Remove any of these three elements and a loss exposure is no longer present.

Loss exposure=asset exposed*cause of loss*financial consequence of loss

Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land.

 land.building. other structures attached to the land (swimming pools..storage shed.flagpole) trees.crops. foundations. underground pipes.

All tangible or intangible property that is not real property. Example: sofa, computer

pg 1.5

1. Negligence

2. Intentional Torts

3. Absolute liability

pg. 1.10

1.  A duty to act

2. A breach of duty

3. An injury or damages occurs

4. The breach of duty is the direct cause of the injury or damage in an unbroken chain of events.

pg 1.10 

Temporary total disability

(TTD)

Temporary partial disability

(TPD)

Permanent partial disability

(PPD)

Permanent total disability

(PTD)

1. Avoidance

2. Loss prevention

3. Loss reduction

4. Separation

5. Duplication

6. Diversification

pg 1.21

1. Transfer

2. Retention

pg 1.22

Dice: Decision Tree

What are the 4 steps

1. Review of the declarations page to determine whether it covers the person or the property at the time of the loss

2. Review of the insuring agreement to determine whether it covers the loss

3. Review of policy conditions to determine compliance

4. Review of policy exclusions to determine whether they prelude coverage of the loss.

pg 1.40

1. Identifying loss exposures

2. Analyzing loss exposures

3. Examining the feasibility of risk management techniques

4. Selecting the appropriate risk management techniques

5. Implementing the selected risk management technique

6. Monitoring results and revising the risk management program

A fund designed to provide a source of recovery for victims of motor vehicle accidents when an at-fault motorist is unable to pay any judgement.

pg 2.6 

Uninsured motorists coverage

(UM)

Coverage that provides a source of recovery for occupants of a covered auto or for a qualifying pedestrians who are injured in an accident caused by an at-fault motorist who does not have the state minimum liability insurance or by a hit-and-run driver.

pg 2.6

Underinsured motorists coverage

(UIM)

Coverage that applies when a negligent driver has liability insurance at the time of the accident but has lower than those of the injured person's coverage.

pg 2.7

Insurance that covers automobile accident victims on a first-party basis, allowing them to collect damages from their own insurers regardless of who was at fault.

pg 2.8

State statutes that require motorists to purchase (or require insurers to make available) insurance that provides minimum first-party benefits to injured persons regardless of fault.

pg 2.9

Monetary threshold

(dollar threshold)

In a no-fault system, a dollar limit in total medical expenses an injured victim must exceed before he or she is permitted to sue the other party.

pg 2.10

In a no-fault system, the designated criteria that are verbally "set forth in the statute that limit the right to sue"

pg 2.10

In a no-fault system, a plan that provides certain personal injury protection (PIP)-type benefits such as medical payments and disability coverages to injured victims, without regard to fault.

pg 2.11

In a no-fault system, a plan that gives the insured the option, at the time an auto insurance policy is purchased or renewed, of choosing whether to be covered on a no-fault basis.

pg 2.11

Personal injury protection coverage

(PIP)

Coverage that pays benefits, regardless of fault, for medical expense, income loss, and other benefits, resulting from bodily injury to occupants of a covered auto.

pg 2.12

The process by which an insurer can, after it has paid is a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.

pg 2.13

The term referring collectively to insurers and other organizations that make insurance available through a shared risk mechanism to those who cannot obtain coverage in the admitted market.

pg 2.13

Safe driver insurance plan

(SDIP)

Plan that allows for lower basic premiums for accident-free driving records and a surcharge for accidents.

pg 2.14

Plan for insuring high-risk drivers in which all auto insurers doing business in the state are assigned their proportionate share of such drivers based on the total volume of auto insurance written in the state.

pg 2.14

Joint underwriting association

(JUA)

Organization that designates servicing insurers to handle high-risk auto insurance business, all auto insurers in the state are assessed a proportionate share of the losses and expenses based on their percentage of the voluntary auto insurance premiums written in the state.

pg 2.15

A state-wide reinsurance pool to which insurers can assign premiums and losses for high-risk drivers, original insurers service the policies, but all insurers in the pool share the losses and the expenses of the facility in proportion to the total auto insurance they write in that state.

pg 2.15

1. Territory

2. Use of auto

3. Age

4. Gender

5. Marital Status

pg 2.17

Liability coverage

pg 3.3

Medical payments coverage

pg 3.3

Uninsured motorists coverge

pg 3.3

Damage to Your auto coverage.

pg 3.3

Insured duties following an accident or loss.

pg 3.3

General provisions

pg 3.3

A person, corporation, partnership, or other entity identified as an insured party in an insurance policy's declarations page.

pg 3.7

The time frame, beginning with the inception date, during which insurance coverage applies.

pg 3.7

Vehicle identification number

(VIN)

A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.

pg 3.7

Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn.

pg 3.14

Other than collision coverage

(OTC)

Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded.

pg 3.14

A payment awarded by a court to reimburse a victim for actual harm.

pg 3.15

Seperate coverge limits that allow one limit for bodily injury to each person: a second usually higher to limit for bodily injury to all persons in each accident; and a third limit for all property damages in each accident.

pg 3.15

One coverage limit that applies to all damages arising from bodily injury or property damage or both, resulting from a single accident.

pg 3.15

Interest that may accrue on damages before a judgement has been rendered.

pg 3.15

Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of insured's earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer's request.

pg 3.17

The act of seizing property to secure judgement.

pg 3.17

Interest that may accrue on damages after a judgement has been entered in a court and before the money is paid.

pg 3.17

In case law, a method of transportation that is indiscriminately offered to the general public, such as a taxi or public bus.

pg 3.18

A land motor vehicle or trailer that is not insured for bodily injury liability, is insured for less then the financial responsibility limits, is a hit and run vehicle, or whose insurer denies coverage or becomes insolvent.

pg 3.43

An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a settlement, which can be final and binding.

pg 3.47

There are four kinds:

1. comprehensive- pays for loss to covered auto or its equipment from any cause not excluded, except collision or overturn.

2. specified causes of loss- provides named peril coverage

3. collision- covers loss to a covered auto or its equipment by collision with another object or by overturn.

4. towing- provides coverage for towing and labor performed at the place of disablement.

pg 4.3

A portion of a covered loss that is not paid by the insurer.

pg 4.3 

Coverage extension for substitute transportation costs incurred when a private passenger type auto has been stolen.

pg 4.6

A method of resolving disputes between insurers and insureds over the amount owed on a covered loss.

pg 4.11

A statement of facts about a loss for which the insured is making a claim.

pg 4.20

A policy condition providing that is a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type.

pg 4.21

The ending of the contractual relationship between the insured and insurer by cancellation, expiration, or non renewal.

pg 4.23

Termination of a policy, by either the insurer or the insured, during the policy term.

pg 4.23

1. HO-2 Broad Form

2. HO-3 Special Form

3. HO-4 Contents Broad Form

4. HO-5 Comprehensive Form

5. HO-6 Unit-Owners Form

6. HO-8 Modified Coverage Form

pg 5.3