+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
The person, organization or business covered by the insurance policy is referred to as:
|
Insured
|
|
To restore an insured to the prior financial condition that existed prior to the loss is considered:
|
Indemnity
|
|
Which of the following would NOT be an insurable interest:
|
“Speculative Risk”
is a chance of both a gain and a loss. Speculative risks are NOT insurable.
|
|
What are the five methods of Risk Management:
|
“Share, Transfer, Avoid, Retain, Reduce”
STARR
|
|
A contract in which the amount of money to be given up by each party is NOT equal is considered:
|
Aleatory
|
 The definition of a peril is: |
A cause of loss
|
|
Lines of Insurance that require rates to be filed and approved by the state before they can be used would be: |
Prior Approval
|
|
The principle of restoring a victim of loss to the same financial position as before the loss occurred is called: |
Indemnity
|
|
Insurance represents which way of dealing with risk?
|
Transfer
|
|
For property and casualty insurance, insurable interest must exist:
|
At the time of loss
|
|
Things that increase the likelihood of a loss or the seriousness of a loss are called:
|
Hazards
|
|
An insurer formed under the laws of the state in which an insurance policy is written is called:
|
A domestic insurer
|
|
Authority of an agent that the public may reasonably believe the agent to have is called: |
Apparent authority
|
|
Failure to use the degree of care of a reasonable person is called:
|
Negligence
|
|
An unbroken chain of cause and effect between an occurrence of an insured peril and resulting injury is called:
|
Proximate cause
|
