Podcast
Questions and Answers
In the context of insurance terms, the written contract is commonly called a:
In the context of insurance terms, the written contract is commonly called a:
Conditions which contribute to financial risk and uncertainty and are commonly covered by insurance, including fire, flood, and sleet, are called:
Conditions which contribute to financial risk and uncertainty and are commonly covered by insurance, including fire, flood, and sleet, are called:
In the context of insurance terms, the danger of a loss of, or injury to, property, life, or anything else, is called a:
In the context of insurance terms, the danger of a loss of, or injury to, property, life, or anything else, is called a:
In the context of insurance terms, the maximum amount that the insurer agrees to pay in case of a loss is known as the _____ of the policy.
In the context of insurance terms, the maximum amount that the insurer agrees to pay in case of a loss is known as the _____ of the policy.
Signup and view all the answers
Knowing failure by the insured to supply all pertinent, material information is called:
Knowing failure by the insured to supply all pertinent, material information is called:
Signup and view all the answers
An oral or written misstatement of a material fact by the insured prior to the finalization of the insurance contract is called a:
An oral or written misstatement of a material fact by the insured prior to the finalization of the insurance contract is called a:
Signup and view all the answers
A _____ is a statement or promise of the insured that relates to the risk and appears in the contract or another document incorporated in the contract.
A _____ is a statement or promise of the insured that relates to the risk and appears in the contract or another document incorporated in the contract.
Signup and view all the answers
A(n) _____ interest, usually risk of financial loss, is a requirement of every person who wishes to purchase a policy.
A(n) _____ interest, usually risk of financial loss, is a requirement of every person who wishes to purchase a policy.
Signup and view all the answers
With respect to the given scenario, Max is called the:
With respect to the given scenario, Max is called the:
Signup and view all the answers
Study Notes
Key Insurance Terms
- A written contract in insurance is referred to as a policy, which transfers financial risk to the insurance company for a fee.
- Hazards are conditions contributing to financial risk, including events like fire, flood, and sleet.
- The term peril denotes the risk of loss or injury to property or life within insurance contexts.
Policy Information
- The face of a policy indicates the maximum amount the insurer will payout in the event of a loss.
- Concealment occurs when the insured willfully fails to disclose material information, rendering the contract voidable.
- An incorrect or misleading statement about a material fact by the insured before the contract is finalized is categorized as false representation.
Legal Aspects of Insurance
- A warranty is a statement made by the insured that pertains to risk and appears in the insurance contract or related documents, and unfulfilled warranties can void the policy.
- To purchase a policy, an individual must have an insurable interest, which means they would suffer financial loss if the risk occurred.
Policyholder Insights
- In life insurance, the individual who purchases the policy and agrees to pay the premiums is known as the policyholder.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of key insurance terms with these flashcards from Chapter 35. Each card presents a word or concept related to insurance agreements and asks for definitions. Perfect for reinforcing your understanding of this essential topic in insurance studies.
