Term
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Definition
| The undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed ... or to pay a sum of money or other thing of value upon the happening of a certain event. (pg 1-4) |
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Term
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Definition
| An agreement between two or more persons which creates an obligation to do or not to do a particular thing. (pg 1-5) |
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Term
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Definition
| An exchange of something of value between the parties. (pg 1-5) |
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Term
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Definition
| Chance of financial loss to which an object of insurance is exposed. (pg 1-3) |
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Term
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Definition
| The chance of financial loss of gain. (pg 1-4) |
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Term
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Definition
| The chance of financial loss but no chance of financial gain. (pg 1-5) |
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Term
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Definition
| Application of the principle of indemnity ensures people receive the actual amount of their loss - no more and no less. (pg 1-8) |
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Term
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Definition
| A temporary agreement in which the insurer agrees to provide certain coverages pending the issuance of the policy. (pg 1-9) |
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Term
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Definition
| A written agreement or contract between the insurer and the brokerage which acknowledges their relationship. (pg 1-9) |
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Term
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Definition
| One which is unable in law to support the purpose for which it was intended. Such contracts are deemed never to have existed. (pg 1-9) |
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Term
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Definition
| A contract that may be voided at the option of the wronged party only and not the wrongdoer. (pg 1-9) |
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Term
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Definition
| The cause of loss. (pg 1-10) |
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Term
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Definition
| Occurs when the peril insured actually attacks the object of insurance. (pg 1-10) |
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Term
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Definition
| Losses which arise as a consequence of a direct loss. (pg 1-10) |
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Term
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Definition
| New or replacement cost of the property at the time of the loss, less depreciation. (pg 1-10) |
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Term
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Definition
| The cost to repair or replace the lost or damaged property with new property of like kind and quality, without deduction for depreciation. (pg 1-11) |
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Term
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Definition
| Both the insured and insurer agree at the time the policy is issued as to the cash value of the preoperty. In the event of a loss, the agreed amount would be paid. (pg 1-11) |
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Term
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Definition
| Policy which provides a single limit of insurance for all property falling within a specific class. (pg 1-11) |
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Term
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Definition
| Covered Property is itemized on the policy. (pg 1-11) |
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Term
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Definition
| One has this in the subject matter of the insurance when they will suffer financially by a loss (pg 1-7) |
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Term
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Definition
| The law requires insurance contracts maintain a higher standard of honesty than is needed of other contracts. This duty applies to the insured, the insurer and the broker. (pg 1-8) |
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Term
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Definition
| One who occupies a special position of trust or confidence in the handling or supervising of the affairs or funds of another (pg 1-15) |
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Term
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Definition
| Premiums not yet earned by the insurer. Such premiums are deemed to be held in trust in order to refund the insureds in the event the policy is cancelled prior to expiry date. (pg 1-15) |
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Term
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Definition
| Involves the presence of visible flame or glow, actual ignition or burning is required. (pg 1-17) |
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Term
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Definition
| A fire that is contained in its proper receptacle (pg 1-17) |
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Term
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Definition
| A fire that passes outside of the limits assigned to it, e.g. sparks thrown from a fireplace that burns a carpet is hostile fire. (pg 1-17) |
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Term
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Definition
| Damage which arises from a natural or continuout sequence of the peril causing the loss. (pg 1-21) |
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Term
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Definition
| Any change within the control and knowledge of the insured and which arises after the policy has been issued and serves to increase the chance of a loss. (pg 21) |
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Term
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Definition
| Basis of return premium calculation when the insurer cancels a policy. The amount of the return premium is arric=ved at by dividing the amount of premium paid by the number of days in the policy period. The number so obtained is then multiplied by the number of days remaining in the policy period. (pg 1-23) |
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Term
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Definition
| The basis of return premium canculation when the insured cancels the policy. The amount of the return premium is equivalent to that provided on a pro-rata basis, less any adminitrative charge or cancellation penalty. (pg 1-23/24) |
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Term
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Definition
| Immediate report of loss to insurer by insured or his representative (agent) in writing. (pg 1-24) |
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Term
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Definition
| A formal verification, under oath, of the details and amounts being claimed under the policy. (pg 1-24/25) |
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Term
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Definition
| A deliberate attempt to deceive, with a view to securing some profit. (pg 1-26) |
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Term
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Definition
| Represents the amount the insured is required to absorb for each loss for which insurance coverage is provided before receiving any payment from the insurer. (pg 34) |
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Term
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Definition
| When the insurer has paid a claim for loss caused by a third party, the Insurance Act allows the insurer to place itself "in the insured's shoes" in respect of their right to recover the amount of the loss from the responsible party. (pg 1-35) |
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Term
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Definition
| Insurance companies which exist to make a profit or return on their investment. |
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Term
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Definition
| Insurance companies which are organized for reasons other than profit. They are owned and controlled by their policyholders and their mandate is to secure insurance at as low a cost as possible. (pg 1-39) |
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