policy provisions and contract law
conditions
sets fourth the rule of conduct, duties, and obligations of the parties.
Consideration
something of value exchanged for something else of value. the promise to pay in the event of a loss.
Acceptance
takes place when an insurer's underwriter approves coverage.
Federal Credit Reporting Act
regulates consumer reports.
in writing
the proof of loss must be.
pro rata
designed to protect the principle of indemnity.
exclusions
details what perils are not insured against and what persons are not insured.
legal and not against public policy.
for a contract to be enforceable by law, the purpose of the contract must be...
conditions
how the parties to the contract must act following a loss
be fair in underwriting and pay covered losses
in return for a premium, an insurance company must...
pro rata
insurance provision that limits the liability of the insurer to a portion of the loss no greater then the amount the insurer bears to all the insurance covering the property is called.
Arbitration
low cost alternative to a full blown lawsuit.
declaration
mandatory part of an insurance policy that varied with each individual policy. part of the policy that shows the amount of insurance, premium and policy terms
indemnity
pro rata liability clause is designed to protect the principle of...
Duties after a loss
requires that the insured protects the damaged property from any further damage, cooperates with the insurer in settling the loss, and submits to the insurer signed proof of loss within a specified period of time.
Insured
responsible for filling out a notice of claim form.
get the insureds consent
under the professional liability loss settlement provision, what must a insurer do before offering to pay a claimant to settle a claim.
arbitration through the court
when a disagreement occurs as to how to settle a loss in a fender bender between two cars, what procedure is followed.
Consideration
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following.
renewal dates
would be found in a policy's insuring agreement.
first name insured
would be named on the declaration page of a property or liability policy.
endorsements
would modify the original insurance contract by either adding or removing coverage.
Material Misrepresentation
A statement that, if discovered, would alter the underwriting decision of the insurance company.
The fair credit reporting act
Act that protects against the circulation of inaccurate or obsolete personal or financial information.
Nonrenewal
When an insurance policy does not offer a continuation at its expiration date
appraisal
a policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss.
other insurance
a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk
Proof of Loss
a sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid
concealment
acts of withholding material information that would be crucial to an underwriting decision.
elements of an insurance contract
agreement, consideration, competent parties, legal purpose
in insurance, an offer is usually made when
an applicant submits an application to the insurer.
Additional Coverages
covers claims related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses.
TRIA
created a federal program that would share the risk of loss potential terrorist attacks with the insurance industry.
essential parts of a policy
declaration, insuring clause, conditions and exclusions.
other insurance
defines how the policy will respond if there is more then one insurance policy written on the same risk.
