P&C Basics

the amount of money realized from the sale of damaged merchandise

reduces recovery to an injured person if an _______ interrupted the chain of events

Earth movement and water damage are

if a person recognizes and understands that there is danger involved in an activity and voluntarily chooses to do it

modern, less expensive building materials

Unbroken chain of events beginning with negligence and leading to injury or damage

the maximum amount available for payment of bodily injury to a single person in an accident

The insurers liability for payments as stated in the insurance policy

A parent is responsible for their child

What do we call the risk selection process?

the other party's negligence or fault will not necessarily defeat the claim

(Insurance Carried ÷ Insurance Required) X Loss Amount = Loss Payment

a property insurance policy that covers a certain kind or unit of property for a set amount of insurance

a sublimit in a liability policy that puts a ceiling on the payment for all claims that arise from a single incident

Replacement cost minus depreciation equals....

the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claim

policy that only pays for a loss after the primary policy has paid up to its limit

Legal duty, Stabndard of Care, Unbroken Chain of events and Actual Loss and Damage

A policy based on the max amount of money the insurer will pay in the event of a loss

Actualcash value is defined as:

Buildings constructed with masonry and/or other materials with a fire resistance rating of 2 hours or more

Lying on purpose

the individual(s) whose name appears on the policy's declaration

single property policy, covering multiple classes

liability for products

Contains all the basic underwriting info like name, address, premium, etc

Lists the duties and rules of both parties

factor that determines the premium to be charged

What type of policy will cover anything not excluded?

Contains the insurer's promise to pay

Printed Addendums to a contract are

Old english law that says the master is repsonsible for the servant

Failure to do what a reasonable prudent person would have done in the same or similar circumstances

the individual whose name appears first on the policy's declaration

a dollar amount an insured must pay on a claim before the insurance policy provides coverage

A material or structural issue that increass the chance of a loss

Termination of a policy during the terms is...

a property insurance clause that extends broader coverage to current policies-no premium increase

A policy based on a fair valuation for the property

Increase the probability of a loss

Certain rules must be met by both parties

Staying at a hotel after a first is a....

The cost to buy something new at today's prices

used when it is difficult to establish the amount of insured property after a loss occurs

What is a physical hazard?

provides for the sharing of loss with other insurance that may be written on the same risk

A transfer of legal rights and ownership of the policy

additional amount of coverage on the policy at no additional premium

automatically at fault for doing something dangerous

Direct losses also include.....

Cause of Loss

Protects the interest of the Mortgage Company...

(Incurred losses + Loss adjusting expense) ÷ Earned premium =

physical damage to either people and/or property

All of the following are duties after a loss EXCEPT

an insured structure in which no people have been living or working, and no property has been stored

the injured party must be completely free of fault in order to collect

Also known as Consequential Losses

individuals or businesses that are not named as insureds on the declaration page, but are protected by the policy