Term
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Definition
| Process of estimating what an item is worth |
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Term
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Definition
Pays the depreciation value of the item right before the loss occurred.
formula: replacement cost - accumulated depreciation. |
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Term
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Definition
| pays to replace damaged items at current market price |
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Term
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Definition
| Assigns a SET value to each insured item |
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Term
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Definition
| Insured sates value of insured item up front, and after a loss the policy pays the lessor of the ACV or states amount |
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Term
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Definition
| Replacement cost divided by the items useful life |
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Term
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Definition
| the items annual depreciation multiplied by age. |
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Term
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Definition
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Term
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Definition
| Based on court decisions and customs when statutory law doe snot provide an answer. |
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Term
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Definition
| Civil wrongdoings weather intentional or unintentional |
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Term
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Definition
| A premeditated act that causes injury to third party |
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Term
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Definition
| A negligent act that causes unintentional injury to third party. |
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Term
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Definition
| cannot file against government |
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Term
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Definition
| when a defendant does not submit to a complaint |
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Term
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Definition
| one who receives the authority to act on behalf of someone else. They do NOT sale insurance. |
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Term
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Definition
| What the agent says or does can bind the insurer. |
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Term
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Definition
| authority that is directly granted to the agent in writing via the agents contract. |
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Term
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Definition
| the authority that the public reasonably believes the agent to have based on the agents representation. |
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Term
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Definition
| indirect authority that is granted when the insurer does not correct its agent even though the agent may be acting in error. |
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Term
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Definition
| Self employed agent that offers insurance from more than one company at the same time. Usually paid commission |
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Term
| Exclusive Agent / Captive Agent |
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Definition
| Works for one insurer and is commission paid |
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Term
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Definition
| Works for one insurer, trains agents for employers and is salary paid. |
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Term
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Definition
| Works for one insurer and is salary paid. |
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Term
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Definition
| Guidelines for settling claims when more than one policy overs the damages. Helps enforce indemnity |
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Term
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Definition
| pays up to the limit, regardless of presence of another policy. |
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Term
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Definition
| Only pays once the primary policy limits have been exhausted |
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Term
| Contribution of Equal Shares |
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Definition
| each policy pays an equal share of the loss up to lowest policy limit. Process repeats until loss is paid in full or all policy limits have been reached. |
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Term
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Definition
| Policies split the loss, based on percentage of coverage each policy provides equal to the percentage of the loss. |
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Term
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Definition
| The situation in witch two or more policies covering the same risk have different inception and expiration dates. |
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Term
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Definition
| the amount of insurance covering a risk which exceeds the insurable value of that risk |
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Term
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Definition
| says that if the insurer broadens policy coverage in course of business, policies already issued must include this increase if the change was implemented during the policy provision |
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Term
| When was The Standard Fire Policy first used? |
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Definition
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Term
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Definition
| Particular risk or group of risk covered by an insurance policy |
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Term
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Definition
| An insurance policy that covers only one risk or type of risk. |
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Term
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Definition
| Written documents attached to a policy that add or change coverage for specific perils or insured items. "Also known as Riders or Addendum" |
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Term
| The Standard Fire Policy is broken up into |
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Definition
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Term
| The Standard Fire Policy pays |
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Definition
| on an ACV (actual cash value) basis. |
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Term
| Case Loss Occurs provision |
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Definition
| the insurer will often require the claimant to complete a claim inventory form, listing any damaged property when a policy holder files a property claim. |
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Term
| On the Declarations page of The Standard Fire Policy, what will be listed next to each type of coverage? |
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Definition
| the insurer's limit of liberality for that particular coverage. |
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Term
| Does the Standard Fire Policy cover wind and vandalism? |
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Definition
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Term
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Definition
| bundles property and liability coverage into one package policy. |
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Term
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Definition
| covers physical losses to the home and associated structures |
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Term
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Definition
| covers losses experienced by a third party, for which the policyholder is liable. |
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Term
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Definition
| are for individuals, not corporations, businesses, government entities, ect. |
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Term
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Definition
| Named peril policy, insures against all 17 broad form perils. Covers the insured's house and personal property. |
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Term
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Definition
| Open-peril coverage for dwelling and other structures. Most popular coverage used today. |
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Term
| HO-4 Contents broad form for renters |
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Definition
| Known as "renters insurance". Insures against all Broad Form perils. Only covers personal property. Does not insure house and other structures. |
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Term
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Definition
| Open peril coverage for structures and personal property. *Most comprehensive homeowners coverage |
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Term
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Definition
| Known as Condo Form. Covers the owner's belongings and all finished surfaces of the individual condominium unit. |
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Term
| HO-8 Modified Coverage Form |
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Definition
| Named peril coverage. It's cheaper. Covers property at ACV. Covers fewer perils. |
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Term
| Extended Coverage for HO policies added how many endorsements? |
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Definition
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Term
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Definition
| adding coverage to the extended coverage form. |
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Term
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Definition
| is a type of liability coverage, which means it indemnifies a third party. However, the coverage excludes anyone regularly living on the residence premises, such as the insureds tenant. |
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Term
| Inflation Guard Endorsment |
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Definition
| automatically adjust cover limits according to the construction cost index in a community. |
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Term
| Coverage F - Medical Payments |
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Definition
| are voluntary coverage made at the insurer's discretion. It does not mean that the insurer is liable or obligated to pay. |
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Term
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Definition
| covers losses caused only by perils named in policy. |
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Term
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Definition
| Covers damages caused by all perils. except those specifically excluded. |
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Term
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Definition
| Offers protection loss to the principle structure on the property. Section in a homeowners policy. It covers structures attached to dwelling. Materials located in or near the "residence premises" used to construct, alter or repair dwelling and other structures on property. Any items that service the dwelling (AC compressor) |
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Term
| Coverage B - Other Structures |
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Definition
| Pays in addition to limit for coverage A. Designed for detached structures, including: Garages, Gazebos, Fences, Mailboxes, Lamppost and sheds. Excludes detached structures used for business, rental or wholly rented out. |
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Term
| Coverage C - Personal Property |
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Definition
| covers personal property, anywhere in the world. Property usually situated at the residence premises has full coverage. Property situated somewhere other than the residence covers 10% or $1,000 whichever is greater. Exclusions are: pets, motor vehicles, aircraft and hovercraft, property of a renter or boarder, personal property the insured is renting out, credit cards &/or value of water or steam. |
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Term
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Definition
| for indirect losses that result from direct losses. Provides 3 overages for loss of use. Additional Living Expenses, Fair Rental Value. Prohibited Use. Measured in time rather than dollars. |
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Term
| Additional Living Expenses (ALE) |
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Definition
| Pays increase in expenses needed for the insured to maintain normal standard of living after covered loss. These are paid until premises is repaired or replaced, or until the insured's household can settle elsewhere. |
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Term
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Definition
| Pays lot rental income until unit is habitable again. Only pays net loss: subtracts any expenses that do not continue while the tenant is gone. Does not include losses due to cancelled lease or agreement. This is paid for the shortest amount of time needed to restore the rented area to rentable condition. |
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Term
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Definition
| Pays for ALE and FRV when a civil authority prevents the insured from using the home. Pays until access to the home is restored up to maximum of 2 weeks. Not subject to any deductible. |
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Term
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Definition
| Pays to remove and dispose of the debris of covered property if damaged by covered peril. |
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Term
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Definition
| Coverage reimburses homeowner for expenses to protect property from further damage. |
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Term
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Definition
| Pays to replace plantings lost to certain named perils, such as lighting, vandalism and fire. Coverage limited to $500 per tree, shrub ect. |
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Term
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Definition
| It covers up to $500 when the insured has to pay serve charge when fire dep is called. It is additional insurance. No deductible. |
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Term
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Definition
| For HO-6 owners. Pays for when condo association charges an assessment after loss. Typically $1,000 or $2,500 per claim. |
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Term
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Definition
| Provides coverage for items that the insured removes from danger if a covered peril is imminent. Remains covered under original peril for 30 days. |
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Term
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Definition
| Reimburses the policy holder for fraudulent credit card charges up to $500. |
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Term
| Collapse and Glass Breakage |
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Definition
| Loss is covered when there is hidden decay or insect damage, weight of contents, including people. Weight of precipitation on roof, use of defective materials during construction. * not covered is caused by earth movement. (excludes: awnings, fences, patios, swimming pools, underground pipes, septic tanks, foundations, retaining walls & docks) |
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Term
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Definition
| pays difference between old construction and new code-required construction during repair or damage due to covered peril. Pays up to 10% of the coverage A limit as additional insurance. |
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Term
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Definition
| Designed to protect a landlord who rents out a furnished room, up to $2,500. Pays addition to coverage A limit. |
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Term
| Additions and Alterations |
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Definition
| for HO-4 & HO-6 ONLY. Covers structural alterations made at renters or unit owners own expense. |
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Term
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Definition
| Provides up to $5,000 against damage to grave plots due to covered perils. |
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Term
| HO Property Coverage Exclusions |
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Definition
| Ordnance or law, earth movement, water damage, off-premises, power failure, neglect, war, nuclear hazard, intentional acts. |
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Term
| Loss Settlement Provision |
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Definition
| if the property is underinsured, the policy will pay a portion of the loss calculated as follows: amount of insurance / 80% of the property value x the covered loss. |
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Term
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Definition
| can pay for Medical bills, lost wages, pain and suffering, inconvenience and property damages. |
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Term
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Definition
| Physical Harm, Disease, Sickness or death |
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Term
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Definition
| Physical damage or loss to tangible property |
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Term
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Definition
| accident or incident resulting in harm, damage or loss |
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Term
| Coverage E - Personal Liability |
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Definition
| Pays for bodily injury and property damage to third party if insured is found negligent. Applies even if the insured's property causes a third party damages. Never pays the insured> Pays insured's legal defense fees. Insurer has the right to settle damages with the claimant however it wants. |
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Term
| Coverage F - Medical Payments |
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Definition
| covers medical expenses incurred by 3rd party due to an accident on insured's premises. Only applies to reasonable and medical expenses. $1,000 min limit. Excludes the insured. |
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Term
| Damage to the property of others |
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Definition
| pays damage to others' property if insured causes it. Exclusions: Pays nothing covered by section 1, no coverage for intentional damage by persons 13 or over. No coverage for insured's property, no coverage for property of tenants or residents. |
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Term
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Definition
| covers all incurred cost necessary for the first aid of others. Does not pay for first aid of the insured |
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Term
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Definition
| Covers financial loss due to the demands of the claims process, including: the cost to investigate a claim. Expenses incurred by the insured (including lost wages up to $250/day). Interest on judgments that accrue after judgment. Premiums for bonds required in a suit defended by the insurer. |
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Term
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Definition
| Pays up to $1,000 for assessments of property association members. Kick in when injury or damage is not excluded under section 2, or the liability is for an act committed by an elected director or officer, not paid employee of the association. |
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Term
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Definition
| Applies to changes made up to 60 days before the policy inception |
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Term
| Scheduled Personal Property Endorsment |
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Definition
| is used to list or schedule certain items with higher coverage limits. Otherwise, all personal property normally kept at the insured premises is covered up to the coverage C limit, with no need to list or schedule each individual item. |
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Term
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Definition
| Adds coverage for earthquakes and tremors. Damage from earthquake related floods or tidal waves or damage to exterior masonry veneer are not covered. Deductible: 2%-20% of property value. |
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Term
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Definition
| Mobile home must be used mainly as residence. Covers mobile home and any permanent additions, fixtures or attachments. Covers up to $500 for moving mobile home out of reach of covered peril. |
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Term
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Definition
| Covers property and liability for daycare run by insured at home. Premium depends on number of children in daycare. |
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Term
| Watercraft Policy Eligibility |
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Definition
| covers owned watercraft for both physical damage and liability exposure. It also covers trailers, outboard motors and watercraft accessories. Must be operated w/in the Unites States and its territories no more than 12 miles from coast. personal use only. |
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Term
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Definition
| The owner may or may not reside at property. Owner can be a corporation. No more than 4 units, no more than 5 occupants. Mobile homes are okay if permanently installed. Incidental business risk, if insurer allows. Farms are not |
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Term
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Definition
| Covers only fire, lighting or internal explosion. Can add endorsements. You can add |
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Term
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Definition
| same perils as basic form plus extended form (WCSHAVVER) & Broad Form Perils. Vandalism and malicious mischief, damage by burglars, breakage of glass, falling objects, weight of ice, snow or sleet. Collapse of buildings sudden accidental tearing apart, accidental discharge of overflow of water or steam. Freezing and artificially generated electrical currents. |
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Term
| Extended Coverage for Dwelling Forms |
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Definition
| WCSHAVVER: windstorm, civil commotion, smoke, hail, aircraft, vehicles, volcanic eruption, external explosion & riot. |
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Term
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Definition
| Gives open peril coverage. "ALL RISK COVERAGE" Exclusions: General exclusions listed in policy. Settling, cracking shrinking, bulging of patios, foundations ect. Damage from birds, insects. vermin, domestic animals. Wind or hail damage to antennas, lawns or trees. Ice or snow damage to awning, fences, outdoor structures or foundations. Theft of anything not part of the structure. Pollutant damage. Gradual or expected loss from deterioration or depreciation wear and tear. Marring or deterioration. Inherent vice: a characteristic of an item that causes it to damage or destroy itself. Different that "wear & tear" which is deterioration caused by an external source. |
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Term
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Definition
| Principal dwelling. Attached structures: garages, apartments ect. Service machinery: funace, a/c compressor ect. Building materials on or next to the dwelling. |
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Term
| Dwelling Coverage B - Other Structures |
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Definition
| Structures that are not attached to dwelling. Excludes buildings used for business or farming. Buildings rented to somebody who is not a tenant of principal dwelling. Gravestones, plots and mausoleums. |
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Term
| Dwelling Coverage C - Personal Property |
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Definition
| any personal property located on the insured premises. Excludes: animals, vehicles, aircraft, boats, paper or electronic date, credit cards, money, grave markers or water & steam. |
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Term
| Dwelling Coverage D - Fair Rental Value (FRV) |
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Definition
| pays for rental income lost due to damage by an insured peril such as fire. |
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Term
| Dwelling Coverage E (ALE) |
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Definition
| pays for the increase in the insured's living expenses when a covered peril makes the dwelling uninhabitable. |
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Term
| Ordinance or Law Coverage |
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Definition
| pays for increased repairs cost due to laws or building codes. Only for DP-2 & DP-3. |
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Term
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Definition
| covers plant damage caused by covered perils except for wind & hail. $500 for any one tree. |
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Term
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Definition
| covers bodily injury and property damage to 3rd party. Pays for legal defense, minimum limit is $100,000 |
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Term
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Definition
| pays for necessary, reasonable medical expenses for 3rd pary injured on insured's premises. min limit $1,000 |
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Term
| DP Limited Theft endorsement |
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Definition
| covers theft from the premises |
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Term
| DP Broad Theft endorsement |
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Definition
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Term
| DP Automatic increase endorsements |
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Definition
| raises coverage annually 4, 6 or 8% |
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Term
| DP Dwelling Under Construction endorsements |
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Definition
| covers structure while being build |
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Term
| Personal Auto Policy (PAP) |
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Definition
| A bundled policy that combines liability insurance with other optional coverage. It covers individuals and residing family members or anybody that drives the car with owner's permission. |
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Term
| What vehicles does PAP cover? |
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Definition
| 4-wheeled vehicles, vans and trucks weighing under 10,000 pounds. |
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Term
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Definition
| Property Damage, Personal Injury and/or Legal Defense. |
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Term
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Definition
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Term
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Definition
| Any new or used vehicle that the insured gets during the current policy. |
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Term
| PAP Part-A Liability Coverage |
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Definition
| Covers the insured's liability for the injuries or property damage of others. |
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Term
| What is the Insuring Agreement for a PAP Part-A coverage? |
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Definition
| It pays liability cost, up to policy limits. It Settles or defends liability lawsuits and the insurer reserves the right to settle liability cases out of court. |
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Term
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Definition
| Coverage if it involves a car the insured owns. |
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Term
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Definition
| Coverage if it involves a car the insured does not own. |
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Term
| PAP Out Of State Coverage Provision |
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Definition
| If you meet your home state's requirements, it is assumed you meet the requirements of any other sate. |
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Term
| PAP Part-A Supplementary Payments cover |
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Definition
| Lost wages (due to court) up to $200/day. Expenses due to insurer's request, such as retrieving accident reports or records. Copy Fee's. Bail Bonds up to $250. Accrued interest after a judgment is entered. Premiums on appeal bonds and attachment bonds. |
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Term
| PAP Part-A will not cover what? |
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Definition
| Intentional Damages or Injures. Property owned or being transported by the insured. Damages incurred under the scope of employment, except domestic employees ineligible for workers' comp. Damage to rented properties (except for dwellings or private garages). Company-Owned business vehicles. Vehicles taken without permission. Damages caused while repairing. servicing, parking or storing vehicles. Hired vehicles transporting people for good *TAXIS* |
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Term
| PAP Part-B Medical Payment does what? |
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Definition
| It provides coverage for the insured. |
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Term
| What does PAP Part-B cover? |
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Definition
| Covers eligible medical expenses of the insured, no matter who caused them for up to 3 years. |
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Term
| Who does PAP Part-B Cover? |
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Definition
| Anyone considered an insured under the policy that is occupying or struck by auto or trailer designed for public roads. Includes vehicle-pedestrian accidents. |
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Term
| What does PAP Part-B exclude? |
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Definition
| Accidents where an insured is occupying a vehicle with fewer than four wheels. Auto rented or leased for hire. Autos used without permission. Commercial vehicles covered by a business auto policy. Vehicles located for use as a residence. Injures sustained under scope of employment. |
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Term
| PIP Part-C Uninsured/Underinsured Motorist Coverage covers |
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Definition
| Bodily injuries caused by people with insufficient or no insurance. *Coverage for physical damage can be added by endorsement. |
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Term
| Who is a Uninsured Motorist? |
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Definition
| A driver with no liability insure. A Driver whose insurer won't pay or a hit and run driver. |
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Term
| What is a Underinsured Motorist? |
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Definition
| A driver who does not have enough insurance to pay for all damages. |
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Term
| What are the exclusions for Um/UIM? |
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Definition
| It will not cover government vehicles. Off-road vehicles, vehicles used as a premises. Covered autos that are rented or used for hire. Cars used without reasonable belief that permission was granted. The insured's own auto that is not listed on policy. |
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Term
| What are the 2 parts of PAP Part-D *Damage to Your Auto coverage? |
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Definition
| Collision and Other Than Collision |
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Term
| What does the PAP Part-D protect? |
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Definition
| The insured's financial interest in the car. |
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Term
| PAP Part-D Collision Coverage covers |
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Definition
| damage to insured's vehicle caused by collision or rollover and applies when the insured is at-fault. It includes "your covered auto" & any "non-owned" car the insured is driving. Also covers transportation (car rental) expenses: $20/day up to $600. |
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Term
| What will the insurer pay for a Total Damage vehicle at the time of collision under PAP Part-D? |
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Definition
| The insurer pays the ACV of the car. |
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Term
| What will the insurer pay for a Partial Damage vehicle at the time of collision under PAP Part-D? |
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Definition
| The insurer pays to repair the car with similar materials. |
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Term
| What is covered under a PAP Part D - "Other Than Collision" coverage? |
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Definition
| Damages not caused by collisions or overturn. Essentially an "open-peril" coverage, minus exclusions. *also known as Comprehensive Coverage |
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Term
| What are the covered perils for PAP Part-D coverage? *comprehensive coverage |
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Definition
| Theft. Hail, water or flood. Windstorm, Fire, Vandalism, Explosion, Earthquake, Riot/Civil unrest. Missiles or falling objects. Contact with birds or animals. |
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Term
| What is not covered under PAP Part-D? |
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Definition
| Normal wear and tear. Freezing, mechanical or electrical breakdown. Tire damage. Government or civil confiscation. Losses to non-owned autos taken without permission. Losses involving any racing or speed event or facility. Stereo equipment and electronics (unless permanently installed, then subject to limits). War and nuclear events. |
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Term
| What is PIP *Personal Injury Protection? |
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Definition
| Also known as No-Fault. A policy that is purchased along side of PAP. It only covers bodily injuries to the insured caused by an accident no matter who's at fault. |
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Term
| Who is covered under PIP *personal injury protection? |
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Definition
| Covers the insured and members of household seather in the insured's or another vehicle. Children of the insured while on a school buss. Passengers without their own PIP. Licensed drivers who drive the insured's vehicle with permission. |
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Term
| What will PIP *personal injury protection pay? |
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Definition
| Medical cost, sometimes up to a set percentage. Lost wages (percentage of wages before injury). Medical transpiration expenses. In-home caregivers and death benefits. |
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Term
| Personal Injury Protection is a primary coverage. Medical payments is excess and it will pay after PIP is exhausted. |
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Definition
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Term
| For UM/UIM *uninsured/Underinsured motorist claims, the insured must: |
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Definition
| notify the police in the event of a hit-and-run. Or if filing a lawsuit, forward legal documents to the insurer. |
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Term
| For claims under coverage for Damage to Your Auto, the insured must also: |
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Definition
| Protect covered vehicles from further loss. Promptly notify the policy in the vent of theft and allow insurer to inspect and appraise damage vehicles, before disposing or repairing. |
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Term
| The PAP coverage only applies to: |
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Definition
| Accidents and losses that occur during the policy period. Within the USA and it's territories and possessions and Canada. During shipment between ports in the policy territory. |
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Term
| The Changes to Policy Provision in PAP sates: |
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Definition
| That a written insurance policy cannot be change or waved without written and signed endorsement. The insurer can increase premiums immediately for: changes to the number, type or use of automobiles. Changes in coverage, deductibles or limits. Address changes, or changes in covered persons. |
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Term
| The Recovering Payment provision: |
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Definition
| enforces subrogation. If the insured is paid by both the insured and the at fault party, excess funds must be paid back to the insure. Does not apply to Part-D Physical Damage. |
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Term
| PAP Suspension of Insurance Endorsement |
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Definition
| Lets the insured suspend coverage and premium payments for a specified period of time. |
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Term
| PAP Towing and Labor Endorsement |
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Definition
| Pays for towing expenses, plus labor charges from the scene of the damage. Limit will appear on the DEC page. |
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Term
| PAP Extended Non-Owned Coverage Endorsement |
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Definition
| Extends coverage for non-owned vehicles. Covers non-owned vehicles carrying people or property for a fee. Liability only applies to the named insured. |
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Term
| PAP Customized Equipment Endorsement |
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Definition
| provides extra coverage for valuable equipment that is not covered in standard policy. |
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Term
| PAP Miscellaneous Vehicle Coverage Endorsement |
|
Definition
| Allows the policyholder to add specialized vehicles to the policy, such as motorcycles, motor homes, mopeds, ect. |
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Term
| PAP Non-Owner Coverage Endorsement |
|
Definition
| Provides liability insurance for people who have no car, but often borrow other people's vehicles. |
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Term
| Oklahoma drivers must have liability insurance with at least the following limits: |
|
Definition
| $25,000 for bodily injury, per person in one accident. $50,000 for total bodily injury, for two or more persons in one accident. $25,000 for property damage, per accident. |
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Term
| T/F Oklahoma Requires that insurers only issue or renew liability insurance policies for a period of at least 6 months, and report any cancellations to the department of public safety. |
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Definition
|
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Term
| T/F Oklahoma must offer UM *Uninsured Motorist coverage to all auto policy holders. |
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Definition
|
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Term
| T/F If a Oklahoma driver chooses to not buy UM *Uninsured Motorist coverage, they must reject it in writing on a separate form. |
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Definition
|
|
Term
| What is the difference for Uninsured Motorist Coverage and Liability Insurance? |
|
Definition
| Liability provides benefits for property damage, unlike Uninsured Motorist. |
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Term
| How can you reduce your insurance premium in Oklahoma for PAP? |
|
Definition
| Successfully complete an approved automobile or motorcycle accident prevention course. Discount will last for 3 years. |
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Term
| How long does an Oklahoma drive have to cancel their PAP policy for any reason? |
|
Definition
| 60 days. After 60 days the insurer may only cancel or refuse to renew for specific reasons. |
|
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Term
| How long must the insurer give for notice of Cancellation for nonpayment of premiums of PAP? |
|
Definition
| 10 Day notice 30 days for all other reasons. |
|
|
Term
| How long does the insurer have to notify driver for nonrenewable? |
|
Definition
|
|
Term
| Approved reasons for cancelling/not renewing a PAP policy after 60 days |
|
Definition
| Non Payment of premiums. Misrepresentation or fraud in insurance app. Insured is convicted of crime that is increased hazard. Insured preformed willful acts that increased hazard. Insured violated any local fire, health, safety, building or construction regulation that increased hazard. Substantial increase in risk. The commissioner determines that continuing the policy would place the insurer in violation of state insurance rules. |
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Term
| In Oklahoma, a policyholder may "STACK" UM/UIM coverage when? |
|
Definition
| If the policy expressly allows for it. |
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Term
| Commercial Property Insurance |
|
Definition
| Covers direct and indirect losses related to business property. |
|
|
Term
| What are the 4 sections in a standard commercial insurance policy? |
|
Definition
| Dec Page, Conditions, Coverage Form & Causes of Loss forms. |
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Term
| Popular Comerical Policy Conditions |
|
Definition
Cancellation/Non-Renewal.
Changes to Policy
Concealment Misrepresentation and fraud
control of property
other insurance
Liberalization
Legal action against insurer
subrogation
no benefit to bailee
vacancy |
|
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Term
| How long does the insure have to inform the policyholder regarding cancellation/non renewal for Commercial Polices |
|
Definition
|
|
Term
| What is the penalty for not giving 45 days notice for Cancellation on a Commercial Policy? |
|
Definition
| 30 more days of coverage at same rate. |
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Term
| Vacancy Definition for Commercial Policies |
|
Definition
| Building is closed for 60 days or Less than 31% of building's available floor space is occupied for 60 days. |
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Term
| How long does the insured have to file a lawsuit on commercial polices? |
|
Definition
| 2 years from the date of loss. |
|
|
Term
| Insured must comply with all policy obligations on a commercial policy |
|
Definition
|
|
Term
| Define what Liberalization is for Commercial Policies. |
|
Definition
| All current insureds will benefit from increase in coverage that does not raise the premium. It Applies to changes that go into effect during policy period or up to 45 days before the policy starts. |
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Term
| Commercial Property Coverage A : Buildings & Structures |
|
Definition
Covers building and structures listed on the DEC page as well as:
Addition
Additions under construction
any construction equipment within 100ft of insured property
Machinery & equipment inside the building
Maintenance property |
|
|
Term
| Commercial Property Coverage B: Business Personal Property |
|
Definition
Covers property of the business that is not affixed to the structure such as:
Business owned personal property used for business purposes
Labor, services and materials furnished on the personal property of others
inventory of products held for sale
Leased business personal property
Property within 100ft of the business premises |
|
|
Term
| Commercial Property Coverage C: Personal Property of Others |
|
Definition
| Applies to the property owned by other party when it is in the care of the insured business. Covers up to $2,500. Only applies to the locations listed on the dec page. |
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Term
| Building and Personal Property Exclusions |
|
Definition
Currency, bills, accounts, evidence of dept, food stamps and bullion
Animals, unless owned by others and boarded by the policyholder
automobiles held for sale
bridges, roads, patios, walkways or other paves surfaces
contraband or property being illegally transported or traded
the cost associated with excavations, filling or grading
foundations of building or structures, machinery or boilers such as foundations below ground or lower than the lowest basement floor
outdoor radio and tv antennas or masts and associated wiring
underground pipes or drains
fences, wiring and masts
outdoor signs not attached to buildings
tree, shrubs and plants. |
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Term
| Debris Removal for Commercial Property |
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Definition
| Pays to clean up debris of covered property damaged by a covered peril. |
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Term
| What is the limit for Debris Removal for Commercial Property? |
|
Definition
| 25% of total claim for property damage. |
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|
Term
| If debris removal expense exceeds 25% limit, how much additional coverage can you get under the Debris Removal for Commercial Property? |
|
Definition
|
|
Term
| How much does Pollution Clean-Up and Removal under Commercial Property cover? |
|
Definition
|
|
Term
| How long does the insured have to report a loss under the Pollution Clean-Up and Removal coverage under Commercial Property? |
|
Definition
|
|
Term
| How long does coverage last under Preservation of Property under Commercial Property? |
|
Definition
|
|
Term
| Preservation of Property under Commercial Property |
|
Definition
| Applies when the insured removes property to protect it from a covered peril. |
|
|
Term
| Increased Construction Cost coverage under Commercial Property |
|
Definition
| Applies when the insured has to pay extra in order to conform a new building ordinances when repairing or replacing a covered loss. |
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|
Term
| What is the limit for Increased Construction Cost coverage under Commercial Property? |
|
Definition
| $10,000 or 5% of Coverage A Limit (which ever is lesser) |
|
|
Term
| Electronic Data coverage under Commercial Property covers |
|
Definition
| cost of replacing or restoring electronic data lost or damage by a covered loss. Losses include viruses or malicious code, unless introduced by employee. |
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|
Term
| What is the limit of coverage for the Electronic Data under Commercial Property? |
|
Definition
|
|
Term
| Newly Acquired Property extension for Commercial Property |
|
Definition
| Includes new buildings under construction on insured premises, and newly acquired properties off premises. It has 30 Days of coverage and $250,000 coverage for building and structures. |
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|
Term
| Property Off-Premises extension for Commercial Property |
|
Definition
| Covers $10,000 for covered property that is temporarily located off the premises. It Excludes Property off-premises if it's being sold. |
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|
Term
| Person Effects extension for Commercial Property |
|
Definition
| covers up to $2,500 in coverage for damage or destruction of person belongings. Loss must occurs on the insured premises. |
|
|
Term
| Valuable Papers extension for Commercial Property |
|
Definition
| it covers up top $2,500 towards the recovery or replacement of valuable papers and computer records |
|
|
Term
| Outdoor Property extension for Commercial Property |
|
Definition
| Covers up to $1,000 to TV, radio antennae, detached signs and trees plants or shrubs. The limit for trees ect is $250 per unit. The covered perils: Fire, lighting, explosion, riot, civil commotion and damage by aircraft |
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|
Term
| Non-Owned Trailers extension for Commercial Property |
|
Definition
| Covers up to $5,000 in damage to non-owned trailers being used on premises if it is not attached to a vehicle. |
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|
Term
| Valuation Condition for Commercial Property |
|
Definition
| is based on coinsurance. If 80% of coinsurance is met, it will pay RC up to $2,500. If the 80% coinsurance is not met, it will pay the ACV. |
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|
Term
| Agreed Value Coverage for Commercial Property |
|
Definition
| Policyholder and insurer agree on a specific value for the property before the policy is written. Coinsurance requirements are waved. This often applies to rare property or high value collector items. |
|
|
Term
| Inflation Guard Coverage for Commercial Property |
|
Definition
| Policyholder can increase the limit of insurance through the policy term. Keeps the amount of coverage consistent with rising prices. |
|
|
Term
| Replacement Cost Coverage for Commercial Property |
|
Definition
| Changes the loss settlement terms from ACV to RC. Requires coinsurance minimum. This does not apply to property of others on the insured premises. |
|
|
Term
| Value Reporting Coverage for Commercial Property |
|
Definition
| is for business whose property values fluctuate or who buy and sell multiple properties throughout the year. Insured purchases a limit of insurance to cover the highest property value expect that year. |
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|
Term
| Coverage for Commercial Property |
|
Definition
|
|
Term
| Business Income Coverage Form under Commercial Property |
|
Definition
| Provides protection for loss of income due to a covered loss. |
|
|
Term
| When does Business Income Coverage Form under Commercial Property begin and end? |
|
Definition
| 72 hours after damage occurs and ends the date that either the damaged property is restored or that business resumes at a new location. |
|
|
Term
| What does Business Income Coverage under Commercial pay for? |
|
Definition
| Loss of net income on a Profit and Loss statement. Any continuing operating expenses incurred during the period of restoration. Rent, Salaries, Payments to the bank, utilities, taxes and administrative cost. |
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|
Term
| What is the Profit and Loss Statement under Commercial Property coverage? |
|
Definition
| It determines a business' loss of net income. |
|
|
Term
| What are the 3 amounts Profit and Loss under Commercial Property Coverage relies on? |
|
Definition
Total Revenue - revenue from all sales & services provided
Cost of Goods Sold - cost of materials and labor associated directly with sales and services
Operating Expenses - cost of payroll and other administrative needs |
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|
Term
| How do you calculate Net Income for Profit and Loss? |
|
Definition
Take (Total Revenue) - (Cost of Goods Sold) = (Gross Income)
(Gross Income) - (Operating Expenses) = *NET income from operations |
|
|
Term
| Extra Expense Coverage under Commercial Property |
|
Definition
| covers the cost of getting a business running again after a covered loss. |
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|
Term
| What 3 things must the Extra Expense Coverage under Commercial Property be? |
|
Definition
| Necessary, Incurred during the period of restoration & type of expense that would NOT have been incurred had there been no loss to the covered property. |
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|
Term
| What are the 2 categories for Extra Expenses under Commercial Property? |
|
Definition
True Extra Expenses - necessary to avoid or minimize the halt in business operations. * Can include sub-contacting work, relocation expenses, rental of generators to run power at a damaged property and leasing and rentals to continue a distruputed business.
Expediting Expenses - The cost of repairing or replacing property in order to get the business going again. |
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|
Term
| Where are the locations that Extra Expense Coverage applies? |
|
Definition
| The damaged Property or a new property until damaged property is repaired. |
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|
Term
| When does Extra Expense start and end? |
|
Definition
| Immediately and ends when damaged property is repaired or replaced. |
|
|
Term
|
Definition
| Provides coverage when a civil authority restricts a business form being occupied due to a pending covered loss. Coverage last up to 4 weeks. 72-hour window before benefits apply. |
|
|
Term
|
Definition
| extends coverage for up to 60 days is the business is still losing income after the period of restoration expires. |
|
|
Term
| Business Income Coverage Form under Commercial Property |
|
Definition
| Provides protection for loss of income due to a covered loss. |
|
|
Term
| When does Business Income Coverage Form under Commercial Property begin and end? |
|
Definition
| 72 hours after damage occurs and ends the date that either the damaged property is restored or that business resumes at a new location. |
|
|
Term
| What does Business Income Coverage under Commercial pay for? |
|
Definition
| Loss of net income on a Profit and Loss statement. Any continuing operating expenses incurred during the period of restoration. Rent, Salaries, Payments to the bank, utilities, taxes and administrative cost. |
|
|
Term
| What is the Profit and Loss Statement under Commercial Property coverage? |
|
Definition
| It determines a business' loss of net income. |
|
|
Term
| What are the 3 amounts Profit and Loss under Commercial Property Coverage relies on? |
|
Definition
Total Revenue - revenue from all sales & services provided
Cost of Goods Sold - cost of materials and labor associated directly with sales and services
Operating Expenses - cost of payroll and other administrative needs |
|
|
Term
| How do you calculate Net Income for Profit and Loss? |
|
Definition
Take (Total Revenue) - (Cost of Goods Sold) = (Gross Income)
(Gross Income) - (Operating Expenses) = *NET income from operations |
|
|
Term
| Extra Expense Coverage under Commercial Property |
|
Definition
| covers the cost of getting a business running again after a covered loss. |
|
|
Term
| What 3 things must the Extra Expense Coverage under Commercial Property be? |
|
Definition
| Necessary, Incurred during the period of restoration & type of expense that would NOT have been incurred had there been no loss to the covered property. |
|
|
Term
| What are the 2 categories for Extra Expenses under Commercial Property? |
|
Definition
True Extra Expenses - necessary to avoid or minimize the halt in business operations. * Can include sub-contacting work, relocation expenses, rental of generators to run power at a damaged property and leasing and rentals to continue a distruputed business.
Expediting Expenses - The cost of repairing or replacing property in order to get the business going again. |
|
|
Term
| Where are the locations that Extra Expense Coverage applies? |
|
Definition
| The damaged Property or a new property until damaged property is repaired. |
|
|
Term
| When does Extra Expense start and end? |
|
Definition
| Immediately and ends when damaged property is repaired or replaced. |
|
|
Term
|
Definition
| Provides coverage when a civil authority restricts a business form being occupied due to a pending covered loss. Coverage last up to 4 weeks. 72-hour window before benefits apply. |
|
|
Term
|
Definition
| extends coverage for up to 60 days is the business is still losing income after the period of restoration expires. |
|
|
Term
|
Definition
| Expressed in percentages that is stated on the DEC page. Based on the length of the period of restoration. |
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|
Term
| Business Income Coverage is also known as |
|
Definition
| Business Interruption Coverage |
|
|
Term
| Max Indemnity Period Coverage |
|
Definition
| Takes away coinsurance requirement and the Period of Restoration last up to 120 days after the 72 hr window. If the policy makes out, coverage will end before 120 days. |
|
|
Term
|
Definition
| Removes coinsurance requirement, but the policyholder parcels his stated limit of coverage into a fractional maximum available each month. |
|
|
Term
|
Definition
| Waves coinsurance if the insured submits 2 reports. Financial data from the perv year and financial data for the upcoming year. Insured and insurer set and agreed value of coverage, and losses are paid in full - the deductible. |
|
|
Term
| Contingent Business Interruption Form |
|
Definition
| Covers a business for loss of income caused by damages to a key supplier or key customer. |
|
|
Term
|
Definition
| Provides protection for buildings, materials and equipment under construction or renovation. It requires 100% coinsurance . |
|
|
Term
| What are some reasons why the policy period may end for The Builders Risk Coverage form |
|
Definition
The policy expires, the building is accepted by the purchaser, the policy holder no longer has an insurable interest in the property
90 days after construction is completed
60 days after the building becomes occupied
the property is abandoned with no intention to compelte
the building is put into its intended use. |
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|
Term
| Builders Risk Coverage can include these extensions: |
|
Definition
Debris Removal
Fire Dep Service Charge
Pollutant Cleanup Removal
Preservation of Property
Scaffolding, Construction forms and temp structures (only while property is on the sinrueds premises.
Property at other locations - $10,000 limit
Property in transit - 25,000 limit
Sewage Backup - 5,000 limit. |
|
|
Term
| What does the Condominium Coverage From under Commercial Property cover? |
|
Definition
Condo buildings and complexes
Common areas of the condo building
infrastructure essential to function of the condo as whole *piping, ductwork ect
Business personal property used by the condo as a whole |
|
|
Term
| What is not covered under Condominium Coverage Form for Commercial Property? |
|
Definition
Upgrades within individual condo units
Business or personal property of individual commercial unit owners. |
|
|
Term
| Leasehold Interest Coverage Form |
|
Definition
| Pays for the diff in cost between the old rental and the new |
|
|
Term
| Legal Liability Coverage Form provides coverage for |
|
Definition
Property damage to personal property of others caused by negligence
Expenses for legal defense when claims are brought against the business
Theft of another's personal property
No deductible or coinsurance |
|
|
Term
| Differences in Conditions Form |
|
Definition
Designed to bridge coverage gaps left by typical polices.
Only covers perils that could lead to catastrophic losses
Excludes risk that are already covered under a different policy
Does not require coinsurance
Usually requires a large deductible
Can be purchased as a separate policy or added as an endorsement |
|
|
Term
| Ordinance Or Law endorsements under Commercial Property |
|
Definition
| Indemnifies a business for the additional cost associated with preparing or rebuilding a facility in order comply with current building codes. |
|
|
Term
| Peak Season Endorsement under Commercial Property |
|
Definition
| Temp increases coverage limits a specified intervals over the course of the year in order to account for increased inventories. |
|
|
Term
| Protective Safeguard Endorsement under Commercial Property |
|
Definition
Offers lower premiums if the insured agrees to use certain safety precautions such as:
fire alarms
security services
Video Surveillance
protective storage of valuable papers and records |
|
|
Term
| Spoilage Endorsement under Commercial Property |
|
Definition
Adds perishable stock to covered property, so if it spoils, the insurer will purchase the stock based on the following:
Indemnification = Market selling price - any discounts the insured would expect. |
|
|
Term
| According to the Commercial Property Policy, a Commercial Building is considered vacant if less than ___ of the available squar footage is occupied for __ consecutive days. |
|
Definition
|
|
Term
| What does CGL *Commercial General Liability cover? |
|
Definition
Bodily Injury/property damage resulting from a business premises and its operations
Damage to a premises used or rented by the insured
Products and completed operations
Acts of others: Employees, agents, contractors acting on half of business.
Contracted responsibilities: insured agree to take on liability |
|
|
Term
| What are the 2 different forms of CGL |
|
Definition
Occurrence Form - coverage triggered by occurrence or accident
Claims-Made Form - covered triggered by claim |
|
|
Term
| Occurrence Form under CGL |
|
Definition
| Covers events that happened during policy period, no matter when the claims is made. |
|
|
Term
| Claims-Made form under CGL |
|
Definition
| Covers any claim filed during the policy period no matter when the damage or injury occurred. Insurers can price premiums to reflect current risk of lawsuit awards |
|
|
Term
| Retroactive Date in Claims-Made policies eliminates what? |
|
Definition
| Coverage for occurrences that took place prior to a specified date. |
|
|
Term
| In a CGL policy, the basic extended reporting period provided extended coverage for an "occurrence" transpiring within ___ days of the end of the policy period. |
|
Definition
|
|
Term
| What is the purpose of the extended reporting period? |
|
Definition
| to provide coverage under an expired claims-made policy, when the claims is first reported after the policy expires. |
|
|
Term
| Who is covered under a CGL? |
|
Definition
Executies
Partners
Employees
Managers
Volunteers
Agents
Representatives
as long as they are engaged in business activities of the insured. |
|
|
Term
| t/f CGL does not cover AUTO. |
|
Definition
| TRUE *but if a small truck is used exclusively w/in warehouse or factory premises it may qualify as mobile equipment |
|
|
Term
|
Definition
| Protects the insured from liability for bodily injury and property damage. |
|
|
Term
| What 3 hazards are covered under Coverage A on a CGL? |
|
Definition
Premises and Operations
Products and Completed Operations
Contractual Liability for Insured Contracts |
|
|
Term
|
Definition
| covers bodily injury and property damaged on premises owned, rented or leased. |
|
|
Term
|
Definition
| Covers bodily injury and property damaged when working outside premises. |
|
|
Term
|
Definition
| covers bodily injury and property damaged caused by the use of the product made or sold by insured. |
|
|
Term
| 2 types of product liability claim under CGL |
|
Definition
Strict Liability - Any defect in safety is manufacture's fault
Negligence - manufacturer did not exercise a reasonable amount of caution
Breach of warranty - insured failed to notify public of known safety hazard or failed to deliver quality of item advertised |
|
|
Term
| Insured Contracts under CGL include: |
|
Definition
lease of premise
sidetrack agreements
easement or license agreements
an obligation to indemnify a municipality
elevator maintenance contracts
any contract in which the policyholder assumes the tort liabilty of another party or bodily in jury or prop damage |
|
|
Term
| Coverage B - Libel & Slander |
|
Definition
protects insured against claims of personal injury.
Libel - written words that falsely damaged reputation
Slander - Spoken words that falsely damage reputation |
|
|
Term
| Coverage B - Wrongful Entry or Eviction |
|
Definition
Wrongful Entry - When a landlord uses improper means to repossess real estate or rented space.
Wrongful Eviction: When a landlord or shop-owner evicts a person from public space w/out cause |
|
|
Term
| Coverage B - Advertising injury |
|
Definition
means a 3rd party suffered damages as the result of the insured party advertising their goods and/or services in a public arena.
Libel Slander
Copyright
Stealing advertising ideas |
|
|
Term
|
Definition
Covers A & B
Assist policyholder with a variety of claim or lawsut expenses
Lost wages up to 250/day. Expenses due to insurer's request such as retrieving official reports or records
bail bonds up to $250
Occurred interest after judgment is entered
Premiums on appeal bonds and attachment bonds |
|
|
Term
| Coverage C - Medical Payments under CGL |
|
Definition
No-Fault coverage that pays for Medical
Dental
Hospital
nursing
Funeral Cost
Resulting from an occurrence on the insured's premises or from its business operation |
|
|
Term
| Coverage C - Medical Payments exclusions: |
|
Definition
any insured.
Employees of the insured
Tenants of the insured
Athletic contest, games, physical challenges or sporting events
Injuries resulting from completed operations |
|
|
Term
| Coverage C - Medical Payments will ONLY be covered when? |
|
Definition
| If they expenses are reported within one year of the occurrence. |
|
|
Term
| Damage to Premises Rented by You |
|
Definition
| Lifts loaned or rented properties and adds coverage to it. It applies to properties that are issued rents for 7 or fewer days. Does not cover FIRE |
|
|
Term
|
Definition
| Contains provisions the policyholder must meet as a condition of coverage. Must state the rights of each regarding cancellation, changes, lawsuits, ect |
|
|
Term
| Policy Territory under CGL |
|
Definition
| Products Liability is worldwide, as long as the product was made in the US, Puerto Rico or Canada. |
|
|
Term
| CGL states that a claims-made form will always pay what? |
|
Definition
| The excess after an occurrence Form. |
|
|
Term
|
Definition
| maximum amount the insurer will pay in total over a single policy period to satisfy liability claims. |
|
|
Term
| Aggregate Limits under CGL |
|
Definition
| Products-Complicated Operations - the maximum amount the policy will pay to satisfy claims. |
|
|
Term
|
Definition
| how much an insurer will pay for any one occurrence. |
|
|
Term
| Per Occurrence Limit - Personal & Advertising Injury Limit |
|
Definition
| the maximum amount the insurer will pay for personal and advertising injury to any one person or organization |
|
|
Term
| per Occurrence Limit - Medical Payments Limit |
|
Definition
| The maximum amount int insurer will pay for bodily injury sustained by any one person |
|
|
Term
|
Definition
| A company can be held responsible for the actions of a hired contractor. |
|
|
Term
| Owners and Contractors Protective Liability |
|
Definition
| Purchased by the contractor, but the hiring business is the insured. Specific to a single project and place. Expires when project is complete. Only uses the occurrence form. |
|
|
Term
| Owners and Contractors Protective Liability Advantages: |
|
Definition
| Contractor cannot cancel coverage without the knowledge of hiring business. Hiring business policy limits are not affected by the claims against work of contractor. Provides primary overage for all claims related to work of contractor. Can be used on projects likely to produce claims. Protects named insured from negligent acts of incompetent contractors. |
|
|
Term
| Owner and Contractor Protective Liability excludes : |
|
Definition
Auto
Watercraft
Contractual Liability
War & Terrorist acts
Liquor Liabitly
Workers Compensation
Property in the care, custody and control of the insured
products
completed Operations |
|
|
Term
|
Definition
| Allows an insurer to exclude specific types of accidents, products, work or locations for CGL coverage. |
|
|
Term
| Liquor Liability Coverage Form under CGL |
|
Definition
| Covers alcohol related occurrences and cases involving over-service or illegal service to minors. |
|
|
Term
| Establishments that may require the Liquor Liability Coverage Form under CLG |
|
Definition
Grocery Stores
Hotels
Casinos
Golf Courses
Department Stores
Motels & Inns
Comedy Clubs |
|
|
Term
| Pollution Liability Coverage under CGL |
|
Definition
| Covers bodily injury or property damaged caused by pollutants released into air, water or land. |
|
|
Term
| Pollution Liability Coverage Broad Form |
|
Definition
| covers Clean up cost & bodily injury and property damage |
|
|
Term
| Pollution Liability limited Coverage Form |
|
Definition
| covers injury and property damage only |
|
|
Term
| Professional Liability Coverage covers? |
|
Definition
| lawsuit and settlement cost when a claim is made because of alleged wrongful acts. |
|
|
Term
| What are the 2 types of Malpractice Insurance |
|
Definition
| Medical Professional Liability & Lawyers' Professional Liability |
|
|
Term
| Errors and Omissions Insurance |
|
Definition
| protects the insured from consequences of failure to preform. It protects persons and organizations. It can cover an employer's losses from suits for sexual harassment, wrongful termination, discrimination ect. |
|
|
Term
| Errors and Omissions Insurance excludes |
|
Definition
| coverage for libel, slander and punitive damage. Bodily Injury, Property Damage & Fraudulent or Criminal Acts. |
|
|
Term
| What are the 2 types of policies for the Professional Liability? |
|
Definition
| Claims Made & Occurrence Policy |
|
|
Term
| Claims Made Policy under Professional Liability coverage: |
|
Definition
| covers claims made during policy period. Can apply retroactive dates to policy period. Does not cover claims filed after policy period expires. |
|
|
Term
| Occurrence Policy under Professional Liability Coverage: |
|
Definition
| Covers liability for occurrences happening during policy period. Covers after term expires if occurrences was during policy period. |
|
|
Term
| Consent to Settle Provision |
|
Definition
| protects the insurer if the insured does not approve a recommended settlement. The insurer pays expenses up to date the insured refuses, but is not required to continue lawsuit expenses afterwards. |
|
|
Term
| A Real estate agent would be most likely to purchase an: |
|
Definition
| Errors and Omissions Policy. |
|
|
Term
| Directors and Officers Liability Insurance pays for: |
|
Definition
| legal defense & damages awarded in lawsuits |
|
|
Term
| Directors and Officers Liability insurance is Available to who? |
|
Definition
Private Companies
Educational Institutions
Non-Profit Organizations
Corporate Officials |
|
|
Term
| Directors of Officers Liability Insurance excludes: |
|
Definition
| Criminal/Fraudulent acts. |
|
|
Term
|
Definition
| has responsibility to handle all Employee Benefit plan funds with expert knowledge and care. Fiduciary Liability Coverage protects "authority" from mistakes in handling funds and commissions and communicating plan information to employees. |
|
|
Term
| ERISA (Employee Retirement Income Security Acts defines: |
|
Definition
| any business or person with authority over an employee benefit plan. |
|
|
Term
| EPLI (Employment Practices Liability Insurance provides what? |
|
Definition
| Legal defense for business and pays for dames awarded in court when employees claim violations. |
|
|
Term
| What are violations under Employment Practices Liability Insurance? |
|
Definition
Sexual Harassment
Wrongful Termination
Privacy Violation
Discrimination
Emotional Distress
Breach of Contract
Wrongful discipline
failure to employ or promote |
|
|
Term
| Exclusions under the Employment Practices Liability Insurance |
|
Definition
Punitive Damages
Criminal Fines |
|
|
Term
| Cyber Liability Insurance |
|
Definition
| provides coverage for losses in the event of a data breach. |
|
|
Term
| Liquor Liability Insurance |
|
Definition
| covers cost of alcohol-related Bodily Injury and property damage. Includes protection for losses related to serving minors. |
|
|
Term
| DRAM SHOP is a term for what? |
|
Definition
| any business selling alcoholic beverages. |
|
|
Term
|
Definition
not insurance
May be sold by insurance companies
part of the work of an adjuster. |
|
|
Term
| Surety Bond called a Suretyship |
|
Definition
| an arrangement between three parties, in which one party promises to perform for another party and a third party guarantees that they will fulfill that promise. |
|
|
Term
| What are the 3 parties in a Surety Bond? |
|
Definition
Principal aka Obligor - agreens to fulfill an obligation
Obligee - party whom the principal owes the obligation
Surety aka Guarantor guarantees to pay obligee if principal defaults. |
|
|
Term
| Surety *think cosigner* is |
|
Definition
| legally liable for dept, if failure happens with the principal "contractor" |
|
|
Term
| 1st Difference between suretyship and insurance |
|
Definition
Insurance - 2 parties
Suretyship - At Least 3 parties. |
|
|
Term
| 2nd Difference between suretyship and insurance |
|
Definition
Insurance - insurer can't recoup settlement payments from insured
Suretyship - can seek recompense from principal. |
|
|
Term
| 3rd Difference between suretyship and insruacne |
|
Definition
insurance - can cancel
Suretyship - can't cancel |
|
|
Term
| Penal Sum under suretyship is the: |
|
Definition
| specified max amount that the surety might have to may in the instance the principal fails to preform |
|
|
Term
| Collateral under Suretyship |
|
Definition
| Cash or valuable property kept in a reserve by the surety in case of default. |
|
|
Term
| joint Control in Suretyship |
|
Definition
| Surety and Pricipal share control of the bonded project. |
|
|
Term
|
Definition
| Grantees a specific contract. Common in construction and supplying goods. |
|
|
Term
|
Definition
Fiduciary Bonds - Guarantees work of someone appointed to take financial responsibility for others.
Court aka Litigation Bond: often requires of litigants in civil suits to protect opposing parties. |
|
|
Term
|
Definition
| protects the public from a public official's lack of performance. |
|
|
Term
|
Definition
| guarantees that an importer/exporter will pay all customs taxes and fees and obey all regulations and laws. |
|
|
Term
|
Definition
| guarantees that principal and interest will be paid per the term of the contract or promissory note. |
|
|
Term
|
Definition
| guarantees that an issuer of a copy of a lost financial instrument will not suffer an economic loss if the owner of the instrument later finds and transacts the original. |
|
|
Term
|
Definition
| Guarantees the health, safety and welfare of the public during and after mining operations, and guarantees land will be restored to original condition. |
|
|
Term
| Self-Insurance Worker's Compensation Bond |
|
Definition
| Pays worker's comp claims filed by the self-insurer's employees when the self insurer itself cannot meet this obligation |
|
|
Term
| Faithful performance of Duty bond |
|
Definition
| Guarantees a principal will faithfully perform his duties as prescribed by law or the bylaws of the obligee. |
|
|
Term
|
Definition
| guarantees the work of one appointed to take financial responsibility for others. |
|
|
Term
|
Definition
| Guarantee the principal (employee) will NOT do something,. |
|
|
Term
| Fidelity Bonds cover all dishonest acts committed by a covered employee including: |
|
Definition
larceny
theft
embezzlement
forgery
misappropriation
wrongful abstraction
willful misapplication |
|
|
Term
| On the DEC page on a Fidelity bond will include what? |
|
Definition
|
|
Term
|
Definition
| all loss caused by the same person resulting from a common series of actions |
|
|
Term
|
Definition
| total amount for all losses discovered during policy period. |
|
|
Term
| Insurers can write Fidelity bonds on a? |
|
Definition
| Schedule or Blanket Basis. |
|
|
Term
| A schedule fidelity bonds |
|
Definition
| typically used of businesses where employees have greater responsibilities or handle larger sums of money. |
|
|
Term
|
Definition
| cover all employees of the names insured unless specifically excluded. |
|
|
Term
|
Definition
| bonding for anyone acting as a plan fiduciary or otherwise handling money or other property for this type of plan. |
|
|
Term
| Financial institution Bonds are used by: |
|
Definition
Banks
Credit Unions
Securities Dealers
Finance Companies
Insurance Companies. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| used by brokers and dealers |
|
|
Term
|
Definition
| Credit Unions Blanket Bond |
|
|
Term
|
Definition
| All types of insurance companies |
|
|
Term
|
Definition
| used with other bonds to provided excess coverage for employee fidelity |
|
|
Term
|
Definition
|
|
Term
| Public Employee Dishonesty Coverage |
|
Definition
covers losses resulting from government employee dishonesty:
Coverage Form O - Per occurrence
Coverage Form P - Per employee |
|
|
Term
|
Definition
Attachment Bond
Replevin Bond
Injunction Bond |
|
|
Term
| Commercial Package Policies |
|
Definition
| allows a business to pay 1 premium to one insurer. |
|
|
Term
| Insurance Lines under Commercial Package Policies |
|
Definition
Commercial Property
Commercial General Liability
Employment Related Liability
Professional Liability
Commercial Crime & Employee dishonesty
Commercial Inland Marine
Business Auto
Boiler & Machinery
Equipment Breakdown |
|
|
Term
| Lines not available under Commercial Package Policies |
|
Definition
| Workers Comp, Health, Life & Disability |
|
|
Term
| Small to Medium size business usually purchase what? |
|
Definition
| BOP - The Business Owners Policy |
|
|
Term
| BOP Business Owner Package Policy does what? |
|
Definition
| It bundles property, liability and income protection in a single package. |
|
|
Term
| Business Owner Package Policy Pays: |
|
Definition
| RC if coverage is at least 80% of property's value. |
|
|
Term
| If coverage is less than 80% in as Business Owner Package Policy it pays: |
|
Definition
|
|
Term
| Typical coverage for Business Owner Package Policy |
|
Definition
12 months business income coverage
12 months extra expense coverage
inflation guard for buildings and structures
liability protection for lawsuits from accidents.
Slander and copyright protection
Deductibles on most claims
RC Valuation - ACV endorsement option
Open Peril coverage -named peril endorsement option |
|
|
Term
| Business Owner Package Policy does not include: |
|
Definition
coverage for company owned vehicles
professional liability coverage
malpractice coverage. |
|
|
Term
| At the very LEAST, a commercial Package Policy will contain _____ coverage sections |
|
Definition
|
|
Term
| Wholesaler & Distributors BOP Qualifications: |
|
Definition
| no more than 25% of gross income from retail sales & 25% or less of floor space is available to general public. |
|
|
Term
| Processing & Servicing BOP Qualifications: |
|
Definition
| Annual Sales are under 3 million & no more than 25% of sales occur off-premises |
|
|
Term
| Limited Cooking BOP Qualifications: |
|
Definition
| 7,500 square feet or less. Seats max of 75 customer - or 150 for fast food. No liquor sales. Beer & wine sales no more than 25% annual income. Maintenance of fire extinguishing equipment. |
|
|
Term
| Convenience Store BOP Qualifications: |
|
Definition
| Gasoline sales are less than 75% annual income. No auto repair or car wash. No propane or kerosene sales. |
|
|
Term
| Self Storage Facilities BOP Qualifications: |
|
Definition
Maximum of 2 stories but floor space not limited
no storage of pollutants, waste, chemicals or industrial materials |
|
|
Term
| Specialty Contractors BOP Qualifications: |
|
Definition
annual payroll no more than $300,000
annual sales no more than 3 million
subcontracted work no more than 10% total sales
no heavy construction
no working on buildings with 3 stories. |
|
|
Term
| Motel BOP Qualifications: |
|
Definition
Max 3 floors
no bars or cocktail lounges
not seasonal
not closed for more than 30 days per year. |
|
|
Term
| Apartment & Condo BOP Qualifications: |
|
Definition
occupancy must be residential or office
incidental occupancy no more than 25,000 sq feet
incidental occupancy by contractors not exceeding 7,500 sq ft or 15%
incidental occupants - businesses or offices |
|
|
Term
| Office Building BOP Qualifications: |
|
Definition
Less than 100,000 sq ft
no higher than 6 stories
tenants occupy no more than 25,000 sq ft
contractors occupy no more than 7,500 sq ft or 15% of total sq ft. |
|
|
Term
| Not eligible for BOP business: |
|
Definition
car dealerships. service stations, repair shops
parking lots & garages
amusements parks
bars, nightclubs & the like
banks and similar financial institutions
manufacturing, processing, servicing businesses
condominium associations (except residential office) |
|
|
Term
| Coverage A - Business Package Policies: |
|
Definition
|
|
Term
| Coverage B - Business Package Policies: |
|
Definition
| Business personal Property - property of business that is not attached to building. |
|
|
Term
| Coverage A & B Exclusions |
|
Definition
currency
vehicles and aircraft must be registered
watercraft while in water
contraband and property being illegally shipped or traded
land, water, lawns & crops
outdoor antennas unless under building extensions
trees and other plants unless under extensions |
|
|
Term
|
Definition
| pays if debris is reported w/in 180 days |
|
|
Term
| Business Income Coverage under CPP |
|
Definition
| continues until normal business can resume up to 12 months. |
|
|
Term
| Pollution Cleanup and Removal under CPP |
|
Definition
| only applies if insurer is notified within 180 days of loss |
|
|
Term
| Computer Operations Interruption under CPP |
|
Definition
| does not cover damage caused by employees. |
|
|
Term
|
Definition
|
|
Term
| Newly Acquired Constructed Buildings under CPP cover how many days |
|
Definition
|
|
Term
| Personal Effects under CPP |
|
Definition
| covers personal property under the insured's care, if damage is on the insured property. |
|
|
Term
| Eligible property for Outdoor Property under CPP are: |
|
Definition
Fences
Satellite Dishes
Antennas
Detached signs
Trees, shrubs and plants |
|
|
Term
| Covered causes of loss for Outdoor Property under CPP are: |
|
Definition
fire
lightning
explosion
riot or civil commotion
aircraft |
|
|
Term
| Liability Coverage in a Business Owners Policy (BOP) |
|
Definition
| All coverage is on occurrence form basis |
|
|
Term
| Possible Limits to Liability Claims under CPP |
|
Definition
Selected Per Occurrence Liability $500,000
General Aggregate $1,000,000
Products-Completed Operations $1,000,000
Per Occurrence (liability & medical expenses) $500,000
Per person (personal and advertising injury) $500,000
Medical Payments Limit $5,000
Damages to Premises rented by you $50,000 |
|
|
Term
| Typical Exclusions for BOP - business Owners Policy |
|
Definition
illegal acts
operations by gov
enforcement of ordinance or law
war
explosions of boilers
deterioration of property
power failure
earthquakes
water damage by continual leakage for 14+ days
foundation, floor, ceiling cracking or settling
power surge or interruption
property neglect
disappearance of property |
|
|
Term
| BOP offers liability coverage on an ____ basis |
|
Definition
|
|
Term
| Damage to premises rented by the insured are covered in a BOP |
|
Definition
|
|
Term
| Named-Peril Endorsement under BOP |
|
Definition
Protects the business owner from damages that result from:
Fire and lighting
windstorm & hair
explosions
smoke
aircraft or vehicles
riot r civil commotion
vandalism
sprinkler leakage
sinkhole collaps
volcanic action
transpiration if by - collision, derailment or overturn - stranding or sinking of vessels - collapse of bridges, docks or piers. |
|
|
Term
| Mechanical Breakdown Endorsement |
|
Definition
| Covers boilers, steamers, refrigeration systems. May also include - computer hardware or business income coverage. It causes premiums to go up. |
|
|
Term
| Employee Dishonesty Endorsement |
|
Definition
| Covers losses from theft by employees and applies up to a year after policy expires. |
|
|
Term
| Ordinance or Law endorsement under BOP |
|
Definition
| indemnifies for extra expense of bringing damaged property up to current building and safety codes. |
|
|
Term
| Utility Time Element Endorsement under BOP |
|
Definition
| covers lost business income and extra expenses due to loss of utilities. |
|
|
Term
| Hired Auto Liability Endorsement under BOP |
|
Definition
| adds coverage for rented, leased or borrowed vehicles. Covers liability for accidents happening while on business. |
|
|
Term
| Non-Owned Auto Liability Endorsement under BOP |
|
Definition
| adds coverage for un-owned vehicles when used for business. like a pizza delivery driver who uses their own car. |
|
|
Term
| The Business Owners Policy is: |
|
Definition
| the type of CPP for small to med sized businesses. |
|
|
Term
| What is not a covered peril included in the Named Peril Endorsement under BOP? |
|
Definition
|
|
Term
| What are the 5 sections in a Basic Business Auto Policy? |
|
Definition
Covered Autos
Liability Coverage
Physical Damage Coverage
Conditions
Definitions |
|
|
Term
|
Definition
| Any auto - only applies to liability coverage - no reporting required |
|
|
Term
|
Definition
| Any owned vehicle by the insured |
|
|
Term
|
Definition
| Owned private passenger vehicles, excluding trucks, buses & specialty vehicles. |
|
|
Term
|
Definition
| all owned autos that are not passenger vehicles - trucks, buses and specialty |
|
|
Term
|
Definition
| owned autos subject to no-fault insurance laws |
|
|
Term
|
Definition
| Owned autos subject to compulsory uninsured motorist law |
|
|
Term
|
Definition
| Specifically Described Autos - insured must report getting new auto within 30 days |
|
|
Term
|
Definition
|
|
Term
|
Definition
| non owned vehicles - provides liability coverage |
|
|
Term
|
Definition
| mobile equipment subject to compulsory auto financial responsibility |
|
|
Term
| Legal Liability Section under Commercial Auto covers |
|
Definition
the insured's liability, up to policy limits.
supplementary payments
defense costs of the insured, not subject to policy limit.
"insured" meaning
named insured
those operating covered vehicle with permission
anyone who becomes liable for conduct of insured
employees while moving property to/from a covered auto. |
|
|
Term
| Physical Damage section under Commercial Auto Policy covers |
|
Definition
Collision - collision with another car or object, overturn
comprehensive - other events, including hail, fire, contact with animal ect. |
|
|
Term
| Physical Damage section Under Commercial Auto Policy states that settlement is: |
|
Definition
|
|
Term
| Limit of Insurance Provision under the Physical Damage section on a CAP (commercial auto policy) states: |
|
Definition
| if after a loss the insured gets a better car than they had before the loss, the amount of this betterment, is not covered. |
|
|
Term
| Exclusions to Physical Damaged under a Commercial Auto Policy are: |
|
Definition
War & nuclear activity
wear and tear
freezing
mechanical or electrical breakdown
blowouts, punctures, ect
aftermarket electronics |
|
|
Term
| Conditions Section under Commercial Auto Policy cover |
|
Definition
Subrogation
reporting duties
who, when and how the policy changes
policy territory (where geographically the policy is in force
other conditions. |
|
|
Term
| BAP Uninsured/underinsured endorsement |
|
Definition
| pays when the person is at fault for damages does not have the liability insurance to cover them. |
|
|
Term
| BAP Named Individuals Broadened PIP endorsement |
|
Definition
| Named Individuals Broadened PIP - insured can extend the policy's PIP coverage to include specific people, such as an employee who doesn't have his own car. |
|
|
Term
| BAP Medical Payments/PIP Endorsements |
|
Definition
| adds coverage for medical injuries caused by accidents. Includes the named insured and any relatives and household members |
|
|
Term
| BAP Individual Named Insured Endorsements |
|
Definition
| adds insured's personal auto into business policy |
|
|
Term
| BAP Drive Other Car endorsement |
|
Definition
| covers named people and their spouse for the use of cars that they do not own and are not covered up BAP |
|
|
Term
| BAP Employee as additional insured endorsement |
|
Definition
| covers employees while using their personal cars for business purposes. |
|
|
Term
| BAP Mobile Equipment Endorsement |
|
Definition
| adds coverage for mobile equipment |
|
|
Term
| BAP Extended Non-Owner Liability Endorsement |
|
Definition
| extends the liability coverage for specific people driving non-owned autos. |
|
|
Term
| Garage and Garage-keepers Insurance covers |
|
Definition
| items in care, custody and control of insured. |
|
|
Term
| Garage and Garage-keepers Insurance policy can provide: |
|
Definition
Direct Excess Coverage: pays losses in excess of vehicles owner's coverage
Direct Primary Coverage: Splits the whole loss with he vehicle owner's insurance coverage. |
|
|
Term
| 2 hazards under Garage and Garage-Keepers Insurance |
|
Definition
Premises/Operations: injury or damages suffered on premises
Products/Completed Services: for defective items or service |
|
|
Term
| Garage-Keepers ONLY Symbol #30 |
|
Definition
| autos left for service, repairs, storage and safekeeping (mandatory for garages) |
|
|
Term
| Garage-Keepers ONLY Symbol #31 |
|
Definition
|
|
Term
| Coverage Symbols are the same as BAP except they add a 2 in front. |
|
Definition
|
|
Term
| Garage Liability Policy Exclusions: |
|
Definition
Watercraft or aircraft, unless on premises
workers comp injuries
pollution damage
loss of use of property caused by delays or failures of the insured
product or work recalls
real or personal property in insured's care, custody and control. |
|
|
Term
| Bailment under Garage-Keepers Insurance |
|
Definition
| When goods are in someone's care, custody and control. |
|
|
Term
| Bailee Coverage under Garage-Keepers Insurance |
|
Definition
| Insurance coverage on goods in someone's care, custody and control. |
|
|
Term
| 3 forms of protection under Garage-Keepers Insurance: |
|
Definition
Comprehensive
Collision or Overturn
Specific Causes of Loss, including - fire, lighting & explosions, theft, malicious mischief and vandalism. |
|
|
Term
| Garage-Keepers insurance exclude: |
|
Definition
Theft by insiders
contractual liability (may be covered in other section of policy)
Aftermarket sound or radar equipment
racing, acts of war. rebellion ect. |
|
|
Term
| Physical Damage Coverage under Garage-Keepers Policy: |
|
Definition
| like BAP, but includes blanket limit on entire inventory |
|
|
Term
| False Pretense Coverage under Garage-Keepers Policy |
|
Definition
| covers the loss of cars when people steal them through a trick or scheme. |
|
|
Term
| Garage-Keepers Insurance is designed to: |
|
Definition
| provide insurance protection against damages to customer's autos while the insured's care and custody. |
|
|
Term
| Truckers Insurance Policy Symbols will have #4 in front. |
|
Definition
|
|
Term
| Liability Coverage under Truckers Policy |
|
Definition
| includes people who hire out or lend their cars to the insured for business purposes |
|
|
Term
| Trailer Interchange Coverage under Truckers Policy |
|
Definition
| covers damage to other people's trailers in the car of the insured for transport purposes |
|
|
Term
|
Definition
| used as alternative to truckers policy. Motor carrier may transport goods or passengers |
|
|
Term
| Motor Carrier Policy uses Symbol #6 in front. |
|
Definition
|
|
Term
| Endorsement for Motor Carrier Policies of Insurance of Public Liability: |
|
Definition
| helps insured comply with laws regarding the transport of hazardous and non-hazardous cargo. |
|
|
Term
| What are the 4 types of Business Auto Policy: |
|
Definition
Basic Business Auto Policy (BAP)
Garage Policy or Garage-Keepers Policy
Trucker's Policy
Motor Carrier Policy |
|
|
Term
| NFIP National Flood Insurance Program |
|
Definition
| Federal Government established under the jurisdiction of FEMA. It identifies flood zones and hazards. |
|
|
Term
| Who can purchase Flood Insurance? |
|
Definition
| Individuals with participating communities. |
|
|
Term
| Flood Insurance Rate Maps uses a measurement called: |
|
Definition
| Base Flood - A flood so bad that it only happens once in 100 years. |
|
|
Term
|
Definition
| the highest level that the water would reach during a base flood. |
|
|
Term
| Base Flood elevations help regulate: |
|
Definition
|
|
Term
|
Definition
Temp inundation of 2 more acres or properties caused by 1. overflow of inland or tidal waters 2. rapid accumulation of surface water or runoff 3. mudflow
collapse of land along the shore of a lake or other body of water which causes overflow of inland waters. |
|
|
Term
| NFIP Standard Flood Insurance Policy (SFIP) |
|
Definition
| Federal insurance, not subject to local or state courts. not subject to state departments of insurance. |
|
|
Term
|
Definition
| issued by federal government - claims handled by federal government |
|
|
Term
| Write Your Own (WYO) Program |
|
Definition
| lets private insurers sell and underwrite polices. Keep a percentage of premiums to cover expenses. Put remaining premiums into NFIP accounts and pay claims from NIFP accounts. |
|
|
Term
| What does the Federal Government do under the Write Your Own Policy |
|
Definition
| Sets guidelines for insurers when underwriting and managing polices. Sets up claim accounts and helps cover losses that exceed the amount available in claim accounts. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| 1 to 4 family dwellings / 1-4 condo units and residential contents |
|
|
Term
| General Property Form under NFIP |
|
Definition
| non-residential building + contents. Some residential buildings that don't qualify for dwelling form. |
|
|
Term
| Residential Condominium Building Association Policy (RCBAP) |
|
Definition
| Insures residential condo associations |
|
|
Term
| Dwelling Form Coverage A for Flood Insurance |
|
Definition
1-4 family dwellings
attached additions connected to dwelling by - rigid exterior wall, stairway, elevated walkway roof
detached garages up to 10% of coverage A limit
construction materials only if inside a covered building
buildings under construction - deductible is doubled |
|
|
Term
| Dwelling Form Coverage B - Personal Property |
|
Definition
covers direct physical loss to contents due to flood
requirements for contents coverage:
Separate Purchase and deductible
items must be in an enclosed building or secured if building is partially enclose. |
|
|
Term
| Coverage C Other Coverages under Flood Insurance |
|
Definition
Debris Removal pay to remove debris from the insured premises and from covered property
debris must be made up of covered property that was damaged by flood |
|
|
Term
| Other Coverages - Mitigation (Loss Avoidance Measures) under Flood Insurance |
|
Definition
pays up to $1000 for avoidance measures
no deductible
covered measures:
sandbags (including the sand)
fill for temp levees
pumps
plastic sheeting and lumber
labor (aid at federal minimum wage if insured or relatives do the work themselves) |
|
|
Term
| Property Removed to Safety under Flood Insurance |
|
Definition
pays to move insured property away from flood.
no deductible
pays up to $1000
removed property only covered against flood |
|
|
Term
| Increased Cost of Compliance (ICC) |
|
Definition
covers cost of complying with
floodplain management law
ordinance concerning repairs or reconstruction |
|
|
Term
| Limit of Coverage D - ICC |
|
Definition
$30,000 in addition to coverage A limit
put together, payout for ICC and coverage A cannot exceed
$250.000 for a dwelling or $500,000 for a commercial structure |
|
|
Term
| Coverage D - ICC exclusions |
|
Definition
property of building in, on or over water
land
lawns
trees, shrubs & plants
crops
animals |
|
|
Term
| Insured's Responsible After Loss |
|
Definition
immediately notify the insure
separate the damaged and undamaged property and organize it for the adjusters exam
put account books, records, receipts, etc in a safe place for evaluation by the adjuster
submit an NFIP proof of loss form within 60 days of loss |
|
|
Term
|
Definition
determine if there was a genberal condition of flooding
determine how water entered building
check for exterior and interior waterlines, report their hight and provided photos
investigate and document all other evidence of loss
confirm that any previous flood damage as been repaired. |
|
|
Term
| Reduction and Reformation Conditions |
|
Definition
| protects the insurer if the policy premium is too low because policy holder did not get enough information at first. |
|
|
Term
|
Definition
| the insurer has 60 days from when it receives a proff of loss to pay the claim |
|
|
Term
| 3 ways to settle a loss under the dwelling form |
|
Definition
|
|
Term
|
Definition
| to qualify a mobil home must be the insured's principal residence, be ast least 16 feet wide and have at least 600 sq ft |
|
|
Term
| Mechanical Breakdown Insurance |
|
Definition
| Covers losses due to breakdown of motor vehicles |
|
|
Term
| MBI policies cover the breakdown of: |
|
Definition
engines
tranmissions
drie trains
sterring mechanisms
electrical and electronic systems
a/c systems
front suspension |
|
|
Term
| MBI polices ,may require: |
|
Definition
proof of regular maintenance
full inspection before the policy is issued
repair cost cannot exceed the car's ACV |
|
|
Term
|
Definition
delay in maintenance
covered by regular auto insurance
due to racing reckless driving
vehicles with altered odometers
occurring while towing with or overloading the vehicle |
|
|
Term
|
Definition
the owner must take reasonable care to minimize repair cost
vehicle may be subjected to inspection before repairs are done
subject to subrogation |
|
|
Term
| Coverage under Excess Liability comes into effect wen? |
|
Definition
| Only after limits after base policy are reached. |
|
|
Term
| The Base Policy under Excess Liability Works |
|
Definition
|
|
Term
|
Definition
follows your base insurance policy to the letter. uses the same provisions, exclusions and coverages as the base policy
simple to adjust a claim on |
|
|
Term
|
Definition
covers what base policy covers but sets own exclusions and limitations to coverage
Adjuster must carefully review policy provisions to ensure a loss is covered. |
|
|
Term
|
Definition
| may cover risk and exposures not included in the base policy |
|
|
Term
| Umbrella Policy can operate in several ways: |
|
Definition
can operate like stand alone
also works as primary policy
provides broadest coverage |
|
|
Term
| When an Umbrella Policy covers a loss that is not in the base policy there is a Deductible called Self-Insured Retention (SIR) |
|
Definition
SIR will always equal the limits on base policy.
If limit of the base policy is paid. this pays the SIR |
|
|
Term
| Ocean Marine Polices are: |
|
Definition
| utmost good faith contacts |
|
|
Term
|
Definition
| Ships are required to adhere to certain implied warranties in order to receive coverage. |
|
|
Term
| 4 Implied Warranties of an Ocean Marine Contract |
|
Definition
Seaworthiness
Condition of Cargo
Legality
No Deviation in Voyage |
|
|
Term
|
Definition
The vessel must:
be in a seaworthy condition
be fit for voyage (not overloaded)
have a competent captain & crew |
|
|
Term
| Condition of Cargo warranty |
|
Definition
The owner of the cargo must guarantee:
The cargo is sound
everything is loaded properly |
|
|
Term
|
Definition
The voyage must be legal
*involvement in contraband, smuggling or any other illegal activities will nullify the insurance contact. |
|
|
Term
| No Deviation in Voyage warranty |
|
Definition
The rout of the voyage must be clearly stated prior to leaving.
Captain must adhere to the route throughout voyage. NO CHANGE |
|
|
Term
|
Definition
Policyholder has 45 days to pay in full or develop a payment option that is acceptable.
upon cancellation the premium will be paid on a pro rata basis. |
|
|
Term
| 4 types of Ocean Marine Insurance Policies |
|
Definition
Hull Coverage
Cargo Coverage
Fright Insurance
Protection & Indemnity (p&I) |
|
|
Term
| Ocean Marine Insurance Covers: |
|
Definition
Loss of vessel
loss of cargo
may extend to property stored on docks & piers. |
|
|
Term
| 3 Types of Policy Valuation |
|
Definition
Valued Basis - full amount of policy is paid in the event of a total loss
Unvalued Basis - amount of payment is determined after the loss
Agreed Value Basis - if the value of the vessel is determined when the policy is issued. |
|
|
Term
|
Definition
Policy Period - 1 year
covers damages to and loss f the marine vessel
fire
lighting
piracy
can be defined geographic areas |
|
|
Term
|
Definition
average - standard flat-rate deductible
franchise:
if damage amount exceeds deductible the insurer pays the full cost for damages
if damage is less than deduction the policyholder pays for all damages |
|
|
Term
|
Definition
Protects goods in transit
single risk - coargo on single shipment only
floating multi trips over specific period of time
warehouse to warehouse cargo from point of origin to point of destination |
|
|
Term
|
Definition
the charge made for shipping goods paid to the owner
protects the vessels owner in the vent the fright cost is not paid
often combined will HULL coverage |
|
|
Term
|
Definition
| indemnifies the 3rd party not the policyholder |
|
|
Term
|
Definition
| items that have disappeared or not salvageable |
|
|
Term
|
Definition
| items have been damaged beyond repair or the repair cost exceeds the cost to replace |
|
|
Term
| Cost, Insurance & freight CIF |
|
Definition
| seller or exporter is responsible for the cargo through the voyage |
|
|
Term
|
Definition
| buyer or importer is responsible for the cargo throughout the shipment |
|
|
Term
|
Definition
| the seller is responsible for the cargo until it reaches a certain point - such as a specified ship or port. |
|
|
Term
|
Definition
| the insured party is required to attempt to prevent further losses once damage occurs |
|
|
Term
|
Definition
| cargo can be salvaged from damaged vessel, but the cargo is damaged beyond repair and the repair cost would exceed the cost to replace. |
|
|
Term
| Inland Marine Insurance covers: |
|
Definition
property in transport (other than transport)
covers property involved in transportation
Typically known as floaters |
|
|
Term
|
Definition
movable
in transit
instrumentalities of transpiration or communication including:
roads
bridges
tunnels
radio towers
power lines |
|
|
Term
|
Definition
written on standard provision form promulgated by a bureau filed with the department of insurance for uniform use.
forms disclose rates being charged |
|
|
Term
| Uncontrolled Line Floater |
|
Definition
| insurers use their own form which can vary by company and by individual risk. Used to meet needs of indy clients. not filed with the state department of insurance |
|
|
Term
|
Definition
Annual Transit - uncontrolled form that covers loss of goods in transit. Applies to all of the insureds shipments during the year. Choice of open peril coverage or named-peril coverage against fire, windstorm collision or theft.
trip transit - uncontrolled form similar to annual but only insures a single shipment
Motor Truck Cargo - uncontrolled form protects carrier of shipped goods while the shipment is in transit.
Mail Coverage - controlled form. provides open peril coverage for property sent by registered mail. shipper bust report property value accurately |
|
|
Term
| Instrumentalities of Transpiration or Communication |
|
Definition
Uncontrolled form
pays for direct damage and loss of revenue due to covered loss
covers property directly related to transportation and communication, including
bridges
tunnels
roads
dams
piers & docks
pipelines
power transmission line
antenna & towers for radio & TV |
|
|
Term
| Personal Property Floater Risk |
|
Definition
specifies coverage and premium for each property type
provide open peril coverage - no deductibles & are anywhere in world. |
|
|
Term
| commercial property floater risk |
|
Definition
|
|
Term
|
Definition
| protect against losses occurring during shipment of transport of goods. includes travel by truck, train, ship, mail or plane |
|
|
Term
| Stamps & Coin collection pays up to |
|
Definition
| $1,000 for coin collection & $250 for individual item |
|
|
Term
| Inland Marine Jewelers Block |
|
Definition
| Bailee Form - for jewelers up to $250,000 in stock |
|
|
Term
|
Definition
| work-related injuries and protects employers from their liability when injury occurs. |
|
|
Term
|
Definition
| an employee's medical bills and lost wages following work-related injury |
|
|
Term
| Not Covered in OKLAHOMA under Worker's Comp |
|
Definition
Anyone who is already covered under the Federal Employees' Compensation Act, the Federal Employers' Liability Act, the Longshore and Harbor Workers’ Compensation Act, or the Jones Act
Agricultural workers who don’t operate machines and whose employers have a payroll of less than $100,000
Real estate agents and brokers who earn commission
People who work for certain programs run by the Department of Human Services, namely medical care or social services programs, and training programs
Employees of an employer that has five or fewer employees, all of whom are related to the employer
Those who work for youth sports leagues that are exempt from federal taxes
Sole proprietors, members of a partnership, individuals in a franchise agreement, members of a limited liability company who own at least 10% of the capital, or any stockholder-employees of a corporation who own 10% or more stock in the corporation,
Unpaid volunteers (except volunteer firefighters, peace officers, and first aid and rescue squad members)
An owner-operator of a truck-tractor, truck, or towing vehicle
Domestic servants and casual workers in a private home, as long as the home’s annual payroll for this kind of worker is less than $50,000 |
|
|
Term
| Permanent Total Disability pays: |
|
Definition
|
|
Term
| States that require business to purchase WC insurance through the state funds are called: |
|
Definition
|
|
Term
| States that allow business to purchase WC insurance from private insurers (as an alternative to the state WC fun are called: |
|
Definition
|
|
Term
| Exclusive Remedy for Worker's comp means: |
|
Definition
| employee is not permitted to sue his employer. |
|
|
Term
|
Definition
| created to insure high-risk people who are denied coverage by private insurers. |
|
|
Term
| Residual Markets is LAST resort because: |
|
Definition
it is expensive
minimal coverage
applicant must prove that he was refused coverage |
|
|
Term
| state run or state-subsidized programs |
|
Definition
|
|
Term
| Oklahoma Automobile Insurance Plan for Residual Markets coverage: |
|
Definition
Liability coverage:
Bodily Injury - up to $100,000 per person / $300,000 per accident
Property Damage - up to $50,000 per accident
Uninsured Motorist Bodily Injury up to:
$25,000 to $100,000 per person
$50,000 to $300,000 per accident |
|
|
Term
| Insurer that write polices through the OK AIP must offer |
|
Definition
| liability coverage and uninsured/underinsuerd motorist coverage. |
|
|
Term
| Additional Coverage are normally: |
|
Definition
| small or limited amount of coverage for specific types of losses or expenses |
|
|
Term
| Time Element Insurance Coverage covers: |
|
Definition
| an indirect loss if it can be proven hat is resulted from a direct loss. |
|
|
Term
| Business Interruption Insurance covers: |
|
Definition
| a business for loss of profits or revenue in the event of a covered peril. |
|
|
Term
| Law and Ordinance Coverage covers |
|
Definition
| the repair or upgrade cost when new building codes, laws or ordinances go in effect. - commercial & residential policy packages. |
|
|
Term
| Valuable Papers Business Insurance covers |
|
Definition
written, printed or otherwise inscribed documents and records, including:
books
maps
films
drawings
abstracts
deeds
mortgages
manuscripts
does not cover:
money or securities
converted data
programs or instructions used in data |
|
|
Term
|
Definition
EDP Equipment
EDP Media
EDP Data |
|
|
Term
| Pollutant Cleanup & Removal has _____ days to notify the insure of pollution |
|
Definition
|
|
Term
|
Definition
| misleading the public about the insurer or its polices |
|
|
Term
|
Definition
| tricking a policyholder into giving up an existing policy, so that you can sell her another. |
|
|
Term
|
Definition
| insurers and their agents must not speak poorly of other insurers |
|
|
Term
|
Definition
| insurers may NOT provide kickbacks |
|
|
Term
| Boycott, Coercion and Intimidation |
|
Definition
| an insurance company may NOT participate in activities that coerce consumers into buying its products. |
|
|
Term
|
Definition
| A binder is an oral or written legal agreement issued by an insurer to provide temporary evidence of insurance until a policy can be issued. |
|
|
Term
| In Oklahoma, a binder is valid until the actual policy beings or ____ days; whichever period is shorter. |
|
Definition
|
|
Term
| A property or casualty insurer in Oklahoma may NOT increase a premium rates, cancel a policy or refuse to issue a new policy because a policyholder does what: |
|
Definition
| inquires or request info about making a claim . |
|
|
Term
| After a policy has been in effect for more than _________ business days, insurers may ONLY cnl or refuse to renew it for _________ reasons. |
|
Definition
|
|
Term
| insure must do what before cancellation / non renewal of a commercial police? |
|
Definition
| send written notice in advance. |
|
|
Term
| Notice of Cancellation or Nonrenewable: |
|
Definition
Cancellation: 10 days in advance
Nonrenewal: 45 days in advance |
|
|
Term
| If the insurer does not notify the insured 45 days before policy expires it must : |
|
Definition
| extend coverage for 45 days after notice is given. |
|
|
Term
| t/f Making changes to the policy is NOT considered NONRENEWAL |
|
Definition
|
|
Term
| When making changes, the insurer must send a notice to the policyholder at least _____ days |
|
Definition
|
|
Term
| Approved reason for Cancellation of a commercial marine, commercial auto, commercial property, commercial casualty or commercial fire policy:L |
|
Definition
Nonpayment of premium
Fraud or misrepresentation during application or claims process
Willful or reckless acts or omissions by the insured which increase hazards
A change in the risk that greatly increases hazards
A violation of any local fire, health, safety, building, or construction regulation which greatly increases hazards
The commissioner determines that continuing the policy would violate state insurance laws
The named insured is convicted of a crime which increases any hazard
Loss of, or substantial changes in, applicable reinsurance |
|
|
Term
| T/F Moving a policyholder to a different company within the same insurance group is not considered a refusal to renew. Nor is changing the deductible, premium, amount of insurance, policy limits, or coverage on the policy. |
|
Definition
|
|
Term
| Notice of nonrenewable is not required if: |
|
Definition
The insurer or a company within the same insurance group has offered to issue a renewal policy
The insured already has replacement coverage
The insured has agreed in writing to get replacement coverage |
|
|
Term
| On policy changes, If the insured decides not to renew the policy under the new terms, how does the insurer calculate premium? |
|
Definition
| the insurer must calculate any earned premium for the terminated policy using the current or previous year’s rate, whichever is lower. |
|
|
Term
| On a residential policy, the insurer cannot cancel, refuse to renew or increase the premium if it has been in effect for _______ days, only because the insured filed a claim. |
|
Definition
|
|
Term
| Insurer must notify the policyholder at least ______ days in advance to make changes to a residential policy. |
|
Definition
|
|
Term
| Approved Reasons for cancellation or nonrenewable or increased premiums for residential policy. |
|
Definition
Nonpayment of premium
Fraud or misrepresentation in policy application or claim
Willful or reckless acts or omissions by the insured which increase hazards
A change in the risk that greatly increases hazards
A violation of any local fire, health, safety, building, or construction regulation which greatly increases hazards
The commissioner determines that continuing the policy would violate state insurance laws
The named insured is convicted of a crime which increases any hazard |
|
|
Term
| For property & Casualty policy, the insurers must send written notice at least ____ in advance for cancellation |
|
Definition
|
|
Term
| For property & Casualty policy, the insurers must send written notice at least ____ in advance for nonrenewal |
|
Definition
| 20 days but 30 for homeowner policies and other types of personal residential coverage. |
|
|
Term
|
Definition
Winner’s court costs are usually included in award
If the amount awarded is less than insurer’s settlement offer, then insurer wins the case; in all other instances, the insured is the winner
If insured wins, insurer must pay 15% interest on the award |
|
|
Term
| Time Limit for Proof of Loss form |
|
Definition
Time Limit for Proof of Loss
Insurer must provide the claimant with proof of loss forms
In some cases, 60-day limit applies to submitting proof of loss forms
When 60-day time limit applies, insurer must send two blank proof of loss forms with a warning about deadline that is either:
printed in bold in a clearly visible place on the proof of loss forms
in a separate letter that accompanies the proof of loss forms
Insurer has 60 days to accept or deny a claim after receiving proof of loss |
|
|
Term
| Oklahoma Property & Casualty Insurance Guaranty Association Act: |
|
Definition
Guaranty association covers insurers who can’t afford to pay claims
All member insurers pay dues based on annual premiums collected
The Oklahoma Property and Casualty Insurance Guaranty Association does not cover:
life, health, or disability insurance
ocean marine insurance
fidelity or surety bonds, or any other bonding obligations
title insurance
credit insurance, warranty or service contracts, annuities, single interest vendor, or collateral protection insurance
any claims where an investment or credit risk has been transferred unless the investment risk is also transferred
surplus lines insurance |
|
|
Term
| Insurers must be licensed in the state of Oklahoma in order to qualify for: |
|
Definition
|
|
Term
| 3 mains responsibilities of the Guaranty Association: |
|
Definition
Avoid excessive delay in payments
Avoid financial loss to claimants because of insurer insolvency
Provide an industry association to assess the cost of these issues |
|
|
Term
| Surplus insurers, brokers, and licensees must have a bold-face type notification on the declaration page explaining that the contract is not covered by the Guaranty Association. |
|
Definition
|
|
Term
| Property & Casualty Insurers must acknowledge any claim within _____ days unless it pays the claim before then |
|
Definition
|
|
Term
| P&C insurers have 60 days after receiving a proof of loss to tell a first-party claimant whether they will accept or deny the claim, or if they need more time to investigate it. In the event of a catastrophe, as declared by the governor, the commissioner may extend this deadline by 20 days. |
|
Definition
|
|
Term
| Unless the claim includes possible fraud or arson, no investigation should last more than 120 days from the insurer’s receipt of proof of loss. However, in the event of a catastrophe, the commissioner may extend this deadline by 20 days. |
|
Definition
|
|
Term
| The commissioner has the power to examine and investigate any person who is a part of the insurance industry in Oklahoma in order to determine if the person has been, or is currently engaging in any unfair method of competition, unfair or deceptive act, or prohibited practice. |
|
Definition
|
|
Term
|
Definition
Examine an insurer’s claim files at any time, at least once every 5 years
Investigate any insurance business or individual who might be committing unfair practices
Hold a hearing
Fine an insurer between $100 – $5,000 for each violation
Issue a cease and desist order (the insurer can file an appeal within 30 days). If the insurer refuses to comply, the commissioner may also:
revoke or suspend its certificate of authority
limit, regulate, or control its line of business and its ability to write certain forms |
|
|
Term
| When can a insurer sell a total loss vehicle back to a claimant after offer the claimant ac ash settlement? |
|
Definition
| When the claimant specifies in writing they understand it is a "Junked Vehicle" |
|
|
Term
| An insurer may not request a refund on all or part of claims more than _____ after paying it |
|
Definition
|
|
Term
| property & casualty have how many days to either accept or deny a claim after receiving proof of loss? |
|
Definition
|
|
Term
| The Commissioner may fine an insurer up to |
|
Definition
|
|
Term
| Fair Credit Reporting Act (FCRA): |
|
Definition
| regulates how companies collect, share, and use consumers’ personal and financial information |
|
|
Term
| Qualifications and Process for Resident Adjusters: |
|
Definition
Be at least 18 years old
Be an Oklahoma resident
Be trustworthy
Have the experience or special education needed to be able to fulfill the responsibilities of an adjuster
Pass the licensing examination in the 2 years before applying |
|
|
Term
| Qualification and Process for Non-Resident Adjusters: |
|
Definition
Be at least 18 years old
Be trustworthy
Have the experience or special education needed to be able to fulfill the responsibilities of an adjuster
Live in a state or country, or designate a home state, that grants non-resident licenses to Oklahoma adjusters
Hold and maintain a current resident adjuster license, for which the applicant passed an exam, in the adjuster’s home state (or in a “designated home state” if the home state does not require an exam for licensure)
If not a US citizen, be in compliance with all federal laws pertaining to employment. |
|
|
Term
| An adjuster must notify the insurance commissioner within ____ days of any change in the adjuster’s legal name or mailing, business, or residence address. |
|
Definition
|
|
Term
|
Definition
24 hours of CE, including:
3 hours of ethics
2 hours of legislative updates
19 hours of general adjuster information (including 1-hour earthquake course for property adjusters)
Non-residents must meet home state CE requirements |
|
|
Term
| Every domestic insurer must be examined at least once every _____ years |
|
Definition
|
|
Term
| After a hearing, the insurance commissioner may suspend or revoke an adjuster’s license or administer a fine of up to $1,000 for each violation of the above prohibited acts. |
|
Definition
|
|
Term
| Emergency Adjuster License are valid for only _____ days from the date the commissioner first declared an emergency |
|
Definition
|
|
Term
|
Definition
Commerce in D.C, any state or any territory of the U.S if:
it crosses state lines, even if its end point is in the same state as its starting point. |
|
|
Term
|
Definition
anything having to do with
writing insurance policies
reinsurance |
|
|
Term
| Anyone involved in insurance business who is convicted of making false statements on financial reports or over-valuing land, property ect to deceive an examiner will pay the larger of: |
|
Definition
| $50,000 per violation or the amount that person made or paid while engaging in fraud. |
|
|
