CAS DISC IA Study Flash Cards

-pure risk

-fortuitous losses,

-definite and measurable

-large number of similar exposure units

-independent and not catastrophic

-affordable

What are the 6 characteristics of an ideally insurable loss exposure?

A loss that is accidental and unexpected

What is a fortuitous loss?

contract of indemnity

Insurance policy characteristic in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss.

contract of utmost good faith

Insurance policy characteristic in which the assumption is that the insured has voluntarily revealed to the insurer all information pertinent to the risk being insured.

conditional contract

A contract that one or more parties must perform only under certain conditions.

contract of adhesion

Any contract in which one party is put in a “take-it-or-leave-it” position and must either accept the contract as written by the other party or reject the contract entirely.

-conditional contract

-contract of adhesion

-contract of indemnity

-nontransferable contract

-contract of utmost good faith

-contract involving fortuitous events and the exchange of unequal amounts

What are the 6 insurance policy characteristics?

Preprinted form

Which type of insurance form is most widely used?

self-contained only made up of one document. Modular made up of several different documents and coverages

What is the difference between a self-contained policy vs a modular policy?

the declarations, definitions, and the insuring agreement

What three provisions form the core of every insurance policy?

Declarations page

An insurance policy information page or pages providing specific details about the insured and the subject of the insurance. Outline who/what is covered and where the coverage applies.