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119 Cards in this Set
- Front
- Back
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Alien Insurer
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An insurer formed outside the United States
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All Risk Insurance
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Known as "Open Perils" insurance, it is insurance protecting the insured from loss arising from any peril other than those perils specifically excluded by name. This contrasts with Named Peril insurance, which names the peril or perils insured against.
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Appraisal Clause
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Clause which provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of a loss. Insured and insurer each choose an appraiser, who, failing to agree, select an umpire. Agreement of any two of the three will be decisive
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Assignment Clause
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A condition in insurance policies that specifies that transferring the policy to another is not valid unless the company consents to it in writing
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Automobile Mechanical Breakdown Insurance
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Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the dealer's or manufacturer's warranty
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Bailee
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One who has temporary custody of property belonging to another (Example-Dry Cleaners)
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Binder
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An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.
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Bodily Injury
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Usually defined to include physical harm, sickness, disease, or death resulting from any of these
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Burglary
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As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit
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Churning
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Policy values in an existing policy are utilized to purchase another policy for the sole purpose of earning additional compensation.
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Coinsurance Clause
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A form of Self-insurance where the insured retains part of the risk in exchange for lower premiums.
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Concealment
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Failure of the insured to reveal relevant facts in applying for insurance.
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Contingent Liability
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Liability which an insured or business incurs because of the actions of others (i.e. family or employees) Also called vicarious liability.
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Contract
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A legal agreement between two parties promising a certain performance in exchange for a certain consideration
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Contract of Adhesion
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The contract is created by the insurance company. The insured can NOT negotiate the terms so a court of law would rule in the favor or the insured in the event of any gray area.
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Controlled Lines
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Classes of Inland Marine coverage for which standardized forms have been prepared. (Ex. Cameras, Fine Art, Jewelry, etc)
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Debris Removal
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A coverage provided in many property contracts which reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.
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Declarations
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The section of an insurance contract which shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.
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Deductible
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Usually, a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to policy limits. Types include Franchise, Percentage and Straight Deductibles.
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Defamation
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Making false statements about a person
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Direct Loss
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Loss which is a direct result of a peril. Also includes loss due to efforts to end the peril or to unavoidable exposure following a peril.
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Domestic Insurer
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An insurer formed under the laws of this state
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Dwelling Policy
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An allied lines policy which provides coverage for the dwellings and personal property of individuals and families against fire and additional perils.
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Endorsement
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A document which is attached to the policy and modifies or changes the original policy in some way.
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ERISA
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Employee Retirement Income Security Act-deals with Employee health and benefit plans (i.e. employer-sponsored health insurance type plans and retirement plans. ERISA is regulated by the Department of Labor.
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Estoppel
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Stopped from reasserting a known right
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Excess Coverage
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Coverage which applies only after limits of primary insurance have been exhausted.
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Exclusions
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Section of the insurance policy which lists property, perils, persons, or situations which are not covered under the policy.
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Exposure
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A condition or situation that presents the possibility of a loss
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Extended Non-Owned Coverage Endorsement
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A personal auto policy endorsement that extends liability coverage to named individuals for a nonowned automobile which is furnished for their regular use
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FAJUA
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Florida Automobile Joint Underwriting Association- A market source for persons who are unable to purchase Auto Insurance through normal channels. It is a syndicate of all licensed companies in FL that write auto
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FCRA
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Fair Credit Reporting Act (FCRA)-a federal act aiming to promote the fairness and accuracy of information contained in consumer reports such as a credit report. It creatses legal standards for the collection, use, and dissemination of consumer credit information.
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Fiduciary
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A person or institution which has responsibility for the money, property or financial affairs of another
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Financial Responsibility Law
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State law which requires owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
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Florida Guaranty Fund
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This is a fund maintained by the OIR to pay unpaid claims and return unearned premium on insurance companies that have gone insolvent.
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Foreign Insurer
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An insurer formed under the laws of any state, district, territory, or commonwealth of the United States other than this state
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Franchise Deductible
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A deductible that specifies that no payment will be made until loss equals or exceeds a prescribed amount; then the loss is paid in full
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Fraud
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A false statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.
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Gramm-Leach-Bliley Act
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With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate
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Hazard
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Something that increases the chance of loss. For example, faulty wiring is a hazard because it increases the chance of a fire loss.
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Homeowners Policy
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A personal multiple line contract incorporating both property and liability coverage. A package policy.
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Improvements and Betterments
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Permanent alterations that a tenant makes to the rented property which will not be removed when the tenant leaves.
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Indemnity
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A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred. Makes you whole not better.
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Indirect Loss
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Loss which is a result or consequence of a direct loss
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Insurable Interest
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Any actual, lawful and substantial economic interest in the safety or preservation of the subject of insurance free from loss, destruction or pecuniary damage or impairment. A claim may only be paid when an insurable interest exists. Must be proven at the time of the loss.
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Insurance
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A contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. The transfer of risk from one to another.
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Insuring Agreement
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The section of an insurance policy which states which losses will be indemnified, what property is covered, which perils are insured against.
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Intentional Acts
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Typically excluded from coverage. Could be illegal or simply immoral.
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ISO
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Insurance Service Office-An organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also develops standardized forms.
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Legal Liability
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Rules of law dictate that a person must pay for damages done to another
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Lender's interest
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Mortgage clause, loss payee
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Liability Insurance
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Insures the individual for financial losses which arise out of the person's responsibilities to other imposed by law or contract
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Liberalization Clause
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A policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage the insured will receive the benefit of such broadened coverage without additional premium.
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Limits of Liability
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The maximum amount of insurance the insurance company will pay for a particular loss or for a loss during a period of time.
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Loss of Use Coverage
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Under the Homeowners contract, covers the insured's increased cost of living after loss and rental value of any portion of the dwelling which is rented out.
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Material Misrepresentation
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Untrue statement made in the application for insurance by the insured. The company may void the contract if they would have never covered knowing the truth.
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McCarran-Ferguson Act
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State regulation of insurance is in the public interest (federal law since 1945). Insurance is regulated by all 50 states, not by the government
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MEWA
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Multiple-Employer Welfare Arrangement-FL insurance code defines a MEWA as a established to provide one or more insurance benefits to employees of two or more employers. These are not exempt from state regulation
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Misappropriate
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Unlawfully withhold money belonging to insureds, insurers, beneficiaries, or others received in the conduct of business under the license
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Miscellaneous Type Vehicle Endorsement
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An endorsement which may be added to the PAP to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.
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Misrepresentation
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Statement of something that is known to be untrue.
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Misrepresentations
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False advertising. Knowingly making, issuing or circulating or causing any statement, omission or sales presentation which misrepresents the terms of any insurance policy.
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Moral Hazard
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Conscious attitude: intentional loss (arson)
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Morale Hazard
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Unconscious attitude; unintentional loss (clumsy)
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Names Nonowner Coverage
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An endorsement that can be added to the PAP to provide coverage for a named individual who does not own a vehicle.
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Negligence
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The failure to act as a prudent person would have acted under similar circumstances.
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No-Fault Insurance
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A first party benefit that pays regardless of fault (ex. Personal Injury Protection in FL)
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Occurrence
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In Liability policies, generally defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions
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PEO
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Professional Employer Organizations (aka employee leasing)-cannot be a fully self-funded program and is not exempt from state regulation
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Percentage Deductible
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A deductible which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits.
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Peril
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The cause of loss. Examples include fire, windstorm, or explosion
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Personal Articles Floater
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Personal Inland Marine insurance which provides all risk coverage on nine optional classes of personal property; jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.
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Personal Auto Policy
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PAP-a package policy that contains first party and third party. Personal, non-business coverage.
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Personal Contract
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Covers people not property.
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Personal Injury Protection
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A coverage provided in Auto policies in the state of Florida that provides coverage for the insured's own injuries on a first-party basis, without regard to fault. This is a required coverage and must be carried by all owners of motor vehicles in FL.
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Personal Liability Policy
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Provides broad coverage for an individual's or family's liability exposure for bodily injury or property damage. Similar to coverage included in the Home Owners Contract.
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Physical Damage
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In auto insurance, damage or loss to the insured's own autos or autos in the insured's care, custody or control
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Physical Hazard
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A condition stemming from the physical characteristic of an object (oily rag)
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Policy
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An insurance contract.
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Preservation of Property
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this is a Property insurance coverage, sometimes known as removal, which provides coverage for property that has been removed from the premises to protect it following a covered loss.
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Primary Insurance
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When two or more coverage or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less.
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Private Passenger Autos
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Ordinary cars, SUVs, Pickups, and vans of 10,000 lbs. or less and not used commercially. Also, utility trailers designed to be pulled by a private passenger auto.
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Property Damage
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A type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.
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Property Insurance
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Payment is made to the insured. First party benefit.
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Pro-rata
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The company will pay the portion to which its limit bears.
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Proximate Cause
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A fundamental doctrine in property insurance that holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resulting damage is a part of the occurrence.
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Punitive Damages
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Damages that punish the wrongdoer for anti-social actions, rather than compensating for loss
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Pure Risk
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Loss or no loss. Insurance is a pure risk. There is no possibility of gain.
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Rebating
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Only allowed if it is available to all insureds in the same actuarial class. Must be in accordance with a rebating schedule filed by the agent.
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Replacement Cost
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The cost to replace a damaged or destroyed item of property, without deducting depreciation. May be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.
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Residual Market
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An organization created by the Legislature to provide Florida residents with crucial or required coverage generally unavailable in the voluntary market.
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Robbery
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In Crime insurance, the taking or attempted taking of property by one who has caused or threatened to cause bodily harm or committed and witnessed an obviously unlawful act.
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Safe Driver Insurance Plan
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An Automobile insurance rating program which applies the lowest rates to operators with the best driving records. Points are assigned for accidents and traffic violations, with higher rates resulting as points increase.
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Severability Clause
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A standard Liability insurance clause which means that insurance applies separately to each insured.
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Single Limits
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In Auto Liability, policy limits that apply to all bodily injury and property damage arising from a single accident
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Sliding
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Stating that an ancillary coverage is required by law with the purchase of an insurance policy
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Specific Insurance
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Property specifically listed and covered for a specific amount. Also called Scheduled coverage
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Speculative Risk
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Gain, Loss, or no loss. The lottery is a speculative risk.
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Split Limits
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In Auto Liability insurance, policy limits that apply one limit to each person injured, another for the bodily injury claims of all persons injured in a single accident and a separate limit for all property damage arising out of a single accident. Example 10/20/10.
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SR-22 Filing
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A form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.
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Straight Deductible
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A deductible that specifies the deduction of a flat amount from a loss payment, regardless or the size of the loss.
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Subrogation
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The transfer to the insurance company of the insured's right to collect damages
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Supplementary Payments
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Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc.
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Theft
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In Crime insurance a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.
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Towing and Labor Endorsement
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An endorsement that can be added to an auto policy to cover towing and the costs of labor performed at the site of the disablement.
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TRIA
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Terrorism Risk Insurance Act (TRIA) of 2002-federal legislation enacted in 2002 to guarantee the availability of insurance coverage against acts of international terrorism. Under the act, commercial insurers are required to offer insurance coverage against terrorist incidents and are reimbursed by the federal government for paid claims subject to deductible and retention amounts. This legislation was modified and extended by the Terrorism Risk Insurance Extension Act (TRIEA) in 2005
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Twisting
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Making misleading representations for the purpose of inducing a person to surrender, retain, or purchase an insurance policy.
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Uncontrolled Lines
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Inland Marine Coverage which are not standardized.
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Unfair Insurance Trade Practices Act
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A Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims without reasonable investigation, etc
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Uninsured Motorist Coverage
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Auto coverage designed to provide protection for the insured should he or she be included in an accident in which the driver has no insurance (or not enough insurance) to cover the loss.
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Unscheduled Coverage
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A single coverage amount which applies generally to personal property. Also called blanket insurance
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Utmost Good Faith
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A principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith
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Vacancy
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The absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.
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Valued Policy
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A policy wherein the insurer agrees, in advance, that the coverage limit applicable to the item will be considered its value.
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Valued Policy Law
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A statute which states that if there is a total loss by a covered peril to a building, structure, mobile home or manufactured housing unit, the insurer must pay the amount provided in the policy for which premium has been paid.
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Vandalism and Malicious Mischief (VMM)
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Protects property against damage caused by vandals. Many property forms contain VMM coverage.
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Vicarious Liability
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Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. i.e. parents
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Waiver
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The voluntary or intentional relinquishment of a known right. A waiver may be expressed or implied.
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Warranty
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A specific agreement between the insured and the insurer that certain conditions will be met. This agreement becomes a part of the policy.
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