Property and Casualty

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Property and Casualty
2014-01-31 11:47:51
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  1. The abdication of insured property into the hands of another, or into the possession of no one in particular
  2. A type of liability that occurs due to extremely dangerous operations, such as the use of explosives or working at extreme heights
    Absolute Liability
  3. An unplanned, unforeseen event which occurs suddenly and at a specific place
  4. The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation
    Actual Cash Value (ACV)
  5. A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium
    Additional Coverage
  6. Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest
    Additional insureds
  7. A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
  8. An insurance company authorized and licensed to transact business in a particular state.
    Admitted insurer
  9. The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability
    Adverse Selection
  10. An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer
  11. The maximum limit of coverage available under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur
    Aggregate Limit
  12. A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written
    Agreed Value
  13. A contract in which the participating parties agree to exchange unequal amount. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
  14. An insurance company that is incorporated outside the United States
  15. The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
    Apparent Authority
  16. An assessment of property to determine either the correct amount of insurance to be written or the amount of loss to be paid
  17. Method of claim settlement used when the insured and insurer cannot agree upon the amount of the loss
  18. The transfer of a legal right or interest in an insurance policy. In property and casualty insurance, assignment of policies are usually valid only with the prior written consent of the insurer
  19. An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state
    Authorized Insurer
  20. A land motor vehicle, trailer or semi-trailer designed for use on public roads, including attached machinery or equipment; auto does not include mobile equipment
  21. A method of dealing with risk by deliberately keeping away from it ) e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane
  22. A person or entity that has possession of personal property entrusted to him/her by the owner.
  23. The person who receives the proceeds from the insurance policy
  24. A temporary contract that puts an insurance policy into force before the premium has been paid
  25. A type of bond that covers losses caused by dishonest employees
    Blanket Bond
  26. A single property insurance policy that provides coverage for multiple classes of property at one location, or provides coverage for one or more classes of property at multiple locations.
    Blanket Insurance
  27. Legal liability arising from death or physical trauma to a person as a result o fa negligent or purposeful act and omissions by an insured.
    Bodily Injury Liability
  28. An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
  29. A commercial property form that covers buildings under contruction
    Builder's Risk Coverage Form
  30. A commercial property form that covers buildings, and/or their contents
    Building and Personal Property Coverage Form
  31. The forced entry into another's premises with felonious intent
  32. The termination of an in-force insurance policy by either the insured or the insurer prior to the expiration date shown in the policy
  33. A type of insurance that covers losses caused by injury to persons or damage to the property of others.
    Casualty Insurance
  34. A demand of a person to stop committing an action that is in violation of a provision
    Cease and Desist Order
  35. A document that authorizes a company to start conducting business and specifies the kind(s) of insurance of company can transact. It is illegal for an insurance company to transact insurance without this cerificate
    Certificate of Authority
  36. A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. Claim - A demand made by the insured to cover a loss protected by the insurance policy.
    Certificate of Insurance
  37. The practice of computing a price per unit of insurance that applies to all applicants possessing a given set of characteristics.
    Class Rating
  38. An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance
  39. An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses
  40. A single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence.
    Combined Single
  41. Type of insurance that pertains to business, mercantile or manufacturing establishments
    Commercial Lines
  42. The chief executive and administrative officer of a state insurance department
    Commissioner (Superintendent, Director)
  43. An unwritten body of law based on past judicial decisions as well as usages and customs.
    Common Law
  44. A written statement of a liability claim given by the claimant; a reason for a lawsuit
  45. Factors that determine rates, including loss reserves, loss adjusting expenses, operating expenses and profit.
  46. Also known as Other Than Collision coverage, it covers losses by fire, theft, vandalism, falling objects, etc.
    Comprehensive Coverage
  47. The withholding of known facts which, if material, can void a contract.
  48. A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
    Conditional Contract
  49. The section of an insurance policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy
  50. The binding force in a contract that requires something of value to be exchanged for the transfer of risk. The consideration on the part of the insured is the representations made in the application and the payment of premium; the consideration on the insurer is the promise to pay in the event of loss.
  51. A person who, for a fee, offers any advice, counsel, opinion, or service regarding the benefits, advantages, or disadvantages promised under a policy insurance.
  52. Written and/or oral statements regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.
    Consumer Reports
  53. An agreement between two or more parties enforceable by law.
  54. An entity that obtains and possesses a license solely for the purpose of writing business on the owner, immediate family, relatives, employer and employees
    Controlled Business
  55. Multiple event leading to one loss
    Concurrent causation
  56. The amount payable upon the death of the person whose life is insured
    Death Benefit
  57. The section of an insurance policy containing the basic underwriting information, such as the insured's name, address, amount of coverage and premiums, and a description of insured locations, as well as any supplemental representations by the insured
  58. The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer
  59. An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation
  60. A condition that allows the insurer to audit the insured's books or records at the end of the policy term to make sure adequate premium has been collected for the exposure.
    Deposit Premium Audit
  61. The lessening of value of real and personal property due to age and wear and tear
  62. Physical damage to buildings and/or personal property as a result of direct consequence of a particular peril
    Direct Losses
  63. The head of the state department of insurance.
    Director (Commissioner, Superintendent)
  64. A physical or mental impairment, either congenital or resulting form an injury or sickness.
  65. An act of identifying the name of producer, representative, or temporary insurance producer on any policy solicitation.
  66. An insurance company that is incorporated in the state.
    Domestic Insurer
  67. Insurer's location of incorporation and the legal ability to write business in a state.
    Domicile of Insurer
  68. The estimated total cost (both insured and uninsured) of an accident.
    Economic Loss
  69. A printed addendum to a contract that is used to change the policy's original terms, conditions, or coverages.
  70. A legal impediment to denying a fact or restoring a right that has been previously waived.
  71. A policy that only pays for loss after the primary policy has paid its limit
    Excess Policy
  72. Causes of loss, exposures, conditions, etc listed in the policy for which the benefits will not be paid
  73. An agent who represents only one company and is compensated by commissions
    Exclusive or Captive Agent
  74. Method of determining the premium based on the insured's own past loss experience
    Experience Rating
  75. A unit of measure used to determine rates charged for insurance coverage
  76. The authority granted to an agent by means of the agent's written contract
    Express Authority
  77. A provision in some property policies which allows the extension of a major coverage to certain types of loss to property not specifically insured
    Extensions of Coverage
  78. Fair Access to Insurance Requirements plan is a state-run program that makes insurance obtainable to those in high risk areas who have been unable to acquire insurance through other channels
    Fair Plan
  79. An agent/broker who handles insure's funds in a trust capacity
  80. The individual whose name appears first on the policy's declaration
    First named insured
  81. A general and temporary condition of partial or complete inundation of normally dry land areas from overflow of inland or tidal waters or from the unusual and rapid accumulation or runoff of surface waters from any source.
  82. An insurance company that is incorporated in another state
    Foreign Insurer
  83. A life or health insurance company formed to provide insurance for members of an affiliated lodge, religious, or fraternal organization with a representative form of government
    Fraternal Benefit Society
  84. Intentional misrepresentation or deceit with the intent to induce a person to part with something of value
  85. The cost to replace damaged property with less expensive and more modern construction or equipment
    Functional Replacement Cost
  86. Reckless behavior that shows disregard for the safety or lives of others
    Gross Negligence
  87. A circumstance that increases the likelihood of a loss
  88. The effect of a person's reputation, character, living habits, etc. on his/her insurablity
    Hazard, Moral
  89. The effect a person's indifference concerning loss has on the risk to be insured
    Hazard, Morale
  90. A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth
    Hazard, Physical
  91. Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal
    Implied Authority
  92. Compensation to the insured that restores them to the same financial position that they enjoyed prior to the loss
  93. Agents that sell the insurance products of several companies and work for themselves or other agents
    Independent Agents
  94. Losses resulting from a peril, but not directly caused by it. Indirect losses may include business disruption, rent insurance, extra expenses, and other consequences that occur over time.
    Indirect Losses
  95. A coverage extension that automatically increases amount of insurance on buildings by an agreed upon percentage annually
    Inflation guard
  96. Any interest may have in property that is the subject of insurance, so that damage or destruction of that property would cause the insured financial loss
    Insurable Interest
  97. The transfer of the possibility of a loss (risk) to an insurance company, which in turn spreads the cost of unexpected losses to many individuals.
  98. A contract between an insured and an insurance company which agrees to pay the insured for loss caused by specific events.
    Insurance Policy
  99. The person or organization that is protected by insurance; the party to be indemnified
  100. A definition on liability forms that describes the type of contracts in which liability is assumed by the insured and included for coverage in the policy.
    Insured contract

    Examples of insured contract are leases of premises, elevator maintenance agreements, easement agreements, and other agreements related to the insure's business.
  101. An entity that indemnifies against losses, provides benefits, or renders services (also known as the "company" or "insurance company")
  102. The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against
    Insuring Agreement
  103. Any deliberate act that causes harm to another person
    Intentional Tort
  104. A written amendment designed to eliminate redundancy and minimize the number of endorsements in the poicy
    Interline Endorsement
  105. An approach used when credible statistics are lacking or when the exposure units are so varied that it is impossible to construct a class.
    Judgment Rating
  106. A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss.
    Law of Large Numbers
  107. A liability under the law that occurs when a person is responsible for injuries or damages to another due to negligence.
    Legal Liability
  108. Responsibility under the law
  109. A property insurance clause that extends broader legislated or regulated coverage to current policies, as long as it does not result in a higher premium
  110. A charge, security or encumbrance on property
  111. The maximum amount for which an insurer is liable.
    Limit of Liability
  112. Organization that provide support facilities for underwriters or groups of individuals that accept insurance risk.
    Lloyd's Associations
  113. The reduction, decrease,or disappearance of value of the person or property insured in a policy, by a peril insured against
  114. A provision in property insurance that is used to cover the interest of a secured lender in personal property
    Loss Payable Clause
  115. A calculation used by insurance companies to relate income from loss expenses: ____=(incurred losses + loss adjusting expense) /earned premiujm.
    Loss Ratio
  116. A factor in determining the premium charged and the amount of insurance required
    Loss Valuation
  117. A seldom used method of valuing a loss based upon the amount a willing buyer would pay to a willing seller for the property prior to the loss.
    Market Value
  118. A false statement or lie that can render the contract void.
  119. A policy written separately as a single coverage.
    Monoline Policy
  120. A mutual insurance company with the right to assess policyholder's additional amounts of premium to meet operational needs.
    Mutual Assessment Insurer
  121. Insurance organizations that have no capital stock, but are owned by the policyholders.
    Mutual Companies
  122. A disappearance of property that cannot be explained as to the location, time or the manner of property loss.
    Mysterious Disappearance
  123. The individual(s) whose name appears on the policy's declaration.
    Named Insured
  124. The cause of loss specifically covered by the insurance policy. No coverage is provided for unlisted perils.
    Named Perils
  125. The failure to use the care that a reasonable, prudent person would under the same similar circumstances.
  126. A provision that excludes any assignment or granting of any policy provision to any person or organization holding, storing, repairing, or moving insured property for a fee.
    No Benefit to the Bailee
  127. An insurance company that has no applied, or has applied and bee denied a Certificate of Authority and may not transact insurance.
    Nonadmitted Insurer
  128. A situation in which other insurance is written on the same risk,but not on the same coverage basis.
  129. A termination of a policy by an insurer on the anniversary or renewal date.
  130. A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
    Notice of Claim
  131. A broader definition of loss, which differs from accident in that it includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intend nor expected.
  132. Term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against "any risk of loss" that is not specifically excluded.
    Open Peril
  133. A clause included in many property and inland marine policies, which provides that the insurer is not obligated to pay for the total value of a set of item if one item has been lost, damaged or destroyed
    Pair and Set Clause
  134. A legal entity in which 2 or more persons agree to share the profits and losses of the business.
  135. A description of an anti-theft device or system for autos which is activated automatically when the driver turns the ignition key to the off position and the key is removed.
  136. The cause of a possible loss
  137. Legal responsibility for an injury to the character of another person caused by libel, slander, false arrest, invasion of privacy and other acts.
    Person Injury Liability
  138. Type of coverage available to individuals and families for non-business risk.
    Personal Lines Insurance
  139. The maximum amount and insured may collect, or for which and insured is protected under the terms of the policy.
    Policy Limits
  140. A period of time a policy is in effect (also known as Policy term)
    Policy Period
  141. The person in possession of an insurance policy; may or may not be the policyowner and/or insured.
  142. The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
  143. A periodic payment to the insurance company to keep the policy in force.
  144. A basic, fundamental insurance policy which pays first with respect to other outstanding policies.
    Primary Policy
  145. Proportional distribution of shares of the loss for each insurance policy written on a piece of property.
    Pro Rata
  146. A person who acts on the behalf of the insurer to sell, negotiate, or effect insurance contracts; also known as an agent.
  147. A sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid.
    Proof of Loss
  148. Legal liability arising from physical damage to tangible property of others caused by the negligence of an insured.
    Property Damage Liability
  149. An act or event that is the immediate or actual cause of loss.
    Proximate Cause
  150. Situations that can only result in a loss or no change; a gain is never possible.
    Pure Risk

    Pure Risk is the only type insurance companies are willing to accept
  151. Any inducement offered in the sale of insurance products that is not specified in the policy.
  152. Insurance resulting from an interchange of reciprocal agreements of indemnity among persons known a subscribers.
  153. Lessening the possibility or severity of a loss.
  154. A form of insurance whereby one insurance company (reinsurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance polices it has issued.
  155. The cost to replace damaged property with like kind and quality at current price, without any deduction for depreciation.
    Replacement Cost
  156. Statements made by the applicant on the insurance application that are believed to be true, but are not guaranteed to be true.
  157. A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.
  158. A self-rating plan under which the actual losses during the policy period determine the final premium (subject to a minimum and maximum premium).
    Retrospective Rating
  159. A provision in property insurance policy requiring that after payment of a total loss to insured property, the insured must transfer the title (or ownership) to the property to the insurer.
    Right of Salvage
  160. Uncertainty as to the outcome of an event when two or more possibilities exist.
  161. The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
    Risk, PureĀ 
  162. The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
    Risk, Speculative
  163. The taking of property from another by using violence or the threat of violence.
  164. The amount of money realized from the sale of damaged merchandise or property. A salvage clause is found in ocean marine insurance and usually states that the rescuers of a ship are entitled to the salvage of the ship and cargo.
  165. The process by which an agreement is reached and a claim is resolved in liability insurance.
  166. A provision that insurance applies separately to each insured in a policy, treating each individual as the only insured.
    Severability of Interest
  167. A method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss who share the losses that occur within that group.
  168. A property insurance policy that covers a specific kind or unit of property for a specific amount of insurance.
    Specific Insurance
  169. The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
    Speculative Risk
  170. Separately stated limits of liability for different coverages, which may be stated on a per person, per occurrence, per policy basis, or can be divided between bodily injury and property damage.
  171. An amount of insurance scheduled in a property policy which is not subject to any coinsurance requirements in the event of a covered loss.
    Stated Amount
  172. The written law as enacted by a legislative body (i.e the laws of the state), which generally takes precedence in cases where both common law and statute law apply.
    Statue Law
  173. Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
    Stock Companies
  174. A liability that refers to damages caused by defective products even though the manufacturer's fault or negligence cannot be proven.
    Strict Liability
  175. The acquisition by an insurer of an insured's rights against any third party for indemnification of loss or other payment, to the extent that the insurer pays the loss.
  176. The head of the state department of insurance.
    Superintendent (Commissioner, Director)
  177. A guarantee that debts and obligations will be carried out, and the benefits will be paid for losses caused by nonperformance.
    Surety Bond
  178. Insurance for which there is no readily available, admitted market.
    Surplus Lines
  179. Any act of stealing or removing property from its rightful owner.____encompasses both burglary and robbery.
  180. Insurance provisions that address the rights of someone other than the policyowner to have a secured financial interest in the insured property.
    Third-Party Provisions
  181. A wrongful act or the violation of someone's rights that leads to legal liability. They are classified as intentional and unintentional (referred to as negligence).
  182. A basic principle of insurance under which the risk of financial loss is assigned to another party.
  183. A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insure's disadvantage.
  184. Coverage that provides extra protection against liability, and excess amount of insurance above the primary policy.
    Umbrella Liability Policy
  185. An insurance company that has not applied, or has applied and been denied a Certificate of Authority.
    Unauthorized Insurer
  186. A person who evaluates and classifies risk to accept or reject them on behalf of the insurer.
  187. The process of reviewing, accepting or rejecting applications for insurance.
  188. A contract that legally binds only one party to contractual obligation after the premium is paid.
    Unilateral Contract
  189. Coverage in an automobile insurance policy under which the insurer will pay costs up to specified limits for bodily injury, if the liable driver's policy limits are exhausted and he/she cannot pay the full amount for which he or she is liable.
    Underinsured Motorist coverage
  190. Coverage that allows the named insured, resident relative(s) and passengers in a covered auto to collect sums another driver would be legally liable to pay for bodily injury resulting from an auto accident, providing the insurance company is insolvent.
    Uninsured Motorist Coverage
  191. The result of acting without proper care, generally referred to as negligence.
    Unintentional Tort
  192. A property that has contents or furnishings in it, but is not being used or lived in.
  193. The fair and equal bargaining by both parties in forming the contract, where the applicant much make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk.
    Utmost Good Faith
  194. A property that has no contents, furnishings, or occupants.
  195. A policy used when it is difficult to establish the actual cash value of insured property after a loss occurs because of its rarity or uniqueness. It provides for payment of the full policy amount in the event of a total loss without regard to the actual value or depreciation.
    Valued Policy
  196. A type of liability in which one person is responsible for the acts of another. For example, employees may be ________for the actions of their employees, and parents may be held responsible for negligent acts of their children.
    Vicarious Liability
  197. Time between the beginning of disability and the start of disability insurance benefits.
    Waiting Period
  198. The voluntary abandonment of a known or legal right or advantage.
  199. A material stipulation in the policy that if breached may void coverage.
  200. Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as the result of an on-the-job hazard.
    Workers Compensation