USAA Auto Insurance Terms with Complete Solutions

USAA Auto Insurance Terms with Complete Solutions Terrorism Risk Insurance Act (TRIA) - Answer-In 2002- the availability of reinsurance coverage against terrorism. If there is a terrorist act then the federal government is responsible in paying the insurer for any damage. What is TRIEA and when did it happen - Answer-In 2005 legislation was modified and coverage was extended by the Terrorism Risk Insurance Extension Act FCRA- when, what, and what it stands for - Answer-In 1970 the Fair Credit Reporting Act was establish by the federal government to promote fairness and accuracy of info contained in consumer reports. Creates legal standards for collection, use and dissemination of consumer credit info. FACTA-when, definition and acronym meaning - Answer-In 2003 FCRA was amended by Fair and Accurate Credit Transactions Act-it requires the commission and other agencies to implement many of the new provisions of the FCRA by means of rules and regulations Gram Leach Billey Act (GLB) of 1999 - Answer-This act eliminates many restrictions on banks, insurance companies and other financial institutions. In particular the combination of insurance and bank products doing business together. GLB also addresses information privacy by - Answer-barring financial institutions from sharing consumers info to 3rd parties, requires them to provide customers privacy notice before and after relationship, and requires each federal regulatory agency to establish standards by which the financial institutions under its jurisdiction implement administrative, technical and physical safeguards cars damaged must rent a car- rental fees could be indetified as what insurance term? - Answer-direct loss arbitration - Answer-procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party Theft - Answer-any unlawful taking of property burglary - Answer-taking of property by breaking and entering, leaving visible signs of forcible entry and/or exit robbery - Answer-taking property by causing threat or bodily harm proximate clause doctrine - Answer-unbroken connection between a covered occurrence and the damage from the occurrence. An insurance policy only covers fire damage but the fire caused other types of damage to occur like water damage from fire sprinklers or smoke damage. If fire was the initial or proximate cause. subrogation - Answer-when the insurer pays the the insured for the covered loss. any rights of recovery from an at fault party are transferred to the insurer. waiver of subrogation may be allowed in specific circumstances concealment - Answer-Failure to disclose known facts when filling out an insurance application vicarious liability - Answer-When you are found to be responsible for the negligent acts of others when can misrepresentation void a contract - Answer-when the misrepresentation was material to accepting the risk- definition: an untrue statement on an application that does not become part of the policy ( have you had any auto accidents in the past 5 years- answers no when it was yes) what are departures of the principle indemnity - Answer-replacement cost, florida value policy law, agreed valued policy, salvage value, and market value indemnity - Answer-In property and casualty and in medical-expense insurance, the principle of making someone "whole" again after a loss by paying only for actual losses- One should be put back into the same financial position as they were before the loss An auto is financed- how is the bank stated on the insurance policy? - Answer-loss payee what is included in lenders interest clause? - Answer-insurance assures lenders that collateral property is covered. The four parts of this are: 1. make lender a payee in any covered loss 2. gives mortgagee advance notice of cancellation /nonrenewal/reduction of coverage 3. mortgagee is covered even if insured engages in act or omission preventing payment 4. mortgagee can continue policy if premium is not paid. appraisal - Answer-a survey that determines value not coverage of property without legal action: insured hires an independent appraiser and company hires independent appraiser , if they cannot agree principal of indemnity - Answer-One should not profit. actual cash value (acv)=replacement cost (r/c) less depreciation compensatory damages - Answer-the monetary amount needed to replace what was lost. money is the only remedy describe a proof of loss document - Answer-evidence is offered by insured to prove entitlement to collect the amount claimed and statement, signed, and sworn by insured setting forth the claim information required by the policy sever ability - Answer-insurance applies separate/equally to each insured as if other insureds did not exist comparative negligence - Answer-defendant asserts that in someway plaintiff contributed to the cause of the defendants injuries. currently used in Florida. what are your duties in the event of a loss - Answer-give prompt notice, cooperate, insured must preserve insurers rights what is a contract of adhesion - Answer-contract created by insurance company insured cannot negotiate terms-by rule of law any ambiguities are ruled in favored of the insured. what info is on a declaration page - Answer-personal information of the insured what are your duties in the event of a loss - Answer-give prompt notice, cooperate, insured must preserve insurers rights- take inventory of damaged property, use reasonable means to prevent further loss, show damaged property, provide records, be questioned under oath, report thefts to police, reveal other existing insurance, submit proof of loss in a timely manner risk - Answer-from an insurance prospective the chance of financial loss assumed risk - Answer-amount of risk the insured is willing to absorb. determines amount of perils, and type of insurance purchases pure vs. speculative risk - Answer-speculative- uncertainty about an event under consideration that could produce either a profit or loss (like gambling). Pure risk involves a situation that present the opportunity for loss but no opportunity for gain. Pure risk is generally insurable but speculative wish is usually not. insurance - Answer-a contract where one indemnifies or pays another specific amount ( a predetermined benefit for predetermined contingencies) law of large numbers - Answer-statistical theory or axiom that stating the larger number of similar exposure united the more predictable and accurate the estimate of expected losses. Credibility of data increases with the size of the data pool considered policy - Answer-written contract or agreement for or effecting insurance including clauses, riders, and endorsements endorsements - Answer-a written form attached to an insurance policy that alters the policy coverage, terms or conditions