Four elements of negligence - ANS-1. The lifestyles of a DUTY to behave in a sure way
2. A FAILURE to live up to this duty
three. An actual INJURY ought to occur
4. The failure in obligation have to be the PROXIMATE CAUSE of the harm.
5 Broad Categories of Exclusions - ANS--Non-Accidental losses
-Losses Controllable through the Insured
-Extra Hazardous Perils
-Catastrophic Losses
-Property Covered in different Policies
Absolute Liability - ANS-Imposed on defendants engaged in unsafe activities, together with
harboring wild animals, the usage of explosives, and so on. The injured party does now not
must show negligence.
Actual Cash Value (ACV) - ANS-Replacement Cost, minus depreciation.
Actuaries - ANS-This is the numbers branch. These human beings decide the fees to be
charged for various varieties of insurance.
Part of the Actuarial and Statistical Department
Additional insureds - ANS-are distinctive persons, groups, or entities indexed as insureds which
are blanketed under the policy.
Ex: loan business enterprise
Admitted or Authorized Insurer. - ANS-An coverage organization who meets the department's
requirements and is authorized to do commercial enterprise inside the country.
Adverse Selection - ANS-This is the tendency for humans with a greater than common publicity
to loss to purchase coverage.
Agency Relationship - ANS-exists while one celebration (an agent) is authorized to act on behalf
of any other (a essential-insurance corporation).
Aggregate Limit - ANS-that is the restrict or the entire amount the insurance organization will
pay for more than one claims over the course of one coverage time period.
Agreement - ANS-takes place whilst the alternative birthday party consents to the provide or
does what changed into proposed in the provide.
Aleatory Contract - ANS-it is a agreement that is contingent on an unsure occasion (a loss) that
gives for unequal transfer of value between the events.
For example, people pays coverage charges for years without having a loss or however
someone ought to revel in a loss and be reimbursed a great deal extra than they had paid in
premiums.
Alien Company - ANS-A enterprise that is incorporated in a rustic apart from the US however is
doing business within the states
,APIP - ANS-Additional Personal Injury Protection (elective)
Apparent Authority - ANS-Authority that states that an agent may additionally have whatever
authority an inexpensive character would count on the agent has.
Appraisal - ANS-A approach of resolving disputes among insurers and insureds over the
amount owed on a protected loss.
-both parties pick an appraiser
-the two appraisers choose an umpire
-if the appraisers do not agree, the umpire is consulted
-the quantity agreed on through 2 out of three is the quantity to be able to be paid
Arbitration - ANS-this condition is just like the Appraisal Condition but it is not restricted to
disputes over the price of the loss. It will also be used to solve different areas of confrontation
between the insured and the insurance enterprise.
Assumption of Risk - ANS-this allowed the organization to deny liability on the basis that the
employee knew what the scenario became like before employment and assumed all the chance
of injury.
Audit - ANS-Verification of books or debts to decide their accuracy.
Binder - ANS-A transient contract of coverage, oral or written, provided by way of an insurer
pending issuance of the policy. Usually written for a period of 30-60 days and remains in
pressure for that duration or till a everlasting coverage is either issued or denied by using the
insurer.
Blanket Insurance - ANS-A single policy written on an insured's hobby for 2 or greater specific
kinds of assets (living/constructing and contents) on the equal place, or at extraordinary
locations.
Blanket insurance - ANS-This kind of insurance covers a couple of item of belongings at a
single location or one extra objects of assets at a couple of places.
Boatowners/Watercraft Package Policies - ANS-this coverage is used to insure boats
underneath the required length and cost which mixes property, legal responsibility and medical
bills insurance on an open peril basis.
Losses are paid at an real coins value basis
Bodily Injury (BI) - ANS-This is injury, illness, disease and death springing up out of injury,
sickness or sickness to the body.
Bond - ANS-this is a assure that a particular responsibility will be discharged, a positive overall
performance maintained or a specific obligation fulfilled.
Broker - ANS-An character, partnership, or business enterprise who, for a fee, acts or aids in
any way inside the sale of insurance as the representative of the insured.
In an insurance transaction, this man or woman represents the insured.
Builders Risk Coverage Form - ANS-This shape covers commercial, residential, or farm
buildings that are underneath creation. This insurance is written for ONE year.
Burglary - ANS-the taking of assets from within the premises by someone unlawfully entering or
leaving the premises.
, -ought to be proof of forcible entry or exit.
Business Income for Dependent Properties- Additional Coverage - ANS-this coverage covers
lack of commercial enterprise earnings due to physical loss or harm to a commercial enterprise
that delivers material or offerings the insured.
-$5,000 restrict.
Business Income- Additional Coverage - ANS-this coverage states that the coverage
organisation will pay for lack of enterprise profits that takes place while the insured's commercial
enterprise operations must be suspended after a loss and income can't be generated.
Business Liability Coverage - ANS-this covers the insured's criminal legal responsibility that
arises from physical injury, private damage and advertising harm.
Inclusive of fake arrest, malicious prosecution, wrongful eviction, slander and libel, use of others
marketing concept, and infringement of copyright.
Business Pursuits Endorsement - ANS-This endorsement gives liability insurance for a
enterprise performed far from the house premises.
Business-owners Policy (BOP) - ANS-that is a industrial bundle policy that provides belongings
and legal responsibility coverage to sure styles of small businesses. Applies to small, nicely
controlled, one vicinity companies with effortlessly anticipated insurance wishes.
-can not exceed 25,000 square toes or $3 million annual gross sales at every vicinity.
-covered at an open peril basis.
Cancellation Conditions for CPP - ANS--the primary named insured may also cancel the
coverage in writing at whenever
-the coverage enterprise can cancel by way of mailing a written notice to the first named insured
with 10 days note for nonpayment, and 30 days notice for every other reason.
Casualty Insurance - ANS-Refers to insurance designed to address the legal responsibility of
people and businesses due to negligent acts in their private, enterprise, or expert roles.
Catastrophic Losses - ANS-those are excluded due to the fact they arise from war or nuclear
screw ups
Central Service Bureaus - ANS-These bureaus have been installed to assist coverage
organizations accumulate records which they use the statistics to create loss charges.
-the Insurance Services Office (ISO) is certainly one of the biggest examples of this.
CGL - ANS-Commercial General Liability
Changes and Premium Conditions - ANS-those conditions kingdom that the primary named
insured is the handiest man or woman who could make adjustments to the coverage and is
chargeable for paying the top rate.
Characteristics of a valid agreement encompass: - ANS--competent events
-felony reason
-provide and agreement
-attention
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