Core property and casualty insurance policy vocabulary tested on state licensing exams.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a premium in insurance?
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The amount paid by the insured for insurance coverage.- Define deductible.
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The amount the insured must pay out of pocket before coverage begins.- What is a policyholder?
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The person or entity who owns an insurance policy and is covered by it.- What is a claim in insurance?
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A formal request for payment from the insured to the insurer for a covered loss.- What is a peril?
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A specific cause of loss covered or excluded by an insurance policy.- Define hazard in insurance.
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A condition that increases the likelihood of a loss occurring.- What is underwriting?
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The process of evaluating risk and deciding whether to issue an insurance policy.- What is insurable interest?
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The legal right of a person to collect insurance proceeds for a loss.- What is a named peril policy?
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A policy that covers only the specific perils listed in the contract.- What is an open peril or all-risk policy?
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A policy that covers all perils except those specifically excluded.- Define rider in an insurance policy.
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An amendment or attachment that adds coverage or modifies policy terms.- What is a binder?
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Temporary written proof of insurance coverage pending issuance of the formal policy.- What is an exclusion in a policy?
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A specific condition, circumstance, or type of loss that the policy does not cover.- What is actual cash value?
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The replacement cost of property minus accumulated depreciation at the time of loss.- Define replacement cost value.
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The full cost to replace damaged or destroyed property with new property of like kind and quality.
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