WY Property & Casualty key terms

A financial stake in the person or property being insured, meaning the insured would suffer a real economic loss if a loss occurred. It must exist when property and casualty coverage begins.

The rule that an insurance payment should put the insured back in roughly the same financial position held before the loss, no better and no worse, so no one profits from damage.

The mutual duty of applicant and insurer to be honest and to disclose facts that would affect the underwriting decision, because the insurer relies on information it cannot easily verify itself.

The tendency of people most likely to have losses to buy coverage most eagerly, which drives up costs unless insurers screen applicants and price for the risk they actually accept.

The greater chance of loss created by dishonesty or deliberate carelessness when a person expects insurance to pay, such as staging a theft or intentionally damaging property to collect.

Carelessness or indifference toward loss that appears simply because insurance exists, such as leaving keys in a car or skipping roof maintenance because reimbursement seems certain.

The insurer's right to step into the insured's shoes after paying a claim and pursue the party that caused the loss, preventing the insured from collecting twice for one event.

The rule that when two or more policies cover the same loss at the same level, each pays its fair share so the insured never recovers more than the actual amount of the loss.

The statistical principle that as the number of similar exposure units increases, actual losses come closer to the predicted average, allowing insurers to set dependable rates.

The dominant, unbroken cause that starts the chain of events leading to a loss, used to decide whether the loss falls within the perils a policy covers.

The insurer's voluntary surrender of a known policy right or requirement, such as accepting a late premium and giving up the ability to deny coverage for that reason.

The portion of each covered loss the insured pays before the insurer begins to pay, which holds down premiums and gives the insured a reason to prevent losses.

Coverage an insurer buys from another insurer to shift part of the risk it has assumed, protecting itself against catastrophic claims and freeing capacity to write more policies.

A temporary written or oral confirmation that coverage is in force until the policy is issued, subject to the same terms the final policy will contain.

The standard property loss measure of replacement cost minus depreciation, reflecting what the damaged item was worth right before the loss rather than what a new one costs.

The amount needed to repair or rebuild with materials of similar kind and quality with no deduction for depreciation, often limited to a percentage of the dwelling limit.

A property condition requiring the insured to insure to a stated percentage of the property's value; carrying less than that percentage reduces each claim payment in proportion.

An endorsement that pays a percentage above the dwelling limit, commonly 25 to 50 percent, when rebuilding costs after a covered loss exceed the amount shown on the policy.

Coverage that pays the increase in living expenses, such as temporary housing and meals, when a covered loss makes the residence uninhabitable, plus lost fair rental value.

Coverage that replaces lost net income and continuing normal expenses, such as payroll and rent, while a covered property loss shuts down or slows the insured's operations.

A condition in which a structure has no occupants and no personal property tied to its normal use, which sharply limits or removes coverage for most perils.

Overflow of a body of water, waves, mudslide, or accumulation of surface water, which standard property policies exclude and which needs separate flood insurance.

Failure to use the care a reasonable person would exercise in similar circumstances, established by showing a duty, a breach, causation, and actual damages.

Wyoming's rule that reduces an injured person's recovery by their share of fault and bars recovery entirely when that share is 51 percent or more.

The responsibility of a property owner or occupier for injuries to people who come onto the property, with the duty owed depending on whether the visitor is an invitee, licensee, or trespasser.

An accident, or continuous or repeated exposure to substantially the same harmful conditions, that results in injury or damage during the policy period.

A liability policy that covers claims first made against the insured while the policy is in force, no matter when the injury happened, subject to any retroactive date.

The most a liability policy pays for all damages from a single occurrence, however many people are hurt or claims are presented.

The most a liability policy pays for all covered claims combined during one policy period, sitting on top of and separate from the per-occurrence limit.

Liability coverage that pays reasonable medical and funeral expenses for injured people regardless of fault, usually in a modest amount and without requiring a lawsuit.

Coverage that pays the insured's damages when a negligent driver carries no liability insurance or too little to pay for the injuries caused.

The appointed official who heads the Wyoming Insurance Department, licensing insurers and producers, reviewing rates and forms, examining finances, and enforcing insurance law.

The license issued by the Wyoming Commissioner that allows an insurer to transact insurance business in the state, subject to suspension or revocation for violations.

Coverage placed with an insurer not licensed in Wyoming, permitted only after admitted insurers decline the risk, and generally lacking protection from the state guaranty association.

The credential Wyoming requires of a person who sells, solicits, or negotiates insurance, obtained through prelicensing education, an exam, and an application to the Commissioner.

A producer's obligation to hold money collected from insureds in trust and remit it to the insurer promptly, without mixing it with personal or business funds.

Conduct prohibited in the business of insurance, such as misrepresentation, twisting, rebating, and unfair claim settlement, which the Commissioner may punish with fines and license action.

A statutory pool that pays covered claims of insolvent admitted insurers doing business in Wyoming, funded by assessments on member insurers and subject to claim limits.

The advance written notice an insurer must give before ending or refusing to renew a policy, with the required days depending on the policy type and the reason.