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54 Cards in this Set

  • Front
  • Back
What is the purpose of the declaration page?
used for underwriting and rating purposes and for identification of the property or activity that is insured.
Information provided on the declaration page is
Property- id of insurer, name of insured,location, amount insured, premium, deductible, policy number
What is the purpose of the insuring agreement?
summarizes the major promises of the insurer
What is usually in the insuring agreement?
named perils policy or all risk policy
What are the 3 main exclusions?
excluded perils, excluded losses, excluded property
what things could be excluded?
personal property, cars, animals,certain physical damages
why are exclusions needed
- some perils considered uninsurable, presence of hazrds, coverage provided by other contracts, moral hazard, coverage not needed by typical insureds
Conditions?
provisions in the policy that qualify or place limitations on the insurer's
named insured?
is the person or persons named in the declarations section of the policy
endorsements and riders?
in property and casualty insuracnce, an endorsement is a written provision that adds to,deletes from or modifies the provisions in the original contract.
Deductible?
provision by which a specified amount is subtracted from the total loss payment that otherwise would be payable
Other insurance provisions?
prevent profiting from insurance and violation of the principle of indemnity.
Homeowner policy: what is a section 1 coverage?
Sec. 1- Property Coverage
*Dwelling
* Other structures
*Personal Property
*Loss of use
*add coverage
what is a section 2 coverage?
Sec 2- Liability Coverage
* personal liability
* medical payments to others
Insurance Service Office(ISO) Homeowners Program are what forms?
HO-2
HO-3
HO-4
HO-5
HO-6
HO-8
HO-2
Standard, named peril bases; names losses it covers.
Some covered are: fire, lighting, windstorm, hail
HO-5
Standard,all risk unless exclusion all loss will be covered
*growing in popularity
HO-3
Standard, all risk and named peril: personal property covered on named peril and dwelling and structure covered on all risk
* most popular
HO-4
Renters policy; belongings in it, personal property
HO-6
Condo form, from the walls in, limited coverage to structure
HO-8
Modify coverage plan; based on required to repair.
If RC> MC you get MC
*Reduce moral hazard
What are the 3 special ISO forms?
HO-4 Renters
HO-6 Condo
HO-8 Modify
What are the 3 standard ISO forms?
HO-2 Named peril
H0-5 All Risk
HO-3 All risk/named peril
Determine Policy Amount?
A-Dwelling is the appraisal value not the MV b/c MV would include land
What is a package policy?
Combines 2 or more separate coverages into one policy.
*Total premiums less
*Fewer gaps in coverage
*Insured deals w/only one insurer
Eligibility for HO-3
*Designed to cover residential properties not commercial
*Private res
* Multi unit dwellings but can't have more than 4
* In multi unit you have to live in one of the units
you and your vs us and we
your name v insurance
Business 4 exceptions to HO-3
1. Certain amount of money ie mowing lawn
2. Volunteer
3. home day care
4. home day care keeping relative
HO-3 Employee v Residence Employee
Residence Employee such as house keeper, nanny, on a regular basis
H0-3 insured location
not only your home but land you own in case someone gets hurt on it
Persons that are insured under Sec 1 coverage?
*resident relatives
*other persons under 21
*full time student away from home
*named insure and spouse
Coverage A
What is covered?
How?
Limit?
Losses paid?
*Dwelling
*All Risk
*RC>MV
* RC except if you under insured ur home
Coverage B
What is covered?
How?
Limit?
Losses paid?
*Other sturctures
*All risk
*10% of A
* RC except
Coverage C
What is covered?
How?
Limit?
Losses paid?
*Personal Property
*named peril
* 50% of A
*ACV
Coverage D
What is covered?
How?
Limit?
Losses paid?
*Loss of use
*Sec 1 loss, civil auth
* 30% of A
* add expenses fair rental value
Coverage E is?
Additional Coverage
Underinsured Clause
If insurance carried is less han 80% of replacement cost, the insured receives larger of ACV or
[(Amount Insurance carried)/ (80% X RC)] X loss
Exclusions for all of Sec. 1
Flood, earth movement
Sec 1 Exclusions for A and B
Freezing
*Theft @ residence under construction
*Vandalism
*Mold,Fungus
*Wear and Tear
*Birds or vermin
*Animals owned by insurer
Sec 1 Exclusions for C
*Animals
*Motor Vehicles
*Aircraft
Section 2 of the coverages cover?
protects the named insured and family members against legal liability arising out of their personal acts.
What is Coverage E?
How?
Limit?
Losses?
Personal liability and will compensate for any bodily injure or prop you caused to a 3rd party
*legally liable
*100,000 per occurence
*
Coverage F
What is it?
How is it covered?
Limit?
Loss?
Medical Payment to others
*for anyone injured on your property
*only medical expenses
* predetermined 1,000 per person
* within 3 years of incident
Auto Policy Part A
What is it?
How?
Limits?
Loss payment?
Liability Coverage
*PD/BI, defense cost
*legally liable
*split dollar limit, single dollar
* pd/bi
What does this mean?
25,000/50,000/10,000
Split Dollar Limit
per person BI/Per occ BI/PD
Part B
What?
How?
Limits?
Loss payments?
Medical Payment Coverage 1st party coverage
* struck by or driving a covered auto
*per person
*reasonable and nec w/in 3 years, funerals
Part B
Insured persons?
*u n family members, any motor vehicle designed for roads, pedestrians covered, your covered auto any1 in car w/u
Part B
Exclusions?
*business, vehicle use as residence, use neighbors car, stolen vehicle, racing
Part C
What?
How?
Limit?
Loss pay?
Uninsured Motorist
*legally liable
*split v single
* comp damages
Part D
What?
How?
Limit?
Loss pay?
Damage to your auto
*regardless of fault
*lesser of actual cash value
*repair/replace
Bailee
* they don't have control of your vehicle
* if they caused fault like not properly securing they will have to pay for damages
Part E
Duties after accident
*give access to med records
*do physical exam
*sumit proof of loss
*protect prop after loss
*notify police of stollen or hit n run
Part F
General Provisions
*Changes made to premium, alter type of vehicle, add car, operators using vehicle
can you collect from your insurance?
Minor accidents can go to own insurance meeting a verbal or mixed threshold if less than $5,000