Texas property and casualty insurance exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20proper
Texas Property and Casualty
1. Insurer: insurance company or carrier
2. Insured: the person who bought insurance or client
3. principle of indemnity: this principle states that the insured will be restored to
the same financial condition as before the loss. The insured cannot profit from an
insurance payout. This considers depreciation.
4. Underwriting: Process of determining whether the risks of a loan are acceptableto
the insurer or not, what limits will be issued and at what premium rate. This process
classifies a risk for the insurer.
5. Insurable interest: a principle that requires the insured to suffer financially in the
event of a loss to obtain insurance and collect claim payment. Must exist at the timeof
loss. It must be your house when it burns down.
6. occurence: exposure to the same harmful conditions over a period of time
leading to a loss. Ex: a leaking sink rots the cabinets.
7. cancellation: discontinuation of a policy prior to the expieration date of the policy.
8. non-renewal: discontinuation of a policy at the expiration date of the existing
policy.
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9. Binder: temporary legal agreement showing that certain amounts of coverage are
in force at certain limits. Can be written or verbal. Typically shows the insured, the
insurer, the limits of insurance, but does not always show the premium amount.
effectiveness terminates upon policy issuance. Shows coverage date and coverageamt.
10. certificate of insurance: A brief description of insurance coverage prepared byan
insurer or its agent and commonly used by policyholders to provide evidence of
insurance.
11. endorsement: a policy form used to revise coverage in an inforce property or
casualty policy. Changes
12. arbitration: a claims dispute resolution method designed to settle a question of
coverage provided for a loss. for example: insurer and insured cannot agree on the
definition of a coverage or a peril.
13. appraisal: a claims dispute resolution method used to settle a question about the
amt of the claim payout. example: an insurerer and insured cannot agree on theamt of
a loss to damaged property.
14. The commissioner of insurance: appointed by the governor to be the dpt of
insurances chief executive and administartive officer. They can: enforce insurance
rules and law, sets CE requirements, approve producer licenses and insuerer
certificates of authority, approve insurance policy and endorsement forms, ensure
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fair treatment of consumers.The insured cannot request info about fraudulent claims
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