Legal Purpose
Statements believed to be true to the best of one's knowledge on an application
Representations
The section of the insurance policy that indicates the general rules that are agreed upon under the terms of the policy
Conditions
Anyone who is covered under the insurance policy, whether named or not
Insured
Form of statement from an insured to an insurer that events leading to a possible claim have occured
Notice of Claim
Act that stipulates that in general, an insurance company my not disclose nonpublic personal information to a nonaffiliated third party without certain provisions.
Gramm-Leach-Bliley Act
Untrue statements that can void a contract
Misrepresentation
What two parties must agree to the conditions of a policy
Insured and Insurer
Individuals whose names appear on the policy's declaration
Named Insured
Sworn statement that must be furnished before any loss can be paid.
Proof of Loss
Act That was created a temporary federal program that would share the risk of loss from future terrorist attacks with the insurance industry.
Terrorism Risk Insurance Act (TRIA)
Legal term for the intentional withholding off information that is crucial in making a decision
Concealment
This is a type of condition that they insurer may make to examine the insured location
Inspection
Individuals or businesses that are not named as insureds on the declarations page, but are protected by the policy, usually in regards to a specific interest.
Additional Insureds
The termination of a in-force policy, prior to the expiration date shown on the policy
Cancellation
Act Administered by the Federal Trade Commission to protect consumer from any distributing of false of obsolete personal financial information.
Fair Credit Reporting Act
A temporary agreement issued by and insurer providing temporary coverage until a policy can be issued.
Binder
The method that will be used to calculate the return premium if a policy is cancelled before the expiration date.
Return of Premium
What is the obligation of the Insurance Company?
In return for the premium, must pay covered losses
Termination of a policy at it's expiration date shown on the policy
Non-renewal
Component of an insurance policy that clarifies terms used in the policy
Definitions
Ensures that if the insurer introduces an improved free coverage, the insured will get the benefit of the new coverage immediately and not have to wait for renewal.
Liberalization Clause
Provision found in some property insurance policies that provides for the sharing of loss with other insurance companies written on the same risk.
Pro rata
Form that includes questions about a prospective insured and desired coverages and limits
Policy Application