Front | Back |
Risk
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Chance of Financial Loss
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Policy
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Written contract effecting insurance
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Insurance
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A contract where one indemnifies another.
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Binders
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Temporary Insurance- Oral or Written & includes all terms of the policy
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Contract of Adhesion
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Contract created by insurance company- insured cannot negotiate terms.
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Personal Contract
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Cover persons- not property
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Conditional Contract
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The obligation of the insurer may be based on insured satisfying certain conditions.
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Indemnity
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One should not profit. Actual Cash Value: replacement cost less depreciation
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Departures
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Replacement Cost: New for OldFlorida Value Policy Law: If total loss, company must pay the policy limit regardless of property value.Agreed Value: Stated Amount
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Insurable Interest
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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)
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Peril
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Cause of a loss
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Hazardex's: Old Plumbing, Frame Houses, Trampoline, Slides, etc.
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Increased the chance of the lossPHYSICAL: Physical characteristic of an objectMORAL: Intentional Loss (Conscious)MORALE: Accident Proneness (Unconscious)
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Proximate Clause
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Unbroken connection between an occurrence and the damage
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Direct Loss
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Physical harm to tangible property (Vehicle in accident)
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Indirect Loss
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Economic Loss as a consequence of Direct Loss (Rent Vehicle due to accident)
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