Term
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Definition
| Economic Device that allows the individual to subistute a small certain cost for protection against a large uncertain loss. |
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Definition
Contract between 2 parties insurance compmany & the insured.
Transfer of risk & sharing in losses. |
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Term
| What are the 2 values that come with a policy. |
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Definition
Peace of Mind
Tangigle Comphensation |
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Definition
| Uncertainty or chance of loss |
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Term
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Definition
| Must insure own things, & must the the owner of things insured. |
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Definition
| Predict outcome of insuring risk, with many examples. |
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Definition
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Term
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Definition
| SUDDEN, UNEXPECTED, & UNPLANNED. |
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Term
| What is the purpose of a policy? |
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Definition
| To manage economic hardship in the event of a loss. |
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Term
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Definition
| Fine resulting from depositing agency premiums in to a personal account. |
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Term
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Definition
| No depreciation at time of loss. |
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Term
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Definition
| Selling price & base of price value |
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Term
| Personal Articles Float(PaF) |
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Definition
| Must have an appraisal, descriptions, & values. The values represent the market value. |
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Term
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Definition
| Provides for payment of the full policy amount in the event of a total loss without regard to actual value or depreciations. |
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Term
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Definition
| 1 property with more than 1 insurance company providing coverage. Each company must share in loss based on their share of coverage, whether it is collectable or not. |
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Term
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Definition
Valuable information:
Name & address of agency, insured, effective dates. coverages, premiums, endorsements, policy #, expiration date, coverage amounts, deductibles. |
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Term
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Definition
| Explains how losses will be handled by the policy. 2 types are Named perils & All risk. |
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Term
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Definition
| only losses described by name of perils will be covered. |
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Term
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Definition
| Cover any loss, except those named excluded. |
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Term
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Definition
| duties, rights, & responsibilities of both parties in the contract. |
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Term
| How many days must the insurance company give before cancellation of non-payment? |
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Definition
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Term
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Definition
| Report all losses immediately. |
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Term
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Definition
| represent losses not covered by policy. |
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Term
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Definition
| used to modify or make changes to the policy. |
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Term
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Definition
| all policies have a clear indication of how the policy is expected to perform. |
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Term
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Definition
| bodily harm, sickness/disease, required care, death that may result. |
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Term
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Definition
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Term
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Definition
| Make changes & pay premiums |
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Term
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Definition
| sometimes losses are covered that are not named only if they resulted from perils that are named. |
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Term
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Definition
| controlled, contained, intended place, & no damage. |
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Term
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Definition
| unfriendly fire escapes intended limits and/or os not started intentionally. |
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Term
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Definition
| after the insured has received proof of loss & after the amount of loss has been agreed upon, the insurer will pay for the loss within 60 days. |
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Term
| A Standard Fire Policy must have all of the following: |
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Definition
1. Property Form
2. Other Types of policies
3. Extended Coverage Form
4. Change recovery Basis |
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Term
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Definition
Windstorm
Civil Commotion
Smoke
Hail
Aircraft
Vehicle
Explosion
Riot |
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Term
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Definition
Replacement Cost
- Depreciation
__________________
Actual Cash Value |
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Term
| Vandalism & Mialicious Mischief |
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Definition
| Damage done by less than 3 people. Must have the EC form in order to be covered. |
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Term
| Replacement Cost Coverage |
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Definition
| Change basis of recovery. Takes away depreciation. Age of property is not a factor with RCC. |
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Term
| How to Insure a residential home? |
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Definition
1. Homeowners Policy
2. Dwelling Fire Policy |
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Term
| Who is not eligible for Homeowners? |
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Definition
1. Low Valued
2. Old(un renovated)
3. Undesirable location
4. Rental Property |
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Term
| For a structure to be considered a Dwelling it must have no more than ___ units? |
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Definition
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Term
| Permitted Incidental Occupancies |
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Definition
Service NOT sale
Examples: beauty parlor, photo studio |
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Term
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Definition
| Anything attached to the home inside or out. |
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Definition
| Other structures on dwelling premisies. Unnattached items. |
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Term
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Definition
| Contents must have limit, and must have an inventory to be covered. |
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Term
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Definition
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Term
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Definition
| Temporary Living Expenses |
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Term
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Definition
| Dp1- Named Perils- can add extended coverage form and vandalism & mailis. mischief. |
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Term
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Definition
| Dp2- More named Perils- Ec & VMM are built in automatically with more named perils. |
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Term
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Definition
| Dp3- All risk coverage for dwelling & structures. |
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Term
| Removal: how many days are covered? |
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Definition
Basic-5 days for any cause
Broad-30 days
Special-30 days |
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Term
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Definition
only if deris resulted from a covered loss.
amount must be = or < coverage amount. |
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Term
| Liability Coverage on Dwelling Fire, |
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Definition
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