Property & Casualty flash cards 1-20

unoccupied

A property that has contents or furnishings in it, but is not being used or lived in.

Binder

A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued.

Casualty (Liability) Insurance

A third party insurance that covers the insureds legal responsibility in an accident or negligent act.

Named Peril

The cause of loss specifically covered by the insurance policy.

Vacant

a property that has no contents, furnishings, or occupants

Combined singel limit

a single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting for one accident or occurrence.

Representation

a statement made by the applicant on the insurance the is believed to be true.

Proximate Cause

an act or event that is the immediate or actual cause of a loss.

Unfair Trade Practice

any fraudulent, deceptive, or dishonest business practice that is prohibited by statutes and regulations.

Property insurance

covers losses of physical property or loss of its ability to produce income.

Negligence

failure to use the care that a responsible, prudent person would under the similar circumstances.

Declarations

first section of an insurance policy that includes the basic underwriting information, such as ; Name, Address, Amount of coverage, Premiums, and a description of insured location. as well as any supplemental representation by the insured.

Vicarious liability

in which one person is responsible for the acts of another.

Insuring Agreement

insurance policy that contains the insurers promise to pay, the description of coverage provided, and perils insured against.

Open peril / ALL RISK

insurance policy that protects the insured from losses caused by any peril that is NOT specifically excluded by the policy. also called all risk and special coverage.

Concurrent Causation

multiple events leading to one loss.

Actual Cost Value (ACV)

replacement cost minus depreciation / a method of property valuation that is based on the property current replacement value minus the depreciation.

Liability

responsibility under law

Property Damage Liability

type of liability arising from physical damage to tangible property of others caused by the negligence of an insured.

Absolute Liability

type of liability that occurs due to hazardous activities or dangerous operations.