SBM II Exam 3 Insurance

  1. the depreciated value of a property
    Actual cash value
  2. contract that pays monthly income to insured while alive
    Annuity insurance
  3. Mutual insurance company in which losses are shared by policyholders
    Assessment mutual company
  4. a policy that covers many items of the same kind in different places
    Blanket policy
  5. protects against employees' crimes
    Dishonesty insurance
  6. the cost to replicate property at today's prices
    Replacement value
  7. a form of risk retention in which a part of a firms earnings is designated as a cushion against possible future losses
  8. contract that transfers risk of financial loss for a fee
  9. company writing insurance
  10. person who receives proceeds of life insurance
  11. written contract of insurance
  12. factors that contribute to uncertainty
  13. addition to insurance policy that modifies, extends, or limits base contract
  14. willful failure to disclose pertinent information
  15. misstatement of material fact
    False representation
  16. right of insurer to assume rights of insured
  17. contract whereby insurer assumes risk of death of insured for specified time

    has no cash value whenever the policy expires the only value is in the event that death occurs during the life of the policy
    Term life insurance
  18. contract of insurer to pay money on death of insured

    provides death benefits to the survivors of the insured
    Life insurance
  19. decreasing term insurance plus savings account
    Endowment insurance
  20. 30 or 31 day period in which late premium may be paid without policy lapsing
    Grace period
  21. insurance covering loss of profits while business building is repaired

    coverage pays for lost income and other expenses related to recovery
    Business interruption insurance
  22. policy that requires insured to prove loss sustained
    Open policy
  23. policy that fixes values for insured items
    Valued policy
  24. coverage no matter where property is located
    Floating policy
  25. taking property by force
  26. protects a firm against losses due to the death of a key employee. usually term life insurance.
    Key-man insurance
  27. protects firms against claims that its products cause bodily injury or property damage to end user
    Product liability insurance
  28. all efforts that are designed to preserve assets & earning power associated with the business
    Risk management
  29. protects you from losses arising from the destruction of property
    • Casualty insurance
    • Property insurance
  30. type of loss for which the policy will pay
  31. the kinds of loss that the policy will not cover
  32. maximum amounts of coverage that are provided for
  33. amounts used to reduce the cost of your insurance. If you accept a deductible, you are assuming some of the loss, and insurance will cover only losses above the deductible amount
  34. limits the amount that's recoverable from a claim to the stated coverage or the actual amount of loss. whichever is less. prevents excess insurance coverage for profit
  35. protects your business against injuries or other kinds of damage for which you and your business may be legally responsible
    Liability insurance
  36. used to insure that outstanding debt will be paid in the event of death of a customer
    Credit life insurance
  37. protects you against losses when a purchaser does not insure goods purchased on credit; guarantees that you will be able to collect payment from those goods
    Installment sales floaters
  38. used to provide protection for a specific type of property or coverage
  39. policy that continues until age one hundred or death, whichever occurs first
    Whole life insurance
  40. covers only the hazards enumerated in the policy
    Comprehensive insurance
  41. Strategies available to cope with risks include?
    • Risk avoidance
    • Risk reduction
    • Risk anticipation/self-insurance
    • Risk transfer/spreading
Card Set
SBM II Exam 3 Insurance
SBM II Exam 3 Insurance