Aic 31 Property Claim Practices

Front 1

Insurable Interest

Back 1

An interest in the subject of an insurance policy that is not unduly remote and that would cause the interested part to suffer financial loss if an insured event occured. Ex: a car you own is insurable interest. Best friends car is not yours so no insurable interest.

Front 2

Contract of Indemnity

Back 2

A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of loss. Ex: Insurance contract

Front 3

Joint owners/ Tenants

Back 3

Two or more persons each having full interest in the property. Each tenant has an insurable interest to the full extent of the property value. All on the settlement draft.

Front 4

Tenancy by the Entirety

Back 4

A joint tenancy between husband and wife

Front 5

Tenancy in Common

Back 5

A concurrent ownership of property, in equal or unequal shares, by two of more joint tenants who lack survivorship rights. Own a piece of property but each has a distinct fraction or percentage.

Front 6

Life Tenant (life estate)

Back 6

A person entitled to exclusive possession of real property and to all income the land produces for the duration of that person's or someone elses's life; terminate on the death of the life tenant and does not pass to his or her estate.

Front 7

Sole proprietorship

Back 7

A form of business in which one person owns the business assets and is personally liable for the business’s debts.

Front 8

Partnership

Back 8

A for-profit business entity jointly owned by two or more persons who share ownership and profits (or losses), although not necessarily on an equal basis.

Front 9

Corporate Veil

Back 9

A doctrine that insulates the assets of the owners of the corporation in case the corporation goes bankrupt. The corporation’s owners, the stockholders, are not personally liable for the corporation’s debt.

Front 10

Limited Liability (LLC)

Back 10

A form of business entity that provides its owners the limited liability of a corporation and the tax advantages of a partnership.

Front 11

Tenant (lessee)-

Back 11

Someone who pays to use, possess, or occupy property belonging to another.

Front 12

Bailee

Back 12

The party temporarily possessing the personal property in a bailment. Examples include repairs shops and dry cleaners.

Front 13

Cosignee

Back 13

The person or organization that receives property being transported by a carrier.

Front 14

Common carriers

Back 14

Airlines, railroads, or trucking companies that furnish transportation to any member of the public seeking their offered services

Front 15

Guardian

Back 15

A person appointed by a probate court to safeguard and distribute the estates assets for a minor’s or incompetent’s benefit.

Front 16

Trustee

Back 16

Someone who has the legal title to a property but is responsible that it be used, handled, and transferred solely for the benefit of the beneficiary.

Front 17

Security interest

Back 17

An interest in property (real or personal) that allows the property to be sold on default to satisfy the debt for which the security interest was given. Example those who hold Mortagage or lien on property.

Front 18

Mortgage

Back 18

An interst in land created by a written document that provides security for the payment of debt

Front 19

Mortgagee

Back 19

A lender in a mortgage arrangement, such as a bank or another financing instituition.

Front 20

Loss Payee

Back 20

A party entitled to share in whatever loss payment an insured receives.

Front 21

Lien

Back 21

A creditor’s legal right or interest in another’s property, usually lasting until satisfaction of the specific debt of duty that the lien secures

Front 22

Mechanic's Lien

Back 22

A lien granted by law to anyone who repairs a specific piece of property, that secures payment for the repairs. Example a roofer would have this lien or auto mechanic on auto

Front 23

Tax Lien

Back 23

A type of lien held by local, state, and federal governments through operation of law in the amount of unpaid taxes and interest.

Front 24

Judgement Lien

Back 24

A lien, in favor of the holder of a judgment, that attaches to the property of the one who owes the judgment.

Front 25

Purchase Money security Interest

Back 25

A type of security interest that gives the holder priority in foreclosures over subsequent lienholder or general.

Front 26

Asignee

Back 26

The individual or entity to whom property, rights, or interest have been transferred.

Front 27

Real Property ( Realty )

Back 27

Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land.

Front 28

Personal Property

Back 28

All tangible or intangible property that is not real property

Front 29

Coinsurance

Back 29

An insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced

Front 30

Fixture

Back 30

Any personal property affixed to real property in such a way as to become part of the real property.

Front 31

Trade Fixtures

Back 31

Fixtures and equipment that may be attached to a building during a tenant’s occupancy, with the intention that they be removed when the tenant leaves.

Front 32

Improvements and betterments

Back 32

Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them.

Front 33

Direct Physical loss

Back 33

A loss that is physical (not just financially) and results immediately from the occurrence.

Front 34

Burden of Proof

Back 34

In a trial, the duty of a party to prove that the facts it claims are true.

Front 35

Friendly Fire

Back 35

A fire that stays in it's intended place, such as a fire in a fireplace

Front 36

Hostile Fire

Back 36

A fire that leaves it's intended place, such as a spark that escapes a fireplace and sets the carpet on fire

Front 37

Vandalism

Back 37

Willful and malicious damage to or destruction of property.

Front 38

Collapse

Back 38

An abrupt falling down or caving in of a building with the result that the building or any part of the building cannot be occupied for it's intended use.

Front 39

Moral Hazard

Back 39

A condition that increases the likelihood that a person will intentionally cause or exaggerate a loss.

Front 40

Morale Hazard

Back 40

A condition of carelessness or indifference that increases the frequency or severity of loss.

Front 41

Concurrent Causation ( concurrent causation doctrine)

Back 41

A legal doctrine stating that if a loss can be attributed to two or more independent concurrent causation

Front 42

Functional Valuation approach

Back 42

A valuation method in which the insurer is required to pay no more thant the cost to repair or replace the damaged or destroyed property with property that is it’s functional equivalent . used on older buildings