LAW CH. 38 TERMS

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lecaly
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118834
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LAW CH. 38 TERMS
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2011-11-24 19:43:16
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LAW 38 TERMS
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LAW CH. 38 TERMS
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  1. Life insurance
    contract of insurer to pay money on death of insured

    insurance that provides death benefits to the survivors of the insured
  2. Term insurance
    contract whereby insurer assumes risk of death of insured for specified time period


    • insurance that insures the life of a person for the time specified in the policy
    • life insurance that has no cash value whenever the policy expires
  3. Renewable term insurance
    term insurance renewable without physical examination
  4. Endowment insurance
    • decreasing term insurance plus savings account

    insurance requiring payment of the face amount to a beneficiary if an insured dies during a policy term and, if the insured is alive at the end of the term, the face amount is paid to the insured


    life insurance that allows the insured, rather than the beneficiary, to collect the face value of the policy upon maturity or to collect that value in annual payments
  5. Double indemnity rider
    policy requiring insurer to pay twice ordinary face amount if death is accidental


    life insurance benefits are paid for twice the ordinary policy amount if death is accidental
  6. Grace period
    thirty or thrity-one day period in which late premium may be paid without policy lapsing
  7. Annuity insurance
    • contract that pays monthly income to insured while alive

    insurance that pays a guaranteed monthly amount to the insured from a specified age until death


    contract that pays monthly income to an insured person while insured is alive
  8. Joint and survivor annuity
    • annuity paid until second of two people dies
    • annuity contract paid out until the second of two insured people die
  9. Property insurance
    • contract by which insurer pays for damage to property

    public liability insurance that covers damage to property of third parties
  10. Hostile fire
    fire out of its normal place
  11. Friendly fire
    fire contained where intended
  12. Business interruption insurance
    • insurance covering loss of profits while business building is repaired

    Insurance that cover a loss of profits due to a fire


    an insurance that protects companies during the period necessary to restore property damaged by an insured peril


    coverage pays for lost income and other expenses related to recovery
  13. Leasehold interest insurance
    • covers cost of higher rent when leased building is damaged
    • policy protecting property lessee from paying a higher rent after fire damages a leased building
  14. Open policy
    policy that requires insured to prove loss sustained


    insurance that states a maximum amount of coverage and requires an insured to prove his or her actual loss in order to recover
  15. Valued policy
    • policy that fixes values for insured items of property

    insurance that states a specific value for each item of insured property
  16. Floating policy
    • coverage no matter where property is located

    • insurance that covers property that is moved from place to place
    • insurance coverage of property no matter where property is located at time of loss
  17. Homeowners policy
    • coverage of many perils for owners living in their houses
    • coverage of many perils plus liability for owners living in their houses
  18. All-risk policy
    policy covering all perils except those specifically excluded
  19. Named peril policy
    policy covering only listed perils
  20. Reporting form for merchandise inventory
    policy allowing periodic reporting of inventory on hand to vary coverage amount
  21. Coinsurance
    insured recovers in ratio of insurance to amount of insurance required

    principle that reduces the amount that can be recovered for a loss if an insured failed to carry the required amount of insurance
  22. Defense clause
    policy clause in which insurer agrees to defend insured againt damage claims
  23. Physical damage insurance
    insurance for damage to car itself


    broad class of automobile insurance that covers damage to property of third parties
  24. Theft
    taking another's property without consent
  25. Conversion
    obtaining possession of property and converting it to own use

    principle that the insured recovers in ratio of insurance to amount of insurance required

    unauthorized exercise of ownership rights
  26. Robbery
    taking property by force
  27. Deductible clause
    • insurance provision whereby insured pays damage up to specified amount; company pays excess up to policy limits

    term that obligates an insurer to pay for a loss only to the extend it exceeds a specified amount
  28. Comprehensive policy


    Comprehensive coverage
    • insurance covering large number of miscellaneous risks

    physical damage insurance that covers damage to an insured's car from a number of hazards
  29. Public liability insurance
    • insurance designed to protect third persons from bodily injury and property damage

    broad class of automobile insurance that insures against liability to third parties for personal injuries or property damage
  30. Last clear chance
    negligent driver recovers if other driver had one last clear chance to avoid injury


    rule allowing negligent driver to recover if the other driver had one last clear chance to avoid the accident
  31. Comparative negligence
    • contributory negligence that reduces but does not bar recovery
    • rule that contributory negligence reduces, but does not bar recovery from a negligent person
  32. No-fault insurance
    insurance companies pay for their insured's injuries regardless of fault
  33. Assigned risk rule
    law that allows a state to make an insurance company provide insurance for certain drivers
  34. Bodily injury insurance
    public liability insurance that covers injuries to third parties
  35. Collision insurance
    physical damage insurance covering damage to an insured's car that results from hitting an object
  36. Extended coverage
    insurance added to a fire policy by riders covering losses to property that may result from a number of named hazards


    riders to a fire insurance policy covering loss from additional risks
  37. Rider
    agreement that is attached to an insurance policy, thereby modifying or changing the policy
  38. Specific policy
    insurance that covers only a single, specified item of property
  39. Whole life insurance
    insurance (in the nature of endowment insurance) that is paid to an insured, the living at age 100
  40. Casualty insurance
    insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as flood, fire, etc.
  41. General liability insurance
    insurance covering business liability to customers who might be injured on or off premises or from the product sold to them
  42. Liability insurance
    insurance that covers business liability to customers and others who might be injured from the product sold to them
  43. Product liability insurance
    insurance that protects a firm agains claims that its product caused bodily injury or property damage to the user
  44. Self insurance
    a form of risk management whereby a part of the firm's earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories such as property, medical or worker's compensation
  45. Key-person life insurance
    life insurance that protects a firm against losses due to the death of a key employee
  46. Buy-sell life insurance
    insurance on an owner of a business that will supply enough money for a partner to buy his share of the business on death
  47. Whole life insurance
    life insurance that gives lifetime protection to the insured person
  48. Universal life insurance
    a combination of whole life insurance and term life insurance
  49. Reporting form for merchandise inventory
    policy allowing periodic reporting of inventory on hand to vary coverage amount
  50. Coinsurance clauses
    a clause in an insurance policy under which the insured agrees to maintain insurance equal to some specified percentage of the property value or otherwise to assume a portion of any loss
  51. Deductible clauses
    insurance policy provision that makes the insurer liable only for losses in excess of the stated deductible


    insurance provision whereby insured pays damage up to specified amount


    company pays excess up to policy limits
  52. Defense clauses
    policy clause in which insurer agrees to defend insured against damage claims

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