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28 Cards in this Set
- Front
- Back
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INSURANCE |
A contract between the insurer and Insured |
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Property Insurance |
Will insure the property that belongs to an insured |
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Real property |
Property that cannot be moved |
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Personal property |
Any other property except real property. (Furniture, jewelry, etc..) |
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Liability Insurance |
Covers the amount of Insured is ligally obligated to pay because of injuries caused to others or damages to other persons property |
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Risk |
A situation or condition in which one has a possibility or chance of loss |
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Pure Risk |
Chance of loss or no loss |
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Speculative Risk |
Chance of loss or gain. Not insurable |
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Peril |
Cause of a loss |
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Hazard |
A situation which may increase the possibility of a loss |
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Moral Hazard |
A situation which involves dishonest act, lies, etc.. |
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Morale Hazard |
Situation in which the insured is careless, or does not care |
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Physical hazard |
Something that you can see. Situation which may increase the possibility of a loss |
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Legal Hazard |
Tendency of people to sue |
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Loss Exposure |
The potential of a loss |
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Insurable interest |
In property INSURANCE the insurable interest must exist when the policy is issued and at the time of a loss |
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Indemnity |
Is compensation from the insurer to the insured to restore the insured to the same financial condition he had prior to the loss |
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Deductible |
Is that portion of a loss that the insured must pay |
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Re-INSURANCE |
Method of sharing the risk between two insurers |
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Contract law |
Contracts are agreements between parties to do or not to do certain things |
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Tort law |
A wrongful act other than breach of contract |
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Elements of a valid ligal contract |
Agreement, offer, acceptance, valuable consideration, competent parties, lawful object or legal purpose |
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Waiver |
Is the international relinquishing (giving up) of a known right |
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Exclusive agent |
Also known as captive agent represents only one Insurer |
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Independent agent |
Represents different insurers |
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INSURANCE solicitor |
A natural person employed to aid an insurance agent or insurance broker |
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Binder |
A written document which proves that the insured has purchased an insurance policy |
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Surplus line broker |
A person licensed by the department of insurance and places insurance with nonadmitted insurers |
