RPA - Law & Risk Management

A legal defense used when an otherwise criminal act is committed under the threat of imminent death or serious bodily harm to the defendant or to his or her immediate family. In civil law, it is any wrongful act that overcomes free will. Duress can be used as a legal defense in a contract enforcement action.

The purchase of insurance by insurance companies.

A three-party agreement whereby the original party is discharged from his or her obligations and a new party acquires the obligations. The result is that the old contract is terminated and the new contract, with the same content but with at least one different party, is created.

In a contract of mutual promises, the offer of performance by one or the parties showing a readiness, a willingness, and an ability to perform under the contract, which satisfies that party's requirement to perform and thereby makes the other party's obligation to perform absolute.

The section of an insurance policy that describes the limitations on coverage under the policy and states specifically what the policy does not cover.

The section of an insurance policy that lays out the general ground rules of the insurance policy. It describes the rights and obligations of both the insured and the insurer.

The section of a policy that describes what the insurer promises to cover in the policy.

The headline page of an insurance policy that lists such important facts as the policy period, policy premium, policy number, types of coverages provided, and the named insureds.

Property form in which all causes of loss are covered unless specifically excluded or limited in the policy.

A law that requires certain contracts, including contracts for the sale of property, to be in writing and signed by the person against whom the contract is being enforcded.

An insurance broker who places coverage for unusual or hard-to-place risks and who represents nonstandard or non-admitted insurance companies.

Liability without fault, when circumstances or activities that have generated an injury or harm are deemed so inherently dangerous that negligence does not have to be proved for there to be a udgment against the defendant. The plaintiff need only show that the defendant was involved in an inherently dangerous activity and the plaintiff was injured as a result of it. Also called absolute liability.

A means by which an underwriter can apply debits or credits to class rates in order to develop the premium appropriate to a certain risk more accurately.

A system of risk assessment in which the actual losses of a business are compared to the statistical losses of other businesses in the same industry.

An adjustment applied to a workers' compensation premium that reflects the insured's past loss history.

An insurance policy provision that waives the coinsurance requirement based on an agreement between the policyholder and the insurance company that the amount of insurance coverage purchased represents full insurance for the value of the property or loss of income insured.

Liability insurance for pollution conditions, including cleanup costs, emanating from a covered facility.

Liability coverage for the negligent acts of the insured that cause bodily injury, proeprty damage, or personal and advertising injury to others.

Insurance coverage for claims involving allegations of sexual harassment, wrongful termination, or discrimination due to race, age, sex, or disability.

The premium that an insurance company will be entitled to receive no matter what portion of the policy period has passed.

The part of a deposit premium that has not been used up and that is due to the policyholder upon policy cancellation.

An estimated policy premium based on an exposure basis that is subject to change, such as payroll or sales.

Long-term debt financing for improved real estate.

An endorsement to the commercial auto policy that provides personal auto policy-type protection for those persons who do not have a personal auto policy and depend on a commercial auto policy for their auto insurance coverage.

Insurance coverage for claims involving the administration of employee benefit plans.

Liability coverage to protect the employer from suits brought by a nonemployee that arise out an employee's employment-related bodily injury or disease.

Insurance that covers an asbestos abatement cotnractor against claims of third-party bodily injury or property damage arising from asbestos abatement projects.

Insurance that provides liability protection to property owners who decide to leave asbestos in place under an approved operations and maintenance program.

An essential element of a tort, which requires that the defendant's tortious act bear some reasonable causal connection to the plaintiff's injury.

The damages that arise directly from the default of a party under a contract, awarded to place the nondefaulting party in as good a position as the party would have enjoyed had the contract been fully performed.

A person who is in a position of trust, holding property or otherwise acting on behalf of another. Particularly applicable to real estate agents, brokers, or property managers.

Insurance that protects those serving in a fiduciary capacity as defined by the ERISA for losses due to a breach in their fiduciary duties. It also provides protection for errors and omissions in the administration of employee benefit plans other than ERISA.

A relationship characterized by trust and confidence in which the agent is bound by obligations of good faith, honesty, and loyalty.

A loan for the purpose of financing the construction or substantial renovation of buildings and other improvements. Construction loans are usually short in duration and typically extend only until the project is substantially completed, or until a new loan is secured for the project.

A method of financing the purchase of real estate which uses the purchaser's own funds. May also involve an exchange of assets for real estate.

A legal doctrine that negates the defense of contributory negligence where the defendant had the last opportunity to avoid harm to the plaintiff.

A legal defense to negligence based on the plaintiff's express or implied assumption of the risk of injury or damage resulting from the negligent act.

A rating plan in which a business estimates its projected losses and pays an estimated premium or deposit; then later pays a premium based on the actual losses the building sustains during the policy period.

A state-established market for insurance risks that do not meet the normal underwriting criteria of insurance companies.

Rates individually determined by an underwriter based on his or her own knowledge and judgment.

A belief of the contracting parties that is not in accord with existing facts, used as a defense to an action to enforce a contract. It is also a legal defense for certain crimes, used to negate the element of criminal intent.

The liability of owners and possessors of land (such as tenants) to other persons who suffer losses or injuries on or off the land that are caused by some act on the land or some condition there.

A process that causes property or personnel risks to be shifted from one party (the transferor) to another party (the transferee).

An agreement by one party (the indemnitor) to act as the insurer of another party (the indemnitee) and to substitute the first party's liability for that of the secon party by agreeing to reimburse, or make whole, the second party for losses it suffers.

The insurance concept that states that the insured should expect only to be returned to the same financial condition it was prior to a loss through the payment of an insurance benefit.

A property insurance policy to cover equipment that moves from one place to another.