Missouri Property and Casualty Insurance
abandonment - ANS-condition states that the insured may not abandon property to the
company and ask to be reimbursed for its full value.
\Absolute liability - ANS-imposed by law on those participating in certain activities that are
considered especially hazardous. Individuals involved in such operations may be held liable for
the damages of another, even though the individual was not negligent.
\Accounting Department - ANS-inances are closely regulated by the state—for example,
premiums must be credited to specific accounts, agents must be paid commissions, and proper
reserves must be maintained
\actual cash value (ACV) - ANS-calculated by determining the item's replacement cost (what it
would cost to buy a replacement) and subtracting an amount for depreciation
\Actuarial and Statistical Department - ANS-the numbers department.
\actuaries - ANS-determine the rates to be charged for various types of insurance.
\additional coverages, extended coverages, coverage extensions, or other coverages -
ANS-have reduced or separate limits of liability or require the insured to meet certain policy
requirements before they apply
\additional insured - ANS-another individual or business listed on the declarations
\Adequate spread of risk - ANS-Must not happen to a large number of the insured at the same
time. Not insuring every person that would be effected by the same risk.
\Adhesion - ANS-one party has greater power over the other party in drafting the contract
\admitted or authorized insurer - ANS-A company that meets the insurance department's
standards and is authorized to do business in a state
\Adverse selection - ANS-the tendency for people with a greater-than-average exposure to loss
to purchase insurance.
\Affordable - ANS-The cost of the insurance must be affordable to the consumer and be able to
cover an unexpected loss.
\Agency Department - ANS-responsibilities include recruiting, appointing, and training,
especially if an agent will be an exclusive agent. The department must monitor the sales and
marketing efforts of these agents and make sure that the number and quality of agents are
closely tuned to the market the company serves.
\aggregate limit - ANS-limit that applies to all losses occurring within any one policy period.
\agreed value or stated amount - ANS-provision specifies a certain value that will meet the
coinsurance requirement. As long as the policy limit equals or exceeds this amount, the insured
will not be assessed a coinsurance penalty.
\aleatory - ANS-contingent on an uncertain event (a loss) that provides for unequal transfer of
value between the parties
\Apparent authority - ANS-doctrine that holds that an agent may have whatever authority a
reasonable person would assume the agent has. In the public's eye, an agent acting under
apparent authority binds the company as fully as under expressed or implied authority.
\Appraisal condition - ANS-either party may demand an appraisal of a loss. In this event, each
party chooses an appraiser. The two appraisers then select an umpire. If the appraisers fail to
, agree on an amount, they submit their differences to the umpire. The decision agreed to by any
two of the three is the final amount of indemnification. Each party pays its own appraiser and
shares the costs of the umpire.
\arbitration condition - ANS-may also be used to resolve other areas of disagreement between
the insured and the insurance company, between the company and a third party in the case of
liability insurance, or between two insurers.
\assessment companies - ANS-Provide primarily fire and windstorm insurance for small towns
and farmers.
Charge members a pro rata share of losses at the end of each policy period.
\assignment condition - ANS-specifies that a policy may not be transferred to anyone else
without the written consent of the insurer unless the named insured dies
\assumption of risk - ANS-when a person knowingly exposes himself to danger or injury.
\attorney-in-fact - ANS-Handles all business for a company. (Reciprocal Company)
\Audit Department - ANS-For certain insurance coverages, a premium is determined after or
during the policy term, instead of at the beginning of the policy term. These after-the-fact
premiums may be based on a number of factors such as payroll, number of employees, or
amount of receipts.
\bailee - ANS-a person or organization that has temporary possession of someone else's
personal property
\binder - ANS-oral or written statement made by the agent that the insured has immediate
protection that is valid for a specified time. If it is an oral statement, it must be backed up in
writing as soon as possible. (Does not guarantee that a policy will be issued.)
\bodily injury (BI) - ANS-injury, sickness, disease, and death arising out of injury, sickness or
disease.
\Broker - ANS-Represents the insured to find the insurance that is best for the client. Does not
have the authority to bind an insurance contract.
\Calculable - ANS-Must be able to be assigned a financial value.
\Casualty Insurance - ANS-insurance that covers for losses due to accident, chance, or
negligence
\Catastrophic losses - ANS-losses so broad that they could bankrupt a company that insured
them (IE war or nuclear disasters)
\Categories/Lines of Insurance - ANS-Property
Casualty
Life
Health and Disability
\certificate of insurance - ANS-proof that the policy has been written
\Claim adjusters or representatives - ANS-used to inspect a loss, determine whether there is
coverage for the loss, estimate indemnification, and, in some cases, pay for the loss
immediately.
\Claims Department - ANS-The claims department sees that the company's insureds are
adequately indemnified for their losses.
\coinsurance - ANS-encourages policyholders to insure property to value. It lists the minimum
amount of insurance the insured should carry on the property, which is expressed as a
percentage of the property's value.
abandonment - ANS-condition states that the insured may not abandon property to the
company and ask to be reimbursed for its full value.
\Absolute liability - ANS-imposed by law on those participating in certain activities that are
considered especially hazardous. Individuals involved in such operations may be held liable for
the damages of another, even though the individual was not negligent.
\Accounting Department - ANS-inances are closely regulated by the state—for example,
premiums must be credited to specific accounts, agents must be paid commissions, and proper
reserves must be maintained
\actual cash value (ACV) - ANS-calculated by determining the item's replacement cost (what it
would cost to buy a replacement) and subtracting an amount for depreciation
\Actuarial and Statistical Department - ANS-the numbers department.
\actuaries - ANS-determine the rates to be charged for various types of insurance.
\additional coverages, extended coverages, coverage extensions, or other coverages -
ANS-have reduced or separate limits of liability or require the insured to meet certain policy
requirements before they apply
\additional insured - ANS-another individual or business listed on the declarations
\Adequate spread of risk - ANS-Must not happen to a large number of the insured at the same
time. Not insuring every person that would be effected by the same risk.
\Adhesion - ANS-one party has greater power over the other party in drafting the contract
\admitted or authorized insurer - ANS-A company that meets the insurance department's
standards and is authorized to do business in a state
\Adverse selection - ANS-the tendency for people with a greater-than-average exposure to loss
to purchase insurance.
\Affordable - ANS-The cost of the insurance must be affordable to the consumer and be able to
cover an unexpected loss.
\Agency Department - ANS-responsibilities include recruiting, appointing, and training,
especially if an agent will be an exclusive agent. The department must monitor the sales and
marketing efforts of these agents and make sure that the number and quality of agents are
closely tuned to the market the company serves.
\aggregate limit - ANS-limit that applies to all losses occurring within any one policy period.
\agreed value or stated amount - ANS-provision specifies a certain value that will meet the
coinsurance requirement. As long as the policy limit equals or exceeds this amount, the insured
will not be assessed a coinsurance penalty.
\aleatory - ANS-contingent on an uncertain event (a loss) that provides for unequal transfer of
value between the parties
\Apparent authority - ANS-doctrine that holds that an agent may have whatever authority a
reasonable person would assume the agent has. In the public's eye, an agent acting under
apparent authority binds the company as fully as under expressed or implied authority.
\Appraisal condition - ANS-either party may demand an appraisal of a loss. In this event, each
party chooses an appraiser. The two appraisers then select an umpire. If the appraisers fail to
, agree on an amount, they submit their differences to the umpire. The decision agreed to by any
two of the three is the final amount of indemnification. Each party pays its own appraiser and
shares the costs of the umpire.
\arbitration condition - ANS-may also be used to resolve other areas of disagreement between
the insured and the insurance company, between the company and a third party in the case of
liability insurance, or between two insurers.
\assessment companies - ANS-Provide primarily fire and windstorm insurance for small towns
and farmers.
Charge members a pro rata share of losses at the end of each policy period.
\assignment condition - ANS-specifies that a policy may not be transferred to anyone else
without the written consent of the insurer unless the named insured dies
\assumption of risk - ANS-when a person knowingly exposes himself to danger or injury.
\attorney-in-fact - ANS-Handles all business for a company. (Reciprocal Company)
\Audit Department - ANS-For certain insurance coverages, a premium is determined after or
during the policy term, instead of at the beginning of the policy term. These after-the-fact
premiums may be based on a number of factors such as payroll, number of employees, or
amount of receipts.
\bailee - ANS-a person or organization that has temporary possession of someone else's
personal property
\binder - ANS-oral or written statement made by the agent that the insured has immediate
protection that is valid for a specified time. If it is an oral statement, it must be backed up in
writing as soon as possible. (Does not guarantee that a policy will be issued.)
\bodily injury (BI) - ANS-injury, sickness, disease, and death arising out of injury, sickness or
disease.
\Broker - ANS-Represents the insured to find the insurance that is best for the client. Does not
have the authority to bind an insurance contract.
\Calculable - ANS-Must be able to be assigned a financial value.
\Casualty Insurance - ANS-insurance that covers for losses due to accident, chance, or
negligence
\Catastrophic losses - ANS-losses so broad that they could bankrupt a company that insured
them (IE war or nuclear disasters)
\Categories/Lines of Insurance - ANS-Property
Casualty
Life
Health and Disability
\certificate of insurance - ANS-proof that the policy has been written
\Claim adjusters or representatives - ANS-used to inspect a loss, determine whether there is
coverage for the loss, estimate indemnification, and, in some cases, pay for the loss
immediately.
\Claims Department - ANS-The claims department sees that the company's insureds are
adequately indemnified for their losses.
\coinsurance - ANS-encourages policyholders to insure property to value. It lists the minimum
amount of insurance the insured should carry on the property, which is expressed as a
percentage of the property's value.
