Cpcu 551 Chapter 6

Front 1

write your own (wyo)

Back 1

program allowing private insurers to write flood insurance under the national flood insurance program

Front 2

emergency program

Back 2

initial phase of a community's participation in the national flood insurance program in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates

Front 3

regular program

Back 3

second phase of the national flood insurance program in which the community agrees to adopt flood-control and land-use restrictions in which property owners purchase higher amounts of flood insurance than under the emergency program

Front 4

maximum amounts of flood ins

Back 4

- $500k for nonresidential properties

- $500k for personal property

- $250k residential condominium times number of units

- $100k for residential condominium contents

emergency program - $100k

Front 5

general property form

Back 5

version of the national flood insurance program standard flood insurance policy that is used for insuring commercial buildings and contents

Front 6

residential condominium building association policy

Back 6

version of national flood insurance program standard insurance policy that is used for insuring residential condominium buildings as well as contents that are owned by owner or association

Front 7

coinsurance

Back 7

insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount will be reduced

Front 8

increased cost of compliance

Back 8

national flood insurance coverage that pays for compliance costs related to floodplain management for qualifying structures

Front 9

difference in conditions policy (dic)

Back 9

policy that covers on an "all risk" basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage

Front 10

highly protected risk

Back 10

large property whose construction meets high standards of risk mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specific occupancy

Front 11

layered property coverage

Back 11

two or more property policies arranged in levels of coverage, the policies in the second or higher levels provide coverage only when the loss exceeds the coverage afforded by the lower level policies

Front 12

attachment point

Back 12

dollar amount above which the reinsurer responds to losses

Front 13

how does NFIP pay losses

Back 13

ACV, no option for RC

Front 14

NFIP vs standard CPP

Back 14

* NFIP covers bldg and contents on ACV only basis, no RC. CPP has RC option

* NFIP does not include coinsurance

* NFIP can't be written on blanket basis

* NFIP excludes loss of use and loss income

* NFIP excludes several types of property

Front 15

3 insuring agreements under NFIP coverage C other coverages

Back 15

1. debris removal

2. loss avoidance measures

3. pollution damage

Front 16

ISO Flood broader than NFIP

Back 16

* ISO has greater variety of property

* ISO can be attached to CPP, can provide loss income etc.

* NFIP - ACV, ISO- RC option

Front 17

earthquake endorsement (CP 10 40)

Back 17

subject to attached policy's coinsurance clause and therefore limit for endorsement is same as policy limit for other perils

Front 18

earthquake endorsement (CP 10 45)

Back 18

not subject to coinsurance and permits earthquake coverage to be written subject to sub limit lower than policy limit

Front 19

ISO Earthquake deductible

Back 19

expressed as a percentage.

Front 20

DIC policies for flood and earthquake

Back 20

applies sublimits.

Front 21

advantages for DIC insurance

Back 21

* cost effective for flood and earthquake cov

* do not require coinsurance

* nonfiled in many states

* broader coverage for some perils

Front 22

4 types of property covered differently under output policy

Back 22

1. building and other structures

2. personal property at unspecified location

3. personal property in transit

4. personal property of others

Front 23

3 optional coverages under output policies

Back 23

1. auto physical damage

2. equipment breakdown

3. flood and earthquake

Front 24

how does HPR define covered property

Back 24

real property and personal property

Front 25

4 advantages of layered property insurance

Back 25

1. provides opportunity to obtain adequate limits and flexibility in setting layered limits

2. provide lower overall premiums

3. make broader coverage available

4. provide a bigger market to purchase insurance

Front 26

perils for HPR

Back 26

open perils with fewer exclusions than special form