LAW CH. 37 TERMS

contract that transfers risk of financial loss for a fee


uneventful protection for the small business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced

company writing insurance


company writing insurance policy or contract and that agrees to compensate a person for loss under policy terms

person who receives proceeds of life insurance


the recipient of the proceeds of a life insurance policy


one who inherits property as specified in a will


person entitled to income or enjoyment of trust property

written contract of insurance

maximum amount insurer pays for loss

consideration paid by insured for a policy

danger of loss


hazards that may be insured against


a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for


danger or loss from which the insured is protected, according to contract's terms

factors that contribute to uncertainty of insured loss

addition to insurance policy that modifies, extends, or limits base contract

• addition to insurance policy to modify, extend, or limit base policy

temporary contract of insurance

corporation of stockholder investors

company of insurance policyholders investors

mutual insurance company in which losses are shared by policyholders in the ratio of their insurance to the company's total insurance in force

interest in nonoccurrence of risk insured against

willful failury to disclose pertinent information

misstatement of material fact by the insured


willful failure to disclose relevant, material information to an insurer

statement of insured that relates to risk and appears in an insurance contract

right of insurer to assume rights of insured

occurs when one party leads the second to a false conclusion the second party relies on;


the second party would be harmed if the first party were later allowed to show the conclusion to be false

insured under a contract of insurance

insurance that insures against the death of the insured

insurance company that insures against specified hazards

insurance that insures against specified casualties to personal or real property

person protected against a loss

insurance policy on many items in different places or different items in one place

insurance that applies to only one item