Insurance
Basics
Basics
This is the transfer of financial risk from an individual to an insurance company?
This type of hazard includes careless behavior that increases the chance of loss.
What is a morale hazard?
This liability coverage applies to injuries caused to others by the insured.
What is bodily injury liability?
This Louisiana agency regulates insurance companies and producers.
What is the Louisiana Department of Insurance?
This document provides temporary proof of insurance before the policy is issued.
What is a binder?
This principle states that an insured should not profit from a loss.
What is indemnity?
This coverage protects against direct losses to homes and buildings.
What is dwelling/property coverage?
This type of liability applies when damage is caused to another person’s property.
What is property damage liability?
This individual is responsible for enforcing Louisiana insurance laws.
Who is the Louisiana Commissioner of Insurance?
This section of a policy states what losses are protected.
What is the insuring agreement?
This term refers to the person or entity protected by an insurance policy.
What is the insured?
This policy form provides the broadest homeowners coverage and is commonly owner-occupied.
What is HO-3?
This legal concept means the insured failed to act with reasonable care.
What is negligence?
Insurance producers in Louisiana must complete this to maintain their licenses.
What is continuing education?
This policy condition requires the insured to notify the insurer promptly after a loss.
What is notice of claim?
This is the amount the insured must pay before insurance coverage begins.
What is a deductible?
This term describes the decrease in property value over time due to wear and age.
What is depreciation?
This coverage protects an insured if hit by a driver with no insurance.
What is uninsured motorist coverage?
This illegal practice involves misrepresenting policy terms to induce a sale.
What is misrepresentation?
This provision restores coverage limits after a claim has been paid.
What is reinstatement?
This legal concept requires both parties to act honestly and disclose important facts.
What is utmost good faith?
Under Louisiana law, this doctrine allows insurers to recover from responsible third parties after paying a claim.
What is subrogation?
This type of liability exists because of ownership, maintenance, or use of automobiles.
What is auto liability?
This unfair trade practice involves offering unauthorized incentives to purchase insurance.
What is rebating?
This concept refers to spreading risk across many policyholders to reduce overall loss exposure.
What is risk pooling?