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40 Cards in this Set
- Front
- Back
- 3rd side (hint)
Actual Cash Value |
The replacement value of the property less any accumulated depreciation. |
ACV |
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Bailees |
Persons to whom goods are entrusted by someone else. They may have them for safekeeping or to perform work on them for some other valid reason |
entrusted |
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Bailors |
Persons who entrust goods to another. |
goods to another |
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Business Interruption |
Gross earnings is to replace earnings. Example…your restaurant burns down and you have the best chef in town. If you cannot pay him while the building is being re-built he will go elsewhere and you will not do good business when your restaurant is open. Pay him and he stays. The re-imbursement period to the insured ends when the business is re-opened because now you are earning money to pay him. 80% co-insurance clause.
Profits: when the restaurant is closed you lose your profits. The policy will reimburse you until your profits are where they should have been if the loss had not happened. Example. Your store burns in October they can’t re-build until February. You miss Christmas…Your profits at Christmas would have been higher than in October…by February you should have had more money…we will pay you until your profits are where they should have been only to a maximum of 12 months. |
GE or Profits |
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Codified Law |
Statute law which is classified and arranged in a systematic collection or code. It is written law. |
Systematic or collection |
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Compensatory Damages |
Special damages and general damages collectively are considered compensatory damages. They compensate the plaintiff for some kind of a loss. |
compensate |
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Consideration |
That which one party gives or promises to give in exchange for the act or promise of the other, in other words, consideration is the price agreed upon. |
exchange the act or promise |
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Contract |
An agreement enforceable at law. |
an agreement |
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Contribution |
The sharing of loss or liability between two or more insurance companies covering the same risk. |
sharing of loss |
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Damages |
A sum of money claimed or awarded as compensation for loss or injury. |
sum of money |
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Estoppel |
A doctrine of law which precludes a person from denying the truth of a statement formerly made by him or her or the existence of a series of facts which has caused someone to draw certain logical conclusions.
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forbidden by law to speak against their own or deed |
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Fire Wall |
A barrier wall between buildings or parts of buildings. Certain standards apply. It must have a specified fire resistance rating, minimum openings, must extend above the roof and beyond the ends of the building and have specified strength and stability. |
A barrier wall |
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Forfeiture |
The loss of a right as a result of the nonperformance of some obligation or condition. |
the loss of a right |
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Friendly Fire |
A fire intentionally kindled in a place provided for it. No matter how furious that fire may become, no matter how much heat and smoke it may give off, as long as it does not leave the place provided for it, it is still friendly fire. |
intentionally kindled fire |
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General Damages |
Less definite and are awarded for such things as pain and suffering, total or partial disability and disfigurement. |
g d |
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Inherent vice |
A quality within an object that makes it tend to destroy itself. |
within an object to destroy itself |
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Legal Liability |
Responsibility at law or liability assumed under contract. |
responsibility at law |
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Legal Person |
One who can be sued. |
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Misrepresentation |
An incorrect statement made about a material fact. It can also include an omission of certain facts. |
incorrect statement |
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Negligence |
Doing something that a reasonable person would not do or omitting to do something that a reasonable person would do. |
reasonable person or omitting to do something |
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Non-disclosure or Concealment |
The withholding of information pertinent to a risk. It is silence when there exists an obligation to speak. |
withholding of information |
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Non-Waiver Agreement |
An agreement between two parties recognizing that there is a possible right (such as to deny liability) but in the interests of both parties, a note will be made of it and the matter allowed to proceed without prejudice to either party. |
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Personal Injury |
Represents injury to a person's character. Do not confuse with bodily injury which is injury to the physical person. |
injury to a person's character |
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Precedent |
A legal decision serving as an authoritative rule in future similar cases. |
authoritative rule in future cases |
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Prescription |
A time, after which a cause of action ceases. |
a cause of action ceases |
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Proximate Cause |
The immediate and effective cause of the loss, not necessarily the last event before the occurrence, which, in a chain of circumstances leads naturally and directly in the ordinary course of events to the loss. |
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Punitive or Exemplary Damages |
Intended as a punishment against the defendant and as a deterrent to others. |
punishment |
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Reinsure |
To insure again by transferring to another insurance company all or part of a liability assumed. In other words, reinsurance can be said to be the insurance of insurance companies. |
transferring to another insurance company |
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Salvage |
Property saved from loss. Can also be used as a verb to indicate the process of taking steps to reduce the amount of a loss. |
property saved from loss |
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Special Damages |
Money claimed or awarded for out-of-pocket items such as medical expenses, loss of earnings or damage to property substantiated by a specific invoice or estimate of repair. |
money claim awarded for out of pocket items such as medical expenses |
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Statute |
An agreement enforceable at law. |
legislation by law given |
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Statute of Limitations |
A statute prescribing the limitations to the right of action on certain described causes of action; that is, declaring that no suit shall be maintained on such causes of action unless brought within a specified period after the right arose. |
statue prescribing limitations |
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Subrogation |
The legal process by which an insurer who has paid a loss pursues any rights of recovery against a responsible third party. |
legal process which insurer whos paid loss pursues to any rights of recovery |
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Tort |
A legal wrong. |
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Utmost Good Faith |
Absolute and perfect candor or openness and honesty. It is perfect good faith, concealing nothing. |
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Valuable Papers |
Includes various types of records, papers and films. |
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Valued Contract |
A contract that insures property for an amount which is agreed to by the insurer and the insured at the time the contract is made. It states that in the event of a total loss a specified amount will be paid to the insured. |
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Void Contract |
A contract which never had any legal existence. It cannot be enforced. |
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Waiver |
The voluntary relinquishment of a known right. |
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Cedes |
assigns, grant, surrender, interest or right |
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