AINS 21 - Segment C - Ch 7, 8, 9
Pure risk
A chance of loss or no loss, but no chance of gain.
Personal injury
Injury, other than bodily injury, arising from intentional torts such as libel, slander, or invasion of privacy.
Strict liability (absolute liability)
Liability imposed by a court or by a statue in the absence of fault when harm results from activities or conditions that are extremely dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate.
Aggregate limit
Separate limits for bodily injury and property damage liability coverage.
Peril
The cause of a loss.
Bailee
The party temporarily possessing the personal property and a bailment.
Securities
Written instruments representing either money or other property, such as stocks and bonds.
Speculative risk
A chance of loss, no loss, or gain.
Warranty
A written or an oral statement in a contract that certain facts are true.
Tort
A wrongful act or omission, older than the crime of a breach of contract, that invades a legally protected right.
Concealment
An intentional failure to disclose a material fact.
Fixture
Any personal property affixed to real property in such a way as to become part of the real property.
Material fact
In insurance, a fact that would affect the insurer's decision to provide or maintain insurance or to settle claim.
Each person limit
The maximum amount an insurer will pay for injury to any one person for a covered loss.
Proximate cause
A cause that, in a natural and continuous sequence unbroken by any new and independent cause, produces an event and without which the event would not have happened.
Civil law
A classification of law that applies to legal matters not governed by criminal law and that protects the rights and provides remedies for breaches of duties owed to others.
Personnel loss exposure
A condition that presents the possibility of loss caused by a person's death, disability, retirement, or resignation that deprives an organization of the person's special skill or knowledge that the organization cannot readily replace.
Valid contract
A contract that meets all of the requirements to be enforceable.
Conditional contract
A contract that one or more parties must perform only under certain conditions.
Hold harmless agreement (or indemnity agreement)
A contractual provision that obligates one of the parties to assume the legal liability of another party.
Claims-made coverage form
A coverage form that provides coverage for bodily injury or property damage that is claimed during the policy period.
Additional living expenses (ALE)
A coverage in homeowners policies that indemnifies the insured for the additional expenses that are incurred following a covered property loss so that the household can maintain its normal standard of living while the dwelling is being restored.
Slander
A deferment statement expressed by speech.
Libel
A different restatement expressed in a writing.
Endorsement
A document that amends an insurance policy.
Misrepresentation
A false statement of a material fact on which a party relies.
Defarmation
A false written or oral statement that harms another's reputation.
Vicarious liability
A legal responsibility that occurs when one party is held liable for the actions of a subordinate or an associate because of the relationship between the two parties.
Release
A legally binding contract between the parties to a dispute that embodies their agreement, obligates each to fulfill the agreement, and releases both parties from further obligation to one another that relates to the dispute.
Mortgage
A lender in the mortgage agreement, such as bank or another financing institution.
Time element loss (indirect loss)
A loss that arises as a result of damage to property, other than the direct loss to the property.
Loss payee
A party entitled to share in whatever loss payment an insured receives
Tortfeasor
A person or an organization that has committed a tort.
Named insured
A person, corporation, partnership, or other entity identified as an insured party in an insurance policy's declarations page
Floater
A policy designed to cover property that floats, or moves, from location to location.
Valued property
A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of loss.
Exclusion
A policy provision that eliminates coverage for specified exposures.
Deductible
A portion of a covered loss that is not paid by the insurer.
Insurance-to-value provision
A provision in property insurance policies that encourages insureds to purchase an amount of insurance that is equal to, or close to, the value of the covered property.
Direct loss
A reduction in the value of property that results directly and often immediately from damage to that property.
Avoidance
A risk control technique that involves ceasing or never undertaking an activity so that the possibility of a future loss occurring from that activity is eliminated.
Retension
A risk financing technique by which losses are retained by generating funds within the organization to pay for the losses.
Single limit
A single limit of liability for the combined total of bodily injury and property damage from any one accident or occurrence
Named peril
A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils.
Insuring agreement
A statement in an insurance policy that the insurer will, under described circumstances, make a loss payment or provide a service.
Intentional tort
A tort committed by a person who foresees (or should be able to foresee) that his or her I will harm another person
Recreational vehicle
A vehicle used for sports and recreational activities, such as dune buggy, all-terrain vehicle, or dirt bike.
Statue
A written law passed by a legislative body at either federal or state level.
Policy provisions
Additional policy pages designed to alter the standard Personal Auto Policy's wording to conform to each state's requirements.
Special form (open peril policy)
An ISO homeowners form covering the dwelling, other structures, and loss of use of the dwelling and other structures on an open perils basis and covering personal property on a broad named perils basis.
Key employee
An employee whose loss to a firm through death or disability before retirement would have economic effects on the company.
Manuscript form
An insurance form that is drafted according to terms negotiated between a specific insured (or group of insured) and an insurer.
Preprinted form
An insurance form that meets the needs of many policyholders and is therefore printed in bulk for future use.
Declarations page
An insurance policy information page or pages providing specific details about the insured and the subject of the insurance.
Coinsurance
An insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced.
Invasion of privacy
And encroachment on another person's right to be left alone.
Condition
Any provision in an insurance policy that qualifies an otherwise enforceable promise of the insurer.
Auto
As defined in commercial general liability and auto forms, a land motor vehicle, trailer, or semi trailer designed for travel on public roads, including attached machinery or equipment; or any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged.
Collision coverage
Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn
Other than collision (OTC) coverage
Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded.
Claims-made coverage
Coverage that is triggered by a claim alleging bodily injury or property damage that is made during the policy period, even if the claim arises from an event that happened before policy inception.
Occurrence-based coverage
Coverage that is triggered by the actual happening of bodily injury or property damage during the policy period.
Medical payments coverage
Coverage that pays necessary medical expenses incurred within a specified period by a claimant (and in certain policies, by an insured) for a covered injury, regardless of whether the insured was at fault.
Money
Currency, coins, bank notes, and sometimes traveler's checks, credit card slips, and money orders held for sale to the public area
Extra expenses
Expenses, in addition to ordinary expenses, that an organization incurs to mitigate the effects of a business interruption.
Scheduled coverage
Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item.
Battery
Intentional harmful or offensive physical contact with another person without legal justification.
Post judgment interest
Interest that may accrue on damages after a judgment has been entered in a court and before the money is paid.
Prejudgment interest
Interest that may accrue on damages before a judgment has been rendered.
Common law (case law)
Laws that develop out of court decisions in particular cases and establish precedents for future cases.
Statutory liability
Legal liability imposed by a specific statue or law.
Coverage part
One or more forms that, together, provide coverage for a type of insurance.
Bodily injury
Physical injury to a person, including sickness, disease, and death.
Property damage
Physical injury to, destruction of, or loss of use of tangible property.
Each occurrence limit
Separate limits for bodily injury and property damage liability coverage.
Split limits
Separate limits for bodily injury and property damage liability coverage.
Consideration
Something of value or bargained for and exchanged by the parties to a contract.
Constitutional law
The Constitution itself and all the decisions of the Supreme Court that involve the Constitution.
Criminal law
The branch of the law that imposes penalties for wrongs against society.
Tort law
The brunch of civil law that deals with civil wrongs other than breaches of contract.
Retroactive date
The date on or after which bodily injury or property damage must occur in order to be covered.
Net income
The difference between revenues (such as money received for goods or services) and expenses (such as money paid for merchandise, rent, and insurance).
Negligence
The failure to exercise the degree of care that a reasonable person in similar situation would exercise to avoid harming others
Statutory law
The formal laws, or statutes, enacted by federal, state, or local legislative bodies.
Disability
The inability (because of impairment) of a person to meet his or her personal, social, or occupational demands; other activities of daily living; or statutory or other legal requirements.
Principle of indemnity
The principle that insurance policies should provide a benefit no grater than the loss suffered by an insured.
False arrest
The seizure or forcible restraint of a person without legal authority.
Assault
The threat of force against another person that creates a well-founded fear of imminent harmful or offensive contact.
Legal liability
They legally enforceable obligation of a person or an organization to pay a sum of money (called damages) to another person or organization.
Supplementary payments
Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured's earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer's request.
Mobile equipment
Various types of vehicles designed for use principally off public roads, such as bulldozers and cranes.
Specified causes of loss coverage
overage for direct and accidental loss caused by fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, mischief, vandalism, or loss resulting from the sinking, burning, collision, or derailment of a conveyance transporting the covered auto.
