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Principles II - Vocabulary > Insurance Terminology > Flashcards

Flashcards in Insurance Terminology Deck (51)
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1
Q

Rate of occurrence of accidents; e.g. a number of accidents per million man-hours worked

A

Accident Frequency

2
Q

An event that is caused by the forces of nature, without human intervention, and that could not have been prevented by reasonable care e.g., flood, lightning, earthquake, and hurricane

A

Act of God

3
Q

A person trained in mathematics whose job is to apply the theory of probability to the business of insurance, and to advise in situations involving questions of probability

A

Actuary

4
Q

Increased expense of providing a home due to damage to the property insured, e.g. extra cost of living in a hotel

A

Additional Living Expense

5
Q

Usually one who represents the insurer in settling claims with insureds or with third party claimants
Sometimes a representative of the insured

A

Adjuster

6
Q

The process of determining the amount payable or service to be rendered by one or more insurers to an insured or other claimant under an insurance contract, and the rights and obligations incident thereto

A

Adjustment

7
Q

Insurance that covers loss caused by all perils except those specifically excluded in the contract

A

All Risk Injury

8
Q

The system of selling insurance through agents compensated by commissions, the agents having the sole right to solicit insureds on expiration of their policies

A

American Agency System

9
Q

Determination of the value of property, or of the extent of damage, usually by impartial experts

A

Appraisal

10
Q

A dangerous place of instrumentality attractive to children, the owner of which has the legal duty of taking unusual care to guard them from it

A

Attractive Nuisance

11
Q

One to whom goods are delivered to be held in trust in accordance with a contract, express or implied

A

Bailee

12
Q

Amounts to be paid by the insurer under an insurance contract

A

Benefits

13
Q

A temporary insurance contract pending execution of the policy contract Except for specific difference, the terms of the binder are by implication those of the contract which is intended to replace it

A

Binder

14
Q

An arrangement under which the insured shares in losses in the proportion that his insurance is less than a specific percentage of value of the property insured

A

Coinsurance

15
Q

A loss not directly caused by a peril insured against but arising indirectly

A

Consequential Loss

16
Q

The extent of the insurance afforded under an insurance contract
Often used to mean insurance or insurance contract

A

Coverage

17
Q

A clause in an insurance contract providing that the insurer will pay only that amount of any loss that is in excess o a specified amount

A

Deductible Clause

18
Q

An amendment in writing (including print or stamping), added to and made a part of the insurance contract

A

Endorsement

19
Q

A provision in an insurance contract stating situation in which, perils against which, or persons or things upon which, insurance is not afforded under the contract

A

Exclusion

20
Q

The state of being exposed to the chance of loss

A

Exposure

21
Q

A clause in an automobile-liability-insurance contract subjecting the contract to the requirements of any financial responsibility law and requiring the insured to reimburse the insurer for disbursements it would not be required to make except for this clause

A

Financial-Responsibility Clause

22
Q

An agent that produces heat and a flame or glow

A

Fire

23
Q

A fire which is not outside the place where it was intended to be

A

Fire Friendly

24
Q

A fire outside the place where is was intended to be

A

Fire Hostile

25
Q

An insurance contract that covers property in any location within a specified territory

A

Floater Policy

26
Q

A period following the premium due date during which payment of the premium may be made without penalty or suspension of coverage

A

Grace Period

27
Q

A clause in a contract proving that the insurer may not, after a specified time from the inception of the contract, contest the validity of the contract

A

Incontestable Clause

28
Q

To make good a loss

A

Indemify

29
Q

Replacement, repair or payment of value of a loss

A

Indemnity

30
Q

A pooling of hazards in order to indemnify those who experience losses

A

Insurance

31
Q

The contractual relationship between the insured and the insurer who agrees, in return for a premium, to indemnify the insured for losses due to specified causes; in some cases, includes specified services

A

Insurance

32
Q

Injury or damage sustained by an insured

A

Loss

33
Q

The amount for which the insurer becomes liable on occurrence of the event insured against

A

Loss

34
Q

A clause in an insurance contract making the proceeds payable to named mortgagee, as his interest may appear, and stating the terms of the contract between the insurer and the mortgagee

A

Mortgagee Clause

35
Q

The cause of possible loss

A

Peril

36
Q

Particular location or portion thereof as defined by the policy insurance

A

Premises

37
Q

The amount charged for insurance

A

Premium

38
Q

A formal written statement of a claim for payment of a loss, with supporting data

A

Proof of Loss

39
Q

A promise of payment of indemnity or of a specified sum or sums by an insurer

A

Protection

40
Q

Guarding persons or things against loss

A

Protection

41
Q

The subject of insurance whether a person or thing

A

Risk

42
Q

Chance of loss

A

Risk

43
Q

The unlawful taking of property by violence, force, or intimidation

A

Robbery

44
Q

Property taken over by the insurer on payment of loss

A

Salvage

45
Q

In maritime law, the award to persons who voluntarily render services to maritime property in peril, with resulting benefit thereto

A

Salvage

46
Q

An insurance policy that covers, under separate insuring agreements, several enumerated causes of loss

A

Schedule Policy

47
Q

A contract form in general use by insurers, adopted by a group of insurers, approved by a state insurance department or prescribed by statute

A

Standard Form

48
Q

The corporation or individual guaranteeing performance or faithfulness under a bond

A

Surety

49
Q

A person whose duty is to select risks for insurance and to determine in what amounts and on what terms they will be accepted by an insurer

A

Underwriter

50
Q

At the inception of disability, a period in respect of which benefits are not payable

A

Waiting Period

51
Q

A statute imposing liability on employers to pay benefits and furnish care to employees injured, and to pay benefits to dependents of employees killed, in the course of an because of their employment
Employer is generally relieved of liability for common-law damages

A

Workmen’s Compensation Law