Terms
This is the uncertainty or chance of a loss occurring.
Risk
This is the financial responsibility of the insured.
Deductible
Conditions or situations that increase the probability of an insured loss occurring.
Hazard
This means money amounts that need to be paid out. It can be "special," "general," or "punitive."
Damages
Any act of stealing or removing the property from its rightful owner.
Theft
This states that the larger the number of people with a similar exposure to loss, the more predictable actual losses will be.
Law of Large Numbers
Demonstration of a careless attitude that could increase the chance of loss that would be greater than would otherwise be the case.
Morale Hazard
An act or event that is the immediate or actual cause of a loss that is part of an unbroken chain of events.
Proximate Cause
Deposit Premium
The taking of property from another by using violence or the threat of violence.
Robbery
This is a temporary agreement (written or oral) that is issued by an agent or insurer providing temporary coverage until a policy can be issued.
Binder
The portion of the contract that makes an insured "whole again."
Indemnity
Physical damage to buildings and/or personal property.
Direct Loss
Transferring the liability from a person at fault to another person who would probably have a greater ability to pay.
Vicarious Liability
Breaking and entering or forced entry into another's premises with felonious intent is called...
Burglary
This is continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected.
Occurrence
A dishonest predisposition on the part of an insured which increases the chance of loss.
Moral Hazard
The replacement cost of lost or damaged property minus depreciation.
Actual Cash Value (ACV)
The legal term for the intentional withholding of information of a material fact which is crucial in making a decision during the application process.
Concealment
A printed addendum to a contract that is used to change the policy's original terms, conditions, or coverages.
Endorsement
When there are no people or personal property present.
Vacant
In order for an insured to be covered by an insurance policy, this must exist at the time of a loss.
Insurable Interest
A clause in which the insured agrees to share in the loss to the extent that he/she is underinsured at the time of loss.
Coinsurance
The failure to use the care that a reasonable, prudent person would have taken under the same or similar circumstances.
Negligence
The departure of property without knowledge as to the location, time, or how the property was lost. This peril is called ____________ ___________.
Mysterious Disappearance