Property Insurance Terms And Related Concepts

Front 1

Aggregate limit

Back 1

is the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims made or the number of accidents that occur. Losses paid under coverages subject to aggregate limits reduce the amount available for future losses. Aggregate limits are restored at the anniversary of the policy.

Front 2

3 Elements of Insurable Risk

Back 2

1. Financial

2. Blood

3. Business

Front 3

Risk

Back 3

the uncertainty of loss or chance of loss occurring.

Front 4

Two Types of Risk

Back 4

Pure Risk

Speculative Risk

Front 5

Peril

Back 5

cause or causes of loss against an insurance policy.

Front 6

Hazard

Back 6

conditions or situations that increase the probability of an insured loss occuring.

Front 7

Burglary

Back 7

is the crime of forced entry into or out of the premises of another person or persons with felonious intent

Front 8

Robbery

Back 8

is taking the property from the care of another person by one who caused or threatened to cause harm to another person, or committed an unlawful act witnessed by another person

Front 9

Coinsurance Clause

Back 9

insured's promise to insure property to some certain percent of its value

Front 10

Replacement Cost

Back 10

full replacement of property at its current cost, new and without reduction for depreciation

Front 11

Proximate Cause

Back 11

is reasonably foreseeable act or event that results in an injury or damage. Negligence may often be the proximate cause of the damage, without it, the accident would not have happened. This is also called direct liability.

Front 12

Occurrence

Back 12

is a broader definition of loss than accident because it includes those losses caused by continuous or repeated exposure to conditions resulting in injury to persons of damage to property that is neither intended nor expected.

Front 13

Named Peril

Back 13

the term used in property insurance to describe the breadth of coverage provided under and insurance policy form that lists specific covered perils. NO coverage is provided for unlisted perils.

Front 14

Open Peril

Back 14

term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against any risk of loss that is not specifically excluded. (this term replaced the use of "all risks")