INSURANCE & RISK MGMT
The uncertainty or change of a loss occurring
What is risk
The upset or impact of a covered vehicle or nonowned auto with another vehicle or object
What is collision
Insures the structure described in the declarations
What is building coverage
The maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims made or the number of accidents that occur
What is aggregate limit
A person hired to perform a service or task in exchange for a wage or salary
What is employee
The transfer of risk of loss from an individual or a business entity to an insurance company
What is insurance
A land motor vehicle, trailer, or semi trailer designed to travel on public roads including attached machinery or equipment
What is auto
Coverage for indirect loss referred to as time element coverage
What is business income/business interruption
The maximum amount payable per occurrence or accident, despite the number of claimants involved
What is per occurrence limit
The business that controls or directs a worker & in exchange, compensates that person for work performed
What is employer
A dollar amount an insured must pay on a claim before the insurance policy provides coverage
What is deductible
One dollar amount representing the maxium coverage for all losses regardless of the number of people involved or amount of property damaged
What is combined single limit
The lessening of value of real & personal property due to age & wear & tear
What is depreciation
The ownership, maintenance, or use of the insured's establishment & business activities
What is premises & operations
Remuneration including salaries, wages, commissions, bonsues, noncash compensation, vacation pay, & sick leave pay
What is payroll
The insurer's legal right to seek damages from 3rd parties after the insured has been reimbursed for the loss
What is subrogation
Covers losses by fire, theft, vandalism, falling objects, etc.
What is comprehensive coverage/other that collision coverage
An agreement between an insurer & insured in which both parties are expected to pay a certain portion of the potential loss & other expenses
What is coinsurance
Harm, sickness, or disease sustained by a person to include resulting death from any of these at any time
What is bodily injury
Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as the result of an on the job hazard
What is workers compensation
A contract between a policyowner & an insurance company which agrees to pay the insured or the beneficiary for loss cause by specific events
What is insurance policy
Coverage that collects sums another driver would be legally liable to pay for bodily injury resulting from an auto accident where the party has no insurance
What is uninsured motorist coverage
The cost to replace damaged property with like kind & quality at current price, without any deduction for depreciation
What is replacement cost
Coverage for specific acts that result in a non-physical injury to a 3rd party due to defined offenses
What is personal & advertising injury
A numeric factor that compares a company’s actual workers’ compensation claims to the expected claims for similar businesses, directly affecting insurance premiums.
What is emod/experience modification