Insurance Terms and Definitions, Quizzes of Finance

Download Insurance Terms and Definitions and more Quizzes Finance in PDF only on Docsity! TERM 1 Actuary DEFINITION 1 The Person who determines rates and premiums TERM 2 Agent DEFINITION 2 someone who legally represents the principal and has the authority to act on the principal's behalf TERM 3 Broker DEFINITION 3 Someone who legally represents the insured TERM 4 Captive Insurer DEFINITION 4 an insurer owned by a parent firm for the purposes of insuring the parent firm's loss exposures TERM 5 Claims Adjuster DEFINITION 5 person who adjusts a claim such as an agent, company adjustor, independent adjuster, adjustment bureau, or public adjuster TERM 6 Demutualization DEFINITION 6 mutual insurer is converted into a stock insurer TERM 7 Direct Response System DEFINITION 7 marketing system by which life and health insurance is sold directly to customers TERM 8 Exclusive Agency System DEFINITION 8 the agents represents only one insurer or group of insurers under common ownership TERM 9 Fraternal Insurers DEFINITION 9 corporation that provides life and health insurance to members of a social or religious organization TERM 10 Lloyds DEFINITION 10 Lloyds of London is the world's leading insurance market that provides services and physical facilities for its members to write specialized lines of insurance TERM 21 Dram Shop Laws DEFINITION 21 law that imputes negligence to the owner of a business that sells liquor in the event that an intoxicated customer causes injury or property damage to another person; usually excluded from general liability policies TERM 22 Imputed Negligence DEFINITION 22 case in which responsibility for damage can be transferred from the negligent party to another person, such as an employer. TERM 23 Joint & Several Liability DEFINITION 23 rule under which several people may be responsible for the injury, but a defendant who is only slightly responsible may be required to pay the full amount of damages TERM 24 Invitee DEFINITION 24 someone who is invited onto the premises for the benefit of the occupant TERM 25 Last Clear Chance Rule DEFINITION 25 statutory modification of the contributory negligence law allowing the claimant endangered by his or her own negligence to recover damages from a defendant if the defendant has a last clear chance to avoid the accident but fails to do so TERM 26 Legal Wrong DEFINITION 26 a violation of a person's legal rights, or a failure to perform a legal owned to a certain person or to society as a whole TERM 27 Negligence DEFINITION 27 Failure to exercise the standard of care required by law to protect others from harm 1 Existence of a Legal Duty 2 Failure to Perform That Legal Duty 3 Damage or Injury 4 Proximate Cause TERM 28 Proximate Cause DEFINITION 28 factor causing damage to the property for which there is an unbroken chain of events between the occurrence of an insured peril and damage or destruction of the property TERM 29 Res Ipsa Loquitor DEFINITION 29 literally, the thing speaks for itself. Under this doctrine, the very fact that the event occurred establishes presumption of negligence on behalf of the defendant TERM 30 Respondeat Superior DEFINITION 30 an employer can be held liable for the negligent acts of employees while they are acting on the employer's behalf TERM 31 Sovereign Immunity DEFINITION 31 the king or queen can do no wrong. Government cannot be sued without the government's consent. TERM 32 Tort DEFINITION 32 a legal wrong for which the law allows a remedy in the form of money damages TERM 33 Trespasser DEFINITION 33 a person who enters or remains on the owner's property without the owner's consent TERM 34 Additional Living Expenses DEFINITION 34 the increase in living expenses actually incurred by the insured to maintain the family's normal standard of living TERM 35 Fair Rental Value DEFINITION 35 amount payable to an insured homeowner for loss of rental income due to damage that makes the premises uninhabitable