to…
A person who requests or seeks insurance from an insurer
The person who receives the benefits from the policy of insur…
Agent Contract
A contract that is held between an insurer and an agent, cont…
Agent/ Producer
A person who acts for another person or entity with regard to…
48 terms
General Insurance
According to CIC
Indemnify
(Reimburse for loss) Another way of sa…
(Reimburse for loss) Another way of sa…
Insurance is a contract whereby one undertakes to indemnify a…
1. to secure against hurt, loss, or damage.... 2. to make compen…
is to free from the danger of hurt, loss, or damage.
remunerate or reimburse for loss incident.
According to CIC
Insurance is a contract whereby one undertakes to indemnify a…
Indemnify
1. to secure against hurt, loss, or damage.... 2. to make compen…
40 terms
General Insurance
Risk Retention Group
Express Authority
The right to determine the wording of…
Captive Agent
Is a liability insurance company owed by its member. The memb…
Authority granted to an agent through the agents contract.
In insurance policies, contract ambiguities are automatically…
An insurance producer who by contract is bound to write insur…
Risk Retention Group
Is a liability insurance company owed by its member. The memb…
Express Authority
Authority granted to an agent through the agents contract.
28 terms
1d. Insurers - General Insurance
Stock insurers
stockholders
Board of directors
dividends from profits
stockholders own the company; provide money for insurers and…
responsible for selecting management with board of directors
responsible for electing officers for daily business operations
go to stockholders and are taxable
Stock insurers
stockholders own the company; provide money for insurers and…
stockholders
responsible for selecting management with board of directors
12 terms
General Insurance
Mutual companies
Hazards
Unilateral contract
Sharing
Insurance organizations that have no capitial stock, but are…
Situations that increase the chance of loss occuring
Only one of the parties of the contract is legally bound to d…
Dealing with risk for a group with similiar exposure to loss…
Mutual companies
Insurance organizations that have no capitial stock, but are…
Hazards
Situations that increase the chance of loss occuring
9 terms
Term Life (General Features of Term Insurance)
Used for temporary situations(not perm…
Has no cash value, so net cost highest…
Premium goes up every year, based on a…
May expire at a certain age or time in…
General Features of Term Insurance
General Features of Term Insurance
General Features of Term Insurance
General Features of Term Insurance
Used for temporary situations(not perm…
General Features of Term Insurance
Has no cash value, so net cost highest…
General Features of Term Insurance
123 terms
General Life Insurance Terms for the TEST
Fraternal Insurance Company
Law of Large Numbers
Contract of adhesion
Representations and Warranties
A non-profit form of insurance provider sponsored by an organ…
A mathematical principle that is the basis for predicting the…
A type of contract in which one party (the offeror) drafts th…
Representations are statements the applicant makes on an appl…
Fraternal Insurance Company
A non-profit form of insurance provider sponsored by an organ…
Law of Large Numbers
A mathematical principle that is the basis for predicting the…
16 terms
General Insurance
Pure risk
Hazards
Law of large numbers
Reinsurance
Type of risk that insurance is used to manage
Situations or conditions that increase chance of loss
Predictions in insurance are made by
An insurance company cedes some or all risk to another company
Pure risk
Type of risk that insurance is used to manage
Hazards
Situations or conditions that increase chance of loss
57 terms
General Insurance
insurance
risk
pure & speculative
pure risk
transfers the risk of loss from an individual or business ent…
the uncertainty or chance of a loss occurring.
what are the two types of risk?
refers to situations that can only result in a loss or no cha…
insurance
transfers the risk of loss from an individual or business ent…
risk
the uncertainty or chance of a loss occurring.
55 terms
General Insurance
Insurance
Risk
Pure Risk
Speculative Risk
A contract in which one party (the insurance company) agrees…
The uncertainty or chance of a loss occurring. The two types…
Refers to situations that can only result in a loss or no cha…
Involves the opportunity for either loss or gain. An example…
Insurance
A contract in which one party (the insurance company) agrees…
Risk
The uncertainty or chance of a loss occurring. The two types…
64 terms
General Insurance
Insurer / Insurance Company
Premium
Contract of Insurance/ Policy
Loss
Receives relatively small amounts of money, referred to as PR…
The bill that must be paid to purchase the policy.
The agreement between the insurer and the policy owner.
The reduction in the value of an asset.
Insurer / Insurance Company
Receives relatively small amounts of money, referred to as PR…
Premium
The bill that must be paid to purchase the policy.
29 terms
Kaplan Insurance (General Insurance)
risk
2 types of risk
speculative risk
pure risk
possibility that a loss might occur and is one of the reasons…
speculative risk... pure risk
offers opportunity for gain as well as the possibility for lo…
possibility of loss and is the only type of risk that insurers
risk
possibility that a loss might occur and is one of the reasons…
2 types of risk
speculative risk... pure risk
86 terms
General Insurance
risk
pure risk
speculative risk
hazard
Is the uncertainty or chance of a loss occurring
Refers to situations that can only result in a loss or no cha…
Involves the opportunity for either loss or gain. This type o…
Are conditions or situations that increase the probability of…
risk
Is the uncertainty or chance of a loss occurring
pure risk
Refers to situations that can only result in a loss or no cha…
76 terms
General Insurance
Risk
Loss
Peril
Increase
Chance of loss, uncertain possibility that a reduction of val…
Reduction in value, quantity or quality
Cause of loss
Increases chance of loss or increases severity of loss
Risk
Chance of loss, uncertain possibility that a reduction of val…
Loss
Reduction in value, quantity or quality
47 terms
General Insurance
Risk
Pure Risk
Speculative Risk
Term Life
The uncertainty or chance of a loss occurring.
Refers t situations that can only result in a loss or no chan…
involves the opportunity for loss or gain. Example would be g…
-Temporary... -Specific period of time... -No cash value
Risk
The uncertainty or chance of a loss occurring.
Pure Risk
Refers t situations that can only result in a loss or no chan…
67 terms
GENERAL INSURANCE
Insurance
Insurer
Policy
Loss
-Transfer of risk... - Transfer of risk to an insurer... - Purpose…
Insurance Company
Agreement between the insurer and the insured
Reduction of value of an asset
Insurance
-Transfer of risk... - Transfer of risk to an insurer... - Purpose…
Insurer
Insurance Company
92 terms
Principles of Insurance/General Insurance
Insurance
Risk
Pure Risk
Speculative Risk
Insurance is a contract in which one party (the insurance com…
Risk is the uncertainty or chance of a loss occurring.
Refers to situations that can only result in a loss or no cha…
Involves the opportunity for either loss or gain. These types…
Insurance
Insurance is a contract in which one party (the insurance com…
Risk
Risk is the uncertainty or chance of a loss occurring.
32 terms
General Insurance
Underwriting vs. Actuarial Departments
Independent Agency System
Admitted Insurer
Reinsurance
Two related insurance company functions. Through the process…
An insurance distribution system in which the manager and pro…
An insurance company that has a certificate of authority to c…
The process through which insurance companies spread large ri…
Underwriting vs. Actuarial Departments
Two related insurance company functions. Through the process…
Independent Agency System
An insurance distribution system in which the manager and pro…
46 terms
General Insurance
Insurance
Risk
Exposure
Hazards
Transfers risk from an individual or group to a company. Cont…
Uncertainty regarding financial loss
Unit of measure used to determine rates to charged for insura…
Conditions or situations that increase the probability of the…
Insurance
Transfers risk from an individual or group to a company. Cont…
Risk
Uncertainty regarding financial loss
57 terms
General Insurance
Risk
Pure Risk
Speculative Risk
Hazard
the uncertainty or chance of a loss occurring. (2 types)
situations that can only result in a loss or no no change, th…
involves the opportunity for either loss or gain. ie gambling…
conditions or situations that increase the probability of a i…
Risk
the uncertainty or chance of a loss occurring. (2 types)
Pure Risk
situations that can only result in a loss or no no change, th…
62 terms
general insurance
fraud
exposure
loss
ceding
deliberate attempt to deceive the producer or insurance compa…
condition or situation that presents the possibility of loss.
Any injury or damage that the injured suffers because of a co…
insurance company that's buying policy re-insurer.
fraud
deliberate attempt to deceive the producer or insurance compa…
exposure
condition or situation that presents the possibility of loss.
34 terms
General Insurance
Acceptance
Consideration
(Risk) Avoidance
(Risk) Retention
takes place when an insurer's underwriter approves the applic…
An Insurer neglects to pay a legitimate claim that is covered…
Eliminating exposure to a loss. ... (ex: if a person wanted to a…
is the planned assumption of risk by an insured through... the u…
Acceptance
takes place when an insurer's underwriter approves the applic…
Consideration
An Insurer neglects to pay a legitimate claim that is covered…
21 terms
General Insurance: Group Insurance
What is Employee/Individual Employer G…
Who is the policy holder in Employee G…
What is Multiple Employer Group Insura…
What must an Association or Labor Grou…
This is a group employees of an eligible employer.
Employer.
When several employers form a trust fund to combine their wor…
-a constitution and bylaws... -be organized for purpose other th…
What is Employee/Individual Employer G…
This is a group employees of an eligible employer.
Who is the policy holder in Employee G…
Employer.
36 terms
General Insurance
What is insurance?
What is Risk?
Two types of risk
Pure risk
The transfer of risk from an individual or business entity to…
uncertainty or chance of a loss occurring.
Pure Risk... Speculative Risk
can only result in a loss or no change. No opportunity for fi…
What is insurance?
The transfer of risk from an individual or business entity to…
What is Risk?
uncertainty or chance of a loss occurring.
62 terms
General Insurance
Insurers
Insurance Agencies
Agents/Producers
Insured
Create/Sell insurance policies
Recruit/Support sales agents
Licensed to sell insurance
Person who buys insurance
Insurers
Create/Sell insurance policies
Insurance Agencies
Recruit/Support sales agents
49 terms
General Insurance
Warranty
Waiver
Premium
General Agent
A statement made on an application for insurance that is warr…
1. A rider waiving liability for a stated cause of accident o…
1. The consideration for the insurance. 2. A periodic payment…
An individual appointed by an insurer to administer its busin…
Warranty
A statement made on an application for insurance that is warr…
Waiver
1. A rider waiving liability for a stated cause of accident o…
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