Study 1 & 2
This is the type of "risk" that is insurable
What is Pure Risk?
An insurance company that provides insurance to, as is controlled, by its owners
What is Captive Insurance Company?
This is the fair market value of property, taking into account factors that might augment or reduce the value of the property in question.
What is Actual Cash Value (ACV)?
In general, this is the process of revealing of all relevant facts. In law, this is the requirement that parties to a litigation disclose relevant information
What is Disclosure?
This could arise and lead to an E&O if the broker or agent did not fully understand the nature of the risk
What is Provide Coverage for Exposure
Gambling is known as this type of risk and is not insurable
What is Speculative Risk?
This is one who specializes in the mathematics of insurance, mortality rates and the like including the responsibility of basic ratemaking
Who is an Actuary/Actuaries?
This is a contract, expressed or implied, to repay in the event of a loss. The insured neither gains or loses.
What is Indemnity?
A person or entity other than the named insured to whom the proceeds of insurance will be paid.
What is the Loss Payee?
This could lead to an E&O if brokers and agents do not highlight the existence and effects of the limitations in policy wordings to clients
What is Explaining the Effects of Exclusions, Exemptions and Restrictions?
The individual(s) within an insurance company whose responsibility it is to accept or reject business. As Simon would say, "think of them as the bouncers in a bar".
Who is the Underwriter?
Increase Capacity, Maintain Reserve/Liability Balance, Reduce Catastrophic Loss Effects, Provide Stability in Fluctuating Market and Cease Operations are all reasons to do this
What is Reinsure?
These are the three principles of indemnity.
What are:
1- Salvage
2- Subrogation
3- Contribution
This is a special class of loss payee that has a registered interest on real property offered as security for the money it has loaned to the property owner.
What is a Mortgagee?
This group is responsible for the constant supervision and enforcement of safeguards so that inadequately financed insurance companies are not established and existing ones remain financially healthy.
Who is the Office of the Superintendent of Financial Institutions (OSFI)?
This covers specific properties and occasions. Some examples include;
Jewellery, fine arts and furs
What are Personal Articles and Personal Effects Floaters?
This is the agent/broker negotiating insurance or reinsurance contracts for another.
Who is the Intermediary?
This is a fact that would, if known, affect the minds of reasonable, prudent and experienced insurers in deciding:
Acceptability of Risk
Amount of Premium to be Charged
Conditions Applicable to Accepting the Risk
What is a material fact?
This is the likelihood of a risk resulting in a loss, taking into account all its various hazards and protections
What is Loss Probability?
This group supervises these three main areas:
1- Establishment of an Insurance Company
2- Prerequisites to Operation
3- Supervision During Operation
What is the Insurance Companies Act?
This is the part of the premium that has not been used or earned; premium representing the unexpired portion of a policy
What is Unearned Premium?
This is a name given to an insurance policy that covers each and every loss except those that are specifically excluded.
What is an All-Risks Policy?
These are statements included in a policy that are agreed to by the insured and form the basis of the contract of the insurance.
What are Declarations?
This individual will do the following during the course of the claims process:
-Investigate the Loss
-Verify the Policy Coverage and Affirm or Deny the Claim
-For valid (affirmed) claims, assess damages, negotiate as necessary, arrive at a settlement and recommend payment
Who is the Adjuster?
This is the group that deals with registration and licensing of motor vehicles, licensing of drivers and traffic control of vehicles on highways
What is the Highway Traffic Act?