Property and Casualty Vocabulary Verified Answers
Insurance Terms and Definitions - Abandonment ️: The abdication of insured property into the hands of another, or into the
possession of no one in particular. - Absolute Liability ️: Some things are inherently so dangerous that liability is ...
- Abandonment ✔️: The abdication of insured property into the hands of another, or into the
possession of no one in particular.
- Absolute Liability ✔️: Some things are inherently so dangerous that liability is absolute or statutory, as
in keeping a tiger as a pet, or keeping explosives in the home.
- Accident ✔️: Anything that happens by chance without an apparent cause.
- Actual Cash Value (ACV) ✔️: The required amount to pay damages or for property loss, which is
calculated based on the property's current replacement value minus depreciation.
- Additional Coverage ✔️: A provision in an insurance policy that allows for more coverage for specific
loss expense without increase in premium.
- Additional Insureds ✔️: Individuals or businesses that are not named as insured on the declaration
page, but are protected by the policy, usually in regard to a specific interest.
- Adhesion ✔️: A contract offered on a 'take-it-or-leave-it" basis by an insurer, in which the insured's
only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of
the insured.
- Admitted Insurer ✔️: An insurance company authorized and licensed to transact business in a
particular state.
- Adverse Selection ✔️: The tendency of risks with higher probability of loss to purchase and maintain
insurance more often than the risks that present lower probability.
, - Agent ✔️: A businessman who buys or sells for another in exchange for a commission.
- Aggregate Limit ✔️: The total maximum amount that the insurer will pay during a policy period,
usually one year, regardless of the number of incidents, claims, claimants, or defendants.
- Agreed Value ✔️: A property policy containing a condition agreed upon by the insurer and the insured
regarding the amount of insurance that represents a fair valuation of the property at the time the
insurance is written.
- Alien Insurer ✔️: An insurance company that is incorporated outside the United States.
- Apparent Authority ✔️: The appearance or the assumption of authority based on the actions, words,
or deeds of the principal or because of circumstances the principal created.
- Appraisal ✔️: A document appraising the value of something (as for insurance or taxation).
- Arbitration ✔️: Method of claim settlement used when the insured and the insurer cannot agree upon
the amount of the loss.
- Assignment ✔️: The transfer of a legal right or interest in an insurance policy. In property and casualty
insurance, assignments of policies are usually valid only with the prior written consent of the insurer.
- Authorized Insurer ✔️: An insurance company that has qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state.
- Auto ✔️: A land motor vehicle, trailer or semi-trailer designed for use on public roads, including
attached machinery or equipment; auto does not include mobile equipment.
- Avoidance ✔️: A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
