Term
|
Definition
on the first page of the policy
contains:name of insurance company and name of insured. also contains address of property covered and policy limits. |
|
|
Term
|
Definition
| this states what perils the property is covered for |
|
|
Term
|
Definition
normally contained in the 165 lines of text, apply both to insured and insurer.
ex- insured's duty to protect the property from further damage |
|
|
Term
| Exclusions and limitations |
|
Definition
| listed in a separate section of the policy, a list of things that are never covered; flood, war, earthquake etc. |
|
|
Term
| Definitions of the insured |
|
Definition
states who is covered on the policy.
-on an HO policy, the means you, any relative residing in your household and any other person under the age of 21 who is in your care and residing at your household. |
|
|
Term
| Duties of the insured after a loss |
|
Definition
| a condition also found in the 165 lines of text. It states that the insured must give immediate written notice of claim to the insurer, protect the property from further damage, and furnish proof of ACV. |
|
|
Term
|
Definition
| done mid-term. with a specific reason and give written advance notice of the cancellation. =a refund is due to the insured, either 'short rate' if the insured canceled the policy. or 'pro-rata' if the insurer cancels the policy |
|
|
Term
|
Definition
| occurs at the policy anniversary date. The insurer must give the insured advance written notice that their policy will not be renewed. No premium refund is due. |
|
|
Term
| Additional (supplementary) payments |
|
Definition
these on a property policy include coverages such as debris removal, coverage for trees, shrubs and plants and fire department service charges.
on a PAP these include coverage for bail bonds (250) required because of an accident, interest accruing after a judgment is entered and up to 200 a day for loss of earnings due to attendance at a hearing at the insurer's request. |
|
|
Term
|
Definition
| the completed claims forms the insured is required to send back to the insurance company in connection with a pending claim. Normally, the company will send a particular form to be completed by the insured. |
|
|
Term
|
Definition
| line 90 of the standard fire policy requires that the insured give immediate written notice to the company of any loss. THis is a condition that applies to the insured. Immediate is defined to mean as soon as reasonably possible. |
|
|
Term
|
Definition
| a provision in the liability section of a property policy HO that permits an insured and insurer to _ whether or not the insured is legally entitled to recover damages from the company. This provision is designed to prevent lawsuits from being filed by the parties involved. |
|
|
Term
|
Definition
| also called pro-rata liability clause. This policy provision protects the insurance company against a client who purchases more than one policy on the same property. |
|
|
Term
|
Definition
| this is when another party causes damages to your property. Your insurance company pays the claim, but then takes your right of recovery and sues the negligent other party to recover the money they paid out to you. (They stand in your place) |
|
|
Term
| loss settlement provisions including consent to settle a loss |
|
Definition
| in most liability insurance, the insurance company may settle the claim in any way they feel is expedient, meaning whatever way is cheapest for them. This is not always true of personal liability policies; sometimes the insurer must have the insured's consent to settle the claim. |
|
|
Term
| terrorism risk insurance act TRIA |
|
Definition
| 2002- extended to 2014. the act created a federal terrorism insurance program to administer a system of shared public / private compensation for insured losses resulting from acts of terrorism in order to protect consumers and create a transitional period for private insurance markets to stabilize. |
|
|
Term
|
Definition
| an insurer is defined not only by its corporate status, but also by its locality or domicile of incorporation. If an insurer is incorporated under the laws of the state in which it conducts business, that insurer is this |
|
|
Term
|
Definition
| if an insurer conducts business in a state where it is not resident the insurer is this |
|
|
Term
|
Definition
| if an insurer is incorporated in a country other than the u.s. it is this. Therefore, an insurer incorporated in Ohio and conducting business in Ohio is considered a domestic insurer. This same ohio-based insurer conducting business in utah is considered a foreign insurer. An insurer incorporated in Canada and conducting business anywhere in the U.S. or its territories is this kind of insurer. |
|
|
Term
|
Definition
| before an insurance company can conduct business it must, by law, receive a certificate of authority to do so. Insurance statutes require a company to secure a license from the Department of Insurance to sell insurance in a particular state. Once the insurer receives the license it is considered 'this' into the state as a legal insurer, and is authorized to transact the business of insurance. This licensing power is used to regulate company activities. Licenses may be issued to domestic companies, foreign companies, or alien companies |
|
|
Term
|
Definition
| surplus lines carriers are exempt from licensing. Surplus lines companies are called this. It is perfectly legal to sell for this. |
|
|
Term
|
Definition
| A person that should be licensed, but is not. The term includes individuals, agencies, and insurance companies. Persons found to be engaging in these insurance can be fined, lose their license and if found guilty of a willful violation and convicted in a court of law, they may be subject to jail time. |
|
|
Term
|
Definition
| may be remembered by the acronym DICE- declarations, insuring, agreement, conditions, and exclusions. |
|
|
Term
|
Definition
| named insured, policy limits, and premium and policy period |
|
|
