Vocab 1
This technique transfers the risk of a person or business to another via a two-party contract.
What is INSURANCE
This grants licensing privileges in one state based on an equivalent license elsewhere.
What is RECIPROCITY
This personal property is not part of a dwelling or structure.
What is CONTENTS
This legal action is filed by one or more on behalf of others with identical interests.
What is CLASS ACTION LAWSUIT
A reciprocal agreement
What is CONTRACT
This is the amount of loss paid by the policyholder.
What is DEDUCTIBLE
An approximate calculation of amount, extent, quantity, magnitude, position, degree or worth of something
What is ESTIMATES
This is someone who intrudes on another’s property without permission.
What is TRESPASSER
A package insurance policy that combines both property and casualty coverages into a single policy.
What is HOMEOWNER POLICY
Specific protection for an insured under an insurance policy.
What is COVERAGE
This is a specific risk or cause of loss covered by an insurance policy, such as fire, windstorm, flood, theft, etc.
What is PERIL
The result of an insured’s tort or wrongdoing. Consequences of a loss or amount and type of losses suffered.
What is DAMAGES
This is the failure to use reasonable care under similar circumstances.
What is NEGLIGENCE
This is a loss or risk that the policy does not cover.
What is EXCLUSIONS
This state officer administers insurance laws and regulations.
What is COMMISSIONER
This is a civil wrong based on common law.
What is TORT
This is the result of a waiver, or of the conduct from which a waiver can be implied.
What is ESTOPPEL
This is the entity that is the “recipient” to the Principal.
What is OBLIGEE
This is the cost associated with replacing property at current market value. Actual cash value plus depreciation equals replacement cost.
What is REPLACEMENT COST
This is a letter sent by the insurance company to avoid “waiver and estoppels” of a right to deny a claim.
What is RESERVATION OF RIGHTS
This willful and illegal act involves sinking a ship or its cargo at sea.
What is BARRATRY
This is a loss covered by a specific named peril.
What is DIRECT DAMAGE
This is bonds that protect an employer for losses by an employee.
What is FIDELITY BONDS
This policy section identifies the insured, endorsements, coverages, limits, and premiums.
What is DECLARATIONS
This is the process of involving a third party appraiser, or umpire, to govern a dispute of a claim settlement amount.
What is APPRAISAL