Insurance and Legal Concepts Flashcard

Front

What is a Notice of Insurance Claim applicable for when someone else is responsible for your injuries?

Back

When someone else is at fault for your injuries

Answer explanation

A Notice of Insurance Claim is applicable when someone else is at fault for your injuries, as it allows you to seek compensation from the responsible party's insurance.

Front

Why is it important for Elijah to send a Notice of Insurance Claim promptly?

Back

To ensure the incident is fresh in your mind

Answer explanation

It is important for Elijah to send a Notice of Insurance Claim promptly to ensure the incident is fresh in his mind. This helps in providing accurate details and supporting his case effectively.

Front

What should Evelyn include in her Notice of Insurance Claim after a minor car accident?

Back

Your contact information and a brief description of the accident

Answer explanation

Evelyn should include her contact information and a brief description of the accident in her Notice of Insurance Claim, as these details are essential for processing her claim.

Front

Why should Evelyn send the Notice of Insurance Claim via certified mail?

Back

To ensure it is received and you have proof of receipt

Answer explanation

Evelyn should send the Notice of Insurance Claim via certified mail to ensure it is received and to have proof of receipt, which is crucial for tracking the claim process.

Front

What does the 'Other Insurance' provision specify when two insurance policies cover the same risk?

Back

How coverage is apportioned if multiple policies cover the same risk

Answer explanation

The 'Other Insurance' provision specifies how coverage is apportioned when multiple policies cover the same risk, ensuring that claims are fairly distributed among the insurers.

Front

What is the primary purpose of the 'Other Insurance Clause' in insurance policies?

Back

To prevent overinsurance

Answer explanation

The primary purpose of the 'Other Insurance Clause' is to prevent overinsurance. It ensures that the total payout from multiple policies does not exceed the actual loss, protecting insurers from excessive claims.

Front

What is the process called when an insurance company takes legal action against a third party responsible for a loss to recover the amount paid?

Back

The insurer's right to pursue a third party responsible for a loss

Answer explanation

The process where the insurer seeks to recover costs from a third party responsible for a loss is called subrogation. In this case, the insurance company is exercising its right to pursue the driver who caused the accident.

Front

What provision in Grace's insurance policy should she review to understand how the insurance company will determine the amount for her claim?

Back

A clause outlining the process to determine claim payment

Answer explanation

Grace should review the clause outlining the process to determine claim payment, as it details how the insurance company calculates the payout for her claim based on the policy terms.

Front

What does the 'Consent to Settle a Loss' provision require in an insurance policy?

Back

The insurer to obtain the insured's permission before settling a claim

Answer explanation

The 'Consent to Settle a Loss' provision requires the insurer to obtain the insured's permission before settling a claim, ensuring the insured is involved in the decision-making process.

Front

What is the Terrorism Risk Insurance Act (TRIA)?

Back

A federal law providing a backstop for terrorism-related insurance claims

Answer explanation

The Terrorism Risk Insurance Act (TRIA) is a federal law that provides a backstop for terrorism-related insurance claims, ensuring that insurance companies can cover losses from terrorist attacks.