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82 Cards in this Set

  • Front
  • Back

scheduled coverage

refers to policy on which coverage is provided

only on that property which is specifically

identified or scheduled

all property

refers to policy used to insure building, stock

and equipment under a single limit of insurance

tenants improvements

building improvements, alterations and

betterments made at the expense of or

purchased by the insured to a building occupied

by the insured and which are not otherwise

insured, provided the insured is not the actual

owner of such building

actual cash value

the replacement or repair cost less depreciation

replacement value

represents the costs to repair, replace or rebuild

the lost or damaged property without deduction

for depreciation


involves an insurer ceding part of the risk it has assumed to one or more other insurers


an insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverages


is something imposed by the Insurer which requires the Insured to do or not to do something


refers to the right of the insurer to "step into the shoes" of the party whom it has compensated and sue any party whom the compensated party could have sued


is a promise that certain facts are as they are represented to be and that they will remain so

material fact

a fact which if communicated to the Insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid


to act wilfully, and with the specific intent to deceive or cheat ...

void contract

a void contract is one which has no "legal or binding force" and as such, "is incapable of being enforced by law."

fire resistive

building which has met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire


all structural members including floors, roofs and their supports are constructed of steel, iron, concrete or other non-combustible materials. Exterior also required to be of non-combustible construction. Falls just short of classifying

as fire resistive

common hazards

conditions common to all buildings which influence their potential for loss


refers to the proximity of the building insured or containing the property insured to other commercially rated buildings

adverse selection

occurs when the applicants for insurance are

largely those most likely to suffer a loss

risk classification

refers to the grouping or classifying of risks

according to established criteria which, in large

part, is based on their probability for loss as a


soft market

characterized by intense competition between

insurers. As a result, rates tend to be low

hard market

occurs when low profit margins force out some

of the competition. As a result, insurers use a

more disciplined underwriting approach. The

insured normally receives little or nothing in the

way of rate discounts


is a condition which may cause a peril to occur

physical hazard

a condition relating to the use of tangible

property which could cause a peril to occur

moral hazard

subjective characteristics of the applicant that

could cause a peril to occur

morale hazard

deal with the attitude of the client

accommodation business

business which is marginal or substandard but

which the insurer agrees to accept as a favour

or accommodation to the broker

supporting business

the existence of other insurance policies the

applicant has with the same insurer


-"Empty"; or

- When the normal occupant is absent and the contents have been removed


- Lack of habitual presence of human beings; or

- When premises are complete with its contents, except that such person who normally occupies the premises is temporarily away


an additional rate charged over and above the fire rate


the inertia of a body that tends to move it away

from the centre around which it revolves

mechanical breakdown

"a failure in the working mechanism of the

machinery...a functional defect in the moving

parts of the equipment which causes the latter

to cease functioning or to function improperly

electrical breakdown

a failure in the electrical mechanism of the

machinery, appliance or device

trade losses

the types of losses which might be expected as

a part of the every day operation of a business

wear & tear

"..deterioration or depreciation (i.e. value by

ordinary and reasonable use of the subject


gradual deterioration

the deterioration of an object which arises

naturally over time

latent defect

a hidden or concealed defect. One which could

not be discovered by reasonable and customary

inspection; one not apparent in face of goods,

product, document, etc

mysterious disappearance

disappearance under circumstances which

cannot be explained


changes the terms or conditions of the policy


adds additional coverages to those already in place


is the CDs, DVDs, backup hard drives and cassettes, upon which data is recorded


the information stored on the media

temporary location

a location not specified on the policy which is

not owned, rented or controlled in whole or in

part by the insured

newly acquired location

a location acquired (owned, rented or

controlled) by the Insured. Such location is a

newly acquired location for a period of 30 days

from acquisition

replacement cost

the cost of repairing or replacing the property

on the same site with new property of like kind

and quality and for like occupancy without

deduction for depreciation

bailee for hire

is one who has temporary custody of the

personal property of another for a purpose

other than sale and who is compensated as a

condition of such custody

ordinary care

the legal duty imposed upon bailees which

requires them to take the same care of the

goods of others as would be taken by a prudent

and diligent owner of such goods

common carrier

includes airlines, railroads, trucking companies

and others that furnish transportation to any

member of the public seeking their services

standard (ordinary)

bill of lading used to reflect the amount for which

the bill of lading common carrier will be held

legally liable under the tariff

valued bill of lading

serves to increase carrier's liability - normally

requested by the owner of goods when their

value exceeds the value stated in the Standard

Bill of Lading

released bill of lading

bill of lading used to release a carrier from any

liability for the goods being transported

contract carrier

one that carries, for pay, the goods of certain

customers only as contrasted to a common

carrier that carries the goods of the public in


private carrier

ones who haul their own goods or goods

entrusted to them as bailees or lessees and

includes shippers who own or lease their

vehicles and carry their own goods

catastrophe limit

the maximum amount an Insurer will pay in

only one disaster or occurrence

physical protection

is concerned with setting up physical barriers to

restrict unauthorized access to property

electronic protection

is concerned with settling up electronic barriers to

restrict unauthorized access to property

perimeter protection

refers to the methods used by owners to secure access to the premises when the business is


area protection

refers to the protection provided to areas within the

building where valuable property is being stored

point protection

provides direct security for individual items such as

safes, vaults, chests, filing cabinets, display cases,

expensive equipment

line security

refers to the ability of a telephone line to withstand



Currency and coins in current use and having a face value


Means all negotiable and non negotiable instruments or contracts representing money or other property and includes revenue and other stamps in current use, tokens and tickets but does not include money

burglary (insurance meaning)

The unlawful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forceable entry or exit

robbery (insurance meaning)

Robbery means the taking of insured property from a custodian by a person or persons who have:

- caused or threatened to cause the custodian bodily harm; or

- committed an overt unlawful act witnessed by the custodian; or

- taken such property from a custodian who has been killed or rendered unconscious


Includes the Insured(s), their partner(s) or any

employee authorized by them to have the care and

custody of insured property

theft (insurance meaning)

Includes all means of taking property without the

owner's consent

employee dishonesty

Loss which the Insured shall sustain resulting directly from one or more fraudulent or dishonest acts committed by an employee, acting alone or in

collusion with others

discovery period

The time permitted by an Insurer, commencing with the expiry date of the policy, in which a claim must be discovered by the Insured if it is to be covered by the policy


The Insured or a partner of the Insured or any employee who is duly authorized by the Insured to have the care and custody of the Insured property outside the premises


A person is guilt of forgery if he fraudulently alters any writing of another without his authority or makes completes, executes authenticates issues or transfers any writing so it purports to be the act of another who did not authorize that act


includes all monies from sales or services

rendered by a business

fixed expenses

are those expenses that continue during the

period of an interruption

semi-variable expenses

are those expenses which may or may not

continue during the period of interruption

gross profit

is the sum produced by adding to the "net

profit" the amount of the "insured standing

charges"; see Profits Endorsement Form, IBC

4030, Definitions, item 4(a).

Note: Technically, "gross earnings" under the

Gross Earnings Endorsement Form (IBC 4029)

has its own definition and is not the same as the

"gross profit" amount insured by the Profits

Form. Under the Gross Earnings Form, "gross

earnings" is the amount arrived at after

subtracting the cost of merchandise and other

allowable deductions from the business's total

net sales

net profit

is the gross profit minus all other expenses

earned by the business

actual loss sustained

The measure of recovery under the Gross

Earnings Form - refers to the amount the

business would actually have earned had the

loss not occurred

ordinary payroll expense

Is the entire payroll expense for all employees

of the Insured, except officers, executives,

department managers, employees under

contract and other important employees whose

services would no be dispensed with should the

business be interfered or interrupted

contributing properties

The manufacturer or supplier upon whom the

Insured depends for materials or goods

recipient properties

The customer(s) who the insured depends upon

to purchase its products

magnet properties

Businesses which attract a large number of

customers to an area