CAIB 2 Terms and Definitions

CAIB 2 Terms and Definitions Scheduled Coverage - Answer-refers to policy on which coverage is provided only on that property which is specifically identified or scheduled All Property - Answer-refers to policy used to insure building, equipment and stock under a single limit of Insurance Tenants Improvement - Answer-building improvements, alteration and betterments made at expense of or purchased by the insured to a building occupied by the insured and which are not otherwise insured, provided the insured is not actual owner of such building Actual Cash Value - Answer-the replacement or repair cost less depreciation Replacement Value - Answer-represents the costs to repair, replace or rebuild the lost or damaged property without deduction for depreciation Reinsurance - Answer-involves an insurer to cede part of the risk it has assumed to one or more other insurer Subscription - Answer-an insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverages Condition - Answer-is something that imposed by the insurer that requires the insured to do or not to do something Subrogation - Answer-refers to the right of the insurer to "step into the shoes" of the party whom it has compensated and sue any party whom the compensated party could have sued Warranty - Answer-is a promise that the certain facts are as they are represented to be and that they will remain so. Material Fact - Answer-a fact which if communicated to the Insurer would effect it ether to decline the insurance all together, or not accept it unless higher premium is paid Fraudulent - Answer-to act wilfully and with specific intent to deceive or cheat Void contract - Answer-is the one which has no "legal or binding force" and as such , "is incapable of being enforced by law" Fire Resistive - Answer-building which has met minimum standards in terms of hours it will withstand a specific, carefully controlled fire Non-combustible - Answer-all structural members including floors, roofs and their supports are constructed of steel, iron, concrete or other non-combustible materials Common Hazards - Answer-conditions common to all building which influence their potential for loss Detachment - Answer-refers to the proximity of the building insured or containing the property insured to other commercially rated buildings Adverse Selection - Answer-occurs when the applicants for insurance are largely those most likely to suffer a loss Risk Classification - Answer-refers to the grouping or classifying of risks according to established criteria, which in large p