RIBO Exam Prep (2023/2024) Already Passed

RIBO Exam Prep (2023/2024) Already Passed Implied Contract a contract that comes about from the actions of the parties Express Contract Terms have been specificity states and agreed upon by both parties Reinsurance insurance for insurance companies Frequency Percentage of what we insure. severity $ amount of the loss contract agreement between two or more parties void The policy never existed. Any premium received must be returned. legal entity/person Someone who can sue or be sued. tort You have been legally wronged contribution Insurance under more than one policy (excess insurance) Concealment (Nondisclosure) Silence where there is obligation to speak. Loss policy voucher (LPV) Single page saying you want to cancel your policy. Signed and dated. vandalism damage to property without regard to ownership malicious act Damage to property due to ownership risk The chance of loss Negligence What a reasonable and prudent person would or would t do in a similar situation hazard Condition that may cause a peril to occur or make the loss more severe proximate cause Immediate/effective cause of the loss General insurance Everything other than life and health insurance indemnified To put you back in the same financial position you were just prior to loss. No better. No worse. First party Insured Second party insurer third party Anyone outside of the insured contract that takes legal action against the contract I.N.B.R Incurred losses that have not been reported Insurable Interest something of value that, if lost, would cause you financial harm Actual Cash Value Today's market price less depreciation Lloyd's Insurance MARKET salvage Remaining property after severe damage. Insured may choose to keep. Subrogation Insurance company assumes the right to recover amounts paid out for the loss from the legally responsible party in the insureds name Utmost Good Faith Standard of honesty greater than usually required in ordinary contracts with Agreement offer and acceptance legal capacity Requirement that a party to a contract be of legal age and have requisite mental capacity to enter into contract contract a binding agreement between two or more persons that is enforceable by law Common Law A Cool Cat Gets Lucky... agreement, consideration, capacity to legally contract, genuine intention, legality of purpose Standard Policy Form worded identically to all insurance companies which meets local regulation requirements manuscript policy Policy does not conform to the standard wording and is unique to the policy involved Certificate of Insurance Modified form of a policy that certifies the existence of insurance endorsement Change to policy Binder/cover note Temporary coverage (letter or verbal) Mutual Companies Owned by the policy owners and issue participating policies. Stock Companies Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company. Minimum auto liability coverage $200 000 Underwriter A person who evaluates and classifies risks to accept or reject them on behalf of the insurer. Speculative Risk A chance of loss, no loss, or gain. (Gambling) Pure Risk a risk that presents the chance of loss but no opportunity for gain (insurance) peril Event that caused the loss hazard Condition that may cause a peril to occur Moral Hazard Arises when people behave recklessly because they know they will be saved if things go wrong spread the risk Volume, diversity of risks, diversity of location pure premium The premium required to meet the losses that occur Named Peril Policy Individually names the perils covered H.I.T.S Habitational Insurance Tracking System Mortgagee Lending institution Loss payee a lender, named on an insurance policy, who has loaned money on personal property, such as a car (EZ) I.T.V Insurance to value- computer program Vacant Occupant has moved out with no intent to return. Lose coverage after 30 days unless amended via a vacancy permit (no Secondary dwelling Open road access. Has renters or other occasional occupants. Seasonal dwelling Shut down for season. No occupant access. Nidices Tracks weekly inflation $ Broker Works for the client Agent Works for the company 2 main documents needed for condo Governing rules & bylaw document RIBO Self regulated body concerned w/ license and operations of ins. Brokers Unearned premium reserve fund Pays the insured their unearned premium if the insurer goes bankrupt Federal dept. of insurance Tracks $ stability of fed. Lic. Ins. Companies Statue Legislator declaring/prohibiting something Actual Cash Value (ACV) Replacement cost @ time of loss, less depreciation Excluded Driver Specifically not covered by the policy. robery From a person Burglury Forced entry into empty residence Basis of Claim Payment Actual cash value Coinsurance Added to commercial polices to force insured to insure to a certain amount. (Don't Suck Lemons) Punitive Damages AKA exemplary damages. Used to make an example out of the defendant. Basic Fire Policy Fire, lightning, explosion pro rata Premium returned when insurer cancels the policy Short Rate Basis Premium returned when policy cancelled by insured fortuitous accidental deductible clause Specifies the amount in excess of which an insurer will pay a loss Minimum liability in Ont $200 000 Facility market Pool of bad drivers! EXTREMELY HIGH RATES