Study 2 - Sales - Key Terms Flashcards Preview

C130 Essential Skills for Agent/Broker > Study 2 - Sales - Key Terms > Flashcards

Flashcards in Study 2 - Sales - Key Terms Deck (15)
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1
Q

policy

A

Legally binding contract effecting insurance or certificates thereof, including all clauses, riders, endorsements, and renewals.

2
Q

insured

A

Any person (including a corporation covered by an insurance policy. In some policies, the term may be defined exhaustively to limit the coverage or defined broadly to expand coverage.

3
Q

exposure

A

The hazard threatening a risk because of external or internal physical conditions.

4
Q

indemnity

A

A contract, expressed or implied, to repay in the event of a loss. The insured neither gains nor loses.

5
Q

Personal Information Protection and Electronic Documents Act (PIPEDA)

A

A federal statute that governs the collection and use of personal information. It states that personal information to be collected must be relevant, and that all information that has been collected, is being collected, or will be collected must be held in the strictest confidence.

6
Q

expiry date

A

The date on which a policy ends.

7
Q

moral hazard

A

A hazard arising from the character, interest, habits, and lack of integrity of the insured or person concerned.

8
Q

broker of record

A

The broker currently receiving a commission to handle a policy.

9
Q

peril

A

The event that caused a loss covered by the policy; for example fire, windstorm.

10
Q

risk management

A

Analyzing a risk to quantify the potential for losses in a specific investment and to decide what is the appropriate action to take (or whether or not to take action).

11
Q

hazard

A
  1. A risk or probability that the event insured against might occur.
  2. A condition that engenders or increases the changes of a loss.
12
Q

physical hazard

A

A hazard arising from the physical condition or characteristics of the object that is insured.

13
Q

morale hazard

A

A hazard that is based in the insured’s attitude toward the insured belongings. The hazard exists when the insured no longer cares about the possessions because they are insured.

14
Q

burglary

A

Unlawful removal of property from premises involving visible forcible entry.

15
Q

theft

A

The wrongful taking of the property of another. It is a broad term and includes larceny, pilfering, holdup, robbery, and pickpocketing.