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
This is a reciprocal agreement, such as an insurance policy.
What is CONTRACT
This is the amount of loss paid by the policyholder before coverage applies.
What is DEDUCTIBLE
This is an approximate calculation of a claim’s amount or extent.
What is ESTIMATES
This is someone who intrudes on another’s property without permission.
What is TRESPASSER
This combines property and casualty coverages for homeowners (abbreviated as HO).
What is HOMEOWNER POLICY
This is the specific protection provided to an insured under a policy.
What is COVERAGE
This is a specific risk or cause of loss, like fire or windstorm.
What is PERIL?$
These are the consequences or amount 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 not covered by a policy.
What is EXCLUSIONS
This state officer administers insurance laws and regulations.
What is COMMISSIONER
This is a civil wrong based on common law, often leading to claims.
What is TORT
This results from a waiver or conduct implying a waiver, preventing denial of a claim.
What is ESTOPPEL
This is the entity that receives the obligation from the principal in a bond.
What is OBLIGEE
This is the cost to replace property at current market value (abbreviated as RC).
What is REPLACEMENT COST
This letter allows an insurer to investigate a claim while reserving the right to deny it.
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 cause, such as fire or theft.
What is DIRECT DAMAGE
These protect an employer from losses caused by an employee.
What is FIDELITY BONDS
This policy section identifies the insured, endorsements, coverages, limits, and premiums.
What is DECLARATIONS
This process involves a third-party appraiser or umpire to settle a claim dispute.
What is APPRAISAL