INSR 441 Ch. 4 Key Terms

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INSR 441 Ch. 4 Key Terms
2010-02-23 22:00:41
INSR 441 Ch 4 Key Terms

INSR 441 Ch.4 Key Terms
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  1. Business Income Insurance
    Insurance that covers the reduction in an organizations income when operations are interrupted by damage by damage to property caused by a cavered peril.
  2. Net Income
    The differene between revenues and expenses.
  3. Profit
    Net income that results when revenues exxceed expenses.
  4. Net Loss
    Net income that results when exxpenses exceed revenues
  5. Continuing expenses
    Expenses that continue to be incurred during a business interruption
  6. Noncontinuing expenses
    Expenses that will not continue during a business interruption
  7. Extra Expenses
    Expenses that an organization incures to mitigate the effects of a business interrution
  8. Business Incomes Coverage Form
    Form that covers both business income and extra expense losses
  9. Business incomes
    Sum of 1. net profit or loss that would have been earned or incurred if the suspension had not occured and 2. normal operating expenses, including payroll, that continue during the suspension
  10. Expenses to reduse loss
    Coverage for necassary expenses incurred by the named insured to reduce business income loss
  11. Civil Authority additional coverage
    Coverage for loss of business income that results when access to the insureds premisis is prohibited by civil authority because of damage to property other that insureds
  12. Probably Maximum loss
    The largest loss that an insured is likely to sustain
  13. Maximum period of Indemnity coverage option
    Option that deletes the coinsurance clause while limiting loss payment to the lesser of 1. the amount of loss sustained during the 120 days following the beginning of the period of restoration or 2. the policy limit
  14. Monthly limit of indemnity coverage option
    Option that deletes the coinsurance clause while limiting the amount recoverable during any month of business interruption to a stipulated fraction of the insurance amount
  15. Business income agreed value coverage option
    Option that suspends the coinsurance clause as long as the insured carries an amount of business insurance that is equal to the value agreed on by the policyholder and the insurer