Insurance Contract Terms: Declarations, Agreements, Exclusions, Conditions, and More, Quizzes of Credit and Risk Management

Download Insurance Contract Terms: Declarations, Agreements, Exclusions, Conditions, and More and more Quizzes Credit and Risk Management in PDF only on Docsity! TERM 1 Basic Parts of an Insurance Contract DEFINITION 1 Declarations Definitions Insuring Agreements Exclusions Conditions Miscellaneous Provisions TERM 2 Declarations DEFINITION 2 Statements that provide information about the particular property or activity to be insured Usually first page In property insurance, it contains name of the insured, location of property, period of protection, amount of insurance, premium, and deductableinformation TERM 3 Insuring Agreement DEFINITION 3 Summarizes the major promises of the insurerTwo basic typesof insuring agreement inproperty insurance are: Named Perils Policy "All-Risk" Policy TERM 4 Named Peril Policy DEFINITION 4 Only those perils specifically named in the policy are covered TERM 5 "All-Risk" Policy DEFINITION 5 All losses are covered except those specifically excluded AKA open peril policy Has fewer gaps, the burden of proof is placed on the insurer to deny the claim TERM 6 3 Major Types of Exclusions DEFINITION 6 Excluded perils - Flood, intentional act Excluded losses - professional liability loss is excluded in the homeowners policy Excluded property - pets are not covered as personal property in homeowners policy TERM 7 Conditions DEFINITION 7 Provisions in the policy that qualify or place limitations on the insurer's promise to preform If conditions are not met the insurer can refuse to pay TERM 8 Named Insured DEFINITION 8 The person or persons named in the declarations section of the policy Policy may cover others even though not specifically named e.g. home owners policy covers resident relatives under 24 who are full time students away from home TERM 9 Endorsement DEFINITION 9 A writen provision in property and liability insurance that adds to, deletes from, or modifies the provisions in the original contract e.g. an earthquake endorsement to a homeowners policy TERM 10 Rider DEFINITION 10 A provision in life and health insurance that amends or changes the original policy e.g waiver-of-premium rider on life insurance policy