Property Insurance Licensing

Flash Cards

stated valued policy

Insurance contract written to insure property or a piece of property for specific amount. Fine arts, collectibles and other hard to value assets may be valued this way

Coverage B of homeowners policy

Other structure; covers building and  structures on the premises other than the dwelling set apart by a clear space from the dwelling; 10% of Coverage A.

cargo insurance

Type of ocean marine insur6ance that covers goods while they are in transit over water

functional replacement cost

Damaged property is repaired or replaced with less expensive but functionally equivalent, materials

extra expenses

Commercial property coverage form that covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against

fraud

A deliberate misrepresentation that causes harm; an all out effort by one party to deceive and cheat the other; must have intent

estoppel

principle that states that if one intentionally or unintentionally creates the impression that a certain facts exists, and innocent party relies on that impression that a certain fact exists; and an innocent party relies on that impression and is injured as a result, the guilty party may be legally prohibited from asserting that the facts does not exist

farm policy coverages

Farm Property: Coverage A-dwelling, Coverage B- other structures non farming, Coverage C- household personal property, Coverage D-loss of use Farm property coverages, Coverage E- scheduled farm personal property, Coverage F- unscheduled farm personal property, Coverage G- barns, outbuildings, other farm structures farm liability coverages, Coverage H- BI and PD, Coverage I - personal and advertising injury, Coverage J- medical payments to others

difference in conditions insurance

Type of commercial property policy that covers  most insurable perils but excludes basic fire and extended coverage perils

floater

An insurance policy, or an addition to another insurance policy covering personal property deemed to be easily movable. It covers property lost, damaged, or destroyed( e.g.; jewelry, electronics, and furs

Fair Access to Insurance Requirements ( FAIR)

Programs established by law that makes property insurance available to insured who might otherwise be uninsurable in the standard market

deductible

The amount of expenses that must be paid out of pocket before the insurer will pay any expenses from covered loss

fiduciary

Someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which gives rise to relationship of trust and confidence

direct loss

Financial loss resulting directly from a loss to property

freight insurance

type of ocean marine insurance that protects the insured against the loss of shipping costs

excess insurance

When two or more policies or coverage apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted.

flood

1.An overflow of inland or tidal waves.

2.Usual and rapid accumulation or runoff of surface water from any source, unless general flooding exists. 

3. Mudslides caused by accumulations of water on the ground or underground

4.Collapse of land as a result of excessive erosion due to flood

 

MCS- 90

Endorsement attached to the truckers coverage form to provide public liability coverage.

Inherent vice

Characteristics in property itself causing it to depreciate, spoil break, become defective, disintegrate, or destroy itself

liberalization clause

Condition found in property insur6yance contracts that provides that if the insurer broadens coverage under a policy form or endorsement without require an additional premium, then all existing similar policies or endorsement will be construed to contain the broadened coverage.