Kentucky Property Insurance Exam
Flashcards|177 Questions & Answers
Abandonment - -The abdication of insured property into the hands of
another, or into the possession of no one in particular.
- Accident - -An unplanned, unforeseen event which occurs suddenly and at
an unspecified place.
- Actual Cash Value - -The required amount to pay damages or for property
loss, which is calculated based on the property's current replacement value
minus depreciation.
- Additional Coverage - -A provision in an insurance policy that allows for
more coverage for a specific loss without an increase in premium
- Adhesion - -A contract offered on a "take it or leave it" basis by an insurer,
in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
- Admitted Insurer - -An insurance company authorized and licensed to
transact in a particular state.
- Adverse Selection - -The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present
lower probability.
- Agent - -An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
- Agreed Value - -A property policy with a provision agreed upon by the
insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written.
- Aleatory - -A contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured
will pay in premiums is unequal to the amount the insurer will pay in the
event of a loss.
- Alien Insurer - -An insurance company that is incorporated outside the
United States.
, - Apparent Authority - -The appearance or the assumption of authority
based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
- Appraisal - -An assessment of property to determine either the correct
amount of insurance to be written or the amount of loss to be paid.
- Arbitration - -Method of claim settlement used when the insured and
insurer cannot agree upon the amount of the loss.
- Assignment - -The transfer of a legal right or interest in an insurance
policy. In property and casualty insurance, assignments of policies are
usually valid only with the prior written consent of the insurer.
- Authorized Insurer - -An insurance company that has qualified and
received a Certificate of Authority from the Department of Insurance to
transact insurance in the state.
- Auto - -A land motor vehicle, trailer or semi-trailer designed for use on
public roads, including attached machinery or equipment; auto does not
include mobile equipment.
- Avoidance - -A method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane
crash, he/she might choose never to fly in a plane).
- Bailee - -A person or entity that has possession of personal property
entrusted to him/her by the owner. For example, a television repair person
that has possession of a customer's television would be a bailee.
- Beneficiary - -a person who receives benefits, as from a will or an
insurance policy
- Binder - -A temporary contract that puts an insurance policy into force
before the premium has been paid.
- Blanket Bond - -A type of bond that covers losses caused by dishonest
employees.
- Blanket Insurance - -A single property insurance policy that provides
coverage for multiple classes of property at one location, or provides
coverage for one or more classes of property at multiple locations.
- Boycott - -an unfair trade practice in which one person refuses to do
business with another until he or she agrees to certain conditions.
Flashcards|177 Questions & Answers
Abandonment - -The abdication of insured property into the hands of
another, or into the possession of no one in particular.
- Accident - -An unplanned, unforeseen event which occurs suddenly and at
an unspecified place.
- Actual Cash Value - -The required amount to pay damages or for property
loss, which is calculated based on the property's current replacement value
minus depreciation.
- Additional Coverage - -A provision in an insurance policy that allows for
more coverage for a specific loss without an increase in premium
- Adhesion - -A contract offered on a "take it or leave it" basis by an insurer,
in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
- Admitted Insurer - -An insurance company authorized and licensed to
transact in a particular state.
- Adverse Selection - -The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present
lower probability.
- Agent - -An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
- Agreed Value - -A property policy with a provision agreed upon by the
insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written.
- Aleatory - -A contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured
will pay in premiums is unequal to the amount the insurer will pay in the
event of a loss.
- Alien Insurer - -An insurance company that is incorporated outside the
United States.
, - Apparent Authority - -The appearance or the assumption of authority
based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
- Appraisal - -An assessment of property to determine either the correct
amount of insurance to be written or the amount of loss to be paid.
- Arbitration - -Method of claim settlement used when the insured and
insurer cannot agree upon the amount of the loss.
- Assignment - -The transfer of a legal right or interest in an insurance
policy. In property and casualty insurance, assignments of policies are
usually valid only with the prior written consent of the insurer.
- Authorized Insurer - -An insurance company that has qualified and
received a Certificate of Authority from the Department of Insurance to
transact insurance in the state.
- Auto - -A land motor vehicle, trailer or semi-trailer designed for use on
public roads, including attached machinery or equipment; auto does not
include mobile equipment.
- Avoidance - -A method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane
crash, he/she might choose never to fly in a plane).
- Bailee - -A person or entity that has possession of personal property
entrusted to him/her by the owner. For example, a television repair person
that has possession of a customer's television would be a bailee.
- Beneficiary - -a person who receives benefits, as from a will or an
insurance policy
- Binder - -A temporary contract that puts an insurance policy into force
before the premium has been paid.
- Blanket Bond - -A type of bond that covers losses caused by dishonest
employees.
- Blanket Insurance - -A single property insurance policy that provides
coverage for multiple classes of property at one location, or provides
coverage for one or more classes of property at multiple locations.
- Boycott - -an unfair trade practice in which one person refuses to do
business with another until he or she agrees to certain conditions.
