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24 Cards in this Set
- Front
- Back
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What is insurance |
Is the sharing of risks between parties. |
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Who is the insurer |
Insurance company (icbc, stratford) |
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Who is the broker |
Us, hub, sussex |
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What does an underwriter do |
Select risks that will be profitable, set the premiums for policies, prepare documentation. |
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What do adjusters do |
Assist clients making claims, establish amounts of loss, arrange for loss payment |
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What is a private adjuster |
When the loss requires special skills or when staff adjuster are to busy |
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What is risk |
The chance of financial loss |
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What is a peril |
The cause of loss, what happened |
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What is indemnity |
This is the amount clients receive when insured losses occur, indemnity ensures the clients receive the "actual" amount of their loss, no more, no less, indemnity can be money, indemnity cab be repairing or replacing. |
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What is deductible |
This is the amount clients must absorb before insurers pay losses, higher deductibles = lower premiums |
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What is insurable interest |
You must be able to show that you would be hurt financially from a loss, owners, loss payables or mortgagee, bailees for hire (dry cleaner) |
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What is utmost good faith |
Full and complete honesty critical, insured must tell the truth, insurers must settle claims promptly and fairly, broker must be professional |
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What is endoresments |
This is the document that changes the terms or conditions of the policy, separate sheet or slip of paper attached to the policy |
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What is riders & floaters |
Riders: these are documents that add additional coverage to those all ready on polcies i.e. mini polcies Floater: generally insure moveable objects |
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What is error & omissions |
When brokers fail in their duties they can be sued by clients. |
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What is the most common cause of O & E |
Inadequate coverage |
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What is personal line coverages |
Home owners ins., condominium unit owner ins., tenants ins. |
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What is covered by personal lines coverages |
Dwelling, detached private structures, personal property, additional living expense, personal liability (law suites), voluntary medical payments, voluntary property damage |
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What is automobile coverage ploicy |
Third party liability, accident benefits, physical damage (collision & upset, comprehensive, specified perils) |
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Commercial coverages policy |
Building, stock, equipment, business interruption (pay the bills while being built or restored) crime coverages, commercial general liability |
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What are the functions of ins. |
Spread of risk, basis of credit system, eliminates worry, loss prevention, source of employment |
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What is the major function of insurance |
Transfer of risk |
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When is payment made |
Payment will be made only in the event of the happening of a certain risk or peril |
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How is indemnity paid |
Ins. Only covers losses to which the object of ins. May be exposed. |
