Aleatory Contract - ANSWER-Insurance policy is based upon uncertainty of a loss, equal value is not given by the parties to the contract.
Utmost Good
... [Show More] Faith - ANSWER-Parties to the contract rely upon the integrity of one another.
Insuring Agreement - ANSWER-The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against.
Conditions - ANSWER-The rights and responsibilities of all parties of the contract.
Exclusions - ANSWER-Rights and responsibilities of both parties to the contract
Monoline Policy - ANSWER-Policy that covers only one line of business
Multiline policy - ANSWER-Policy that includes more than one type of insurance coverage.
Property—Personal Lines Insurance - ANSWER-Dwelling and contents, homeowners , mobile homes, personal inland marine floaters, personal watercraft,flood,earthquake
Property—Commercial Lines Insurance - ANSWER-Business owners BOP, commercial package policy CPP, boiler and machinery, commercial inland and ocean marine floaters
Casualty— personal lines - ANSWER-Personal liability, personal auto policy PAP, personal umbrella policy
Casualty— Commercial lines - ANSWER-Commercial general liability CGL, Business auto coverage, workers compensation and liability insurance, surety bonds, commercial crime insurance and Fidelity bonds, personal liability insurance, commercial umbrella policies and excess coverages.
Surplus Lines - ANSWER-any type of insurance for which there is no available market within the state, and the coverage must be placed with a non admitted insurer, are often allow to operate under open competition
Residual market coverage - ANSWER-A responsibility assumes by insurance regulators to step in and provide insurance situations where private insurance is not readily available when the government provides a type of insurance or mechanism to procure insurance
Examples of surplus lines-federal level - ANSWER-FloodInsurance, Federal crop insurance, nuclear energy liability insurance, terrorism insurance program.
Examples of surplus lines—State level - ANSWER-Personal auto insurance plan PAIP an assigned risk plan , commercial auto insurance plan an assigned risk plan, The fair plan (property insurance) , Worker's Compensation assigned risk programs
binder - ANSWER-A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued.
Certificate of Insurance - ANSWER-A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided.
Adverse Selection - ANSWER-Poor risk will seek insurance in greater numbers than good risks
Experience Rating - ANSWER-A rating plan that adjusts the premium for the current policy period to recognize the loss experience of the insured organization during past policy periods. Usually 3 years
retrospective rating - ANSWER-A self-rating plan under which the actual losses during the policy period determine the final premium (subject to a minimum and maximum premium).
Schedule Rating - ANSWER-applies a system of debits or credits to reflect characteristics of a particular insured
Nonrenewal - ANSWER-A termination of a policy by an insurer on the anniversary or renewal date.
Insuring Agreement - ANSWER-Promises — Policy coverages, additional coverages, perils insured against, direct and indirect property losses.
Conditions - ANSWER-Cancellation, non-renewal, misrepresentation, concealment or fraud, Duties following a loss, valuation or loss settlement or how losses will be settled
Replacement Cost - ANSWER-Replacement cost - depreciation equals actual cash value
Insurable Interest - ANSWER-And property insurance in insurable interest must be present at the time of the loss
Coinsurance - ANSWER-Designed to encourage insurers to insure their property for the full value many property policies require the insured to carry 80% properties replacement cost
Other Insurance - ANSWER-a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk
Liberalization - ANSWER-If the insured broadens coverage under a certain policy form or endorsement without increasing the premium the insurance existing policy is considered to contain the broad and coverage immediately liberalization condition only works to broaden coverage not restrict
Bailee - ANSWER-the party who acquires possession, but not the title, of personal property by one party to another, under agreement
liability insurance - ANSWER-Provides third-party coverage the third-party is a person who suffers damages due to the actions of an insured
Torts - ANSWER-legal wrongs committed against a person
Contributory Negligence - ANSWER-A legal defense that may be raised when the defendant feels that the conduct of the plaintiff somehow contributed to any injuries or damages that were sustained by the plaintiff.
Comparative Negligence - ANSWER-A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence.
Assumption of Risk - ANSWER-voluntarily and knowingly subjecting oneself to danger
Vicarious Liability - ANSWER-when one person is liable for the torts of another
Absolute Liability - ANSWER-liability without fault
Supplementary Payments - ANSWER-Provide extra coverage over and above the insured's limits of liability, Used for defense costs.
Compensatory Damages - ANSWER-Damages which are intended to compensate the injured third party for actual losses incurred
Special damages also called economic losses - ANSWER-Examples medical bills lost income due to inability to work, funeral expenses, repair or temporary storage of property.
General damages also called non-economic losses - ANSWER-More difficult to calculate but include compensation for pain and suffering, inconvenience, disfigurement, loss of limbs, loss of sight or hearing, loss of consortium
Punitive Damages - ANSWER-Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future.
Aggregate Limit - ANSWER-The maximum amount an insurer will pay for all covered losses during the covered policy period.
umbrella policy - ANSWER-Provide broad coverage for an insurance liability above and beyond the coverage limits provided by underlying contracts
Personal Injury - ANSWER-Mental anguish, false arrest, wrongful evection, libel, slander, defamation, invasion of privacy.
Errors and omissions insurance - ANSWER-Covered losses for insurance professional would include the failure to recommend proper coverages or the failure to process applications as required by insurance companies
Cancellation due to nonpayment of premium or moral hazard - ANSWER-Written notice must be mailed or delivered at least 10 days prior to the effective date of cancellation
Hurricane Deductible - ANSWER-Insurers and the fair plan may file to use mandatory hurricane deductibles up to 5% and optional hurricane deductibles up to 10%
Surplus lines insurance agent - ANSWER-Requires prerequisite or corequisite of property and casualty authorities
Producer - ANSWER-Person engaged in the business of an insurance agent, broker, or consultant who is licensed and who has property casualty authority
Authorized Insurer - ANSWER-An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state.
Surplus lines insurer - ANSWER-A foreign or alien ensure that is eligible to transact surplus lines business in the state
Ineligible unauthorized insurer - ANSWER-A foreigner alien in sure that is not duly authorized to transact business in the state by a current certificate of authority
insurance guaranty funds - ANSWER-funds established by the states, and financed by insurance companies, to guarantee insurance policies
New Jersey commercial insurance deregulation act of 1982 - ANSWER-Encourages competition. Between insurance companies
Reporting Form - ANSWER-requires the insured to report periodically the value of insured business personal property
Retention Limit - ANSWER-In an Umbrella Liability policy, the amount the insured must pay for a loss not covered by an underlying policy, before the Umbrella will begin to cover losses.
The New Jersey fair plan - ANSWER-Coverage is limited to a maximum property value of $1.5 million
- ANSWER-Makes the law
- ANSWER-Interprets the law
- ANSWER-Applies and enforces the law The governor is the head of the executive branch. The governor appoints officials in various departments of the state. The governor appoints the commissioner of banking and insurance
The commissioners duties - ANSWER-He shall make and enforce and may alter modify amends or repeal rules and regulations [Show Less]