AIC 304 ALL IN ONE (VERIFIED
SUMMARY AND REVIEWED EXAM
QUESTIONS AND THEIR REVIEWED
SOLUTIONS)
Scope
A list of the areas damaged that includes the type of
damage, a description of the proposed action to take
regarding the damaged property (such as repair, replace,
remove, or demolish), and the area's measurements.
Nonwaiver agreement
A signed agreement indicating that during the course of
investigation, neither the insurer nor the insured waives
rights under the policy
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.
Bailee
The party temporarily possessing the personal property in
a bailment.
Trustee
Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and
transferred solely for the benefit of the beneficiary.
Security interest
,An interest in property (real or personal) that allows the
property to be sold on default to satisfy the debt for which
the security interest was given.
Public adjuster
An outside organization or person hired by an insured to
represent the insured in a claim in exchange for a fee.
Business income insurance
Insurance that covers the reduction in an organization's
income when operations are interrupted by damage to
property caused by a covered peril.
Business interruption
Loss of revenue that a business or another organization
sustains because its operations are suspended as a result
of physical injury to its property
Net income
The difference between revenues (such as money
received for goods or services) and expenses (such as
money paid for merchandise, rent, and insurance).
Profit
Net income that results when revenues exceed expenses.
Net loss
Net income that results when expenses exceed revenues.
Continuing expenses
Expenses that continue to be incurred during a business
interruption.
Noncontinuing expenses
Expenses that will not continue during a business
interruption.
Extra expenses
, Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business
interruption.
Inland marine insurance
Insurance that covers many different classes of property
that typically involve an element of transportation on land.
Marine insurance
Insurance that, in the U.S., includes both ocean and inland
marine coverage and, in the rest of the world, is limited to
insurance for vessels and cargo.
Nationwide Marine Definition
Statement of the types of property that may be insured on
inland marine and ocean marine insurance forms.
Origin and cause expert
An expert who independently determines where and how
a fire began.
Incendiary fire
An intentionally set fire.
Trailer
Fuel configured in a manner to spread a fire.
Alibi
An assertion that the party in question was elsewhere at
the time the crime occurred.
Specified perils
A method of designating the covered perils (causes of
loss) in a property insurance policy by naming them in the
policy.
Open perils
A method of designating covered perils (causes of loss) in
a property insurance policy by covering direct physical
loss unless the policy excludes it.
SUMMARY AND REVIEWED EXAM
QUESTIONS AND THEIR REVIEWED
SOLUTIONS)
Scope
A list of the areas damaged that includes the type of
damage, a description of the proposed action to take
regarding the damaged property (such as repair, replace,
remove, or demolish), and the area's measurements.
Nonwaiver agreement
A signed agreement indicating that during the course of
investigation, neither the insurer nor the insured waives
rights under the policy
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.
Bailee
The party temporarily possessing the personal property in
a bailment.
Trustee
Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and
transferred solely for the benefit of the beneficiary.
Security interest
,An interest in property (real or personal) that allows the
property to be sold on default to satisfy the debt for which
the security interest was given.
Public adjuster
An outside organization or person hired by an insured to
represent the insured in a claim in exchange for a fee.
Business income insurance
Insurance that covers the reduction in an organization's
income when operations are interrupted by damage to
property caused by a covered peril.
Business interruption
Loss of revenue that a business or another organization
sustains because its operations are suspended as a result
of physical injury to its property
Net income
The difference between revenues (such as money
received for goods or services) and expenses (such as
money paid for merchandise, rent, and insurance).
Profit
Net income that results when revenues exceed expenses.
Net loss
Net income that results when expenses exceed revenues.
Continuing expenses
Expenses that continue to be incurred during a business
interruption.
Noncontinuing expenses
Expenses that will not continue during a business
interruption.
Extra expenses
, Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business
interruption.
Inland marine insurance
Insurance that covers many different classes of property
that typically involve an element of transportation on land.
Marine insurance
Insurance that, in the U.S., includes both ocean and inland
marine coverage and, in the rest of the world, is limited to
insurance for vessels and cargo.
Nationwide Marine Definition
Statement of the types of property that may be insured on
inland marine and ocean marine insurance forms.
Origin and cause expert
An expert who independently determines where and how
a fire began.
Incendiary fire
An intentionally set fire.
Trailer
Fuel configured in a manner to spread a fire.
Alibi
An assertion that the party in question was elsewhere at
the time the crime occurred.
Specified perils
A method of designating the covered perils (causes of
loss) in a property insurance policy by naming them in the
policy.
Open perils
A method of designating covered perils (causes of loss) in
a property insurance policy by covering direct physical
loss unless the policy excludes it.
