Term
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Definition
| Uncertainty of loss. A risk must be uncertain to be insurable |
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| In a contract, "you" indicates |
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Definition
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Definition
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Definition
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Definition
| All perils except those specifically excluded |
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Term
| In a contract who is "we" |
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Definition
| The insurer = the insurance company |
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Definition
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Term
| Where are the rules of the policy |
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Definition
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Term
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Definition
| Things that are not covered |
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Term
| Foreign Insurance Company |
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Definition
| An insurance company that is incorporated outside the state where it is conducting business |
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Term
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Definition
| Classification of risk that is more than the normal acceptable risk |
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Term
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Definition
| Distinct characteristic arising from material, structural, or operational features that increases a chance for loss i.e. being next to explosives |
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Term
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Definition
| Anything that increases a chance for loss |
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Term
| Where does the insurer make promises |
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Definition
| Insuring Clause. Also called insuring agreement |
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Term
| A, B, and C of Commercial Liability (CGL) are: |
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Definition
A - Bodily injury and property damage
B - Personal and Advertising injury
C - Medical payment |
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Term
| What percentage must be vacant for a building to be called vacant? |
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Definition
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Term
| A,B, and C of Commercial Property |
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Definition
A - The building
B - Business's personal property
C - Personal property, of others |
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Term
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Definition
| Contract section stating who or what is covered, amount of coverage, policy period, and premium |
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Term
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Definition
| Making an individual whole, with no opportunity for gain |
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Term
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Definition
| Both are Special. Both cover "all risk" on dwelling, only HO-5 covers all risk on "C" (personal property) |
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Term
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Definition
| Land, buildings, anything attached (does not move) |
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Term
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Definition
| An endorsement for building code upgrades |
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Term
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Definition
| Broad form coverage for personal property of condo owner |
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Term
| Dwelling or Homeowners, which has broader coverage |
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Definition
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Term
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Definition
| When buying property that is financed, a lender cannot force the purchaser to buy insurance from a particular agent or broker |
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Term
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Definition
| A table that shows the average number of sicknes or accidents at various ages |
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Term
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Definition
| A person whose job it is to assess risk and determine classification of the insured. (An agent is a field underwriter) |
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Term
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Definition
| The amount of money the insured paid to the insurer that has not been used to provide coverage for the person |
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Term
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Definition
| An insurer that is not licensed to do business in a particular state. (A surplus lines broker works with non-admitted carriers) |
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Term
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Definition
| The injured party. To whom liability insurance pays claims |
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Term
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Definition
| An insurance company that is organized (incorporated) in the state where it is doing business |
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Term
| Inherent vice or inherent defect |
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Definition
| Iron rusting, milk going sour, rubber breaking down are all inherent vices |
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Term
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Definition
| The larger number of people/items insured, the easier it is to predict the losses of the group (Exposure Units) |
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Term
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Definition
| The laws of the state, written by legislature, that regulate insurance companies and agents |
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Term
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Definition
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Term
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Definition
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Term
| The insured has only a chance for loss, never gain |
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Definition
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Term
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Definition
| Share, transfer, avoid, retain, reduce (ways to manage risk) |
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Term
| What are the ways to manager risk |
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Definition
| S.T.A.R.R. (Share, transfer, avoid, retain, reduce) |
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Term
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Definition
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Term
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Definition
| A temporary insuring contract (written or oral) |
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Term
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Definition
| A person cannot file or collect for a claim if he/she is at all negligent |
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Term
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Definition
| Written agreement attached to a policy to add or substract insurance coverages |
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Term
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Definition
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Term
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Definition
| Declarations, Insuring clause (or agreement)Conditions, Exclusions |
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Term
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Definition
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Term
| Boat coverage is structured like? |
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Definition
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Term
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Definition
| Physical damage to insureds' ship or yacht |
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Term
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Definition
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Term
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Definition
| Colliding with another car, an object, or upset (rolling) |
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Term
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Definition
| Anthing causing loss or damage to the car, except collision / upset (Comprehensive Coverage) |
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Term
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Definition
| Liability, medical payments, and uninsured motorist |
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Term
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Definition
| A health condition or sickness that occurred prior to the issuing of a health policy |
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Term
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Definition
| Based on best judgement of underwriter in classifying a risk |
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Term
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Definition
| Fire, lightning, and internal explosion |
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Term
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Definition
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Term
| A, B, C in homeowners policy are |
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Definition
A - the dwelling
B - other structures
C - personal property |
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Term
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Definition
To allow "substitutions"
The insured transfers the right to sue the insurance company |
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Term
| Is an object falling from an airplane covered? |
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Definition
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Term
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Definition
| A policy that can be terminated |
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Term
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Definition
| A person who represents the client in transactions: Property and Casualty only |
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Term
| In California, an elected official who oversees all of the responsibility of the Department of Insurance |
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Definition
| Commissioner of Insurance |
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Term
| For what amount can a binder be written |
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Definition
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Term
| How is hitting an animal on the road covered |
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Definition
| OTC (An animal is unpredictable) |
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Term
| Number of days to notify insurer to add collision on a new car when replacing a car that only had liability |
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Definition
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Term
| Minimum limits for low-cost auto insurance |
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Definition
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Term
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Definition
| The amount a company pays on a damaged or stolen vehicle - whatever is less |
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Term
| Under crime insurance, the employee dishonesty endorsement never covers |
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Definition
| Shortages (only provable theft) |
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Term
| In health insurance pays a dollar amount based on normal costs in specific area |
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Definition
| Usual, Customary & Reasonable (UCR) |
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Term
| Medicare Supplement Insurance |
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Definition
| Also known as Medi-Gap insurance. Must include core benefits |
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Term
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Definition
| Used in health insurance to limit the maximum amount of money the insured would have to pay out of pocket on health claims in any particular year |
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Term
| Guaranteed Renewable Insurance Contract |
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Definition
| A life or health insurance policy that cannot be changed, except for the rate |
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Term
| Disability Income Insurance |
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Definition
| A type of health insurance that pays a monthly income to the insured if he/she is sick or injured and cannot work. Pays partial portion of the income |
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Term
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Definition
| Used in disability income health insurance. The time period that benefits are not paid. Also called the waiting period. |
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Term
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Definition
| Life or health insurance provided for large numbers of people who have something in common, such as the same employer |
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Term
| Eligibility/Enrollment Period |
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Definition
| Used in life and health group benefits. Period of time an employee can enroll for benefits withour having to prove insurability. |
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Term
| Full-tail, optional, or extended coverage on claims made CGL |
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Definition
| Unlimited duration for reporting; costs extra |
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Term
| What is the midi-tail on claims made CGL |
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Definition
| Provides 5 years coverage for something reported during mini-tail |
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Term
| What is the mini-tail on claims made CGL? |
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Definition
| Automatically gives 60 days to report a claim after the policy period |
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Term
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Definition
| Buildings under construction and materials |
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Term
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Definition
| Need for a dram shop, liquor, or "package store" |
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Term
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Definition
| The first date an occurrence would be covered under a claim made CGL policy |
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Term
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Definition
| Owned autos, other than private passenger vehicles |
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Term
| Where are covered perils listed? |
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Definition
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Term
| Where are excluded perils listed |
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Definition
| Exclusions are found in the cause of loss form |
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Term
| Yacht is a personal line, but is structure like? |
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Definition
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Term
| What are common things not covered by the basic dwelling policy (DP-1) |
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Definition
| No burglary, no falling objects, no collapse, no coverage E (additional living expenses) |
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Term
| Medical payments in boat owners insurance covers? |
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Definition
| Covers medical payments and injury for insured and others on personal boat. Does not cover business use or competitive racing |
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Term
| Definition for being totally disabled income policy. Person cannot perform any occupation he/she is qualified |
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Definition
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Term
| Errors & Omissions Insurance |
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Definition
| Liability insurance that covers agents and insurance companies if they make mistakes or forget to include something in a contract |
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Term
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Definition
| A life or health insurance plan that an employer provides for employees in which the employee does not pay any part of the premium |
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Term
| What is the penalty for not carrying the amount required in a co-insurance clause? |
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Definition
| You become a co-insurer and pay a portion of the loss |
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Term
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Definition
| Found in property and casualty insurance. A surplus line broker places insurance with a non-admitted insurer. (Dangerous animals, high liability circumstances etc.) |
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Term
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Definition
| Lowers premium because small claims are eliminated |
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Term
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Definition
| You can file a claim, but damages are reduced based on that party's negligence |
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Term
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Definition
| Raises premium because small claims are covered |
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Term
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Definition
| Specifically described autos |
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Term
| Size limits for business owners policy |
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Definition
| Six stories; 100,000 sq. feet on offices; 25,00 sp. feet and 3 million dollars gross sales for mercantile space (store) |
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Term
| Nonoccupational Disability Income Policy |
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Definition
| A policy that only pays a claim when the disability occurs off the job. Issued to persons with hazardous jobs |
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Term
| Occupational Disability Income Contract |
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Definition
| A disability income policy that will pay benefits whether disabled on the job or off the job |
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Term
| Multiple Employer Trust (MET) |
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Definition
| A legal entity of small business owners grouped together to buy insurance |
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Term
| Method used to determine rate based on insured's loss experience |
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Definition
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Term
| "Protection and Indemnity" on ocean marine or yacht |
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Definition
| Liability portion of ocean marine or yacht policies |
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Term
| Parking lots, dealerships, and repair garages need |
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Definition
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Term
| Replacement cost minus depreciation = ACV |
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Definition
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Term
| Will the insurer cover the cost for sandbaggingto protect a home? |
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Definition
| Yes. The insured does not have to bear the cost |
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Term
| Can the mortgagee still collect if the insured burns his house on purpose? |
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Definition
| Yes. The mortgage clause is a standard provision |
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Term
| National Flood Insurance Program |
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Definition
| Insurance purchased to cover floods, as long as location is on flood map |
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Term
| Would OTC cover a laptop or briefcase stolen from my car? |
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Definition
| Personal property is usually not covered |
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Term
| Does my insurance cover a rental car? |
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Definition
| Yes, all coverage is enforced same as the autos you have |
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Term
| Where does a driver have coverage? |
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Definition
| U.S., Canada, and U.S. possessions i.e. Puerto Rico, Guam |
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Term
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Definition
| The cost to replace without a deduction for depreciation (not what someone paid for it) |
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Term
| You have liability only and borrow a car and collide with another. Which pays? |
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Definition
| The borrowed car's insurance is primary |
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Term
| Mexican liability endorsement |
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Definition
| Excess liability for accidents within 25 miles of the U.S. border (trips of 10 days or less) |
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Term
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Definition
| A specified amount of money that is paid by the insured before the insurer pays any money on a claim |
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Term
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Definition
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Term
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Definition
| The person who the company insures |
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Term
| Minimum good driver discount |
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Definition
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Term
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Definition
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Term
| What has a separate aggregate limit under CGL? |
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Definition
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Term
| What is Personal Property? |
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Definition
| Property that can move e.g. furniture, clothes, paintings |
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Term
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Definition
| Loss of use e.g. hotel expenses after a fire. On HO-3 it's 20% of A |
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Term
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Definition
| Engaged in expecially hazardous activities. Also known as strict liability |
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Term
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Definition
| Motorcycles, ATV's (not autos, not mobile equipment) |
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Term
| Who needs professional liability insurance? |
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Definition
| Doctors, architects, lawyers, accountants |
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Term
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Definition
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Term
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Definition
| An agent becomes "appointed" or approved to sell insurance for specific insurance companies |
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Term
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Definition
| Recognized by the Department of Insurance to transact insurance: approved or authorized |
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Term
| Designated brush fire or civil unrest areas |
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Definition
| Qualifying areas under FAIR plan |
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Term
| The lender on a home is called? |
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Definition
| Mortgagee, or mortgage holder |
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Term
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Definition
| Selling price (includes profit or mark-up) |
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Term
| DP-1, DP-2, DP-3 All 3 dwelling forms cover: |
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Definition
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Term
| Section 2 on homeowners' policy |
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Definition
| Liability and medical payments. Paid to others only |
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Term
| Basic, Broad, Special: Which has the broadest coverage? |
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Definition
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Term
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Definition
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Term
| How much coverage does a dwelling policy give for personal property away from the premises? |
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Definition
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Term
| How much does an HO policy cover personal property away from the premises? |
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Definition
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Term
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Definition
| The first loss that occurs. e.g. A fire burns down the store |
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Term
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Definition
| A consequence of a direct loss e.g. A store loses business income after a fire |
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Term
| Pays excess liability amounts |
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Definition
| Umbrella, after underlying policy or retention is paid. Liability only; does not cover property |
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Term
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Definition
| Broad forms. Also DP-2 and mobile home policies |
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Term
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Definition
| Distributes the risk among the companies |
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Term
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Definition
| Classification of risk that is normal |
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Term
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Definition
| A wrongful act other than breach of contract or a crime |
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Term
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Definition
| Pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease |
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Term
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Definition
| A vehicle for hire, transporting people i.e. limousines |
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Term
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Definition
| "Did" over "Should" is the fraction of the loss the company pays. The remaining is paid by the insured. (Take what they "Did" carry, and place it over what "Should" have been carried) |
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Term
| Do corporations have Absolute Liability |
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Definition
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Term
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Definition
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Term
| Worker Compensation in a Yacht policy |
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Definition
| Part of protection and indemnity (the liability portion) |
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Term
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Definition
| Used in group insurance. Employers require that the employees help pay for their benefits plans by paying part of the premium |
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Term
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Definition
| Used with large groups where the members change frequently and are not individually named: e.g. schools, campgrounds, charitable groups |
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Term
| Coordination of Benefits (COB) |
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Definition
| Used in health insurance. If a person has more that one health policy, coordination is used to avoid overinsurance or double dipping |
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Term
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Definition
| Earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset) |
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Term
| Is a building under construction vacant? |
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Definition
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Term
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Definition
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Term
Common conditions + Common declarations +
And two or more modules = |
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Definition
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Term
| Worker's compensation Insurance |
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Definition
| Insurance purchased by employers to cover their employees in case the worker is hurt on the job |
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Term
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Definition
| Someone not directly involved, but still help responsible. (An employer has vicarious liability for employees.) |
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