Insurance Terms
These are the 5 Methods of Handling Risk
What is...
Sharing, Transfer, Avoidance, Reduction, Retention or STARR
This is the circumstance that increases the chance of a loss
Hazard
The ______ Limit is the most the policy will pay for the sum of all claims during the policy year for all coverages
What is...
The General Aggregate Limit
This coverage does not include coverage for theft personal property or liability
What is...
Dwelling
This did not exist in most companies in the 1800s and early 1900s
What is....
Workers Comp
A Competent Party must be these 3 things
What is...
At least 18 years old
Of sound mind
Sober at the time of entering the contract
This is the type of license that will allow you to sell insurance in more than one state
What is...
A non resident license
If an Individual is designated (named) in the CGL declarations (dec) as an insured, his or her _____ is also an insured.
What is...
Spouse
One can schedule personal property with this policy type
What is...
Homeowners
This is someone who is trusted with someone else’s money
What is...
A Fiduciary
An insurer would be this if they could no longer pay out on claims
What is...
Insolvent
This is the authority given by the insurer to the producer; it is clearly stated in a written contract between the insurer and the producer
What is..
Express Authority
These are the two main types of Commercial Crime coverage forms:
What is....
Commercial Entities — for private businesses (e.g. offices, restaurants, stores, etc.).
Government Entities — for public organizations (e.g. cities, counties, schools).
Under the Dwelling Policy this coverage pays for reasonable cleanup costs due to a covered Peril
What is...
Debris Removal
John has lost both his hands AND his feet in a work place accident. He now suffers from permanent total disability and is now paid this % monthly for the remainder of his life
What is....
66 2/3 %
These are the 2 types of rating that can be used to calculate one's insurance premium
What is...
Individual Rating and Class Rating
This is a Federal Law that regulates how information about consumers may be gathered and helps ensure the validity of reports
What is...
The Fair Credit Reporting Act
A building or structure that is under construction is not eligible to be insured under the building and business personal property coverage form. Therefore, it needs to be insured by what form
What is....
The builders risk coverage form
Under the Homeowners Policy, this is the limit an insurer will pay for defense cost
What is...
No limit
This insurance protects the insured business when it is held responsible (liable) for accidents caused by customers that became intoxicated at the place of business
What is...
Dram Shop Liability
This term is used to signify that no person or organization, other than the insured, having custody of Covered Property will benefit from the insurance policy
What is...
No Benefit to Bailee
The outcome is beyond both parties’ control. Each party is willing to take on the possibility of suffering an unfavorable outcome when they enter the contract
What is...
Aleatory Contract
This form pays for loss the insured causes to property of others in the insured’s care, custody, or control
What is...
The legal liability coverage form
This is the coverage form for an old or unusual home
What is...
HO-8
Flood insurance policies come in these 3 coverage forms
What is....
Dwelling Policy
General Property Policy
Residential Condominium Building Association Policy