Insurance Terms
Business/Auto Insurance
Other Coverages and Options/ Workers Comp
Property & Casualty
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100
Insurance companies employ mathematical experts to predict how much premium they need to collect to pay for claims that are expected. This is known as
What is...
The Law of Large Numbers
100
This is the amount the insured must pay first before the policy will pay
What is...
A Deductible
100
This is the name of a federal law that protects workers injured at sea
What is...
The Jones Ac
100
This type of insurance provides coverage for multiple buildings with just one limit of insurance
What is...
Blanket insurance
100
This is the event that must occur in order for a policy to pay a claim
What is...
A coverage trigger
200
This provides coverage for out of the ordinary unusual or high risk situations that a majority of insurance companies are unwilling to insure
What is...
Surplus Lines Broker
200
These are the 2 main criteria to determine whether a specific business is eligible for a Businessowners Policy
What is....
Size- Generally only small to medium sized businesses qualify
Risk- generally, only low risk businesses qualify
200
These are the two optional coverages one can purchase for an Aviation Insurance policy
What is...
Hangarkeeper's Liability and Cargo Liability
200
When two policies cover the same building concurrently, this method is sometimes used instead of the pro rata method
What is...
The contribution by equal shares method
200
this is a document added to the end of the policy that changes the entire policy and applies to all lines of insurance that are included in the policy
What is...
Interline Endorsement
300
These agencies are able to represent and sell for multiple insurance companies
What is...
Independent Agency
300
This policy can pay for temporary transportation expenses in the event of a loss to a covered auto. It will pay up to $20 per day, up to $600
What is...
Transportation Expenses
300
This term is used to describe Workers' Compensation regarding an injured employee being unable to make a tort liability claim against his/her employer.
What is...
Exclusive remedy?
300
These are the four rating components that an insurer uses to determine premium cost
What is Loss costs, Loss adjusting expenses, Operating expenses, and Profits
300
These are 3 types of transportation carriers
What is...
Common Carrier- Trucker who hauls goods for the general public
Contract Carrier- Trucker who hauls goods of others only on a contract basis
Private Carrier- Trucker who hauls only its own goods
400
These are the two main types of reinsurance
What is...
Facultative Reinsurance (this is for large or unusual risk)
Treaty Reinsurance (Also called automatic reinsurance, this is when the originating insurer agrees to cede or transfer many risks to a reinsurer)
400
These are the territories your Auto Policy Follows you in
What is...
The United States and its territories and Canada
(Guam, Puerto Rico, etc)
400
This is payed by insureds under certain circumstances to utilize their umbrella insurance
What is...
Self-insured retention (SIR)? (It is similar to a deductible, but is paid when an umbrella policy can cover a loss that the underlying policies will not)
400
This clause will give home lenders rights to personal property, such as cars, ships, boats, furniture, and jewelry in the event
What is...
The loss payable clause
400
This endorsement can be added to CAP to allow the employee to be insured while driving non-owned vehicles for personal use. Purchased by the employer, but is for the benefit of the employee
What is...
Drive Other Car Coverage
500
The Department shall enforce sections 1033 and 1034 of the violent crime control and __________ of 1994 relating to crimes by or affecting personas who are engages in the business of insurance and whose activities affect interstate commerce
What is...
Law Enforcement Act
500
These are two Utility service endorsements that the insured can purchase to provide coverage for losses caused by off premises failure of power or other utility services
What is...
Utility Services- Direct Damage
Utility Services- Time Element
500
These are the five types of Professional Liability
What is...
Medical Malpractice, Doctor's Professional, Legal Malpractice, Errors & Omissions (E&O), Architects and Engineers (A&E)?
500
These are the 7 main components of Property and Casualty Insurance Policies
What is...
DEEDISC
Declarations, Exclusions, Endorsements, Definitions, Insuring Agreement, Supplementary Coverage, Conditions
500
These are all of the states in AAA MWG footprint
What is.....
Arizona
Utah
Nevada
Wyoming
California
Alaska
Montana