Kentucky Property Insurance Exam Flashcards |Comprehensive Study Set|

Kentucky Property Insurance Exam Flashcards |Comprehensive Study Set| Abandonment *Ans* The abdication of insured property into the hands of another, or into the possession of no one in particular. Accident *Ans* An unplanned, unforeseen event which occurs suddenly and at an unspecified place. Actual Cash Value *Ans* 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 *Ans* A provision in an insurance policy that allows for more coverage for a specific loss without an increase in premium Adhesion *Ans* 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 *Ans* An insurance company authorized and licensed to transact in a particular state. Adverse Selection *Ans* The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agent *Ans* An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Agreed Value *Ans* 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 *Ans* 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 *Ans* An insurance company that is incorporated outside the United States. Apparent Authority *Ans* 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 *Ans* An assessment of property to determine either the correct amount of insurance to be written or the amount of loss to be paid. Arbitration *Ans* Method of claim settlement used when the insured and insurer cannot agree upon the amount of the loss. Assignment *Ans* 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 *Ans* An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Auto *Ans* 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 *Ans* 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 *Ans* 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 *Ans* a person who receives benefits,