Study 7: Property Insurance - Key Terms Flashcards Preview

C130 Essential Skills for Agent/Broker > Study 7: Property Insurance - Key Terms > Flashcards

Flashcards in Study 7: Property Insurance - Key Terms Deck (29)
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1
Q

extended coverage insurance

A

An endorsement that enlarges the coverage afforded by the primary policy. Coverages such as windstorm, hail, smoke, and riot are extended coverages on a fire policy.

2
Q

all-risks policy

A

A name given to an insurance policy that covers each and every loss except for those that are specifically excluded. If the insurer does not exclude it, then it is automatically covered. This is the broadest type of policy that can be purchased.

3
Q

specified perils

A

Perils insured against that are specifically named in a policy; losses resulting from the perils listed are covered under the policy. This is the flip side of all-risks coverage, where losses resulting from the perils listed are excluded.

4
Q

liability insurance

A

Insurance that agrees to indemnify the insured for sums she may be required by law to pay to third parties as damages for bodily injury or damage to property. The maximum amount of insurance provided under a policy of liability insurance.

5
Q

inherent vice

A

A quality within an object that makes it tend to destroy itself.

6
Q

actual cash value (ACV)

A

The fair market value of property, taking into account factors that might augment or reduce the value of the property in question. Actual cash value is usually calculated in one of three ways:

  1. cost to repair or replace less depreciation;
  2. fair market value; or
  3. consideration of all relevant evidence of the value of the damaged propety.
7
Q

depreciation

A

The reduction in value of property through use, again, deterioration, or obsolescence.

8
Q

release

A

An oral or written discharge from an obligation, duty, or demand. To let go of, or give up a legal claim or right to one against whom it could be enforced.

9
Q

dwelling

A

A shelter intended or used as a space in which people live.

10
Q

detached private structures

A

Structures or buildings separated from a dwelling by a clear space, on the premises but not insured as a dwelling building. Normally if these structures are connected to a building by a fence, utility line or similar connection, they are considered to be detached; for example, a detached garage.

11
Q

tenants policy

A

A package policy specially designed to meet the normal insurance requirements of a private tenant covering personal belongings and liabilities.

12
Q

plaintiff

A

The party who brings a legal action against another, called the defendant.

13
Q

additional living expense insurance

A

Indemnifies the insured for the additional expenses incurred when the dwelling is damaged by an insured peril so that it cannot be lived in until repaired. It applies to homeowners, condominium, and renter’s policy.

14
Q

vandalism and malicious mischief

A

The willful injury or destruction of property. Insure against by the extended coverage endorsement of a property insurance policy.

15
Q

improvements and betterments

A

Permanent additions or changes made to a building by a lessee, or condominium owner, at his own expense that may not legally be removed.

16
Q

coinsurance clause

A

A distinct section or provision in an insurance policy that requires an insured (property owner) to carry separate insurance for a specified amount stated in the policy to be eligible for full coverage. If there is insufficient coverage, the insured must pay part of the loss.

17
Q

seasonal risk

A
  1. A risk occupied only part of the year, such as a summer dwelling.
  2. In manufacturing, it may be a plant operation seasonally, such as a cannery.
18
Q

replacement insurance

A

Insurance coverage that indemnifies for loss of or damage to insured property at the current market price rather than at a depreciated value. Thus, the rating and premium are based on the current cost to replace the insured property.

19
Q

burglary insurance

A

Insurance against the loss of property resulting from a burglary.

20
Q

glass insurance

A

Insurance against the breakage of glass. The coverage is usually extended to certain other incidental expenses associated therewith.

21
Q

collapse

A

Falling in of a building.

22
Q

vacant building

A

A building with no occupants or furnishings.

23
Q

unoccupied building

A

Where the premises contains contents but no human beings; when such persons are temporarily away from the premises (on vacation, for example), the premises are said to be “unoccupied.” This is distinguishable from “vacant”; in vacancy, the contents have been moved out, leaving nothing but the building.

24
Q

pro rata distribution clause

A

A clause used in a property policy for the distribution of the insurance amount over the several locations of objects covered in proportion to their value.

25
Q

coinsurance

A

A distinct section or provision in an insurance policy that requires an insured (property owner) to carry separate insurance for a specified amount stated in the policy to be eligible for full coverage.

26
Q

valued policy

A

A policy that provides that a special amount shall be paid in the event of the total loss of the property.

27
Q

business

A

Any continuous or regular pursuit undertaken for financial gain, including a trade, profession, or occupation.

28
Q

bylaw endorsement

A

An endorsement explaining how a particular insurance company deals with a claim that is affected by a local bylaw

29
Q

identity theft

A

The fraudulent acquisition and use of a person’s private identifying information, usually for financial gain.