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30 Cards in this Set
- Front
- Back
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Stock Companies
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Owned by stockholders
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Mutual Companies
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Owned by policyholders
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Domestic Insurer
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An insurer that is incorporated under the laws of the state in which it conducts business.
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Foreign Insurer
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An insurer doing business in another state in which it is not incorporated
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Alien Insurer
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Insurers who are orginazed under the laws of one country but working in another country
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Lines of Insurance: How old is Ocean Marine?
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It is the oldest form of insurance.
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Elements of Legal Contract: What is offer?
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The offer in an insurance contract comes from our insureds
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Elements of Legal Contract: What is consideration?
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The insured pays the premium for the insurers promise to pay the claims
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Elements of Legal Contract: ALL PARTIES MUST BE COMPETENT
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In texas, must be at least 14 yrs of age.
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What is contract used for
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Must be used for legal purposes
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Contract of Adhesion
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In insurance, the insurer writes the contract and the insured "adhears" to it
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Aleatory Contract
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Insurance contracts are "one sided," because one party may receive much more in value than he or she gives under the contract
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Unilateral Contract
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Only the insurer promises to do anything further after the insured has paid the premium
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Conditional Contact
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Insurance contracts are conditional because when the loss occures, certain conditions must be met to make the contact legally enforceable.
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Declarations Page
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The information page that shows the parties insured, addresses, coverages, and premiums
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Supplementary Coverages
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Additional payments and coverage
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Exclusions
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Eliminates coverage in the insuring agreement
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Conditions
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Relates to duties of the insured and the obligations of the insurer
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Endorsements
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Amended terms of the contract
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Insurance Tearms and Definitions: RISK
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Is the uncertainty that one faces when a loss is possible
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Two types of Risk: First Type is SPECULATIVE RISK
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A form of gambling where you have a chance of a gain or loss
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Two types of Risk: Second Type is PURE RISK
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We only have a chance of a loss with no change for a gain
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What is an insurance contract?
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The legal agreements between the insurance company and the insured
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What is WE, US, and OUR, in an insurance contract mean?
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We, Us, and Our refers to the insurance company providing the insuracne contract
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What is You and Your in an insurance contract mean?
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You and Your refers to the names insurance who purchased the insuracne contact
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That is an insurer??
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Insurer is the insurance company that has agreed to provide services and cover losses
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What is an insured?
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Insured is the person or business that is covererd by the insurance company and will be indemnified in the event of a covered loss
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What is Idemnification?
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Indemnify means to restore a person or business to the economic condition that they were at just prior to a loss
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What is peril
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Peril is a cause of loss. I.E. Fire and lightning, Windstorn, hurricane, hail, vandalism, Riot, Civil Commotion, Sprinkler leackage, etc.
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What is Hazard?
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Hazard is any condition that increases the likelihood that a loss will occur. i.e. Storing 1000 gallons of gasoline in your garage, speeding, and drunk driving.
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