MCS- Chapter 28

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MCS- Chapter 28
2012-08-08 18:23:03
chapter 28 insurance

Exam Review
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  1. What is insurance policy?
    A contract of insurance.
  2. What is a premium?
    The price paid for insurance coverage.
  3. Who is the insurer?
    The company that sells insurance coverage.
  4. Who is the insured party?
    One who buys insurance coverage.
  5. What does the insurance protection legislation outline?
    Mandatory terms of insurance contracts.
  6. What does teh insurance protection legislation regulate?
    The insurance industry. They monitor insurance companies, particularily their finance operations.
  7. What is the duty to disclose?
    The obligation of the insured to provide to the insurer all information that relates to the risk being insured.
  8. What is insurable interest?
    A financial stake in what is being insured.
  9. What is indemnity?
    The obligation on the insurer to make good the loss.
  10. What is subrogation?
    The right of the insurer to recover the amount paid on a claim from a third party who caused the loss.
  11. What are the three basic types of insurance?
    • Life & disability.
    • Property.
    • Liability.
  12. What is a deductible?
    The part of a loss for which the insured is responsible.
  13. What is a rider?
    A clause altering or adding coverage to a standard insurance policy.
  14. What is an endorsement?
    Written evidence of a change to an existing insurance policy.
  15. Who is an insurance agent?
    One who acts for an insurance company in selling insurance.
  16. WHo is an insurance adjuster?
    One who investigates and evaluates insurance claims.