INS 313 Exam 1 Ch 1-3 Vocab - CHAPTER 1 - - CHAPTER 2 -...

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CHAPTER 1 - Commercial Insurance —insurance that covers for-profit or non-profit organizations against the adverse financial effects of property and liability losses - Loss exposure —any condition that presents a possibility of loss, regardless of whether loss actually occurs - Corporation—entity organized under state law and entitled to the same rights as a person, distinct from shareholders - Partnership —for-profit entity jointly owned by two or more persons who share profits/losses - Joint Venture —formed by agreement of two or more persons to accomplish particular project - LLC —entity that provides its owners the limited liability of a corp and tax advantages of a partnership - Unincorporated association —voluntary association of individuals acting together under a common name to accomplish a lawful purpose - Line of Business —general classification of insurance, such as commercial property, commercial general liability, commercial crime, or commercial auto - Monoline policy —policy that covers only one line of business - Package policy —policy that covers two or more lines of business - Commercial package policy (CPP) —policy that covers two or more lines of business by combining ISO’s commercial lines coverage parts - Common policy declarations —required CPP component that provides basic information about the insurer, the policyholder, and the insurance provided - Common policy conditions —required CPP component that contains six conditions applicable to all coverage parts unless a coverage part states otherwise - Coverage part —component of a CPP or a monocline policy that contains the policy provisions relating to a particular line of business (such as commercial property or general liability); consists of the coverage part’s declarations page, one or more coverage forms, applicable endorsements, and in some cases a general provisions form - Rate —price per exposure unit for insurance coverage - Commercial Lines Manual (CLM) —ISO publication that includes rules and rating procedures for several major lines of commercial insurance - Package modification factors —factors that are applied to the regular policy premiums for certain coverage parts of a CPP that includes both property and liability coverages, resulting in premium
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This note was uploaded on 09/27/2011 for the course INS 313 taught by Professor Adamson during the Fall '11 term at Missouri State University-Springfield.

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INS 313 Exam 1 Ch 1-3 Vocab - CHAPTER 1 - - CHAPTER 2 -...

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