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?