Texas property and casualty questions and answers graded A

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Texas property and casualty questions and answers graded A Insurer ✔✔insurance company or carrier Insured ✔✔the person who bought insurance or client principle of indemnity ✔✔this prin... ciple states that the insured will be restored to the same financial condition as before the loss. The insured cannot profit from an insurance payout. This considers depreciation. Underwriting ✔✔Process of determining whether the risks of a loan are acceptable to the insurer or not, what limits will be issued and at what premium rate. This process classifies a risk for the insurer. Insurable interest ✔✔a principle that requires the insured to suffer financially in the event of a loss to obtain insurance and collect claim payment. Must exist at the time of loss. It must be your house when it burns down. occurence ✔✔exposure to the same harmful conditions over a period of time leading to a loss. Ex: a leaking sink rots the cabinets. cancellation ✔✔discontinuation of a policy prior to the expieration date of the policy. non-renewal ✔✔discontinuation of a policy at the expiration date of the existing policy. Binder ✔✔temporary legal agreement showing that certain amounts of coverage are in force at certain limits. Can be written or verbal. Typically shows the insured, the insurer, the limits of insurance, but does not always show the premium amount. effectiveness terminates upon policy issuance. Shows coverage date and coverage amt. certificate of insurance ✔✔A brief description of insurance coverage prepared by an insurer or its agent and commonly used by policyholders to provide evidence of insurance. endorsement ✔✔a policy form used to revise coverage in an inforce property or casualty policy. Changes arbitration ✔✔a claims dispute resolution method designed to settle a question of coverage provided for a loss. for example: insurer and insured cannot agree on the definition of a coverage or a peril. appraisal ✔✔a claims dispute resolution method used to settle a question about the amt of the [Show More]

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