Managing Risk
Considered elimination of risk
Avoidance
Both parties bargain in good faith when forming and entering into the contract.
Contract of utmost good faith
How many Elements are there in a legal contract?
Four
Materials used in the walls, floors, and roof of a structure must have a fire resistive rating of at least 1 hour, but less than 2
Modified Fire Resistive
Fair rental value is considered what coverage?
Coverage D
Investments of a large number of people may be pooled by use of a corporation or partnership
Sharing
Prevents the denial of a fact, if the fact was admitted to be true previously
Estoppel
Issuance of a binder is consider which element of a legal contract?
Agreement
Buildings with exterior walls of masonry or fire-resistive construction rated for not less than one hour with combustible floors and roofs
Joisted Masonry
Personal Property Coverage is considered what coverage?
C
Transferring risk from one party to another
Transfer
Pertains to the formation and enforcement of contracts.
One party writes the contract, without the input from the other party.
Contract of Adhesion
The entire building and roof are constructed of reinforced concrete and steel. Must have at least 2-hour fire resistive rating.
Fire Resisitive
Additional living expenses is considered which coverage?
Coverage E
Minimizing the chance of loss, but not preventing the risk. Example: burglar alarms
Reduction
Voluntary surrender of a known right, claim or privilege
Waiver
The exchange of value is unequal
Aleatory Contract
Buildings with exterior walls of masonry (not less than 4 inches thick) or made of fire resistive construction with a rating of not less than one hour and noncombustible floors and roofs.
Masonry noncombustible
Dwelling Coverage is considered what coverage?
Name the 5 ways to manage risk STARR
Sharing
Transfer
Avoidance
Reduction
Retention
Law of civil wrongs; they're not crimes or breaches of contract They result in injuries or harm that constitute the basis of a claim by a third party.
Tort Law
An agreement to pay on behalf of another party under specified circumstance, such as when a loss occurs.
Indemnity Contract
Which construction classification has the most combustible construction?
Frame
Other Structures is considered what coverage?
Coverage B