Risk Management Terms

Actual cash value (ACV) = The depreciated value of an item. Advertising injury = Damages resulting from misappropriation of advertising ideas or style of doing business. Coinsurance = A standard element in most property policies that obligates the insured to maintain a certain limit of property insurance. Cross liability = Allows an owner to bring a claim against his or her community association.

Agreed amount endorsement = Provides for an agreed upon limit of property insurance. Common declarations = The section of the policy that includes the name and address of the insured and the period of coverage. Contractual transfers = Entering into a contract that will transfer the community association's legal responsibility for any loss. Directors and officers liability insurance = Designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising injury, or personal injury.

Common policy conditions = Basic provisions that apply to all insurance coverages in the package. Contingent liability = Covers the value of any undamaged portion of a building which may have to be replaced because of building laws. Cross liability = Allows an owner to bring a claim against his or her community association. Advertising injury = Damages resulting from misappropriation of advertising ideas or style of doing business.

<p>Actual cash value (ACV) = The depreciated value of an item. Coinsurance = A standard element in most property policies that obligates the insured to maintain a certain limit of property insurance. Contractual transfers = Entering into a contract that will transfer the community association's legal responsibility for any loss. Agreed amount endorsement = Provides for an agreed upon limit of property insurance.</p> Signup and view all the answers

<p>Common declarations = The section of the policy that includes the name and address of the insured and the period of coverage. Common policy conditions = Basic provisions that apply to all insurance coverages in the package. Contingent liability = Covers the value of any undamaged portion of a building which may have to be replaced because of building laws. Directors and officers liability insurance = Designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising injury, or personal injury.</p> Signup and view all the answers

<p>Advertising injury = Damages resulting from misappropriation of advertising ideas or style of doing business. Coinsurance = A standard element in most property policies that obligates the insured to maintain a certain limit of property insurance. Cross liability = Allows an owner to bring a claim against his or her community association. Agreed amount endorsement = Provides for an agreed upon limit of property insurance.</p> Signup and view all the answers

<p>Contractual transfers = Entering into a contract that will transfer the community association's legal responsibility for any loss. Contingent liability = Covers the value of any undamaged portion of a building which may have to be replaced because of building laws. Directors and officers liability insurance = Designed to pay for damages arising from wrongful acts that do not lead to property damage, bodily injury, advertising injury, or personal injury. Coinsurance = A standard element in most property policies that obligates the insured to maintain a certain limit of property insurance.</p> Signup and view all the answers

<p>Direct writer system = Comprised of employees of a single insurance company who only place the insurance of that company Third-party insurance = Liability coverage purchased by an insured from an insurer for protection against claims of another Fidelity insurance = This insurance protects against employee dishonesty which may lead to the theft of money, securities, or property EDP insurance = This insurance may be needed for computer equipment, networks, websites, security systems, protection from hackers, and similar information technology exposures</p> Signup and view all the answers

<p>HO-1, -2, -3, -5 policies = Policies for owner-occupied units HO-4 policy = Tenant’s policy HO-6 policy = Policy for a condominium or cooperative unit owner Policy forms = Define the type of insurance coverage provided, including property, liability and boiler, and machinery</p> Signup and view all the answers

<p>Common declarations = The section of the policy that includes the name and address of the insured and the period of coverage. Common policy conditions = Basic provisions that apply to all insurance coverages in the package. Agreed amount endorsement = Provides for an agreed upon limit of property insurance. Actual cash value (ACV) = The depreciated value of an item.</p> Signup and view all the answers

<p>Endorsements = Expand, contract or clarify coverage Waiver of subrogation = The insurer waives its right to require the association to transfer recovery rights to the insurer regarding unit owners Exposure avoidance = Involves avoiding the circumstances that would expose the community association to certain type of loss Risk financing = The process of obtaining resources to pay for any financial consequences of accidental loss</p> Signup and view all the answers

<p>Personal property = Inventory, furniture, fine arts, equipment, supplies, machinery, electronic data processing (EDP), and valuable papers and records Real property = Buildings, land, and the newest type of property exposure Personal injury (PI) = Injury arising from libel, slander, false arrest, invasion of privacy, wrongful entry, or malicious prosecution Property exposure to loss = Property losses can be to tangible community association property (buildings and contents) or to intangible association property (information, proprietary Web site, etc.)</p> Signup and view all the answers

<p>Liability exposure to loss = Liability losses arise when a person or entity threatens or actually brings a legal claim against the community association, its members or others whom it must indemnify by contract Extra demolition = Covers the value of demolishing any undamaged portion of a building Segregation of exposure = Involves the duplication or separation of property exposures to loss Personal injury (PI) = Injury arising from libel, slander, false arrest, invasion of privacy, wrongful entry, or malicious prosecution</p> Signup and view all the answers

<p>Fidelity insurance = This insurance protects against employee dishonesty which may lead to the theft of money, securities, or property EDP insurance = This insurance may be needed for computer equipment, networks, websites, security systems, protection from hackers, and similar information technology exposures Third-party insurance = Liability coverage purchased by an insured from an insurer for protection against claims of another Direct writer system = Comprised of employees of a single insurance company who only place the insurance of that company</p> Signup and view all the answers

<p>Policy forms = Define the type of insurance coverage provided, including property, liability and boiler, and machinery Risk financing = The process of obtaining resources to pay for any financial consequences of accidental loss Segregation of exposure = Involves the duplication or separation of property exposures to loss Waiver of subrogation = The insurer waives its right to require the association to transfer recovery rights to the insurer regarding unit owners</p> Signup and view all the answers

<p>Exposure avoidance = Involves avoiding the circumstances that would expose the community association to certain type of loss Extra demolition = Covers the value of demolishing any undamaged portion of a building Personal property = Inventory, furniture, fine arts, equipment, supplies, machinery, electronic data processing (EDP), and valuable papers and records Liability exposure to loss = Liability losses arise when a person or entity threatens or actually brings a legal claim against the community association, its members or others whom it must indemnify by contract</p> Signup and view all the answers

<p>Fidelity insurance</p> Signup and view all the answers

<p>A tenant's policy</p> Signup and view all the answers

<p>To expand, contract or clarify coverage</p> Signup and view all the answers

<p>Liability exposure to loss</p> Signup and view all the answers

<p>The duplication or separation of property exposures to loss</p> Signup and view all the answers

<p>Extra demolition insurance</p> Signup and view all the answers

<p>To obtain resources to pay for financial consequences of accidental loss</p> Signup and view all the answers

<p>The insurer waives its right to require the association to transfer recovery rights to the insurer</p> Signup and view all the answers

<p>To provide a predetermined limit of property insurance</p> Signup and view all the answers

<p>To cover damages arising from wrongful acts not leading to property damage or bodily injury</p> Signup and view all the answers

<p>Actual cash value</p> Signup and view all the answers

<p>To transfer the community association's legal responsibility for any loss</p> Signup and view all the answers

<p>A provision that allows an owner to bring a claim against their community association</p> Signup and view all the answers

<p>To provide general information about the insured and the period of coverage</p> Signup and view all the answers

<p>Coinsurance</p> Signup and view all the answers

<p>Damages arising from misappropriation of advertising ideas or style of doing business</p> Signup and view all the answers