Questions and Answers
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:
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.
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Knowing failure by the insured to supply all pertinent, material information is called:
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An oral or written misstatement of a material fact by the insured prior to the finalization of the insurance contract is called a:
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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.
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A(n) _____ interest, usually risk of financial loss, is a requirement of every person who wishes to purchase a policy.
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With respect to the given scenario, Max is called the:
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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.
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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.
