Scheduled Coverage - ANSWER-Refer to policy on which coverage is provided only on that property which is specifically identified or scheduled
Property of Every Description - ANSWER-Refers to policy used to insure buildings, stock and equipment under a single limit of insurance
All Property (B...
Scheduled Coverage - ANSWER-Refer to policy on which coverage is provided only on
that property which is specifically identified or scheduled
Property of Every Description - ANSWER-Refers to policy used to insure buildings,
stock and equipment under a single limit of insurance
All Property (Blanket) - ANSWER-A policy which under all property owned by the
insured is covered or "blanketed" by a single limit of insurance
Tenant Improvement - ANSWER-Building improvement, alteration and betterment made
at the expense of or purchased by the insured to a building occupied by the insured and
which are
not otherwise insured, providing the insured is not the actual owner of the building
Actual Cash Value - ANSWER-The replacement or repair cost less depreciation
Replacement Value - ANSWER-Represents the cost to repair, replace or rebuild the lost
of damaged property without deduction for depreciation ( KEY DIFFERENCE -
DEDUCTION WITHOUT
DEPRECIATION)
Reinsurance - ANSWER-involves the insurer ceding of part of the risk it has assumed to
one or more other insurers (insurers sharing of the policy betw insurers)
Subscription - ANSWER-An insurance policy under which a group of insurers has
agreed to participate
in providing policy insurance coverage (brokers sharing the policy among in insurers
Conditions - ANSWER-Something imposed by the insurer which requires the insured to
do or not do
something
Subrogation - ANSWER-Refers to the right of the insurer to "step into the shoes" of the
party whom it has compensated and sue any party whom the compensated party could
have sued
Warranty - ANSWER-A promise that a certain fact areas they are represented to be and
that they will
remain so (promise represented to be and remain so)
,Material Fact - ANSWER-Fact which communicated to the insurer would induce it either
to decline the
insurance altogether, or not accept it unless a higher premium is paid
Fraudulent - ANSWER-To act willfully, and with the specific intent to deceive or cheat
Void Contract - ANSWER-One which has NO "LEGAL OR BINDING FEE" and as such,
"is incapable of
being enforced bylaw"
Fire Resistive - ANSWER-Building which have met minimum standards in terms of
hours it will
withstand a specific, carefully controlled test fire
Non-Combustible - ANSWER-All structural members, including floors, roofs, and their
supports are
constructed of steel, tron, concrete or other noncombustible
materials. Fall just short of fire
resistive.
Common Hazards - ANSWER-conditions common to all buildings which influence their
potential for loss
Detachment - ANSWER-Refers to the proximity of the building insured or containing the
property
insured to other commercially rated buildings
Adverse Selection - ANSWER-Occurs when the applicants for insurance are largely
those most likely to
suffer a loss
Risk Classification - ANSWER-refers to the grouping or classifying of risks according to
established
criteria which, in large part, is based on their probability for loss as a class
Soft Market - ANSWER-Characterized by intense competition betw insurers resulting in
low rates and
broader coverages
Hard Market - ANSWER-Occurs when low profit margins force out some of the
competition resulting in a
more disciplined underwriting approach where insured receive little or nothing in rate
discount
Hazard - ANSWER-A condition which may cause a peril to occur
, Physical Hazard - ANSWER-Conditions relating to the use of tangible property which
could cause a peril
to occur
Moral Hazard - ANSWER-Subjective
characteristics of the applicant that could cause a peril to occur
Accommodation Business - ANSWER-Business which is marginal or substandard but
which the insurer
agrees to accept as a favor or accommodation to the broker
Supporting Business - ANSWER-Existence of other insurance policies the applicants
has with the same
insurer ( the client has other policies insured with the insurer)
Vacant - ANSWER-Empty, or when the normal occupant is absent and the contents
removed (NO
CONTENT)
Unoccupied - ANSWER-Lack of habitual presence of human beings or then premises
are complete with
its contents, except that such person who normally occupies the premisses is temp
away.
Loading - ANSWER-An additional rate charged over and above the fire rate
Centrifugal Force - ANSWER-The inertia of a body that tends to move it away from the
centre around
which it revolves
Mechanical Breakdown - ANSWER-A failure in the working mechanism of the
machinery . . . . . a
functional defect in the moving parts of the equipment which causes the latter to cease
function or to function improperly
Electrical Breakdown - ANSWER-Failure in the electrical mechanism of the machinery,
appliance or
device
Trade Losses - ANSWER-Types of losses which might be expected as a part of the
every day operation
of a business
Wear and Tear - ANSWER-Deterioration or depreciation in value by ordinary and
reasonable use of the
subject matter
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