policy provisions and contract law

conditions

sets fourth the rule of conduct, duties, and obligations of the parties.

Consideration

something of value exchanged for something else of value. the promise to pay in the event of a loss.

Acceptance

takes place when an insurer's underwriter approves coverage.

Federal Credit Reporting Act

regulates consumer reports.

in writing

the proof of loss must be.

pro rata

designed to protect the principle of indemnity.

exclusions

details what perils are not insured against and what persons are not insured.

legal and not against public policy.

for a contract to be enforceable by law, the purpose of the contract must be...

conditions

how the parties to the contract must act following a loss

be fair in underwriting and pay covered losses

in return for a premium, an insurance company must...

pro rata

insurance provision that limits the liability of the insurer to a portion of the loss no greater then the amount the insurer bears to all the insurance covering the property is called.

Arbitration

low cost alternative to a full blown lawsuit.

declaration

mandatory part of an insurance policy that varied with each individual policy. part of the policy that shows the amount of insurance, premium and policy terms

indemnity

pro rata liability clause is designed to protect the principle of...

Duties after a loss

requires that the insured protects the damaged property from any further damage, cooperates with the insurer in settling the loss, and submits to the insurer signed proof of loss within a specified period of time.

Insured

responsible for filling out a notice of claim form.

get the insureds consent

under the professional liability loss settlement provision, what must a insurer do before offering to pay a claimant to settle a claim.

arbitration through the court

when a disagreement occurs as to how to settle a loss in a fender bender between two cars, what procedure is followed.

Consideration

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following.

renewal dates

would be found in a policy's insuring agreement.

first name insured

would be named on the declaration page of a property or liability policy.

endorsements

would modify the original insurance contract by either adding or removing coverage.

Material Misrepresentation

A statement that, if discovered, would alter the underwriting decision of the insurance company.

The fair credit reporting act

Act that protects against the circulation of inaccurate or obsolete personal or financial information.

Nonrenewal

When an insurance policy does not offer a continuation at its expiration date

appraisal

a policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss.

other insurance

a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk

Proof of Loss

a sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid

concealment

acts of withholding material information that would be crucial to an underwriting decision.

elements of an insurance contract

agreement, consideration, competent parties, legal purpose

in insurance, an offer is usually made when

an applicant submits an application to the insurer.

Additional Coverages

covers claims related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses.

TRIA

created a federal program that would share the risk of loss potential terrorist attacks with the insurance industry.

essential parts of a policy

declaration, insuring clause, conditions and exclusions.

other insurance

defines how the policy will respond if there is more then one insurance policy written on the same risk.