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