AINS 101 Latest Update with Certified Solutions

AINS 101 Latest Update with Certified Solutions Actual cash value (ACV) The cost to replace property with new property of like kind and quality less depreciation. Adverse selection Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved. Binder A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Book of business A group of policies with a common characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency. Broker An independent producer who represents insurance customers. Brokerage Compensation in the form of a flat fee or a commission that is paid by the reinsurer to the reinsurance intermediary for services provided. Capacity The amount of business an insurer is able to write, usually based on a comparison of the insurer's written premiums to its policyholders' surplus Catastrophe model A type of computer program that estimates losses from future potential catastrophic events. Certificate of insurance A brief description of insurance coverage prepared by an insurer or its agent and commonly used by policyholders to provide evidence of insurance. Claim A demand by a person or business seeking to recover from an insurer for a loss that may be covered by an insurance policy. Claimant A party that makes a claim and that can be either a first-party claimant or a third- party claimant. Claims representative A person responsible for investigating, evaluating, and settling claims. Compensatory damages A payment awarded by a court to reimburse a victim for actual harm. Condition Any provision in an insurance policy that qualifies an otherwise enforceable promise of the insurer. Conditional contract A contract that one or more parties must perform only under certain conditions. Contract of adhesion Any contract in which one party must either accept the agreement as written by the other party or reject it. Contract of indemnity A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss. Damages Money claimed by, or a monetary award to, a party who has suffered loss or injury for which another party is legally