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Definition
A hazard that exists due to the nature of the property itself |
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Definition
| The social financial device for the transfer of risk |
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Definition
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Term
Moral Hazard
(self hint--Morale losses its E, because of lies) |
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Definition
| A character defect that causes some people to exaggerate or fabricate LOSSES in order to collect money from an insurance company |
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Definition
| A concept that involves a large number of homogenous risks |
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Definition
| The uncertainty regarding financial loss |
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Definition
| a factor or situation that increases the frequency or severity of loss |
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Definition
| This exists when the applicant for insurance stands to suffer a loss or an injury as result of an even which is to be insured against |
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Definition
| a reduction in value quality or quantity measurable in financial terms |
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Term
Pure Risk
(self hint--This is insurable) |
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Definition
| Risks that involve the possibility of loss gain is NOT possible |
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Morale Hazzard
(Self Hint--Its a feeling, you feel you have the right to do this) |
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Definition
| The disposition of some people to be careless or irresponsible because they have insurance |
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Term
Speculative Risk
(self hint- you can speculate the stock market--not insurable) |
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Definition
| risk that involes the possibility of GAIN or LOSS |
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Term
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Definition
| the actual PHYSICAL LOSS destruction or damage to the property insured |
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Term
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Definition
| a loss that is NOT A DIRECT result of a covered peril |
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Term
| Fire, theft and vadalism would each be considered..... |
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Definition
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Term
| Fire damage to roof. There is fire, smoke and water damage to personal items inside of home. The damage to PERSONAL ITEMS would be considered what kind of loss.... |
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Definition
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Term
| What is another name of indirect loss |
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Definition
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Term
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Definition
| Continuous Chain of events |
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Term
Example of a MORAL hazard
(self hint--Lost its E due to a lie) |
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Definition
| Setting fire to your own vehicle |
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Term
Example of a hazzard
(self hint--I have a feeling I can do this so I do) |
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Definition
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Term
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Definition
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Term
| Gambling is an example of _________Risk |
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Definition
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Term
Legally enforceable contract have 4 elements.
Name two parts of the Agreement |
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Definition
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Term
Legally enforceable contract have 4 elements.
Name two parts of the Consideration |
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Definition
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Term
| Legally enforceable contracts 4 elements |
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Definition
Legal Purpose
competent parties
Agreement
Consideration |
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Term
| A Minor is not a ______________for a legally enforceable contract |
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Definition
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Term
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Definition
| Failure to DISCLOSE material facts |
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Term
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Definition
| Restoring a customer to SAME condition that they were in PRIOR to loss |
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Term
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Definition
Contract requires each party give something of value to exchange with other party this is an essential element
(Hint--Promises, Promises) |
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Term
Accept or Reject contact maybe called
(self hint--it sticks to you if you take it) |
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Definition
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Term
| Example of incompetent individual |
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Definition
| intoxicated person driving home |
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Term
| Example of who is NOT incompetent individual |
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Definition
| convicted felon serving jail time |
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Term
| Legally enforceable contract has four elements what is NOT one |
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Definition
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Term
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Definition
| Verbal or written statements made by applicant |
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Term
| statements made on paper are generally considered to be __________ |
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Definition
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Term
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Definition
| Employee of the insurer that DETERMINES THE INSURABILITY of risk |
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Term
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Definition
| Mathematician that establishes and DETERMINES RATES to be charged for coverage |
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Term
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Definition
| Representative of insurance company that determines the CAUSE and AMOUNT of the loss |
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Term
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Definition
| Based on UNCERTAIN events or exchange of unequal amounts |
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Term
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Definition
| Number of rules that both parties must comply with______ insurance contracts are examples of these |
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Term
| Ambiguity in a policy will be_________ |
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Definition
| Interpreted in favor of the INSURED |
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Term
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Definition
Declarations
Inuring Agreement
Conditions
Exclusions |
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Term
Declarations
Inuring Agreement
Conditions
Exclusions
(AKA DICE) |
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Definition
| All insurance policy consist of these same main parts |
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Term
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Definition
| Provide identifying or descriptive information regarding the insured and insured property. It serves to PERSONALIZE and INDIVIDUALIZE the insurance policy (The 6 Ps) |
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Term
| Insured Name and policy term are found where |
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Definition
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Term
| The insured can't transfer or assign Property and casual contracts to another person without consent of the insurer due to being________contract |
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Definition
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Term
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Definition
| Changes made to a policy applying to ALL policies of same type without extra charge to premiums and no endorsement |
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Term
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Definition
| Used to modify the contract. Could be additions or deletions, some of these cost money |
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Term
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Definition
| Liability coverages have this when there is a potential for a covered judgment against an insured |
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Term
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Definition
| Provided provision to dispute resolution in even the insurere and insured do not agree on the AMOUNT/VALUE of THE LOSS. Either party may demand this. |
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Term
| Subrogation (Right to recovery) |
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Definition
| Pursuit of a responsible party for payment of damages that the insurer has to pay for on behalf of the insured in cases where the insured is NOT at fault. |
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Term
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Definition
| Contents are removed and insured moved out for more then 60 days |
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Term
| Obligation of the insurer is in what part of policy |
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Definition
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