Flashcards
CAIB 2: Chapter 2 Key Terms
Cards in this deck (14)
- 1Fire Resistivebuilding which has met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire
- 2Non-combustibleall structural members including floors, roofs and their supports are constructed of steel, iron, concrete or other non-combustible materials. Exterior also required to be of non-combustible construction. Falls just short of classifying as fire resistive
- 3Common Hazardsconditions common to all buildings which influence their potential for loss
- 4Detachmentrefers to the proximity of the building insured or containing the property insured to other commercially rated buildings.
- 5Adverse Selectionoccurs when the applicants for insurance are largely those most likely to suffer a loss
- 6Risk Classificationrefers to the grouping or classifying of risks according to established criteria which, in large part, is based on their probability for loss as a class.
- 7Soft Marketcharacterized by intense competition between insurers. As a result, rates tend to be low
- 8Hard Marketoccurs when low profit margins force out some of the competition. As a result, insurers use a more disciplined underwriting approach. The insured normally receives little or nothing in the way of rate discounts.
- 9Hazardis a condition which may cause a peril to occur.
- 10Physical Hazard & what are they?a condition relating to the use of tangible property which may cause a peril to occur.
Geography
Occupancy
Type of Building Construction
Housekeeping
External Exposures
Protection - 11Moral Hazard & what are they?subjective characteristics of the applicant which could cause a peril to occur.
Financial condition
Associates
Moral character - 12Morale hazard & what are they?deals with the attitude of the client
Indifference to loss
Poor Management - 13Accommodation businessbusiness which is marginal or substandard but which the insurer agrees to accept as a favour or accommodation to the broker.
- 14Supporting businessthe existence of other insurance policies the applicant has with the same insurer
Information
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- 2 CAIB Flashcards on CAIB 2: Chapter 2 Key Terms, created by katiejerez on 03/03/2016.
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