Property
you can possess/ physically touch
BI
bodily injury
PD
Property damage
Liability/casualty
what you pay the other
... [Show More] guy
personal lines insurance
cover needs of individual or family (auto,boat,camper,rv)
commercial lines insurance
needs of a business
direct loss
example - house burns down
indirect loss
example - additional money you will have to spend to live somewhere else while house is being rebuilt. Out of pocket expenses.
indemnify
to make whole again - no better no worse
predetermined loss limit
based upon the rule of the 4Ls - you get the lower of the loss or the limit up to the level of your insurable loss.
inherent vice
loss results from an inherent property not fortuitous, not covered
CPC
catastrophic, predictable, covered elsewhere
endorsement
written modification to your policy designed to accommodate your specific needs - sometimes called a rider
mutual company
earning called surplus, not taxable, dividend
reinsurance treaty
% risk transferred and fees involved for entire class
surplus lines producer
agent authorized to sell contracts from nonadmitted company if desired policy is unavailable from admitted company
consideration
acceptance and offer
aleatory
not necessarily equal due to uncertain timing of event which is the subject of contract
unilateral
one promiser
negative data that they can use against you
up to seven years
Up to how many years can they use bankruptcy against you?
10 years
Largest of these ratings bureaus
Insurance services office
premium calculation
multiply the units of exposure. example - rate is 2.25$ per sq ft, annual premium is 10,000 sq ft = 2.25 x 10,000 = 22,500 sq ft
merit rates
customized class rates based upon physical characteristics or modifications to exposure or loss experience
schedule rating
lower rating for a building just updated
experience rating
add/subtract from class rates based upon actual loss of exposure
expense ratio
expenses to premium
estoppel
you can be estopped from exercising what you have continuously waived
DICE
declarations, insuring clause, conditions, exclusions
abandonment
an attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property.
salvage
company gains ownership of item, have the right to recoup some of their outlay...salvage
FLEW RVVVSSS
fire, lightning, explosion, windstorm/hail, riot, vandalism(will cover burglar damage), volcanic action, smoke, sprinkler leakage, sinkhole collapse
liability coverage
NEVER pay you - always the other guy
criminal law
wrongs against society, think law and order
tort law
wrongs between two individuals, think judge judy. single tort = negligence
negligence
failure to do or not to do what the reasonable person would do or not to do in same circumstances
accident
unforeseen and unintended happening at a known place and time
occurence
includes all accidents also includes events that happen over a period of time
compensating damage
intended to compensate the other guy and return him to his preinjury status
special or non economic damages
difficult to quantify, humiliation, embarrassment, pain and suffering, mental anguish
punitive damages
punish the offender and dissuade others from repeating the same offense, often exclude punitive damage
supplementary payments
not an optional add on, it is integral part of any liability policy.
dwelling policies
fully integrated, autonomous, contracts which offer the policyowner 3 levels of peril power. basic - broad - special perils
DP 1
basic perils on both dwelling and personal property (contents)
DP 2
upgrades these coverages to the broad form perils
DP 3
extends coverage on the dwelling to special (all risk) leaves the contents coverage at broad form level
DP 4
known as TENANT form, which offers no building coverage - provides basic perils coverage for personal property and allows the insured to increase the peril power by endorsement [Show Less]