Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
14 Cards in this Set
- Front
- Back
Aggregate limit |
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. |
|
3 Elements of Insurable Risk |
1. Financial 2. Blood 3. Business |
|
Risk |
the uncertainty of loss or chance of loss occurring. |
|
Two Types of Risk |
Pure Risk Speculative Risk |
|
Peril |
cause or causes of loss against an insurance policy. |
|
Hazard |
conditions or situations that increase the probability of an insured loss occuring. |
|
Burglary |
is the crime of forced entry into or out of the premises of another person or persons with felonious intent |
|
Robbery |
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 |
|
Coinsurance Clause |
insured's promise to insure property to some certain percent of its value |
|
Replacement Cost |
full replacement of property at its current cost, new and without reduction for depreciation |
|
Proximate Cause |
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. |
|
Occurrence |
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. |
|
Named Peril |
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. |
|
Open Peril |
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") |