220 License Test Prep

29 cards

Definitions


 
  
Created Mar 12, 2011
by
marshaayala

 

 
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  Side A   Side B
1
Risk
 
Chance of Financial Loss
2
Policy
 
Written contract effecting insurance 
3
Insurance 
 
A contract where one indemnifies another.
4
Binders 
 
Temporary Insurance- Oral or Written & includes all terms of the policy 
5
Contract of Adhesion
 
Contract created by insurance company- insured cannot negotiate terms.
6
Personal Contract
 
Cover persons- not property
7
Conditional Contract 
 
The obligation of the insurer may be based on insured satisfying certain conditions.
8
Indemnity
 
One should not profit. Actual Cash Value: replacement cost less depreciation
9
Departures
 
Replacement Cost: New for OldFlorida Value Policy Law: If total...
10
Insurable Interest 
 
One who would suffer an economic loss/pays% of loss to value of interest. Must exist at the...
11
Peril
 
Cause of a loss
12
Hazardex's: Old Plumbing, Frame Houses, Trampoline, Slides, etc.
 
Increased the chance of the lossPHYSICAL: Physical characteristic of an objectMORAL:...
13
Proximate Clause
 
Unbroken connection between an occurrence and the damage
14
Direct Loss
 
Physical harm to tangible property (Vehicle in accident)
15
Indirect Loss
 
Economic Loss as a consequence of Direct Loss (Rent Vehicle due to accident)
16
Lenders Interest
 
Mortgage Clause/Loss Payable Clause (loss payee): 1- Gives MTG advance notice of cancellation/nonrenewal 2-...
17
CoInsurance
 
Did                        ...
18
Specific Insurance
 
Separate limit for each building and contents
19
Blanket Insurance
 
Single amount of two or more coverage items- full amount to any one item.
20
Deductibles
 
Straight: Deduct flat amount from loss paymentFranchise: Pay from...
21
Subrogation
 
When insurer pays the insd for loss, rights are transferred, insurer may seek damages from...
22
Assignment
 
Cannot transfer policy to another without company's permission.
23
Other Insurance 
 
Primary: Policy pay firstExcess: Primary policy must be exhausted,...
24
Liberalization
 
Broaden coverage, without additional premium
25
Appraisal
 
Determines value of property without legal action. Insd hires an independent appraiser and...
26
Abandonment
 
Insd cannot dump damage property and request full value of property.
27
Negligence
 
Failure to act as a prudent person would have in the same circumstances.
28
Legal Liability
 
Comparative Negligence- defendant asserts that the plaintiff in some way contributed...
29
Severability of Interest
 
Insurance applies separately/equally to each insd. Ex: Husband and wife


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