CPCU 553 Ch. 1 Flashcards Preview

CPCU 553 > CPCU 553 Ch. 1 > Flashcards

Flashcards in CPCU 553 Ch. 1 Deck (38)
Loading flashcards...
1
Q

Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs

A

Loss exposure

2
Q

The actual means by which property is damaged or destroyed

A

Cause of loss (peril)

3
Q

A condition that presents the possibility that a person or an organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to property in which that person or organization has a financial interet

A

Property loss exposure

4
Q

Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land

A

Real property (realty)

5
Q

All tangible or intangible property that is not real property

A

Personal property

6
Q

Any condition or situation that presents possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party

A

Liability loss exposure

7
Q

Money claimed by, or monetary award to, a party who has suffered bodily injury or property damage for which another party is legally responsible

A

Damages

8
Q

A monetary award to compensate a victim for losses, such as pain and suffering, that does not involve specific, measurable expenses

A

General damages

9
Q

A form of compensatory damages that awards a sum of money for specified, identifiable expenses associated with the injured person’s loss, such as medical expenses or lost wages

A

Special damages

10
Q

A payment awarded by court to punish a defendant for a reckless, malicious, or deceitful act to deter similar conduct; award need not bear any relation to party’s actual damage

A

Punitive damages (exemplary damages)

11
Q

A classification of law that applies to legal matters not governed by criminal law and that protects rights and provides remedies for breaches of duties owed to others

A

Civil law

12
Q

A wrongful act or an omission other than a crime or breach of contract, that invades a legally protected right

A

Tort

13
Q

The failure to exercise the degree of care that reasonable person in similar situation would exercise to avoid harming others

A

Negligence

14
Q

Life, health, and retirement related loss exposures

A

Personal financial planning loss exposures

15
Q

A disability caused by work related injury or disease that temporarily limits the extent to which a worker can perform job duties; the worker is eventually able to return to full duties and hours

A

Temporary partial disability (TPD)

16
Q

A disability caused by work-related injury or disease that temporarily renders an injured worker unable to perform any job duties for a period of time

A

Temporary total disability (TTD)

17
Q

A disability caused by work-related injury or disease that impairs the injured employee’s earning capacity for life, but the employee is able to work at reduced efficiencies

A

Permanent partial disability (PPD)

18
Q

A disability caused by work-related injury or disease that renders an injured employee unable to ever return to gainful employment

A

Permanent total disability (PTD)

19
Q

The method of making, implementing, and monitoring decisions that minimize the adverse effects of risk on an organization

A

Risk management process

20
Q

A conscious act or decision not to act that reduces the frequency and/or severity of losses or makes losses more predictable

A

Risk control

21
Q

A conscious act or decision not to act that generates the funds to pay for losses and risk control measures or to offset variability in cash flows

A

Risk financing

22
Q

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

A

Avoidance

23
Q

A risk control technique that reduces the frequency of a particular loss

A

Loss prevention

24
Q

A risk control technique that reduces the severity of a particular loss

A

Loss reduction

25
Q

A risk control technique that isolates loss exposures from one another to minimize the adverse effect of a single loss

A

Seperation

26
Q

A risk control technique that uses backups, spares, or copies of critical property, information, or capabilities and keeps them in reserve

A

Duplication

27
Q

A risk control technique that spreads loss exposures over numerous projects, products, markets, or regions

A

Diversification

28
Q

A risk financing techniques by which losses are retained by generating funds within the organization to pay for the losses

A

Retention

29
Q

A risk management technique that transfers the potential financial consequences of certain specified loss exposures from the insured to insurer

A

insurance

30
Q

In the context of risk management, a risk financing technique by which the financial responsibility for losses and variability in cash flows is shifted to another party

A

Transfer

31
Q

A system that pays lost wages, medical, and vocational rehabilitation expenses, and death benefits to injured workers or their dependents for employment related to injuries and diseases

A

Workers Compensation

32
Q

Any phrase or clause in an insurance policy that describes the policy’s coverage, exclusions, limits, conditions, or other features

A

Policy provision

33
Q

An insurance policy information page or pages providing specific details about the insured and subject of insurance

A

Declarations page

34
Q

A document that amends and insurance policy

A

Endorsement

35
Q

A section of an insurance policy that defines terms used throughout the policy form

A

Definitions

36
Q

A statement in an insurance policy that the insurer will, under describes circumstances, makes a loss payment or provide a service

A

Insuring agreement

37
Q

Any policy provision that qualifies an otherwise enforceable promise made on the policy

A

Policy condition

38
Q

A policy provision that eliminates coverage for specified exposures

A

Exclusion