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98 Cards in this Set
- Front
- Back
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What coverage does the musical instrument floater provide?
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blanket coverage on instruments owned by the insured
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How are statutory law defenses determined?
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enactment of legislatures
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what property is covered under the BOP policy?
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completed additions, permanently installed machinery and equipment
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describe the extra expense coverage form
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Time Element Coverage
Includes cost equip a temporary location covers necessary addiotnal expenses incurred during the period of restoration that would not have occured if there had been no direct physical loss |
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what is the condition of Legal Action Against Us?
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insured cannot ignore their responsibilities under the policy, then bring action against the insured
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Are volunteer workers covered for medical expenses under the businessowners coevrage form section 2?
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Yes
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risk
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uncertainty of loss
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pure risk is____?
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insurable
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speculative risk
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possibility of loss or gain
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Peril
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direct cause of loss
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hazard
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increases the chance loss will occur
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what are the tree types of hazard
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physical
moral morale |
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physical hazard
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dead tree falls
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moral hazard
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insured intentionally causes damage
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morale hazard
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negligence
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Indemnity
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restores an insured to condition before loss
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What are the characterisitcs of insurable risks
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law of large numbers
homogenous units MEASURABLE LOSS uncertain loss economic hardship no catastrphic loss |
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how many elemts are their in contract law
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4
1- offer and acceptance 2-competent parties 3-legal purpose 4- consideration (payment) |
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Aleatory Contract
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unequal exchange of values
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unilateral contract
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only one party is legally bound to perform its part of the agreement
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conditional contract
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policy includes a number conditions that both must insured and insurer must comply with
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Doctrine of Upmost Good Faith
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both parties rely on statements made by eachother and both parties must know all material facts
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What are the parts of an insurance contract
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Declarations
Insuring agreement (IA) conditions exclusions definitions endorsements |
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Declarations Page
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Who , what, when , where, and how
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IA
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named or open perils, amount of coverage, and the length of the contract
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conditions
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rules, rights, and duties of both parties
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Exclusions
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perils that will not be covered
or certain items and conditions that are not covered |
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Endorsements
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documents attached to the policy that changes the policy in some way
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Stock Insurer
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Private for profit
profits go to STOCKHOLDERS |
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Mutual Insurer
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Private for profit
profits go to POLICYHOLDERS |
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Reciprocal Insurer
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un-incorporated groups of people providing insurance to eachother (subscribers) through individual indemnity agreements
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Adverse Selection
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tendency of poor risks to purchase insurance
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material fact
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fact that would influence the insurer's decision to issue a policy
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concealment
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concealment of a material fact is grounds for rescinding the policy whether or not it was intentional or unintentional
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Warranty
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a statement that is guaranteed to be true
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Binder
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can be oral or written, provides temporary coverage to the insured
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Waiver
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giving up a legal right
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insurance services office (ISO)
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an independent advisory oorginization that supplies ratemaking services (forms and endorsements) for the property and casualty insurance industry
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coinsurance
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clause that encourages policy holders to insure to value.
insured may have to pay part of the loss if the percentage specified in the policy is not met |
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coinsurance penalty
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amount of coverage/amount should be covered X Loss = coinsurance penalty
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Vacancy
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absence of both people and property from the premises
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unoccupancy
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absence of people from the premises
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What type of loss is property loss?
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1st party loss
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what type of loss is Liability?
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3rd party loss
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Compensatory Damages
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reimburse the injured party for losses that were actually sustained
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Punitive damages
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imposed by court to punish the defendent
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The following are eligible for DP insurance
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up to 5 boarders
up to 4 apartments Mobile Homes (permanently located, basic coverage only) Residence rented to others vacation home townhouse/ rowhouse |
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Does DP insurance require the dwelling to be owner occupied?
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no and they can be under construction and still qualify
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what is the Basic DW form
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DW-1 and covered perils are fire, lighting, and internal explosion.
optional extended coverage perils |
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what is the broad DP form
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Dp-2 NAMED PERILS COVERAGE
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what is the special DP form
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DP-3 open perils (covers all perils not excluded in policy
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What are the basic policy coverage for DW policies
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A- Dwelling
B-other structures C- Personal Property D- Fair Rental Value |
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What do DP-2 and 3 cover that DP-1 does not
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coverage E- Additional Living Expense
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Do DP forms cover liability?
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No none of them do, but it can be added by endorsement or seperate liability policy
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How can one make DP similar to the coverage provided by an HO policy
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purchase comprehensive personal liability endorsement
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What is addiotnal/supplementary coverage?
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coverage such as debris removal or for trees/plants/shrubs and fire department service charges
Generally in Addition to Limits |
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What are endorsemtns known as in life insurance
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Riders
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What are the different HO forms
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HO-2
HO-3 HO-4 HO-5 HO-6 HO-8 |
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HO-2
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Broad
both dwelling and personal property covered for broad perils DW= named Peril R/C Property= named Peril ACV |
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HO-3
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Special
dwelling covered for open perils and personal property covered for broad perils DW= All risk R/C Property= Named Peril ACV |
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HO-4
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Tenants
persoanl property covered for broad perils Property= Named Peril ACV |
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HO-5
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Comprehensive
both dwelling and personal property covered for open perils DW= All risk R/C Property= All risk ACV |
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HO-6
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Condo's
personal property covered for broad perils DW= Named Peril Property= Named Peril ACV |
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HO-8
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For Older Homes (Market Value for dwelling)
both dwelling and personal property covered for basic perils |
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What are the coverages in Section 1 of an HO policy
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A= Dwelling
B=Other Structures (not connected to the dwelling) C=Persoanl Property D= Loss of Use (250 deductible) |
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What are the coverages in section 2 of an HO Policy
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E= PL
F= medical payments to others |
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How do the different covergas affect the Limits of Liability in a HO policy
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They are stacked an in addition to Coverage A
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What is coverage B worth in a HO policy?
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in addition to coverage A at 10%
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What is coverage C worth in a HO policy?
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in addition to coverage A at 50%
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What is coverage D worth in a HO policy?
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in addition to coverage A at 30%
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how much coverage is provided for off premises property in an H policy?
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10% of coverage C which is 30% of coverage A and in addition to
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Are there maximum limits of liability for certain types of property?
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Yes
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What is the max limit of liability for Money, Gold, and Coins in an HO policy?
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$200
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What is the max limit of liability for the theft of jewelry, watches, furs, and precious stones in an HO policy
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$1500
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What is the max limit of liability for the theft for firearms in an HO policy?
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$2500
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What is the max limit of liability for the theft of silverware and business property at the residence under an HO-policy?
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$2500
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What is the max limit of liability for H2O crafts/trailers under an HO policy?
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$1500
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What perosnal property is excluded from an HO policy?
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-animals/birds/fish
-motor vehicles other than those used to servie/assit the handicapped -aircrafts -property of roomers unless related |
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What does coverage D provide for?
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additonal living expenses when the residence is not fit to live in when due to a covered losss.
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What are the addiotnal coverages included in a HO policy
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-debris removal
-credit card forgey -tress/plants -glass part of a covered building -grave markers |
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What percentage of coverage A does debris removal cover?
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5% of coverage A in addition to
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How much money does the addiotnal coverage for credit card forgery provide?
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$500
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How much coverage do you recieve for trees/plants on an HO policy?
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5% of A $500 per tree
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What does the ordinance of law coverage provide?
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10% of coverage A
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how much is coverage for Grave Markers in an HO policy
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up to 5000 on our away from the premises
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What are the named peril HO policies?
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1,2,,4,6,8
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What are the typically eclusions in an HO policy for Perils Insured Against?
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-wear and tear
-inherent vice -mold, fungus, or wet rot -discharge of pollutants -settling, expansion of pavements, walls, and roofs |
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What are the general exclusions on any HO -polcy
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-ordinance of law (covered only 10% of A)
-earth movement, nuclear hazard -H20 damage -Power Failure -Neglect and intentional loss |
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What are the Liability Exclusions for an HO-policy?
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-intentional acts of insured
-business pursuits -off premises rental -failure to render professional services -operation of vehicle except ----trailer not attached to car, inlicensed rec vehicle on premises, golf cart, unlicensed vehicle used to service premise/handicapped -aircraft -water craft under 25mph, and 26 ft long -war, communicable disease, molestation, drug sale |
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What endorsement can you add to protect yourself against slander, libel, and false arrest.
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Personal Injury Endorsement
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how many categories of valuable property are there on a schdeuled personal property endorsement are there and what are they?
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9
jewelry, furs, cameras, musical instruments, golfer equipment, fin arts, postage stamps, and rare or current coins. |
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how can liability coverage be added to the HO policy
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the business pursuits endorsement
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What vehicles are covered under the PAP
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owned, rented, or leased
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what is split limit policy under a PAP
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means that limits are split for per person and per accident.
EX 30/50 30 per person and 50 per accident |
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Combinde single limit is?
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both per person and per accident are combined under one single limit
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How long does an owner have to request coverage for a new car that does not replace one on the current coverage.
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14 days
same is true for collision and other than collision, but it does not matter whether or not the vehicle replaces another. |
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Does the owner have coverage in the 14 day period of a PAP for a new car
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Yes but the owner will lose coverage if not requested after 14 days
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How long does an owner have to request collision coverage on a new car if they do not previously have collision coverage?
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4 days
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