Terms quiz
D)Hazards
Events or conditions that increase the chances of an insured loss occurring are referred to as
Pure risk.
A situation which person can only lose or have no change represents
Speculative risk.
Events in which a person has both the chance of winning or losing are classified as
Peril is easily defined as
The cause of loss insured against.
Perils
The causes of loss insured against in an insurance policy are known as
Subrogation
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called
Loss valuation.
The process of determining the premium charged and how much insurance is required for a particular loss is called
ACV
calculated as replacement cost less depreciation.
Strict liability
commonly applied in product liability cases. The business is then liable for defective products, regardless of fault or negligence
Unoccupied
An insured relocated to another state for work. However, she still owns and insures a house in this has had no one living in it for 3 months. She storing some furniture and clothes in the house. insurance standpoint, the insured's house is considered
Vicarious liability.
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of
Specific coverage. One location is insured for a specific amount of insurance on the structure and contents.
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at single location is called
Specific coverage.
Property insurance that provides $100,000 coverage for a building and $50,000 coverage personal property at a single location is called
Open peril policy
What type of insurance policy insures against all isks of loss that are not specifically excluded by the policy?
Loss of use
Which of the following coverages in dwelling and homeowners policies is for indirect losses?
Aggregate limit of liability
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that be made or the number of accidents that may occur?