20/40/10

20 bi per person/40 bi per accident/ PD per accident

Commercial -

What is the expediting Expense limit paid out on a loss?

25,000

OR

25K

Loss must be due to chance

loss must be definite and measurable

loss must be predictable

Loss CANNOT be catastrophic

Loss exposure to be insured must be large

Insurance must NOT be mandatory

These are the elements of what type of risk?

1. audit or abstract insurance policies

2.Counsel regarding benefits coverage, terms, advantages and disadvantages of policy annuity

3. advertise and solicit business as a consultant

These are the duties of what?

1. Negotiate or bind re-insurance contracts

2. Manage all or part of the insurance business

3. Produce and underwrite an amount of gross direct written premium not less than 5% of the policyholder surplus

These are the duties of what?

Not more than 10,000 for each violation not to exceed 50,000 and suspension and revocation of license.

Violations are turned over to the attorney general for procesecution.

The font must not be less than 8 point font.

It must have a readability score of at least 45

Fire, Lighting, and removal

SFP Cancellation by INSURED is on pro rata basis

How many days does an appointing insurer have to notify the commissioner? 

The commissioner will verify within how many days 30

If the commissioner determines the producer ineligible they must notify the insurer within 5 days. 

Michigan Property and Casualty Guaranty Association

Each member of the association pays an assessment into the fund equal to 1% of the insurers direct written premium and each member is given 30 days notice of how much and the dues are payable.

1. Must be from insurance policies issued or payable to Michigan residents.

2. Are unpaid by an insolvent authorized insurer.

3. Are presented to the Association before the fixed filing date.

4. Existed before or were incurred within 30 days of the appointment of the receiver.

5. Arise out of insurance policies OTHER THAN life or health insurance.

6. Arise out of insurance policies issued ON or BEFORE the last date the insurer was a member insurer

NOT COVERED CLAIMS:

1. Claims involving refund of unearned premium OVER $500

2. A refund for an amount LESS than $50 for unearned premium

3. Obligation incurred AFTER the expiration date of the policy, after the policy has been replaced or cancelled.

4. Obligation arising out of fraud.

The claims covered and not covered by Michigan Property and Casualty Guaranty Association?

Michigan Property and Casualty Guaranty Assoc -

will continue coverage under each policy until the earliest of 30 days AFTER the receiver is appointed OR the policy has expired, been replaced or cancelled.

How many days does the association have to mail written notice to the last known insured address?

1. Coverage for ACV of property at the time of loss

2. Coverage for loss by fire and lightning and pro - rata coverage for 5 days for insured property removed to another location to protect it from damage.

3. Language stating that the policy may be VOID upon basis of misrepresentation, fraud or concealment.

4. List of property and perils NOT covered.

5. Language that the policy may be cancelled at ANY time by the insured.

6. Language that if the insured and insurer fail to agree on the ACV or amount of loss then either party may request that ACV be set by appraisal

These must be contained in what type of policy?

Acts of terrorism must be violent or dangerous to human life, must occur with the US to an air carrier as defined in the US and insured under US laws, the act must have been committed by someone as part of an effort to coerce the US civilian populace to influence US policy or affect the conduct of the US government by coercion. 

An act of terrorism must produce a property and casualty insurance over what amount?

What act uses the following factors for rating home insurance?

1. amount and type of coverage

2. Security and safety devices

3. repairable structual defects

4. fire protection class

5. construction of structure

6. insured's loss experience

7. use of smoking materials

8. distance to the nearest fire hydrant

9. availability of law enforcement

5 years

Also not eligible:

1. have property that is used for illegal or particular hazardous purposes

2. refuse to purchase 80% of replacement cost (when applying for replacement cost)

3. refuse to purchase 100% of market cost

4. policies that were cancelled for non payment in the last two years.

5. insure dwelling less than 15k for a repair cost policy or 35k for replacement cost

6. have not paid real property taxes for 2 years

7. wish to insure a dwelling that does not meet the commissioners minimum standards of insurability

Per Essential Insurance Act - Underwriting guidelines used by the insurer must be in writing and filed with who?

All underwriting guidelines must apply throughout the state.

1. Judgement Rating - (ocean marine) small groups of similars unusual items

2. Experience Rating - insured's past loss history

3. Schedule Rating - schedule of charges and credits applied on the base rate

4. Retrospective Rating - Pay up front premium deposit and then pay adjusted premium at the end of the policy.

The following are the elements of what?

1. legal duty

2. Standard of care

3. Proximate cause - an act or event that is the immediate or actual cause of loss

4. actual loss or damage

Physical

Moral -misinformation on application

Morale - carelessness

If existing vehicle has OTC and collision 14 days

Existing coverage does not have OTC and collision 4 days

A $500 deductible applies to loss before insured is notified.

Office buildings not exceeding