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Side ASide B
Chance of Financial Loss
Written contract effecting insurance
A contract where one indemnifies another.
Temporary Insurance- Oral or Written & includes all terms of the policy
Contract of Adhesion
Contract created by insurance company- insured cannot negotiate terms.
Cover persons- not property
The obligation of the insurer may be based on insured satisfying certain conditions.
One should not profit. Actual Cash Value: replacement cost less depreciation
Replacement Cost: New for OldFlorida Value Policy Law: If total loss, company must pay the policy limit regardless of property value.Agreed Value:...
One who would suffer an economic loss/pays% of loss to value of interest. Must exist at the time of the loss. (Financial Interest or on Deed)
Cause of a loss
Hazardex's: Old Plumbing, Frame Houses, Trampoline, Slides, etc.
Increased the chance of the lossPHYSICAL: Physical characteristic of an objectMORAL: Intentional Loss (Conscious)MORALE: Accident Proneness...
Unbroken connection between an occurrence and the damage
Physical harm to tangible property (Vehicle in accident)
Economic Loss as a consequence of Direct Loss (Rent Vehicle due to accident)
Mortgage Clause/Loss Payable Clause (loss payee): 1- Gives MTG advance notice of cancellation/nonrenewal 2- MTG is covered even if insd is engaged in act of omission preventing...
Did Should x Coinsurance X Loss= RecoveryInsd...
Separate limit for each building and contents
Single amount of two or more coverage items- full amount to any one item.
Straight: Deduct flat amount from loss paymentFranchise: Pay from dollar one if loss equals or exceeds the deductible (pay nothing or pay all)Percentage:...
When insurer pays the insd for loss, rights are transferred, insurer may seek damages from the at-fault party. Waiver of Subrogation may be allowed.
Cannot transfer policy to another without company's permission.
Primary: Policy pay firstExcess: Primary policy must be exhausted, then this policy will applyPro-rata: Will pay a proportion of a loss as...
Broaden coverage, without additional premium
Determines value of property without legal action. Insd hires an independent appraiser and company hires independent appraiser, if they cannot agree an Umpire is hired and any two common...
Insd cannot dump damage property and request full value of property.
Failure to act as a prudent person would have in the same circumstances.
Comparative Negligence- defendant asserts that the plaintiff in some way contributed to the cause of the injuries. Ex: Plaintiff suffered $10K was 30% negligent-damaged...
Severability of Interest
Insurance applies separately/equally to each insd. Ex: Husband and wife