HI Property & Casualty flashcards
HI Property & Casualty · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Pure risk
- A risk that involves only the possibility of loss or no loss, with no chance of gain; it is generally insurable.
- Insurable interest
- A financial stake in the subject of insurance such that the insured benefits from its preservation or suffers loss from its damage; property requires it at loss time.
- Indemnity principle
- The insured should be restored to approximately the same financial position after a loss, not placed in a better position than before the loss.
- Utmost good faith
- An insurance contract principle requiring both parties to deal honestly and disclose material facts; material misrepresentation or concealment can allow the insurer to rescind.
- Contract of adhesion
- An insurance policy drafted by the insurer and accepted or rejected by the insured; ambiguities are generally construed against the insurer that drafted the policy.
- Subrogation
- The insurer's right, after paying a covered loss, to pursue the party responsible for the loss and recover the amount paid, preventing double recovery by the insured.
- Negligence elements
- A claim generally requires a legal duty, a breach of that duty, proximate cause linking the breach to harm, and actual damages.
- Law of large numbers
- A statistical principle stating that as the number of similar independent exposure units increases, actual losses tend to approach expected losses, aiding rate prediction.
- Actual cash value
- A valuation method that pays replacement cost minus depreciation; it reflects the damaged property's value immediately before the loss.
- Replacement cost
- A property valuation method that pays the cost to repair or replace damaged property with new property of similar kind and quality, without deducting depreciation.
- Coinsurance clause
- A property provision requiring the insured to carry a specified percentage of replacement cost; recovery is reduced if the limit is below that requirement.
- Named perils policy
- A property policy that covers only the causes of loss specifically listed, such as fire, lightning, windstorm, hail, or vandalism.
- Open perils policy
- A property policy that covers all causes of loss except those specifically excluded, shifting the burden to the insurer to show an exclusion applies.
- HO-3 policy
- A homeowners form covering the dwelling on an open perils basis and personal property on a named perils basis, with liability coverage included.
- Mortgagee clause
- A property policy provision protecting a lender's interest by allowing the lender to receive loss payments and notice of cancellation or nonrenewal.
- Business income coverage
- Coverage for lost net income and continuing normal operating expenses when a covered property loss interrupts business operations.
- Occurrence CGL form
- A commercial general liability form that covers bodily injury or property damage occurring during the policy period, even if the claim is reported later.
- Claims-made CGL form
- A liability form that covers claims first made during the policy period, often subject to a retroactive date and extended reporting period.
- General aggregate limit
- The maximum total amount a commercial general liability policy will pay for all covered claims in a policy period, other than products-completed operations.
- Products liability
- Liability coverage for bodily injury or property damage caused by a product after it leaves the insured's control and is in the stream of commerce.
- Completed operations
- Liability coverage for bodily injury or property damage arising from the insured's work after that work has been completed and relinquished.
- Personal injury coverage
- Liability coverage for non-bodily offenses such as false arrest, libel, slander, invasion of privacy, and wrongful eviction.
- No-fault PIP
- Personal injury protection pays specified medical, wage-loss, and related benefits for auto accident injuries regardless of fault, subject to policy limits.
- Uninsured motorist
- Coverage that pays an insured for bodily injury caused by a driver who has no liability insurance, subject to policy terms and limits.
- Hawaii Insurance Division
- The state agency within the Department of Commerce and Consumer Affairs that regulates insurers, producers, and insurance practices in Hawaii.
- Hawaii Insurance Commissioner
- The official appointed by the Governor to head the Hawaii Insurance Division, enforce insurance laws, examine insurers, and issue licenses and orders.
- Producer license
- A required authorization from the Hawaii Insurance Division to solicit, negotiate, sell, or service insurance products for compensation in Hawaii.
- Continuing education
- Hawaii requires licensed producers to complete continuing education credits each biennial term, including ethics, to maintain an active license.
- Rebating
- Offering part of a producer's commission or anything of value not stated in the policy to induce the purchase of insurance; prohibited as an unfair trade practice.
- Twisting
- Misrepresenting or using unfair comparison to induce a policyholder to lapse, surrender, or replace an existing insurance policy; prohibited.
- Hawaii Property Insurance Association
- A residual market association providing basic property insurance to eligible owners who cannot obtain coverage from the voluntary market, often in designated high-risk areas.
- No-fault auto
- Hawaii's auto system requires personal injury protection benefits for accident injuries and restricts tort liability claims unless specified thresholds are met.