Term
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Definition
| A formal written contract by which an insurer provides protection if an insured suffers specified losses |
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| A contract that one or more parties must perform only under certain conditions |
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Definition
| An obligation to act in complete honesty and to disclose all relevant facts |
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Term
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| In insurance, a fact that would affect the insurer's decision to provide or maintain insurance or to settle a claim |
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Term
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Definition
| A false statement of a material fact on which a party relies |
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Definition
| A contract to which one party must adhere as written by the other party |
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Definition
| A contract in which the insurer agres, in the event of a covered loss, to pay an amount directly related to the amount of the loss |
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| The principle that insurance policies should compensate the insured only for the value of a loss but should not provide a benefit greater than the loss |
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Definition
| A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss) regardless of the actual value of the loss |
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| An oral or written agreement to provide temporary insurance coverage until a formal written policy is issued |
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Definition
| A premium receipt used by life insurers and accident and health insurers that is not intended to provide immediate coverage but that may provide coverage back to the date of receipt under certain conditions |
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Term
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Definition
| A conditional receipt that provides coverage on the date of receipt until a specified time or until the insurer disapproves the application |
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Term
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Definition
| A conditional receipt that reflects the insurer's intention not to be bound by the receipt until the application is approved |
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Term
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Definition
| A life insurance or accident and health insurance conditional receipt that stipulates that the insurance is effective on the date of the receipt or on the date of the medical examination, provided the applicant is insurable on that date |
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Term
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Definition
| A law that permits a negligence victim to sue an insurer directly or to sue both the insurer and wrongdoer jointly |
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Definition
| An agreement included in an insurance policy that the insurer will not contest the policy after it has been in force for a specified period |
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Definition
| A period during which an insurer can challenge the validity of a life insurance policy |
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Definition
| A written or oral statement in a contract that certain facts are true |
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| A guarantee that specific facts exist at the time a contract forms |
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| Continuing, or promissory, warranty |
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Definition
| A guarantee that parties to a contract will do certain things or that certain conditions will continue to exist during the term of a contract |
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Definition
| An obligation that the courts impose on a seller to warrant certain facts about a product even through not expressly stated by the seller |
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Definition
| The intentional relinquishment of a known right |
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Term
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Definition
| A legal principle that prohibits a party from asserting a claim or right that is inconsistent with that party's past statement or conduct on which another party has deterimentally relied |
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Definition
| The volutary act of choosing between two alternative rights or privileges |
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Term
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Definition
| A written contract in which the insured and the insurer agree that neither will waive any rights under the policy as a result of the investigation or defense of a lawsuit against the insured |
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Term
| Reservation of rights letter |
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Definition
| A notice sent by an insurer advising the insured that the insurer is proceeding with a claim investigation but that the insurer retains the right to deny coverage later |
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