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Chapter 10 Nature of the Insurance Industry
Checkpoint 10.1
1. What is the term for the mutual trust between a policyholder and an
insurance carrier?
2. Which basic element of an insurance policy lists a policy number, the
name of the policyholder, the insurance carrier, what the policy covers,
and the start and end dates of the coverage?
3. What kind of information is included in the definitions section of an
insurance policy?
4. What is the term for losses the insurance carrier will not cover?
5. What element of an insurance contract would need to be added to an
existing homeowner’s insurance policy to make sure a new 55-inch flat-
panel television is covered if it was ever stolen or damaged?
Build Your Vocabulary
As you progress through this course, develop a personal glossary of
insurance terms. This will help you build your vocabulary and prepare you
for a career in insurance. Write out a definition for each of the following
terms, and add it to your personal insurance glossary.
insurance contract
legally binding
utmost good faith
insurance agent
Insurance Services Office, Inc. (ISO)
declarations
definitions
insuring agreement
named-peril policy
all-risk policy
conditions
exclusions
endorsements