Insurance Readiness Exam Review

Vocabulary practice flashcards covering policy conditions, liability coverages, workers compensation concepts, and businessowners policy limits from the Insurance Readiness Exam.

Inspection and Surveys Condition

A common policy condition that grants the insurer the right to make inspections regarding issued insurance.

Government Insurance Programs

Insurance programs that are distinguished from private insurance programs by being partially or totally funded by taxes.

Coverage B - Personal and Advertising Injury Liability

Commercial general liability coverage that responds to claims arising from offenses such as suits alleging infringement of a copyright.

Unfair Claims Practice

An improper or prohibited insurance practice, such as refusing to pay claims without conducting a reasonable investigation based upon all available information.

Corporate CGL Named Insureds

Parties covered under a corporation's commercial general liability policy, which includes officers, stockholders, and employees, but excludes spouses of officers and stockholders.

Insured Contract

Those contracts that are automatically covered under the exposure of premises coverage in a general liability insurance contract.

Fire Legal Liability

Coverage protecting the insured against liability for fire losses associated with premises being rented or occupied for no longer than $7$ days.

Absolute Liability

The legal obligation to compensate injured workers without regard to fault or negligence.

Second Injury Fund

A fund that pays benefits when an employee with a previous injury suffers a second injury that causes the disability to be more serious.

Contractual Liability Policy

A policy, which may be added by endorsement or purchased separately, that an insured may obtain to provide coverage for other types of contracts.

Individual Named Insured Endorsement

A commercial auto endorsement that extends liability and physical damage coverage to a sole proprietor and their family members for owned passenger vehicles and nonowned autos.

BOP Personal Property Off-Premises Extension

An extension coverage form under a businessowners policy that is limited to $\text{\$}10,000$.

Agent

A person who acts on behalf of the principal.

Mobile Equipment

Commercial machinery—such as bulldozers, combines, and resurfacing equipment—differentiated from ordinary highway vehicles like company automobiles.

Coverage D (HO-3)

Loss of use coverage in a homeowners policy that pays for short-term additional living expenses as well as lost fair rental value when rented premises become uninhabitable.

Professional Liability

A specific type of liability insurance that is not available for inclusion within a package policy.