Texas Property And Casualty Exam

Front 1

DOMESTIC

Back 1

Insurance company admitted and writing insurance in Texas.

Front 2

FOREIGN

Back 2

Insurer organized in another state but doing business in Texas.

Front 3

ALIEN

Back 3

Insurance company organized and doing business outside of United States

Front 4

TO GET ADJUSTERS LICENSE IN TEXAS

Back 4

1. Be 18
2. Be a Texas resident or approved
3. Comply with federal laws
4. Be trustworthy
5. Have training/experience
6. Pass an exam

Front 5

ADDRESS CHANGE NOTIFICATION

Back 5

Must notify Commissioner within 30 days.

Front 6

EXPIRATION AND RENEWAL OF LICENSE

Back 6

Expires every two years; can renew up to 90 days after expiration if you pay 50% penalty; must take 30 hours of continuing education, 2 of which must be ethics and 15 of which must be class.

Front 7

STAFF ADJUSTER

Back 7

Is on payroll of insurance company.

Front 8

INDEPENDENT ADJUSTER

Back 8

Generally works for a number of insurance companies.

Front 9

PUBLIC ADJUSTER

Back 9

Works on behalf of the insured in negotiating claims.

Front 10

CLAIM

Back 10

Request for indemnification due to financial loss.

Front 11

FIRST PARTY

Back 11

The insured.

Front 12

SECOND PARTY

Back 12

The insurance company.

Front 13

THIRD PARTY

Back 13

The "claimant".

Front 14

UTMOST FAITH

Back 14

Means full disclosure, honesty and cooperation; is a contractual requirement.

Front 15

STOWERS FURNITURE COMPANY vs. AMERICAN INDEMNITY

Back 15

Any time an adjuster believes the exposure is greater than the policy limit, the adjuster must send letter to insured ("Stowers Letter").

Front 16

BUSINESS DAY

Back 16

Not Saturday, Sunday, or holiday.

Front 17

DAY

Back 17

Any day (including Saturday, Sunday and holidays).

Front 18

60+ DAY DELAY IN SETTLEMENT

Back 18

Insurance company will pay damages, including 18% interest.

Front 19

NOTICE OF CLAIM

Back 19

Provided by claimant to insurer; covers facts surrounding claim.

Front 20

15 *DAYS* AFTER RECEIVING CLAIM

Back 20

Insurer must acknowledge receipt, commence investigation, request forms and proof needed.

Front 21

15 *BUSINESS* DAYS AFTER RECEIVING REQUIRED INFORMATION

Back 21

Insurer must accept or deny the claim.

Front 22

5 *BUSINESS* DAYS

Back 22

To write check after liability is determined.

Front 23

ESSENTIAL ELEMENTS TO FORM CONTRACT

Back 23

"CALC"

1. Competent parties (18+, sane and sober)
2. Agreement (both offer and acceptance)
3. Lawful objective (legal purpose)
4. Consideration (exchange of value)

Front 24

CONTRACT OF ADHESION

Back 24

All parties agree to follow entire contract; insured has no negotiation power - take it or leave it.

Front 25

ALEATORY CONTRACT

Back 25

Values exchanged are unequal (payment made dues not equal claim dollars paid).

Front 26

UNILATERAL CONTRACT

Back 26

Only one party makes promises.

Front 27

CONDITIONAL

Back 27

May be voided if violated.

Front 28

ESTOPPEL

Back 28

Involuntary relinquishing of rights.

Front 29

WARRANTIES

Back 29

Must be true at time of loss in order for policy to be enforceable.

Front 30

REPRESENTATIONS

Back 30

Statements made by insured that are true to their knowledge.

Front 31

MISREPRESENTATIONS

Back 31

Incorrect information given by applicant that - when corrected - does not impact coverage.

Front 32

MATERIAL MISREPRESENTATION

Back 32

Bad information that *does* impact coverage; could be fraudulent.

Front 33

CONCEALMENT

Back 33

Deliberately withholding information; voids coverage; could be fraudulent.

Front 34

WAIVER

Back 34

Voluntary relinquishment of a right.

Front 35

INDEMNIFICATION

Back 35

Restores insured to a pre-loss economic or financial condition - no better, no worse.

Front 36

INSURANCE

Back 36

Transfer of risk from one person to an insurance company that accumulates funds.

Front 37

DIRECT LOSS

Back 37

Immediate damage to physical property.

Front 38

INDIRECT

Back 38

Inability to use property due to loss.

Front 39

CONSEQUENTIAL

Back 39

Indirect loss resulting from spoiling or temperature change.

Front 40

RISK

Back 40

Chance of uncertainty/loss.

Front 41

SPECULATIVE RISK

Back 41

Examples: Gambling or stockmarket.

Front 42

PURE RISK

Back 42

Involves only chance of loss.

Front 43

PERILS

Back 43

Exposure to risk or imminent danger; identified in contract.

Front 44

HAZARDS

Back 44

Conditions that create or increase likelihood of loss.

Front 45

PHYSICAL HAZARDS

Back 45

Arise from material, structural, etc. (ice on sidewalk).

Front 46

MORAL HAZARDS

Back 46

Intentionally dishonest (owner burns down store).

Front 47

MORALE HAZARDS

Back 47

Attitude of carelessness or indifference (leaving keys in ignition).

Front 48

LAW OF LARGE NUMBERS

Back 48

Large frequency of occurrances help predict future events; insurance companies can use these large numbers of frequency to predict risk.

Front 49

FOUR PART OF INSURANCE CONTRACT

Back 49

1. Declarations
2. Agreement
3. Conditions
4. Exclusions

Front 50

PRO-RATA LIABILITY

Back 50

Bigger policy pays more than smaller policy.

Front 51

CONCURRENT POLICIES

Back 51

Two different policies insuring for the same peril.

Front 52

RIGHT OF SALVAGE

Back 52

Insurer may take posession of a totaled vehicle after financial agreement is settled.

Front 53

LIBERALIZATION CLAUSE

Back 53

If insurer broadens coverage at no additional cost, then the insured is automatically given coverage.

Front 54

EXCLUSIONS

Back 54

1. Prevent duplicate coverage
2. Eliminate unnecessary coverage
3. Manage hazards

Front 55

SUPPLEMENTARY PAYMENTS/ADDITIONAL COVERAGES

Back 55

1. Bonds
2. Aid
3. Interest
4. Loss of earnings
5. Expenses incurred
6. Defense and investigation costs

Front 56

CONINSURANCE CLAUSE

Back 56

Encourages insured to carry insurance coverage close to the full replacement value of property (80%).

Front 57

MONOLINE POLICY

Back 57

Provides one type of insurance.

Front 58

PACKAGE POLICY

Back 58

Property and liability insurance in one policy.

Front 59

INFLATION GUARD

Back 59

Offsets increased cost of replacing property during inflationary times.

Front 60

VACANT

Back 60

No people, no property.

Front 61

UNOCCUPIED

Back 61

No people, property still present; owner intends to return.

Front 62

VANDALISM COVERAGE

Back 62

Suspended after 60 days of property being vacant.

Front 63

BLANKET POLICY

Back 63

One limit to cover multiple buildings or locations.

Front 64

CONSTRUCTION CLASSIFICATIONS

Back 64

Six classifications; #6 is lowest risk due to flame-retardent building material.

Front 65

LIABILITY

Back 65

Legal obligation to pay for damages caused to another.

Front 66

BODILY INJURY COVERAGE

Back 66

Covers injuries caused to other people in the event of an accident.

Front 67

PERSONAL DAMAGE

Back 67

Damage caused by libel or slander.

Front 68

TO PROVE NEGLIGENCE

Back 68

1. Duty owed
2. Duty breached
3. Actual loss
4. Proximate cause

Front 69

DIRECT LIABILITY

Back 69

One party committed wrongful act that injured another.

Front 70

VICARIOUS LIABILITY

Back 70

Example: Parent of a child.

Front 71

CONTRACTUAL LIABILITY

Back 71

One party assumes responsibility under agreement.

Front 72

ABSOLUTE LIABILITY

Back 72

Law-imposed liability (Example: pool or pitbull)

Front 73

STRICT LIABILITY

Back 73

Defect claims (Example: defective tires)

Front 74

ACCIDENT LIMIT

Back 74

Accident is sudden and unforeseen.

Front 75

OCCURENCE LIMIT

Back 75

Includes loss caused by continued or repeated exposure to peril over time.

Front 76

AGGREGATE LIMIT

Back 76

Maximum amount of coverage during policy period.

Front 77

COMPENSATORY DAMAGES

Back 77

Used to make injured person whole again.

Front 78

PUNITIVE DAMAGES

Back 78

Used to punish wrongdoer.

Front 79

SPECIAL DAMAGES

Back 79

Specific, such as "medical expenses".

Front 80

GENERAL DAMAGES

Back 80

Intangible, such as "mental anguish".

Front 81

DENIAL OF COVERAGE

Back 81

Investigation reveals either wrongdoing, or coverage does not cover claim.

Front 82

DENIAL OF LIABILITY

Back 82

Investigation determines that insured is not the liable party.

Front 83

INVESTIGATION

Back 83

Gathering the facts pertinent to a loss.

Front 84

THREE BASIC STEPS OF CLAIM INVESTIGATION

Back 84

1. Verify insurance coverage
2. Obtain information about claim
3. Verify and compare information

Front 85

ALTERNATIVE DISPUTE RESOLUTIONS

Back 85

Appraisal, Negotiation, Arbitration, Mediation, Competitive estimates

Front 86

NAMED PERILS POLICY

Back 86

Policy covers only causes of loss specifically listed.

Front 87

OPEN PERILS POLICY

Back 87

If exclusion is not listed, then its covered.

Front 88

EVALUTION

Back 88

Determining the value of a claim.

Front 89

DEPRECIATION

Back 89

Decrease in property value due to use, age, wear and tear.

Front 90

TOTALED

Back 90

Cost to repair is greater than pre-loss value.

Front 91

REPLACEMENT COST

Back 91

Provides funds to insured to replace property with something of like-kind.

Front 92

ACTUAL CASH VALUE (ACV)

Back 92

Cost to replace - depreciation = payment

Front 93

SALVAGE

Back 93

Insurer takes title to property and sells it to reduce their net loss.

Front 94

ADVANCE PAYMENT

Back 94

Partial payment of claim issued without obtaining signed release.

Front 95

DROP-DRAFT SETTLEMENT

Back 95

Draft and relase sent to claimant for amount that should be sufficient to settle.

Front 96

TO DETERMINE LIABILITY

Back 96

1. Gather physical evidence
2. Gather verbal descriptions
3. Gather witness statements

Front 97

NON-WAIVER AGREEMENT

Back 97

Company can continue investigating without losing its right to deny coverage; REQUIRES SIGNATURE.

Front 98

RESERVATION OF RIGHTS

Back 98

Company can continue investigating without losing its right to deny coverage.

Front 99

DRAFT AUTHORITY

Back 99

Check amount adjuster can write without approval.

Front 100

RELEASE

Back 100

Claimant cannot collect additional damages after receiving payment.

Front 101

DECLARATORY JUDGEMENT

Back 101

Court determines coverage and rights of involved parties before liability and damage is determined.

Front 102

SUBROGATION

Back 102

Transfer the rights of recovery from insured to the insurance company.

Front 103

SUBROGATION PROCESS

Back 103

1. Identify parties potentially responsible
2. Notify responsible party
3. Investigate
4. File claim or lawsuit with other party or their insurance company.

Front 104

INITIAL OR FIELD REPORT

Back 104

Report filed within 24 hours to 7 days.

Front 105

INTERIM OR STATUS REPORT

Back 105

Subsequent reports filed every 15 to 30 days tracking status of claim.

Front 106

FULL FORMAL REPORT

Back 106

Loss exceeds authority, claim is denied or fraud is suspected.

Front 107

TEXAS MINIMUM LIMITS

Back 107

30/60/25, combined single limit - $85,000

Front 108

FOUR WAYS TO MEET FINANCIAL RESPONSIBILITIES

Back 108

1. Post bond payable in amount of $85,000
2. Deposit $85,000 with Texas Secretary of State
3. Self-insure (primarily for businesses)
4. Carry auto insurance with 30/60/25 limits

Front 109

SR-22 FORM

Back 109

Generally for drivers convicted of major offence (DWI) or who didn't have insurance and caused accident with damage over $1,000, filed with TX DPS and maintained for 2 years.

Front 110

INSURED VEHICLES UNDER PAP

Back 110

1. Temporary vehicles (while insured being repaired)
2. Rental vehicles
3. Additional and replacement automobiles
4. Insured automobiles
5. Trailors

Front 111

PEOPLE INSURED UNDER PAP

Back 111

1. Insured
2. Spouse
3. Anyone driving with permission
4. Resident relatives

Front 112

OUT-OF-STATE CLAUSE

Back 112

If in an accident in a state that requires higher liability limits, insured's Texas policy will adjust to provide higher limits.

Front 113

EXTENDED NONOWNED AUTO COVERAGE

Back 113

Broadens coverage to include company vehicles.

Front 114

TOWING AND LABOR

Back 114

Up to $120 per vehicle.

Front 115

MISCELLANEOUS VEHICLE COVERAGE

Back 115

To include motorhomes, ATVs, dune buggy's (NOT snowmobiles.)

Front 116

TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION

Back 116

Provides insurance for those who have been denied elsewhere.

Front 117

ENDORSEMENTS

Back 117

Used to modify, alter or delete coverage.

Front 118

SPLIT LIMITS - FIRST FIGURE

Back 118

The maximum amount any one person will be paid out for any one accident.

Front 119

SPLIT LIMITS - SECOND FIGURE

Back 119

The total for all claim checks for injuries cannot go beyond this number.

Front 120

SPLIT LIMITS - THIRD FIGURE

Back 120

The most property damage that can be paid for the total of all damage in one accident.

Front 121

TREES, SHRUBS AND PLANTS

Back 121

Up to $500 each for damage caused by specified perils.

Front 122

DEBRIS REMOVAL

Back 122

Coverage for debris by a covered peril; automatically included in dwelling policy.

Front 123

FIRE DEPARTMENT SERVICES CHARGE

Back 123

Up to $500 for covered property from covered peril.

Front 124

DWELLING POLICY - COVERAGE A

Back 124

Dwelling

Front 125

DWELLING POLICY - COVERAGE B

Back 125

Other structures

Front 126

DWELLING POLICY - COVERAGE C

Back 126

Personal property

Front 127

DWELLING POLICY - COVERAGE D

Back 127

Fair rental value

Front 128

DWELLING POLICY - COVERAGE E

Back 128

Additional living expenses

Front 129

DWELLING POLICY - LIABILITY SUPPLEMENT - COVERAGE L

Back 129

Personal liability, bodily injury and property damage to others (Example: Pitbull bite, drowning, etc.) Policy limit is $100k.

Front 130

DWELLING POLICY - LIABILITY SUPPLEMENT - COVERAGE M

Back 130

Medical payments and funeral expenses of others within three years of accident related to insured and/or property regardless of fault.

Front 131

DWELLING POLICY - BROAD THEFT COVERAGE ENDORSEMENT

Back 131

Covers personal property on and off premises; adds theft coverage for any insured.

Front 132

DWELLING POLICY - DWELLING UNDER CONSTRUCTION ENDORSEMENT

Back 132

Used when home is under construction; premium generally based on 65% of completed value.

Front 133

MOBILE HOME ENDORSEMENT - DWELLING POLICY

Back 133

Requires mobile home to have wheels removed and be tied down to foundation.

Front 134

KEEP RECORDS OF CONTINUING EDUCATION

Back 134

For four (4) years.

Front 135

HOMEOWNERS POLICY - COVERAGE A

Back 135

Dwelling

Front 136

HOMEOWNERS POLICY - COVERAGE B

Back 136

Other structures

Front 137

HOMEOWNERS POLICY - COVERAGE C

Back 137

Personal property

Front 138

HOMEOWNERS POLICY - COVERAGE D

Back 138

Additional living expenses/Loss of use

Front 139

HOMEOWNERS POLICY - COVERAGE E

Back 139

Bodily injury and property damage

Front 140

HOMEOWNERS POLICY - COVERAGE F

Back 140

Medical payments (within three years)

Front 141

REASONABLE REPAIRS COVERAGE

Back 141

Automatic coverage pays to make reasonable repairs after a covered loss to protect the property from further loss.

Front 142

PROPERTY REMOVAL COVERAGE

Back 142

Automatic coverage for removing property from premises for 30 days to protect it from loss.

Front 143

CREDIT CARD, FORGERY AND COUNTERFEIT MONEY COVERAGE

Back 143

Up to $500 of coverage for receiving counterfeit money or the theft of a credit card.

Front 144

GRAVE MARKERS COVERAGE

Back 144

Up to $5,000 per loss for grave markers that are damaged.

Front 145

PAIR OR SET CLAUSE

Back 145

Will first try to repair or replace missing piece; if not possible, adjuster must pay for lost value of missing piece.

Front 146

HOMEOWNERS POLICY STANDARD DEDUCTIBLE

Back 146

$250

Front 147

HO-4 RENTERS INSURANCE

Back 147

Made for renters, not homeowners (does not protect structure or other buildings).

Front 148

HO-6 CONDOMINIUM UNIT-OWNERS FORM

Back 148

Covers structure and permanent fixtures not covered by HOA.

Front 149

HOMEOWNERS POLICY - SCHEDULED PERSONAL PROPERTY ENDORSEMENT

Back 149

Covers property not covered adequately under homeowners policy.

Front 150

HOMEOWNERS POLICY - EARTHQUAKE ENDORSEMENT

Back 150

Covers earthquakes; movement within a 72 hour period is considered a single loss.

Front 151

HOMEOWNERS POLICY - PERSONAL INJURY ENDORSEMENT

Back 151

Covers the insured's liability to third part for libel, slander, invasion of privacy.

Front 152

HOMEOWNERS POLICY - HOME DAY CARE ENDORSEMENT

Back 152

Allows in-home daycare to be operated by insured on premises.

Front 153

HOMEOWNERS POLICY - PERMITTED INCIDENTAL OCCUPANCIES ENDORSEMENT

Back 153

Allows incidental business operations to be run on premises (doctor or lawyer at home).

Front 154

HOMEOWNERS POLICY - BUSINESS PURSUITS ENDORSEMENT

Back 154

Provides liability protection for employees engaged in sales, teaching, or clerical work activities.

Front 155

HOMEOWNERS POLICY - WATERCRAFT ENDORSEMENT

Back 155

Extends watercraft liability coverage beyond size and horsepower limits of policy.

Front 156

THEFT

Back 156

Always covered by Homeowners Policy.

Front 157

HOMEOWNERS POLICY - JEWELRY, WATCHES AND FURS

Back 157

$1500 due to theft.

Front 158

HOMEOWNERS POLICY - FIREARMS

Back 158

$2500 due to theft.

Front 159

HOMEOWNERS POLICY - BUSINESS PROPERTY

Back 159

$2500 due to theft.

Front 160

HOMEOWNERS POLICY - COLLAPSE

Back 160

Covered if caused by hidden insects or vermin, weight of contents or people, and weight of rain or snow on a roof.

Front 161

INSURANCE COMPANY'S CONTRACTUAL DUTY TO THIRD PARTY

Back 161

None.

Front 162

COMMERCIAL INSURANCE - COVERAGE A

Back 162

Building, permanent fixtures, machinery and equipment, other structures on premises and personal property used to service building.

Front 163

COMMERCIAL INSURANCE - COVERAGE B

Back 163

Business personal property; extended to properties within 100 feet of premises.

Front 164

COMMERCIAL INSURANCE - COVERAGE C

Back 164

Personal property of others; must be located in or within 100 feet of premises.

Front 165

BUSINESS PERSONAL PROPERTY

Back 165

Everything that is not a structure or permanently attached to the structure (stock, furniture, fixtures, machinery, tenant improvements).

Front 166

COMMERCIAL INSURANCE - PERSONAL PROPERTY TEMPORARILY OFF PREMISES

Back 166

Up to $10,000.

Front 167

COMMERCIAL INSURANCE - OUTDOOR PROPERTY

Back 167

Up to $1,000 for fences, antennae, signs attached to a building, and debris removal.

Front 168

HOMEOWNERS POLICY - FIRE DEPARTMENT SERVICES CHARGE

Back 168

Up to $500 when the fire department is called to save or protect covered property from a peril insured against.

Front 169

COMMERCIAL POLICY - FIRE DEPARTMENT SERVICES CHARGE

Back 169

Up to $1000 when the fire department is called to save or protect covered property from a peril insured against.

Front 170

COMMERCIAL POLICY - POLLUTION CLEANUP AND REMOVAL

Back 170

Maximum of $10,000.

Front 171

COMMERCIAL POLICY - COST OF RESTORATION OF ELECTRONIC DATA

Back 171

$2500 covered.

Front 172

COMMERCIAL POLICY - DEBRIS REMOVAL

Back 172

Up to 25% of the actual loss sustained for debris removal related to the covered loss. If that is not adequate, up to $10,000 is available.

Front 173

BUILDER'S RISK COVERAGE COVERS

Back 173

1. Buildings under construction
2. Building supplies in or within 100 feet
3. Temporary structures on site

Front 174

COMPLETED VALUE FORM

Back 174

Policy is set up to insure the full value of the completed building at the beginning of the policy.

Front 175

VALUE REPORTING FORM

Back 175

Allows insured to report the value of the construction project monthly; coverage increases as work progresses.

Front 176

CONDOMINIUM ASSOCIATION COVERAGE

Back 176

Purchased by condo or HOA to provide primary coverage for dwellings; primary policy.

Front 177

CONDOMINIUM COMMERCIAL OWNERS FORM

Back 177

Purchased by condo owners that operate a business in unit; covers contents and personal property of business.

Front 178

LEGAL LIABILITY INSURANCE COVERAGE

Back 178

Coverage for tenant of leased building space that covers risks the tenant might be responsible for due to direct physical loss or damage.

Front 179

BUSINESS INCOME

Back 179

Loss of net income plus continuing operating expenses.

Front 180

EXTRA EXPENSE

Back 180

Any expense incurred to minimize the time a business is closed and continue operations.

Front 181

ORDINANCE OR LAW ENDORSEMENT - COVERAGE A

Back 181

Covers losses to the undamaged portion of the building resulting from the enforcement of a building code or ordinance.

Front 182

ORDINANCE OR LAW ENDORSEMENT - COVERAGE B

Back 182

Pays for costs to demolish the undamaged part of the building if required by a building code or ordinance.

Front 183

ORDINANCE OR LAW ENDORSEMENT - COVERAGE C

Back 183

Pays increased repair costs incurred to bring the damaged portion of the building up to code after a covered loss.

Front 184

PEAK SEASON ENDORSEMENT

Back 184

Seasonal fluctuations to inventory; applies only during the period scheduled on the endorsement.

Front 185

PEAK SEASON ENDORSEMENT - VALUE REPORTING FORM

Back 185

Regularly report inventory; failure to do so If means insurer will not pay more than last reported amount.

Front 186

COMMERCIAL INSURANCE - FLOOD

Back 186

Flood is not covered on a basic, broad, or special form; requires flood policy.

Front 187

BUSINESS INTERUPTION COVERAGE

Back 187

Covers business’s indirect losses.

Front 188

PREMISES

Back 188

Coverage as a result of the condition of the insured's premises (slips and falls).

Front 189

OPERATIONS

Back 189

Coverage as a result of operations (delivery boy on bike injures pedestrian).

Front 190

PRODUCT

Back 190

Coverage as a result of a product that the business manufactured or sold (lead paint).

Front 191

COMPLETED OPERATIONS

Back 191

Coverage as a result of work that was completed negligently (injury due to improperly repaired stove).

Front 192

FIRE LEGAL

Back 192

Coverage for fire damage due to negligent tenant (food court employee causes fire, damaging rental space).

Front 193

HOST LIQUOR

Back 193

Coverage for business of alcoholic beverages inhosting a party where guest becomes intoxicated.

Front 194

OCCURENCE FORM

Back 194

If insured is being sued for an accident in the past, the insurer who provided coverage at the time of the incident would be used.

Front 195

CONTRACTS COVERED BY COMMERCIAL GENERAL LIABILITY ("CGL") POLICY

Back 195

("LEASE")
1. Lease of a premises (not lease of equipment)
2. Easement agreement
3. Agreement to indemnify a municipality
4. Sidetrack agreement
5. Elevator maintenance agreement

Front 196

COMMERCIAL GENERAL LIABILITY ("CGL") POLICY - COVERAGE B

Back 196

Personal and Advertising Injury Liability (Personal Injury)

Front 197

PERSONAL INJURY

Back 197

Damage to another's party's character or reputation.

Front 198

COMMERCIAL GENERAL LIABILITY ("CGL") POLICY - COVERAGE A

Back 198

Bodily injury and Property Damage

Front 199

PERSONAL INJURY

Back 199

Damage caused by libel or slander or intentional torts.

Front 200

ADVERTISING INJURY

Back 200

Copyright infringement.

Front 201

COMMERCIAL GENERAL LIABILITY ("CGL") POLICY - COVERAGE C

Back 201

Medical payments paid to others regardless of fault within one year of accident.

Front 202

COMMERCIAL GENERAL LIABILITY ("CGL") POLICY - PREMIUM

Back 202

Premium is assessed at inception, then audited at a later date and unused premium retured.

Front 203

GARAGE POLICY

Back 203

Any commercial insured that has customers’ cars in their care, custody, and control.

Front 204

TRUCKERS POLICY

Back 204

Truckers hired to haul the goods of others by using tractor-trailer rigs.

Front 205

MOTOR CARRIER POLICY

Back 205

Used to cover businesses hauling the goods of others but not limited to large tractor-trailers.

Front 206

BUSINESS AUTO POLICY

Back 206

Provides protection for risk exposure arising out of the use of an automobile for business use.

Front 207

BUSINESS AUTO POLICY - COLLISION

Back 207

Includes colliding with another object or overturning of the insured’s vehicle.

Front 208

BUSINESS AUTO POLICY - COMPREHENSIVE

Back 208

Open perils form; excludes coverage in Collision policy; includes flood.

Front 209

COLLISION vs. COMPREHENSIVE

Back 209

Insured must first purchase comprehensive or specified causes of loss before eligible to purchase collision.

Front 210

GARAGE POLICY COVERAGE - PHYSICAL DAMAGE COVERAGE

Back 210

Provides comprehensive and collision coverage for vehicles owned by business.

Front 211

TRUCKERS POLICY - PHYSICAL DAMAGE COVERAGE

Back 211

Pays for damage to tractors and trailers that are owned by the trucker.

Front 212

TRUCKERS POLICY - TRAILER INTERCHANGE COVERAGE

Back 212

Bailee coverage and provides physical damage caused to another’s trailer being hauled by the trucker; does not cover cargo.

Front 213

MOTOR CARRIER POLICY

Back 213

Used to cover businesses hauling the goods of others, but not limited to large tractor-trailers.

Front 214

COMMERCIAL AUTO INSURANCE - INDIVIDUAL NAMED INSURED ENDORSEMENT

Back 214

Extends coverage to the insured’s family members with liability coverage as a named insured.

Front 215

EQUIPMENT BREAKDOWN COVERAGE FORM

Back 215

Only covers explosion and mechanical breakdown of equipment.

Front 216

EQUIPMENT BREAKDOWN INSURANCE - EXPEDITING EXPENSES COVERAGE

Back 216

Pays for the cost of temporary repairs or the cost to expedite permanent repairs to avoid interuption of business.

Front 217

EQUIPMENT BREAKDOWN INSURANCE - BUSINESS INCOME COVERAGE

Back 217

Pays for the indirect loss a business suffers as the result of having to close temporarily due to equipment breaking.

Front 218

EQUIPMENT BREAKDOWN INSURANCE - SUSPENSION

Back 218

Coverage can be suspended if covered equipment is in poor or dangerous condition.

Front 219

INLAND MARINE COVERAGE

Back 219

Portable property, property subject to movement, propery not in the possession of its owner.

Front 220

FLOATERS

Back 220

Refers to the moveable nature of the property being insured.

Front 221

INLAND MARINE COVERAGE CAN BE WRITTEN ON

Back 221

1. Imports
2. Exports
3. Domestic shipments
4. Bridges and tunnels
5. Cables, telephone lines
6. Personal floaters (furs, jewelry)
7. Commercial floaters (cameras, musical instruments)

Front 222

ACCOUNTS RECEIVABLE FLOATER

Back 222

Insures the value of the insured account and billing records.

Front 223

COMMERCIAL ARTICLES FLOATER

Back 223

Used by professional photographers and musicians to insure high-value items; policy is worldwide.

Front 224

EQUIPMENT DEALERS FLOATER

Back 224

Used by companies that sell agricultural and construction equipment.

Front 225

JEWELER'S BLOCK COVERAGE

Back 225

Used to insure inventory at jewelry store, as well as items sold but not yet delivered and property in the case of the business (example: customer's jewelry).

Front 226

OUTDOOR SIGNS FLOATER

Back 226

Used to insure outdoor signs that cannot be covered adequately by commerical property policy.

Front 227

VALUABLE PAPERS AND RECORDS FLOATER

Back 227

Used to insure valuable papers and records (blueprints, maps, deeds). Covers property away from premises up to $5,000.

Front 228

RECEPTABLE WARRANTY

Back 228

Requires the insured to keep all valuable papers and records in fireproof containers at all times.

Front 229

CONTRACTOR'S EQUIPMENT FLOATER

Back 229

Covers contractor's tools and equipment used in their businesses.

Front 230

INSTALLATION FLOATER

Back 230

Used to insure property being delivered to or installed in the premises of customer; coverage does not begin until the installer takes possession of property to be installed.

Front 231

ELECTRONIC DATA PROCESSING FLOATER

Back 231

Provides open perils coverage for computer hardware, software and data. Excludes damage caused by electrical damage more than 500 feet off premises.

Front 232

BROAD FORM vs. SPECIAL FORM

Back 232

The broad form is better coverage than the special form because the special form has more exclusions.

Front 233

THEFT

Back 233

Any unlawful taking of property (example: robbery, burglary, embezzlement, stealing, and shoplifting) but does not include mysterious disappearance.

Front 234

BURGLARY

Back 234

Must be evidence of forcible entry or exit.

Front 235

ROBBERY

Back 235

Threat of violence, although no weapon is required.

Front 236

CUSTODIAN

Back 236

Person who has custody of insured property inside premises.

Front 237

MESSENGER

Back 237

Person who has custody of property outside of premises (manager taking money to bank).

Front 238

GUARD/WATCHMAN

Back 238

Person the insured has hired to watch property (has no other duties).

Front 239

DISCOVERY FORM

Back 239

Written to cover losses discovered during the policy period but not necessarily sustained during that policy period; includes retroactive date.

Front 240

LOSS-SUSTAINED FORM

Back 240

Covers only losses discovered within the policy period, or within one year.

Front 241

EMPLOYEE THEFT AGREEMENT

Back 241

Pays for theft of money by employees.

Front 242

FORGERY OR ALTERATION AGREEMENT

Back 242

Pays for losses due to outside parties that forge or alter company checks.

Front 243

INSIDE THE PREMISES AGREEMENTS

Back 243

Covers various forms of burglary and theft to money, damage to safes, etc.

Front 244

OUTSIDE THE PREMISES AGREEMENT

Back 244

Property in care of messenger or armored vehicle.

Front 245

COMPUTER FRAUD

Back 245

Pays for theft of money when computer used to fraudulently transfer money.

Front 246

FUND TRANSFER FRAUD

Back 246

Pays for losses resulting from fraudulent instructions to transfer funds from one account to another.

Front 247

PRINCIPAL

Back 247

Party making promise to abide by the laws and regulation (Example: appear in court, perform job).

Front 248

OBLIGEE

Back 248

Party receiving a promise under bonding agreement (Example: court).

Front 249

SURETY

Back 249

Party that gaurantees fulfillment of the promise, or will pay penalty (bail bonds company).

Front 250

BID BONDS

Back 250

Used when submitting a bid for a contract.

Front 251

PERFORMANCE BONDS

Back 251

Used by contractors to guarantee work will be completed to certain standards.

Front 252

PAYMENT BONDS

Back 252

Guarantee that bills will be paid by contractor.

Front 253

FIDUCIARY BONDS

Back 253

"Extraordinary Fiduciary". Guarantee the performance of fiduciaries entrusted with property or money of others.

Front 254

COURT BONDS

Back 254

Allows a person to seek remedy in court.

Front 255

BAIL BOND

Back 255

Guarantees appearance in court.

Front 256

PENALTY

Back 256

Maximum limit of liability under a bond.

Front 257

NATIONAL FLOOD INSURANCE PROGRAM (NFIP)

Back 257

Separate policy (not endorsement); available to people located in flood zone-prone areas; policy can be transferred to new owners.

Front 258

FLOOD PERIL INCLUDES

Back 258

1. Overflow of creek, river, lakes
2. Any unusual accumulation of surface water (rain or melted snow)
3. Tidal surge
4. Mudslide caused by flooding

Front 259

FLOOD INSURANCE WAITING PERIOD

Back 259

30 days

Front 260

WHO WRITES FLOOD POLICIES?

Back 260

Federal government

Front 261

FLOOD DAMAGE COVERAGE

Back 261

Very small amounts (up to $35,000 for single family dwelling).

Front 262

BOATOWNERS POLICY

Back 262

Smaller watercraft, under 26 feet in length.

Front 263

BOATOWNERS POLICY COVERAGE

Back 263

Physical damage to boat, trailer, motors and equipment necessary for operation of boat.

Front 264

YACHT POLICY

Back 264

Made for larger personal boats with overnight spaces.

Front 265

IMPLIED WARRANTIES

Back 265

Unwritten.

Front 266

BARRATRY

Back 266

Any illegal act to defraud the owners of the ship or cargo.

Front 267

PERILS OF THE SEA

Back 267

Naturally occurring causes of loss like unusual wind or wave action.

Front 268

PERILS ON THE SEA

Back 268

Manmade causes of loss occurring during ocean travel.

Front 269

JETTISON

Back 269

Covers throwing cargo overboard to balance out load to save ship.

Front 270

INCHMAREE CLAUSE

Back 270

Covers losses resulting from negligence of captain or crew.

Front 271

PILOT WARRANTY

Back 271

Used to restrict coverage to specified pilots by name.

Front 272

BAILEE

Back 272

Person taking care of property (example: person who owns a hangar with a plane that is not his).

Front 273

UMBRELLA POLICIES SOLD IN INCREMENTS OF

Back 273

$1M.

Front 274

UMBRELLA POLICY - WHEN UNDERLYING LAPSES

Back 274

Umbrella pays as if the primary policy was present; the self insured retention does not apply to claims when the umbrella is acting as excess coverage.

Front 275

ACT OF TERRORISM

Back 275

1. A violent act
2. Results in damage
3. Minimum loss $5M

Front 276

AUTOMOBILE INSURANCE - COVERAGE A

Back 276

Liability

Front 277

AUTOMOBILE INSURANCE - COVERAGE B

Back 277

Medical payments and personal injury protection

Front 278

AUTOMOBILE INSURANCE - COVERAGE C

Back 278

Uninsured/Underinsured Motorist

Front 279

AUTOMOBILE INSURANCE - COVERAGE D

Back 279

Physical Damage

Front 280

BUSINESS OWNERS POLICY

Back 280

Small to medium sized businesses (insurance companies, mom-and-pop's, barbershop)

Front 281

STATED AMOUNT POLICY

Back 281

An agreed amount of insurance paid in the event of total loss regardless of the actual value (antiques, collectibles).

Front 282

INSURABLE INTEREST

Back 282

Interest in something that is insured.

Front 283

FIDELITY BOND

Back 283

Covers insured for losses that they incur as a result of fraudulent acts by specified individuals.

Front 284

PROXIMATE CAUSE

Back 284

Without the act, the injury wouldn't have occurred.

Front 285

MYSTERIOUS DISAPPEARANCE

Back 285

Cause of the loss cannot be identified.

Front 286

ADMITTED INSURER

Back 286

Can sell insurance policies in the state.

Front 287

NONADMITTED INSURER

Back 287

Can only issue surplus lines (high risk).

Front 288

DISCIPLINARY ACTION

Back 288

If adjuster is accused, Commissioner will investigate and provide 10 days' notice of hearing.

Front 289

BAD FAITH

Back 289

Does not require wrongful intent.

Front 290

TIMEFRAME TO INVESTIGATE FRAUDULENT CLAIMS

Back 290

60 days from date received.

Front 291

EXTENSION DUE TO WEATHER DELAYS

Back 291

15 days; granted by commissioner.

Front 292

"BURGLE A BUILDING, ROB A BOB."

Back 292

"BURGLE A BUILDING, ROB A BOB."

Front 293

COMMERCIAL PACKAGE POLICY

Back 293

Serves alcohol, has a place of entertainment, or medium to large businesses (McDonalds, USAA).

Front 294

RIGHTS OF MORTGAGEE

Back 294

May act as insured by submitting payments, has full right of recovery for claims, has right to receive advance written notice of cancellation, nothing insured does can prevent from collecting on mortgage.

Front 295

PROOF OF LOSS

Back 295

Statement made by insured to insurer regarding claim so insurer can determine liability.

Front 296

FAIR CREDIT REPORTING ACT

Back 296

Promotes the fairness and accuracy of all information contained in consumer reports (credit report).

Front 297

WORKERS' COMPENSATION

Back 297

Between the business and the insurance company (not employee); 30 days to turn in claim; always the primary.

Front 298

"WCSHAVVER"

Back 298

Windstorm
Civil commotion
Smoke
Hail
Aircraft
Vehicles
Volcanic Eruption
Explosion
Riot

Front 299

"DACE"

Back 299

1. Declarations
2. Agreement
3. Conditions
4. Exclusions

Front 300

BROAD COVERAGE

Back 300

"The CURRENT WEIGHT of the FREEZING WATER caused the COLLAPSE."