Insr 441 Ch. 1 Key terms

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weese4003
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Insr 441 Ch. 1 Key terms
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2010-02-23 20:30:55
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INSR 441 Ch 1 key terms
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INSR 441 Ch. 1 key terms
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  1. Commercial Insurance
    Insurance that covers for-profit businesses or not for profit organizations against against the adverse financial effects of property and liability losses.
  2. Loss Exposure
    Any condition or situation that presents a possibility of loss, reguardless of whether loss actually occurs.
  3. Corperation
    An entity organized under state law and entitled to the same rights as a person, distinct from its owners, who are called stockholders or shareholders.
  4. Partnership
    A for-profit business entity jointly owned by two or more persons who share ownership of profits, although not necessarily on an equal basis.
  5. Joint Venture
    A business association formed by an express or implied agreement of two or more persons to accomplish a particular project such as construction of a building
  6. Limited Liability Company
    A form of business entity that provides its owners the limited liability of a corporation and the tax advantages of a partnership
  7. Unincorporated association
    A voluntary association of indivuals acting together under a common name to accomplish a lawful purpose
  8. Line of business
    A general classification of insurance, such as commercial property, commercial general liability, commercial crime, or commercial auto.
  9. Monoline policy
    Policy that covers only one line of business
  10. Package policy
    Policy that covers two or more lines of business
  11. Commercial package policy (CCP)
    Policy that covers two or more lines of business by combining ISO's commercial lines coverage.
  12. Commercial Policy Declarations
    A required CPP companent that provides basic information about the insurer, the policy holder, and the insurance provided.
  13. Common Policy Conditions
    A required CPP component that contains six conditions applicable to all coverage parts unless a coverage part states otherwise
  14. Coverage Part
    A component of a CPP or a monoline policy that contains the policy provisions relating to a particular line of business such as commercial property of commercial general liability.
  15. Rate
    The price per exposure unit for insurance coverage.
  16. Commercial lines manual
    An ISO publication that includes rules and rating procedures for several major lines of commerrcial insurance.
  17. Package Modification Factors
    Factors that are applied to the regular policy premiums for certain coverage parts of a CPP that includes both property and liability coverages, resulting in premium discounts for those coverage parts.

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