Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
294 Cards in this Set
- Front
- Back
|
How many days automatic coverage is provided for fine arts in the Personal Article Floater?
|
90
|
|
|
How are deductibles generally expressed in aircraft hull policies?
|
Percentage of the value
|
|
|
______is not a common deductible in an aircraft hull policy.
|
2%
|
|
|
These are common deductibles in an aircraft hull policy.
|
2.5% 5% 10% |
|
|
The coverage that protects the insured's exposure for damage to an aircraft in his care, custody or control while being serviced or stored is called?
|
Hangarkeepers Liability
|
|
|
_______________ is not a coverage under an Aircraft Liability policy?
|
Cargo Liability
|
|
|
Coverage under an Aircraft Liability policy
|
Bodily injury excluding passengers Passenger liability Property damage liability |
|
|
__________ is an exclusion in the aviation policy
|
Aircraft flying under conditions requiring special FAA permit even if waiver is granted
|
|
|
The coverage which pays the principal sum for death or dismemberment if the named insured requests it and the company is released from further liability is called?
|
Admitted aircraft liability
|
|
|
Johns airplane is in the shop being repaired. He needs to rent a plane to get to a business meeting. What would he need to do to ne covered in the rental plane?
|
Current policy will automatically cover the exposure
|
|
|
A coverage that is similar to premises and operations coverage in the CGL covering Bodily Injury and Property Damage Liability for aviation risk is called?
|
Airport and air meet liability
|
|
|
The coverage which pays the cost of temporary repairs and to hasten permanent repairs or replacement is called?
|
Expediting expense coverage
|
|
|
What is the maximum limit payable for expediting expenses in the unendorsed Boiler and Machinery Policy?
|
$25,000
|
|
|
To receive replacement cost for a Boiler and Machinery loss, the property must be replaced within how long?
|
18 Months
|
|
|
The coverage endorsement that pays actual lost profits and continuing expenses subject to the limit selected is called what?
|
Actual Loss Sustained Business Interruption
|
|
|
Loss due to spoilage from lack of power, light, heat, steam or refrigeration is called what?
|
Consequential Damage
|
|
|
The boiler and Machinery Policy gives automatic coverage for boilers at newly acquired locations for how many days?
|
90 Days
|
|
|
The internal limits for hazardous substances and ammonia contamination in the Small Business Boiler and Machinery Broad Form is how much?
|
$25,000
|
|
|
All of the following are characteristics of the Small Business Boiler and Machinery Policy
|
Coverage is on a blanket basis Maximum coverage available is $5,000,000 Standard deductible is $500 Business interruption is 25% of the limit as an additional amount of insurance |
|
|
How much notice must a Health Insurance company give when canceling a health policy?
|
20 Days
|
|
|
The time after the premium due date where the policy remains in force even if the premium has not been paid is called what?
|
Grace Period
|
|
|
After 2 years from the date of issue, only fraudulent misstatements in the application can be used to void the policy or deny a claim
|
Limitations on insurer defenses
|
|
|
The typical grace periods in heal insurance for weekly, monthly and all other premium payments
|
7 / 10 / 31
|
|
|
The provision that state the insured would not have to pay premiums after a certain length of disability
|
Waiver of premium
|
|
|
The program which provides comprehensive health services to members for a prepaid fixed fee whose goal is preventive activity
|
HMO
|
|
|
The policy that pays a flat amount per day of hospitalization regardless of expenses or other insurance
|
Hospital indemnity insurance
|
|
|
Feature(s) of major medical insurance
|
Protects against catastrophic loss Contains a deductible and a high maximum limit Contains a coinsurance provision |
|
|
When the insured elects a lump sum benefit instead of a monthly disability benefit
|
Elective indemnity
|
|
|
The program which is a selected group of hospitals and medical practitioners in a given area that have joined together in an effort to reduce medical cost
|
PPO
|
|
|
The pre-existing conditions provision in the Medicare Supplement policy is limited to how long?
|
6 months
|
|
|
A Medicare Supplement policy is returnable for a full refund within how many days?
|
30 days
|
|
|
What is the max limit available for BI and PD in the FAJUA for private passenger vehicles?
|
100 / 300 / 50
|
|
|
FAJUA
|
All companies licensed to write auto insurance in Florida
|
|
|
Maximum liability limits available to commercial vehicles in the FAJUA
|
Any limits required by law
|
|
|
In Citizens Insurance, who must certify on the application that no coverage was available from an authorized insurer within 15% of the citizen rate?
|
Applicant and producer
|
|
|
Citizens Property Insurance Corporation has which forms available?
|
HO-3 HO-4 HO-6 HO-8 |
|
|
Which commercial residential properties are eligible for Citizens Property Insurance?
|
Apartment houses with no mercantile Apartment houses with 25% mercantile occupancy Residential condos with 25% mercantile occupancy |
|
|
Describes the Citizens wind program
|
Covers the perils of windstorm and hail Must be located in defined areas of designated counties Covers properties in areas of the state deemed especially susceptible to windstorm |
|
|
Characteristics of the FWCJUA include
|
Provides coverage for those unable to secure coverage in the voluntary market Designed to be self supporting with actuarially sound rates Employers receive a 30 day binder |
|
|
Insurance company formed under the laws of Florida
|
Domestic
|
|
|
Insurance company formed under the laws of another state
|
Foreign
|
|
|
Insurance company formed in Zurich Switzerland
|
Alien
|
|
|
Insurance company licensed to do business in Florida
|
Authorized insurance company
|
|
|
Transacting Insurance
|
Solicitation Transacting changes and endorsements Giving quotes and proposals |
|
|
NOT a type of insurance that can be transacted with a general lines insurance license
|
Life insurance written by carrier which is also represented for P&C
|
|
|
Types of insurance that can be transacted with general lines insurance license
|
Health insurance written by a carrier and also represented for P&C Marine Insurance Surety |
|
|
Authority given to a licensee to transact or adjust insurance
|
Appointment
|
|
|
Number of hours of CE a newly licensed agent is required to have in their first compliance period
|
24 hours
|
|
|
Hours of CE required every 2 years if the agent has been licensed more than 6 years
|
20 hours
|
|
|
How long does a licensee have to reappoint,after their appointment has been terminated,before the license is terminated?
|
48 months
|
|
|
Changes in name or address, must notify Depart. of Insurance within
|
30 days
|
|
|
Rebating Conditions
|
Rebate is available to all insureds in the same actuarial class Rebate schedule is filed with the insurer Rebate scheduled must be kept for 5 years |
|
|
Willful deception of an insurance policy by dissemination of information
|
Misrepresentation
|
|
|
Majority of insurance written for family members
|
Controlled Business
|
|
|
Grounds for compulsory refusal, suspension or revocation
|
Unlawfully rebating Fraudulent submission of a WC app Lack of reasonably adequate knowledge |
|
|
Temporary License
|
Good for 6 months
|
|
|
OK to share commissions with
|
A non-resident agent
|
|
|
Jane goes to the bank for a home loan. The LO states she must purchase insurance from the bank to qualify
|
Coercion
|
|
|
Using an incomplete comparison of insurance to get one to buy a policy
|
Twisting
|
|
|
Charging for a specific ancillary coverage in addition to the cost of auto insurance without consent
|
Sliding
|
|
|
Controlled Inland Marine Form
|
Standard provisions form developed and filed for uniform use
|
|
|
Covered under PAF
|
Cameras Silverware Golfer's Equipment |
|
|
Quality in an object that damages or destroys itself
|
Inherent vice
|
|
|
Covers the liability of a common carrier for damage to property of others
|
Motor truck cargo policy
|
|
|
An instrumentality of transportation or communication
|
TV tower
|
|
|
Common Dry Cleaning peril
|
Confusion of goods
|
|
|
Holds property of others to return at a future date
|
Bailee
|
|
|
Job site material stored uninstalled overnight needs this to cover any loss
|
Installation floater
|
|
|
Jane doesn't own a car and drives a car furnished by company. To have liability coverage on the rental car on vacation she needs the company to add which coverage to their policy
|
Drive other car coverage
|
|
|
Supplementary payments under the PAP
|
Release of attachment bonds $200 per day loss of income Interest on judgments Bail bonds up to $250 |
|
|
Windshield glass
|
Covered 100% no deductible
|
|
|
Jane doesn't own a car but needs insurance to drive someone else's car, she needs
|
Named Non-owner Coverage
|
|
|
Jane has a PAP. Her employer furnishes a car for work and pleasure. She needs to add what endorsement to her PAP to cover the furnished car
|
Extended Non-owned Coverage
|
|
|
Jane has a PAP. The rented trailer she is towing comes loose and damages property and injures people. How would the PAP apply
|
BI and PD cover plus damage to non-owned trailer up to $500
|
|
|
Mechanical Breakdown Policy Coverage
|
Examples: water pump goes bad, AC compressor stops working, alternator malfunctions
|
|
|
Nonresidents must comply with Florida No-Fault Law
|
If the vehicle is on Florida more than 90 of the preceding 365 days
|
|
|
Ways to purchase UM coverage
|
Equal to your BI limits Rejected UM written non-stacked |
|
|
Florida Financial Responsibility Law triggers
|
Conviction of a DUI Accident involving BI Accident in which a vehicle must be removed by a wrecker |
|
|
Florida Financial Responsibility Law penalties for Non-Compliance
|
Responsible for damages up to 10 / 20 / 10 Drivers license suspension Vehicle registration suspension |
|
|
1996 HIPAA Law, Long Term Care
|
Guaranteed renewable
|
|
|
Extended PIP
|
Payment for lost wages at 80%
|
|
|
Jane hits a cow on her way home from a business trip. She has part D with a $250 deductible for other than collision and $500 for collision. How much will the insurance pay of the $3,250 damage to car
|
$3,000
|
|
|
Florida No-Fault Law. Insureds total medical and work loss bills exceed the PIP benefit but does not exceed threshold
|
No suite for intangible damages but insured can sue for economic loss not paid or payable under PIP
|
|
|
No-Fault Law penalties for Non Compliance
|
Personally liable for benefits under the No-Fault Law Loss of limited tort exemption Suspension of registration and drivers license |
|
|
Benefits under PIP
|
Medical expenses at 80% Work loss paid at 60% Replacement services paid at 100% Death benefit of $5,000 |
|
|
With $100,000 non-stacked UM on her 3 cars, what's the most Jane can collect if she is it by an uninsured motorist while driving one of the 3 cars
|
$100,000
|
|
|
PIP and other coverages
|
PIP is Primary to all coverages EXCEPT WC
|
|
|
Business Auto Coverage rating elements
|
Size and weight of the vehicle Radius of use Type of use |
|
|
Part B Medical Payments coverage applies for how long after an accident
|
3 years
|
|
|
Part D - Damage to Your Auto
|
Vehicles listed on the dec page Rental car Neighbors car you borrowed once and hit a tree with |
|
|
Notice required by company to cancel auto policy for any reason in the 1st 60 days (Excluding non-payment of premium)
|
45 days
|
|
|
Eligible for PAP
|
Autos Owned by an individual Owned jointly by 2 or more related persons, living together or not Owned jointly by Husband & wife |
|
|
Owner of a 'defined motor vehicle' under No-Fault Law
|
Legal title holder Lessee of a vehicle with the option to purchase Debtor in possession |
|
|
$5,000 in medical bills on a PIP policy with $1,000 deductible, PIP pays
|
$3,200 $5,000 - $1,000 X 80% |
|
|
NOT a defined motor vehicle under the Florida No-Fault Law
|
Public transit bus Motorcycle Golf Cart |
|
|
Florida Financial Responsibility Law - Required Coverage
|
Bodily injury liability and property damage liability
|
|
|
Jane has a PAP policy. She trades in her car for a new one and 12 days later crashes her car damaging both cars. Is she covered?
|
Both cars are covered
|
|
|
These 2 coverage forms make up the Garage Coverage Form
|
Business auto and general liability
|
|
|
Any Auto
|
Symbol 1 and 21
|
|
|
Owned autos only
|
Symbol 2 and 22
|
|
|
Owned private passenger autos only
|
Symbol 3 and 23
|
|
|
Owned autos other than private passenger autos only
|
Symbol 4 and 24
|
|
|
Owned autos subject to No-Fault
|
Symbol 5 and 25
|
|
|
Owned autos subject to a compulsory uninsured motorists law
|
Symbol 6 and 26
|
|
|
Specifically described autos
|
Symbol 7 and 27
|
|
|
Hired autos only
|
Symbol 8 and 28
|
|
|
Non-owned autos only
|
Symbol 9
|
|
|
Mobile equipment subject to Compulsory or Financial Responsibility Or Other Motor Vehicle Insurance Law only
|
Symbol 19
|
|
|
Non-owned autos used in garage business
|
Symbol 29
|
|
|
Autos left with you for service, repair, storage or safekeeping
|
Symbol 30
|
|
|
Dealers autos and autos held for sale by nondealers or trailer dealers
|
Symbol 31
|
|
|
Garage Coverage Form
|
Garagekeepers coverage can bee added
|
|
|
Mechanical Breakdown typical rental reimbursement
|
$15 per day / $75 max
|
|
|
Paid by PAP UM coverage
|
Bodily injury to the insured caused by a hit and run driver
|
|
|
"Cost plus" plan
|
Retrospective Rating Plan
|
|
|
Duties and functions of the Dept. of Financial Services
|
Approve and review forms, rules and rates Investigate charges of unethical conduct Approve the issuance of licenses to agents |
|
|
Insured transfers rights to insurer against other party
|
Subrogation
|
|
|
Loss Settlement Valuation
|
Actual cash value Agreed value Replacement cost |
|
|
Excess liability policy same as underlying policy
|
Follow form excess
|
|
|
Insured under the Personal Liability Policy
|
Named insured Foster child living with insured Insured mother-in-law who lives at residence |
|
|
HO policy coverage limits
|
Money $200 Jewelry $1,500 theft only Portable electronic equipment in a vehicle $1,500 |
|
|
Negligence
|
Looking down to change the radio and hitting a car
|
|
|
Indmenity
|
Paying the insured the ACV of a computer that is 3 years old
|
|
|
Coverage applies equally to each insured as if the other insured did not exist
|
Severability
|
|
|
Duties after a loss
|
Report theft to police Cooperate with the company in claim settlement Reveal any other applicable coverage |
|
|
Minimum coinsurance clause
|
80%
|
|
|
Binder
|
Can be oral or written Can be canceled Places insurance into effect prior to policy being issued Affords the same coverage as the policy |
|
|
Expression of Liability Limits
|
Single limit Aggregate Limit Split Limit |
|
|
Franchise Deductible
|
No payment made until the loss equals or exceeds the deductible amount, then the los is paid in full
|
|
|
Insurable Interest
|
Establishes the limit of the policy's response Must exist at time of loss Insured would suffer an economic loss |
|
|
Risk
|
Chance of financial loss
|
|
|
Dwelling with Fire Only policy. Some contents are damaged from the water used while putting out the fire. Coverage applies because fire was the
|
Proximate Cause
|
|
|
Commercial Crime Policy - Primary Insuring Agreements
|
1. Employee Theft 2. Forgery or Alteration 3. Inside the Premises Theft of Money & Securities 4. Inside the Premises Robbery or Safe Burglary of Other Property 5. Outside the Premises 6. Computer Fraud 7. Money Orders & Counterfeit Paper Currency |
|
|
Crime Policy - Discovery Period
|
12 months
|
|
|
Employee Theft Coverage in an unendorsed Commercial Crime Coverage Form
|
Blanket
|
|
|
Crime Loss - Securities
|
Valued as of the date of discovery
|
|
|
Commercial Crime Policy Coin Coverage. Collectible coin value $5,000, monetary coin value $300. If stolen policy will pay how much, ignoring deductibles
|
$300
|
|
|
Burglary |
Taking of property by unlawful entry or exit with visible signs of forced entry
|
|
|
Employee Theft
|
Unlawful taking of property to the deprivation of the insured
|
|
|
Parties to a Bond
|
Obligee Surety Principal |
|
|
Contract Bond
|
Payment Bond Bid Bond Subdivision Bond |
|
|
Bonds - Underwriting considerations
|
The 3 C's Character, Capital and Capabilities |
|
|
Guarantees repayment of a bond penalty
|
Indemnitor
|
|
|
Guarantees payment of materials in full upon completion of work
|
Payment Bond
|
|
|
A school board needs bids to build a new school. They require a bond that would pay the difference between the desired bid and the bid with the next higher price to accept the desired bid. The contractor needs what bond for this?
|
Bid Bond
|
|
|
Guarantees the performance of a person appointed by court or named in a will
|
Fiduciary Bond
|
|
|
Guarantees supplies needed for a construction project will be delivered on time and at the agreed price
|
Supply Contract Bond
|
|
|
Guarantees conformity with general laws & proper collection and payment of taxes
|
License Bond
|
|
|
Required to hold a special athletic event
|
Permit Bond
|
|
|
Used in recovering a lost money order
|
Lost Instrument Bond
|
|
|
Required to sell stocks, bonds or securities
|
Blue Sky Bond
|
|
|
Taking property by force
|
Enemies
|
|
|
Voluntary parting with parts or cargo by throwing overboard to save the vessel
|
Jettison
|
|
|
Collision of one vessel into another, resulting in loss
|
Running down clause
|
|
|
Perils of the Seas
|
Wind Waves Sinking |
|
|
NOT a Peril of the Sea
|
Fire
|
|
|
Fraud by the crew at the expense of the ship owner with intent to reap gains
|
Barratry
|
|
|
Loss by jettison, settled by each paying their proportionate share of the loss
|
General Average
|
|
|
Covers shipping charges lost when an accident at sea causes the loss of cargo
|
Freight Coverage
|
|
|
Cost to salvage and recondition vessel exceeds its value
|
Constructive total loss
|
|
|
WC - Corporate Officers
|
Considered employees Can exempt themselves from coverage No more than 3 officers can be exempted in construction operations |
|
|
WC - Sole Proprietors & Partners - Non Construction Industry
|
Can elect to be covered NOT considered employees Medical bills are paid if coverage applies |
|
|
Temporary Total Disability
|
66.67 of AWW for 104 weeks
|
|
|
Part 2 - Employers Liability coverages
|
Claims for injuries not subject to WC law Claims by others for liabilities to the insured's employees Claim by relatives for consequential damages |
|
|
Causes of Loss - Basic Form
|
Covered: Fire Vandalism Volcanic Action NOT covered: Earthquake |
|
|
Flood Policy - Loss Settlement Provision - Building damage single family home, owner occupied and primary residence
|
Replacement Cost
|
|
|
Personal and Advertising Injury
|
Covered: False arrest, false imprisonment Wrongful entry or eviction Libel & slander NOT Covered: Bodily Injury |
|
|
Not considered Employment
|
Farm with 5 full time employees |
|
|
Purchased WC but not required to
|
Obligated to furnish medical treatment or care
|
|
|
WC Part 3
|
Other States
|
|
|
Not Considered an Employee
|
Commissioned real estate agent Independent contractor Unpaid volunteer |
|
|
WC Medical Coverage Limit
|
Unlimited
|
|
|
Builders Risk Coverage Form
|
Terminates for: Property abandoned with no intent to complete Policy termination date Insureds interest ceases 60 days after occupancy in whole or in part |
|
|
Optional coverages under the Building & Personal Property Coverage form
|
Agreed Value Building ordinance coverage Peak season coverage |
|
|
Causes of Loss Forms - Common Exclusions
|
Seizure by governmental authority Utility service failure outside the buidling Flood |
|
|
Farm Property - Broad Form - Additional Perils
|
Electrocution of livestock Attack by animals Animal collision |
|
|
Business Income Coverage Form - Max period of Indmenity
|
Coverage for 120 days
|
|
|
In a commercial condo, both building and unit owners forms cover same property in a loss.
|
The association is primary and the unit owners is excess
|
|
|
Building & Personal Property Coverage Form - Building Items
|
Structure Floor coverings Refrigeration equipment Free standing display cases are not considered building items |
|
|
Farm Property Policy - Barns
|
Coverage G
|
|
|
Building & Personal Property Coverage Form
|
Newly acquired buildings up to $250,000 and personal property up to $100,000 for 30 days
|
|
|
Building & Personal Property Coverage Form - Vacancy provision
|
60 days
|
|
|
Loss under the Building & Personal Property Coverage From with optional replacement cost provision gives the insured how long to give intent to replace the damaged item to receive the replacement cost adjustment?
|
180 days
|
|
|
Business personal property must be what to be covered under the Building & Personal Property Coverage Form?
|
Located on or within 100 feet of the premises
|
|
|
Building & Personal Property - the most an insured can collect for removal of debris after a loss
|
25% of the loss paid plus $10,000
|
|
|
Commercial Property - Hurricane Deductible
|
$500 min / 10% max
|
|
|
Business Income Coverage Form - -Coinsurance
|
50% 60% 125% |
|
|
Causes of Loss - Broad Form
|
Additional Peril: Falling Objects |
|
|
Builders Risk Coverage - Requirement - Coverage equal to the completed value of the property
|
Need for adequate insurance clause
|
|
|
Insurer to Non-Renew Commercial Property Policy
|
45 days notice
|
|
|
DP-1
|
Building losses are paid at ACV Contents losses are paid at ACV Lightning is a covered cause of loss |
|
|
Dwelling Program - Vandalism
|
Not covered if the building has been vacant more than 60 days
|
|
|
Hurricane Deductibles
|
$500 1% 5% |
|
|
Found in a DP-3 but not in a DP-1
|
Additional living expenses
|
|
|
Can be written under a single flood policy
|
Dwelling Detached garage Contents |
|
|
Can NOT be written under a single flood policy
|
Detached shed
|
|
|
Eligibility requirements of the RCBAP Flood Policy
|
One or more residential units 25% mercantile floor area Located in a regular program community |
|
|
Employment Related Practices Liability
|
Liability arising out of injury from employment-related offenses
|
|
|
Sue has a contract to conduct farming operations for her neighbor for $5,000 per year. She backs her tractor into someone else's truck. What coverage does she need?
|
Custom farming endorsement
|
|
|
Farm Liability Policy
|
Automatically includes Personal Injury Liability
|
|
|
Lawyers Professional Policy
|
Basic limits are $25,000 per occurrence / $75,000 aggregate Claims expenses are part of the limit of liability Covers acts or omissions of the insured from the rendering of professional services as a lawyer |
|
|
Physicians, Surgeons and Dentists Policy
|
Basic Limit $250,000 per occurrence / $750,000 aggregate |
|
|
CGL
|
Basic Limits $100,000 per occurrence for BI & PD $5,000 medical payments $200,000 general aggregate $100,000 fire damage limit |
|
|
Client purchases insurance to cover liability arising out of work done by a specific contractor on a specific job
|
Owners and contractors protective liability
|
|
|
Jill's company hosts a party and sponsors an open bar. Jill drank too much and was involved in a car crash after leaving the party, seriously injuring the other person. The companies CGL will apply how?
|
It will pay since the company is not in the business of selling alcohol
|
|
|
CGL - Medical Payments Limit
|
$5,000 per person
|
|
|
CGL - Defined as insureds
|
Real estate manager for the insured Spouse of a sole proprietor Employees |
|
|
Supplemental Extended Reporting Period
|
Extends the reporting period to unlimited duration Provided by endorsement to the policy Must be requested within 60 days after termination Provides for 2 new aggregate limits |
|
|
CGL Coverage - Manufactured in US but the claim is in Japan
|
Covered if the suit is brought to the US, Canada or Puerto Rico
|
|
|
CGL Claims Made Coverage Form
|
Covers accidents happening on and after the retroactive date and reported during the policy/reporting period
|
|
|
Examples of when work is complete
|
Work called for in the contract is complete Work is done at that site , if more than one site Part of the work is done and put to its intended use |
|
|
Retroactive Date
|
Establishes the date when claims made coverage begins
|
|
|
Basic Extended Reporting Period - Claims Made Policy
|
Does not provide new policy limits Automatic Free of charge |
|
|
Business Owners Policy - Liability - Products Coverage
|
Aggregate limit is twice the occurrence limit
|
|
|
Business owners policy with $1,000,000 for liability. Includes Products & Completed Operations Coverage
|
Aggregate limit is $2,000,000 for this coverage
|
|
|
Built in to the Business Owners Policy for Newly Acquired Locations
|
$250,000 building up to 30 days
|
|
|
Automatically included in the Business Owners Policy
|
25% peak season coverage
|
|
|
Business Owners policy - Business Income Coverage
|
Actual loss sustained up to 12 months with no dollar limit
|
|
|
Business Owners Policy - Loss Valuation
|
Replacement cost provided certain insurance to value requirements are met
|
|
|
Business Owners Program - Property Coverage
|
Special perils with an option to change to named perils
|
|
|
Umbrella
|
Can be broader then underlying policy, may respond as primary. Feature similar to a deductible called, 'Self-Insured Retention'
|
|
|
Personal Liability
|
Coverage: At the residence For non-business activities For medical payments to others |
|
|
Eligible for Homeowners Coverage
|
Renters to any building Condo unit owners who rent the unit to others Dwellings under construction to be occupied by the insured |
|
|
Basic Loss Assessment Limit - Homeowners Policy
|
$1,000
|
|
|
Coverage C - Personal Property Exclusions
|
Property in an apartment rented to others Business data Family pets |
|
|
Homeowners Policy
|
Coverage for trees, shrubs and plants $500 per tree / 5% of coverage A max |
|
|
HO-4
|
Covered for liability Borrowed 125hp outboard boat |
|
|
Coverage B - HO-2
|
10% of A
|
|
|
Section II Basic limits - HO Policy
|
$100,000 liability / $1,000 medical payments
|
|
|
HO-3 - Loss Settlement Provision - Properly Insured Structure
|
Replacement cost less deductible
|
|
|
Section II - HO Policy
|
Insured locations include: Hotel room stayed in while on vacation Dorm insured's child lives in at College 45 acres of vacant land the insured owns in Arizona NOT Insured: Rental Home |
|
|
HO Policy
|
HO-5 is "all risk" building and contents HO-3 is "all risk" building and named perils contents HO-6 is named perils for building and contents |
|
|
Jill has $150,000 coverage A on an HO-3 policy. How much coverage D?
|
$45,000
|
|
|
Jill's friend drops her TV while helping her move in and it is a complete loss. Her friends HO-2 will do what?
|
Cover it in full by Section II under voluntary property damage
|
|
|
HO-2
|
Broad Form
|
|
|
HO-3
|
Special Form
|
|
|
HO-4
|
Contents Broad Form
|
|
|
HO-5
|
Comprehensive Form
|
|
|
HO-6
|
Unit Owners Form
|
|
|
HO - 8
|
Modified Coverage Form
|
|
|
PAP - PART A
|
Liability Coverage
|
|
|
PAP - PART B
|
Medical Payments Coverage
|
|
|
PAP - PART C
|
Uninsured Motorists Coverage
|
|
|
PAP - PART D
|
Coverage For Damage To Your Auto
|
|
|
PAP - PART E
|
Duties After an Accident or Loss
|
|
|
PAP - PART F
|
General Provisions
|
|
|
HO Coverage A
|
Dwelling
|
|
|
HO Coverage B
|
Other Structures
|
|
|
HO Coverage C
|
Personal Property
|
|
|
HO Coverage D
|
Loss of Use
|
|
|
DP Coverage A
|
Dwelling
|
|
|
DP Coverage B
|
Other Structures
|
|
|
DP Coverage C
|
Personal Property
|
|
|
DP Coverage D
|
Fair Rental Value
|
|
|
DP Coverage E
|
Additional Living Expenses
|
|
|
Cargo coverage in Ocean Marine Insurance
|
The coverage for loss or damage to goods
|
|
|
Type of structures does not qualify for the flood program dwelling form
|
Five Unit Apartment
|
|
|
What are some of the features of the building coverage under the property form in the BOP?
|
There is a built-in inflation guard protection wherein the amount of building coverage automatically increases by 8% annually unless a higher or lower percentage is purchased, Coverage on a main building includes appurtenant structures on the same premises, Outdoor property is covered up to $2,500 but no more than $500 for any one tree, shrub or plant
|
|
|
The insured has a Homeowner's, HO3 policy. A tree was struck by lightning, hit a power line, and damaged the roof of the dwelling, swimming pool, and caused spoilage of food. Which items are covered?
|
The tree, the pool, the food spoilage
|
|
|
How are agents appointed?
|
An insurer appoints a general lines agent to transact insurance or adjust claims on their behalf
|
|
|
Describe the vacancy condition
|
Coverage for vandalism, sprinkler leakage, building glass breakage, water damage, and theft or attempted theft are not covered if the building was vacant for more than 60 consecutive days prior to a loss, Any covered loss not excluded is reduced by 15% if the building was vacant for more than 60 consecutive days prior to a loss
|
|
|
What are the penalties for diverting or misappropriating "trust funds"?
|
The penalties range from first-degree misdemeanor to first-degree felony
|
|
|
Which of the following perils cannot be covered under the Basic Cause of Loss form (DP1)?
|
Falling objects
|
|
|
How are losses paid in Part D of a PAP?
|
The limit of liability provision calls for payment of the lesser of actual cash value or the cost to repair or replace, and a special limit of $1,500 applies to any non-owned auto that is a trailer
|
|
|
Describe the liability coverages in the Garage Insurance Policy?
|
Covers ownership, maintenance or use of locations for a garage business and all operations necessary or incidental to the business, Covers those autos as indicted by the covered auto symbols in the declarations, Covers garage operations
|
|
|
What are the exclusions in section II of a homeowner's policy?
|
The policy limits coverage as to motorized land conveyances, The policy limits coverage as to business or professional activities, The policy limits coverage as to watercraft
|
|
|
What is coinsurance?
|
Rate credits are generally offered for 90% or 100% coinsurance clauses,It expresses the insurer's responsibility as only that portion of a loss, which the limit of insurance bears to the value of the property at the time of the loss, It provides for a method of providing equity in premiums by granting lower rates to those insured who accept the responsibility of insuring a higher percentage of the value of the property
|
|
|
What is the cancellation clause in Florida for the general liability policy?
|
After 90 days, 45 days written notice of cancellation or nonrenewal is required
|
|
|
What is an "insurance policy"?
|
An insurance policy means a written contract of, or written agreement for, or affecting insurance,The term insurance policy includes all clauses, riders, endorsements and papers, which are part thereof
|
|
|
Commercial property valuations are always actual cash value except replacement cost settlement is offered if the building loss is equal to or less than which limit?
|
$2,500
|
|
|
What does Symbol 5 in the Business Auto Policy mean?
|
Owned Autos subject to No-Fault". Coverage applies to all autos requires to be covered under the Florida No-Fault Law.
|
|
|
Is a legitimate ERISA Self-Insurance plan necessarily an insurance plan subject to state regulation?
|
A genuine single-employer ERISA plan is not subject to direct state insurance regulation
|
|
|
Covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability policy
|
Liability assumed under a lease contract, Liability due to one’s products injuring others, Contingent Liability caused by a subcontractor of the insured
|
|
|
Under the Commercial Property Policy, the Value Reporting Form limits a settlement to which percentage if the first report is not filed on time?
|
75%
|
|
|
sole proprietors under the worker's compensation law
|
Sole proprietors and partners in the construction industry may not exempt themselves from coverage
|
|
|
How is mobile equipment handled on the Business Auto Policy?
|
Mobile equipment may be endorsed onto the auto policy when no CGL insurance is available, Normally general liability insurance covers mobile equipment
|
|
|
What is a Businessowner`s Policy (BOP)? |
It is designed to meet the ordinary needs of certain classes of business,It is an indivisible package of basically required coverages, This policy is conceptually similar to the homeowner's policy.
|
|
|
possible consequences for acting as an insurer without proper license
|
Any person acting as an insurer without a Certificate of Authority may be subject to suspension or revocation of all insurance licenses, Subject to suspension or revocation of all insurance licenses,Any person acting as an insurer without a Certificate of Authority may be convicted of a third-degree felony
|
|
|
Customer Representative
|
Must be a salaried employee of the agent or agency; his compensation cannot include commissions and cannot be primarily based on the production of applications, insurance, or premium |
|
|
Employee theft coverage may be written
|
"All risk", special coverage, or open perils."Named perils", basic coverage, limited perils. Or Scheduled persons coverage, scheduled position coverage, blanket coverage
|
|
|
Categories of risks in the Nationwide Definition of Inland Marine Insurance |
Personal Property Floater Risks and Commercial Property Floater Risks.Imports, Exports and Domestic Shipments. Instrumentalities of Transportation or Communication
|
|
|
Define "injury" under the worker's compensation law
|
Personal injury or death by "accident" arising out of "work performed in the course of employment
|
|
|
# of Optional coverages offered in the Business owners Property Form
|
7
|
|
|
With respect to Uninsured Motorist coverage, the insured has several choices
|
Apply for limits lower than the Bodily Injury limits provided by the policy.Reject the “stacking” form of coverage. Reject Uninsured Motorist Coverage
|
|
|
General Provisions of the Crime Policy
|
Other property is valued at the lesser of actual replacement cost or the cost to repair. Money is valued at face value. Securities are valued at the time the loss is discovered
|
|
|
EPL form (Employment Practices Liability Form)
|
The EPL policy provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of an employment-related offense. The EPL policy has several exclusions. Unlike policies with a deductible, the EPL policy has a co-payment provision. Under this provision, the insured shares payment for claims subject to a maximum amount.
|
|
|
Shipping term that describes a buyer purchasing his own insurance
|
C.F. - Cost and Freight
|
|
|
What role does state regulation play in a legitimate ERISA plan?
|
State insurance regulation does still apply to an insurer that may be financially responsible for the payment of claims and any forms utilized in an insured ERISA plan
|
|
|
What is meant by pro rata share of the loss?
|
The policy will pay the proportion which its limits bear to all limits
|
|
|
Medical payments coverage of a Garage policy
|
Automobile Medical Payments applied to autos covered for liability. Premises medical payments apply for medical reimbursement to customers and others who are injured at the garage premises but not involving autos
|
|
|
Three different legal theories of recovery that CGL insurance may protect an insured against.
|
Indirect or contingent,Direct,Contractual
|
|
|
serve to enforce the Principle of Indemnity
|
Subrogation, Actual cash value as a measure of a loss,The insurable interest rule
|
|
|
Define misrepresentation
|
An untrue statement by the insured, made in an application but which does not become a part of the policy
|
|
|
What is meant by equal share of the loss
|
The policy will contribute based on the number of policies, without regard to their limits
|
