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10 Cards in this Set
- Front
- Back
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accident
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A sudden unforeseen, unintended, and unplanned event from which loss or damage results.
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occurrence
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an accident includes continuous or repeated exposure to the same general harmful conditions
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cancellation
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the termination of an insurance policy before its expiration date. once cancelled a policy provides no coverage. A policy may be cancelled by the insured or insurer.
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Pro Rata Cancellation
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refunds premium to the insured based on the precise number of days coverage was in effect. The earned premium is the premium charged and retained by the insurer for the number of days coverage was in place.
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short rate cancellation
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A cancellation of insurance that incurs a financial penalty. Sometimes when the insured cancels the policy before its expiration date, a short-rate cancellation is issued. the insurer retains a portion of the unearned premium to cover costs.
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flat cancellation
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A cancellation of insurance that is retroactive to the effective date of the policy. No coverage is provided and the insurer must refund the policy premium paid by the insured.
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non renewal
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The termination of a policy at the expiration of it's term. The policy does not renew and no coverage is provided after the expiration date.
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proximate cause
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the primary cause of loss, if only one peril caused the loss, the proximate cause is the first event in the unbroken chain of events that resulted in loss. If more than two perils caused or contributed to the loss, the proximate cause is the peril having the most significant impact in generating the loss or damage
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hostile fire
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a fire that burns outside its intended boundaries, or becomes uncontrollable. examples of a hostile fire include a wildfire or a fire that damages a home when a spark from a fire in the fireplace ignites a piece of furniture.
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friendly fire
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a fire that was intentionally set and stays within its intended boundaries, ( a fireplace) and results in smoke damage to the inside of a fireplace. property insurance does not cover damage from a friendly fire.
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