#1 Vocab
Chance or probability of loss.
What is risk?
Take it or leave it, BYE FELICIA
What is contract of adhesion?
Who is the 2nd party?
What is an Insurance Company(Insurer)?
Wrongful act, NOT including a crime or breach of contract
What is tort law?
Which provides no payout if you're part of the reason for the damages?
What is contributary?
Rate approval method used in California
What is prior approval?
Consideration
Legal purpose
Agreement
Competent parties
What are the elements of a contract?
Nobody's home, not even their stuff
What is vacant?
Liability can apply regardless of fault, and no proof of negligence is required.
EX: Dangerous animals or hazardous operations
What is absolute liability?
Which allows the recovery of damages?
What is Comparative
WE WERE TOLD TO REMEMBER THIS WORD SPECIFICALLY
SPECIFIC Cause of loss
What is PERIL?
Insurable interest supports what principle?
What is the principle of indemnity?
This insurance indemnifies the 1st party
What is property insurance?
Money paid by order of a court as compensation to an injured person
What are the two kinds?
What are damages?
What is compensatory and punitive damages?
Which is based on state regulation?
What is comparative?
Methods of managing risk
STARR
S-SHARING
T-TRANSFERENCE
A-AVOIDANCE
R-REDUCTION
RETENTION
Policies that only list perils NOT covered and where is it FOUND?
What is open peril? AKA "All-risk" coverage?
What is Exclusions?
This must meet the requirement to qualify for replacement cost coverage
What is the percentage?
What is Coinsurance clause?
What is 80%?
Maximum the policy will pay throughout the policy period
What is aggregate limit?
Which is decisioned by the court?
What is Contributory
Expenses รท Written premiums
What is expense ratio?
False statement that can alter a rate or if the policy would have been written.
Can void or rescind a contract
What is material misrepresentation?
Must be sent out 45 days prior to policy expiration
What is a renewal notice?
Liability can apply regardless of fault, and no proof of negligence is required.
Ex: Products
What is strict liability?
Which applies under CA tort law?
What is Comparative