Mark cpcu 500 - Study guides, Class notes & Summaries

Insurable Interest - An interest in the subject of an insurance policy that is not unduly remote and that would cause the interested party to suffer financial loss if an insured event occurred. Factual expectancy - A situation in which a party experiences an economic advantage if an insured event does not occur or, conversely, economic harm if the event does occur. Agent - In the agency relationship, the party that is authorized by the principal to act on the principal's behalf. Trus...

Principle of indemnity - The principle that insurance policies should provide a benefit no greater than the loss suffered by an insured. Contract of idemnity - A contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss. Collateral source rule - A legal doctrine that provides that the damages owed to a victim should not be reduced because the victim is entitled to recover money from other sources, such as an insura...

1-1. Describe the expenses that constitute an organization's cost of risk regardless of whether losses are retained or transferred. - These expenses form part of the cost of risk regardless of whether losses are retained or transferred: - Administrative expenses: include the cost of internal administration and the cost of purchased services, such as claim administration or risk management consulting - Risk control expenses: incurred to reduce frequency, reduce the severity of losses tha...

Principle of indemnity correct answersThe principle that insurance policies should provide a benefit no greater than the loss suffered by an insured. Contract of idemnity correct answersA contract in which the insurer agrees, in the event of a covered loss, to pay an amount directly related to the amount of the loss. Collateral source rule correct answersA legal doctrine that provides that the damages owed to a victim should not be reduced because the victim is entitled to recover money fr...

Mark CPCU 500 Ch. 7/40 Questions and Answers

Mark CPCU 500 Ch. 7 Exam/40 Questions and Answers/Distinction Graded

Mark CPCU 500 Ch. 7 questions and answers

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Mark CPCU 500 Ch. 7 Questions and Answers 2024