Term
What information is included in a policy's declarations? |
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Definition
| Declarations- the section of an insurance policy containing the basic underwriting information, such as the insured's name, address, amount of coverage and premiums, and a description of insured locations. It also contains any supplemental representations by the insured. Usually the first page of the policy. |
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Term
| What is included in the conditions section of a policy? |
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Definition
| Conditions- the section of an insurance policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy. |
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Term
What is included in the exclusions section of the policy? |
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Definition
| Exclusions- section of the policy that details what perils are not insured against and what persons are not insured. Exclusions restrict some of the broad terms used in the insuring agreement. |
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Term
| What is the difference between cancellation and non-renewal? |
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Definition
Cancellation- the termination of an in-force policy by either the insured or the insurer prior to the expiration date shown in the policy. Termination may be voluntary, involuntary, or in mutual accordance with provisions contained in the policy. Nonrenewal- the termination of an insurance policy at its expiration date by not offering a continuation of the exsisting policy or a replacement policy. |
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Term
| What are additional or supplementary payments? |
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Definition
| Additional coverage- a provision in an insurance policy that provides an additional amount of coverage for specific loss expense, at no additional premium. (ex:claim related expenses; reasonable expenses incurred by an insured to protect damaged property from further loss; defense expense) |
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Term
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Definition
| A sworn statement must usually be funished by the insured to an insurer before any loss under a policy can be paid. This form is usually used in a settlement of first-party losses, and includes the date and description of the occurrence and the amount of indemnity claimed. |
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Term
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Definition
A method claim settlement used when the insured and insurer cannot agree on how to settle a claim. The settlement is submitted to an arbirtrator(s) whose decision may or may not be binding on both parties dependent on state law. |
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Term
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Definition
The aquistition by an insurer of an insured's rights against any third party for indemnification of loss or other payment, to the extent that the insurer pays the loss. In other words, the insurer is given the right to seek damages from third parties since the insured has accepted payments from the insurer. |
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Term
What is the purpose of the Fair Credit Reporting Act? |
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Definition
A law effective April 25, 1971, and is administered by the Federal Trade Commission. The purpose of the law is to protect consumers against the circulation of inaccurate or obsolete information, and to ensure that consumer reporting agencies are fair and equitable in their treatment of consumers. |
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Term
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Definition
Salvage is the amount of money realized from the sale of damaged merch. In property insurance, the insurer may have a right to salvage the damaged property in an insured loss to recover part of the paid loss. |
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