Unit 1
formed for the sole purpose of obtaining liability insurance for its members.
What is risk purchasing groups
CLOAC also known as
what is consideration, legal purpose, offer, acceptance, and competent parties?
When an insured cancels a policy before the expiration date, the insurer is entitled to retain a larger percentage of the unearned premium
What is short-rated basis?
Lack of habitual presence of human beings; or; when premises are complete with its contents, except that such person who normally occupies the premises is temporarily away
What is unoccupied?
doctrine that says that if a person contributed to his/her own damages in any way, another party cannot be held liable for damages
What is contributory negligence?
What STARR stands for
what are sharing, transfer, avoidance, retention, and reduction?
13 distinct characteristics of insurance contracts
What is Adhesion, Aleatory, Utmost good faith and reasonable expectations, unilateral, personal, conditional, indemnity, representations, misrepresentation, and warranties, concealment, fraud, and waiver/estoppel?
one method of preventing overpayment of a claim. each company will pay part of the loss according to the percentage of the total amount of insurance the policy provides.
What is pro rata?
allows lender to pay premium
lender entitled to receive notice if the policy is to be cancelled
lender can file a claim
lender protected from negligence or dishonest acts of the insured
lender only entitled to received payment up to the amount of debt
What is loss playable clause?
doctrine that is employed in contributory negligence jurisdictions. a partially negligent person can nonetheless recover if he is able to show that the defendant had the last opportunity to avoid the accident
What is a clear last chance?
The larger the group of people the more accurately losses can be predicted.
What is the law of large numbers
indemnity- something you only see in insurance
What is to be made whole again?
A law that requires banks and financial institutions to alert customers of their policies and practices in disclosing customer information.
What is the Gramm-Leach-Bliley Act?
A condition that states that the bailee is not covered under the insurance policy while the Bailee has possession of the insured's property
duties after loss
- Notify company promptly
- Forward notices
- Assist the company
- Don't assume liability
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
What is adverse selection?
once a right has been waived, it cannot be reinstated and used against the insured.
What is an estopple?
parts of a policy: DICEE
What is Declaration, insuring elements, conditions, endorsements and additional supplementary coverages, and exclusions?
(Amount of insurance carried/amount of insurance required)*loss
What is coinsurance equation?
liability policy exclusions
What is *damage to property owned by the insured
*damage to property in the insured's care, custody or control
*bodily injury to an insured
*losses covered under worker's compensation laws
* losses covered under Nuclear Energy Liability Policies
*injuries or damages caused intentionally by the insured
6 elements of insurable risk
the failure to disclose known facts. And insurer may be able to void the insurance contract if they can prove that the applicant or insured intentionally concealed a material fact. A material fact is one that should have been voluntarily revealed even if it was not directly addressed at the time of the application.
What is concealment?
in the case the named insured dies then the rights and duties under the policy are transferred the insured's legal representative and they remain insured up to the policy's renewal date.
What is the transfer of rights?
extended peril coverage
Wendy can skate happily along very vast eerie rivers victoriously
What is Wind
civil commotion
smoke
hail
aircraft
vehicles
volcanic eruption
explosion
riot
vandalism and malicious mischief ?
includes all direct and specific expenses involved in a particular loss, such as medical expenses, lost wages, funeral expenses, and the cost to repair or replaced the damaged property
What is special damages?