Specific insurance
This type of insurance designates a particular item to be insured
Blanket insurance
This type of insurance covers more t... [Show More] han one item of property at a single location or one more items of property at multiple locations. Speculative possibility of both gain and loss. Not insurable. Pure only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? avoid, control, retain, and transfer risk.
Hazard
A condition or situation which increases the chance for loss Physical Hazards a hazard that arises from the condition, occupancy, or use of the property itself.
ex: skateboard left on the steps Moral Hazards when an individual through
carelessness or by irresponsible actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they are insured. Morale Hazards when a person might create a loss situation on purpose just to collect from the insurance
company.
ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance
payout to buy a new vehicle.
Replacement Cost
The amount of money it would take to replace a damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS. No deduction for depreciation.
Actual Cash Value (ACV)
Replacement Cost, minus depreciation.
Pair and Set Clause
Loss to one item of a pair or set does not constitute loss to the entire pair or set. 00:0201:45
Appraisal
A method of resolving disputes between insurers and insureds over the amount owed on a covered loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be paid Subrogation An insurer's right to recover the amount of its loss payment from the third party who is legally responsible for the loss. Arbitration this condition is similar to the Appraisal Condition but it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured and the insurance company.
What does WC SHAVVER stand for?
Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for?
Burglar damage, Ice & snow weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical damage, Collapse, Tearing apart.
Insolvency
A financial state that occurs if liabilities are greater than assets.
Law of Agency
Knowledge of the Agents is Knowledge of the Principal (Insurance Company) Principal Insurance Company What is the ISO?
Insurance Services Office which is an organization established for the benefit of its member insurance companies. This organization gathers statistics, provides loss costs, drafts policy forms and coverage provisions and conducts inspections for rate making purposes.
Coinsurance Clause
Requires the insured to carry a minimum specified amount (generally 80%) of the replacement cost value of the insured property in order for partial losses to be paid in full.
Estoppel
A legal bar to changing or denying a fact because of one's own previous actions or words to the contrary.
ex: If an insurance company representative intentionally or unintentionally gives the impression that a specific fact exists when it does not and a client relies on that impression and is damaged a result.
Binder
A temporary contract of insurance, oral or written, offered by an insurer pending issuance of the policy. Usually written for a period of 30-60 days and remains in force for that period or until a permanent policy is either issued or denied by the insurer.
Warranty
A provision in a policy that pledges that a condition does exist or will exist at some time in the future.
Deposit Premium [Show Less]
