Term
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Definition
| Liability claims and awards are difficult to settle (pain, suffering..etc) could be drawn out... |
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Term
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Definition
| non-physical, personal injury |
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Term
| Absolute liability situation Tort |
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Definition
| Workers compensation, can't sue if covered unders workers comp |
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Term
| Negligence (tort) General... |
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Definition
| failure to use degree of care needed to protect others from harm |
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Term
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Definition
1. legal duty of care
2.failure to meet duty of care
3. injury
4. proximate cause |
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Term
| Types of damages awarded from negligence |
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Definition
-special (specific)
-general (pain and suffering)
-punitive |
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Term
| Defenses again Negligence (3) |
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Definition
-Contributory neg. (if you have anything to do with it, no recovery
-Comparative neg (relative fault of parties into consideration
-Assumption of the risk |
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Term
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Definition
Absolute (strict) liability
-res ipsa loquiture (speaks for itself) (doc operates wrong leg) |
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Term
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Definition
| -different success in different areas |
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Term
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Definition
-Use ADR-mediation
-other sources of recovery
-limit joint and several liability
-cap damage awards
-punish people who file frivolous claims |
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Term
| Advantage of "Package Policies" |
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Definition
-more complete coverage
-common expiration date
-lower cost than buying indivi. |
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Term
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Definition
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Term
| Different sections of HO-3 |
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Definition
1. property coverage
2.personal liability and medical payments to others |
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Term
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Definition
a. Dwelling
b. Other structures
c. personal property
d. loss of use |
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Term
| HO-3 insures at Market Value or Replacement Cost |
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Definition
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Term
| Coverage A & B are "all risk" with exceptions.. |
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Definition
| collapse from insects, damange from water (freezing, thaw) inherent vice, vandalism, mold |
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Term
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Definition
| property separately insured, pets, motor vehicles, business records, aircraft, property of roomers/boarders |
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Term
| Coverage D applications... |
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Definition
if insured peril of damages the home and it can't be used, lost rent if a tenant cant use the rental area in the home.
Certain property has limited coverage: money, theft of jewelry, theft of firearms, silverware
coverage can be added by personal property floater |
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Term
| Section 1 loss settlement |
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Definition
ACV or (insurance carried/80% repl cost) x loss
*greater of the two amounts |
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Term
| section 1 policy conditions |
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Definition
| pair or set clause, mortgage clause, duties after loss, appraisal clause, so suit again the insurer, concealment or fraud |
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Term
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Definition
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Term
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Definition
| 2 or more perils bring about the loss, as long as one is excluded then the loss is excluded |
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Term
| ISO HO-3 has a deductible of |
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Definition
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Term
| Section 2 includes what coverages |
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Definition
E Personal liability
F Medical Payment to others |
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Term
| Difference between Accident and Occurrence |
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Definition
Accident: sudden event, time specific
Occurrence: takes place over time |
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Term
| Coverage E, and F exclusions |
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Definition
E: contractual liabilities, property owned by insured, workers comp
F: insured, and family, regular residents of the home.
Both: auto, watercraft, aircraft, intentional, business, professional |
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Term
| Popular Section 2 additional coverages |
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Definition
| claims expense, first aid, additional property, motor vehices, aircraft, watercraft, business |
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Term
| Common Endorsements to HO Policies |
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Definition
| Inflation, Earthquake, Personal Property Replacement Cost, Personal Injury, Business prusuits, watercraft |
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Term
Umbrella Policy
exclusions: intentional, professional services |
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Definition
| extra liability coverage in addition to policym broad coverage |
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Term
| Auto is the most _______________ personal coverage |
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Definition
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Term
| Auto property loss can be paid under 3 different coverages |
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Definition
-collision
-other than collision
-property liability |
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Term
| auto medical expenses can be paid under 3 different coverages |
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Definition
-medical payments to others
-uninsured motorists
-bodily injury liabilities |
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Term
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Definition
A. Liability Coverage
B. Medical Payments Coverage
C. Uninsured motorists
D. Coverage for Damage to Your Auto
E. Duties After an Accident or Loss
F. General Provisions |
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Term
Auto: Part A
Liability: explain quotes |
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Definition
*only state mandated PAP coverage
insurer pays for bodily injuries, property damage, legal defense costs
50/100/25
50=bodily injury per person
100=" per occurrence
25=property damage |
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Term
| Who is coverage under Auto: Part A? |
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Definition
| named insured and anyone using the named insured's vehicle with permission |
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Term
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Definition
| intentional, property in car, business vehicles, racing vehicles, fewer than 4 wheels |
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Term
Auto Part B: Medical payments to others
Who does it cover? |
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Definition
| named insured, and passengers, insured when they are pedestrians |
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Term
| Auto Part C: uninsured motorists |
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Definition
| protects agains drivers who don't have liability coverage, pay compensatory damages (lost wages, medical bills, pain and suffering) |
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Term
Auto Part D: Damage to your auto
Collision Loss |
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Definition
| Collision "upset of the covered auto or impact with another vehicle or an object" paid w/o regar to fault. can collect from other party or yours, not both |
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Term
Auto Part D: Damage to your auto
other than collision |
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Definition
| all-risk coverage for physical damage |
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Term
| Auto: liability of the insurer settlements |
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Definition
lesser of...
1. ACV (blue book)
2. amt to repair |
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Term
| Auto: part D, damage to your auto Exclusions |
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Definition
| mechanical breakdown, wear and tear |
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Term
| 4 reasons for insurance regulation |
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Definition
1. Maintain insurer solvency
2. Protection of consumers
3. Ensure reasonable rates
4. Make insurance available |
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Term
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Definition
| an agent representing NY companies was fined for selling insurance in VA without a license. He argued Virginia didn't have the authority to require a license . Supreme Ct disagreed, states have the right to regulate |
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Term
| South-Easter Underwriters Assoc. Case |
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Definition
| Supreme Ct ruled a rating bureau was guilty of price fixing and other violations of the Sherman Antitrust Act. Ruling suggested the federal govt should regulate insurance |
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Term
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Definition
| congress affirmed states as the primary regulators. Still remains today |
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Term
| The Financial Modernization Act (Grahm-Leach-Bliley) |
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Definition
| repealed depression-era laws separating investments, banking and insurance. passed after citibank and travelers merged |
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Term
| Methods of Regulating Insurers |
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Definition
-legislative actes
-court deisions
-state insurance departments (appointed vs elected) |
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Term
Formation and licensing of insurers
Domestic vs. foreign vs. alien |
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Definition
Domestic: state
Foreign: domestic in another state, but admitted in another state
Alien: different country but admitted in state |
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Term
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Definition
| laws in some states to get outside companies to pay a tax ex NE |
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Term
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Definition
| only legal in a few states, given financial incentive to buy coverage |
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Term
| Pros of Federal Regulation |
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Definition
-uniformity of laws
-more efficient
-more competent regulatiors |
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Term
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Definition
-more responsive to local needs
-NAIC promotes uniformity
-greater chance for innovation
-decentralized power/authority |
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