More Things To Study

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he Louisiana Insurance Commissioner is elected to office for a term of

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four years.

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________________ is the deliberate making or publication of false, maliciously critical, or derogatory statements intended to injure a person in the insurance business

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Defamation

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A temporary license does not continue after

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the owner or personal representative disposes of the business.

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The Louisiana Insurance Commissioner is elected by

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the citizens of the state.

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If an insurer fails to make payment within 30 days after receipt of a satisfactory written proof of loss and its failure to do so is found to be arbitrary, capricious, or without probable cause, the insurer, in addition to the loss amount, will be required to pay

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50% damages on the amount due from the insurer to the insured, or $1,000, whichever is greater.

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The validity of any hearing held in accordance with appropriate notice is

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not affected by the failure of any person to attend or to remain in attendance.

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_______________ is the publication of any untrue, deceptive, or misleading statement concerning the insurance business or any person involved in the insurance business.

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Defamation

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Under strict liability, the law holds people responsible for injuries or damage even when they havenot been

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careless or negligent. (Some actions are so dangerous that the law simply holds someone liable for any damage or injury that results from those actions, without regard to the degree of care the person exercised )

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An insurance rate is

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the price of insurance for each unit of exposure

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Physical hazards are individual physical characteristics that

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increase the chance of loss. (They exist due to the presence of some physical condition. Storing gasoline or other flammable liquids near a furnace presents a physical hazard because it increases the likelihood of a loss due to fire.)

Front 11

The three components of an insurance rate are

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loss costs, expenses, and profit margin.

Front 12

A ________ has the property owner's explicit or implied permission to be on the owners' property, but is there primarily for the licensee's benefit. A door-to-door salesperson is considered a licensee

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Licensee. (A delivery person is considered an invitee because he or she is presumably delivering something to the owner and is there for the owner's benefit. A gate crasher and a stranger crossing the property without the owner's permission would be considered trespassers.)

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here are three common dwelling property forms:

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the basic form (DP-1), the broad form (DP-2), and the special form (DP-3).

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_________ refer to the particular risks that can cause loss or damage to property.

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Perils

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The liability section has two main parts:

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Personal Liability (Coverage E) and Medical Payments to Others (Coverage F).

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Coverage for business income or extra expense losses resulting from utility service interruption must be

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purchased separately, using the Utility Services'Time Element endorsement (BP 04 57)

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______________ is the performance of specific planting, cultivating, harvesting, or related farming operations by an insured at a farm that is not an "insured location," when the performance is under the direction of the owner or operator of the outside farm.

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"Custom farming"

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The general property form is used for

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both residential and nonresidential properties. (When applied to residential buildings, it can cover apartment buildings, assisted-living facilities (distinct from nursing homes), and hotels and motels with more than four units where the normal guest occupancy is at least six months. )

Front 19

_________ is a Federal program for the purchase of flood insurance coverage. Because standard residential and commercial insurers usually exclude coverage for flood losses, the NFIP is often the only source of flood insurance available for consumers with property in a high-risk flood zone.

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The National Flood Insurance Program (NFIP)

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The personal liability supplement, which includes medical payments coverage, may be

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added to the dwelling property policy through an endorsement or written as a separate policy.

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Crop insurance typically covers losses that

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occur from the single peril of hail.

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Livestock is not covered property when

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in the custody of a common or contract carrier, public stockyards and sales barns or yards, slaughterhouses, and packing plants.

Front 23

The Utility Services'Direct Damage endorsement adds coverage for

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damage to the insured's property resulting from an interruption in any of the utility services identified in the endorsement schedule as covered. (However, no coverage applies under this endorsement for loss to the insured's electronic data.)

Front 24

__________, __________, and ___________are among the additional coverages of a businessowners policy.

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Debris removal, fire department service charges, and preservation of property

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DP-1 and DP-2 cover damage to the dwelling on a

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named perils basis.

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DP-3 (the special form) covers

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direct damage to dwellings and adjunct structures on an open perils basis while covering personal property on a broad named perils basis.

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The vehicle peril involves

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damage to insured property caused by direct physical contact between the insured property and a vehicle. (However, there is no coverage for damage caused by a vehicle owned or operated by the insured.)

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Motor vehicles used solely to service the insured's residence, such as a motorized lawnmower, are not subject to the

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exclusion for motor vehicle liability. A motorized wheelchair is also not subject to the exclusion.

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Vacant land, any premises used by the named insured in connection with insured locations, certain land on which a residence is being built for an insured, and any part of a premises occasionally rented to an insured, not for business purposes, come within the definition of

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insured location

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Second Injury Fund laws were created to encourage employers to hire or retain workers with

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pre-existing disabilities or conditions while providing economic relief to those employers if such workers suffered a subsequent injury.

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The Extended Non-Owned Coverage endorsement is often used for

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an insured who is provided with a company car. (It expands liability and medical payments coverage for exposures arising out of the use of vehicles furnished or available for regular use of the named individual by deleting certain exclusions.)

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Aftermarket parts are parts that

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are not manufactured by the original equipment manufacturer (OEM) that built the car. They are also referred to as non-OEM parts.

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For garage liability coverage to apply,

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the insured's legal liability for damages must be because of injury or damage that is caused by an accident and that results from garage operations.

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Businesses that never lease or rent vehicles learn that a borrowed vehicle is categorized as

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a hired auto'not a nonowned auto'unless it is borrowed from an employee, a partner, or another member of a limited liability company.

Front 35

Suretyship is the pledge of one party (Surety) to a second party (Obligee)

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that a third party (Principal) will faithfully perform its obligations.

Front 36

Typical aviation insurance policies exclude damage

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to tires unless caused by theft, vandalism, malicious mischief, or directly by other loss covered by the policy; wear and tear, deterioration, freezing, and mechanical or electrical breakdown, unless it is the direct result of other loss covered by the policy.

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The Uninsured/Underinsured Motorist Bodily Injury Coverage Form (UMBI form) is the form used for insurance coverage to

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pay insured persons who are injured in an accident caused by an owner or operator of an uninsured or underinsured motor vehicle. (Under Louisiana law, this coverage will have the same limits as the insured's bodily injury liability coverage, unless other coverage is requested.)

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There are two types of tort thresholds:

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a verbal threshold, which defines the seriousness of injury expressed in words, such as "serious or permanent" injury, and a monetary threshold, expressed as dollars of medical cost incurred.

Front 39

The coverages provided under a CA 04 13 endorsement apply to

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any leased auto described in the schedule. (For a leased auto designated in the schedule, the named lessor in the schedule becomes the insured.)

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Failure to report an accident is punishable by

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a fine of up to twenty-five dollars. If another person is injured or his or her property is damaged in the accident, the Commissioner may suspend the license of the person failing to make the report until the report has been filed. The Commissioner may elect to suspend a person's license for a maximum additional 30 days after the accident report has been filed.

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Employee benefits liability insurance responds to claims submitted because

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the insured made errors or omissions when handling employee benefit plans such as group and retirement plans.

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A leased vehicle will be treated as

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an owned vehicle if it is leased to the named insured under a written contract for at least six months.

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Each fund must submit to the Department of Insurance an application for authority to act as a group self-insurance fund for workers' compensation at least

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90 days prior to the effective date of the fund's creation.

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The captivity, or alleged captivity, giving rise to the extortion threat must

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take place within the United States, its territories or possessions, Puerto Rico, Canada, or any other location shown in the endorsement schedule.