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82 Cards in this Set

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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

reinsurance

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

subscription

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

condition

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


subrogation

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

warranty

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

fraudulent

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

non-combustible

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

detachment

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


class

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

hazard

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

vacant

-"Empty"; or


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

unoccupied

- 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

loading

an additional rate charged over and above the fire rate

centrifugal

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


matter.)


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

endorsement

changes the terms or conditions of the policy

rider

adds additional coverages to those already in place

media

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

data

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


general

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


closed


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


tampering

money

Currency and coins in current use and having a face value

securities

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

custodian

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

messenger

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

forgery

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

income

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

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