Exam FX Chapter 1!

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

What are the three types of hazards?

1. Physical 2. Moral 3. Morale

What is a deductible in an insurance policy?

A specified dollar amount that the insured must pay before the insurer will pay the policy benefits.

What is subrogation?

An insurer's legal right to seek damages from third parties after reimbursing insureds for a loss

In property insurance, when the insurable interest exists?

At the time of loss

What type of policy insures all property at multiple locations for a single amount?

Blanket policy

If an insured peril was the proximate cause of loss, what type of loss is it?

Direct

How are direct and indirect losses related?

Direct losses can cause indirect losses.

Conditions that increase the chance of a loss are known as what?

Hazards

What provision states that if a policy allows for greater benefits that the financial loss incurred, the insured may be compensated only for the amount loss?

Indemnity

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

Indirect or Consequential

What do individuals use to transfer their risk of loss to a larger group?

Insurance

What determines an insurers responsibility for payment, as stated in an insurance policy?

Limits of liability

Insurance is a contract that protects the insured from what?

Loss

The reduction, decrease, or disappearance of value of the person or property insured in a policy is known as what?

Loss

(Insured Carried / Insurance Required) * loss amount =

Loss payment

A person who does not lock the doors to his or her house shows an indifferent attitude. What type of hazard does this represent?

Morale

Under absolute liability, does an injured party need to prove negligence?

No. Absolute liability exists when a condition or conduct in inherently dangerous, so proof of negligence is not required .

What term describes a loss caused by continuous exposure to condition?

Occurence

A policy that covers all causes of loss except for those specifically excluded is known as what type of policy?

Open Peril (or special) form

What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a single accident?

Per Occurence

A tornado that destroys a property would be an example of what?

Peril

What is the term for the causes of loss insured against an insurance policy?

Peril

what term defines an exact, direct, and uninterrupted cause of loss?

Proximate cause

In property insurance, what is actual cash value?

Replacement cost at the time of loss, minus depreciation

Wagering on a sporting event is knows as what type of risk?

Speculative

if a manufacturer is unsafe, what type of liability applies to the manufacturer?

Strict Liability

What provision found in property policies prevents an insured from collecting twice for the same loss; once from the insurer and again from the third party?

Subrogation

What law protects consumers from the circulation of inaccurate or obsolete information?

The Fair Credit Reporting Act

What is burglary?

The forced entry into another's premises with felonious intent.

Both robbery and burglary can be considered what?

Theft

In property insurance, what is the pirpose of a coinsurance clause?

To encourage insureds to insure property to close to its value

What does indemnify mean in insurance?

To restore an insured to the same financial status as before a loss

What is a risk?

Uncertainty of loss

What is the difference between vacancy and unoccupancy?

Vacancy completely empty Unoccupied out of town

how is the actual cash value of a property calculated?

current replacement cost minus depreciation

What is negligence?

failure to act as a reasonable, prudent person under given circumstances.

What are the two types of compensatory damages?

special and general

What type of limits of liability has the limits separately stated for different coverages?

split limits


Kaugnay na mga set ng pag-aaral

Biology Concepts and Applications Chapter 2

View Set

Islamic Quiz-100 Questions and their Answers

View Set

PBS American Photography - A Century of Images

View Set

Ch. 1 - Overview of the Immune System

View Set