Terms
No personal property nor people are present.
Vacancy
This excludes Depreciation
RC - Replacement Cost
Damage to other peoples' property.
PD - Property Damage
A civil wrong
Tort
Compensation
Damages
Damage to tangible property that is a result of a peril.
Direct Loss
Not insurable as too volatile and unpredictable.
Market Value
Matter of when not if something will happen.
Absolute Liability
One limit for all injuries and damages.
CSL - Combined Single Limit
Treats 2 named insureds as separate individuals.
Severability
Person or company that has care, custody, and control of your property temporarily.
Bailee
FRC - Functional Replacement Cost
Most policy pay during the policy period.
Aggregate Limit
This is damage to someone's reputation including libel and slander and not normally covered.
Personal Injury
Intend to punish someone which is not usually covered by insurance.
Punitive Damages
1st peril in chain of events which when covered dictates that anything that follows is also covered.
Proximate Cause
This is usually used for fine arts which is mutually accepted.
Agreed Value
This is used to settle disputes on value of property
Appraisal
Interrupts proximate cause and can cause further damage that might night have happened otherwise.
Intervening Cause
Being held responsible for someone else's actions.
Vicarious Liability
3 Different types of theft losses are:
Burglary, Robbery, and Theft
This encourages insureds to carry correct amount of insurance and levees a penalty if you do not meet the requirements.
Co-Insurance
3 Different types of deductibles are:
Straight
Franchise
Percentage
4 Elements of Negligence
Legal Duty
Breach of Duty
Proximate Cause
Loss
Accident occurs with a 50/100/50 liability limit from the at fault party's liability. If there are injuries of 25K to the driver, 30K to the passenger, and 40K to the vehicle, how much will the policy pay?
95K