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442 Cards in this Set

  • Front
  • Back
Inside the premises - Theft of Money & Securities covers what?
Money, securities resulting from TDD and damage to the residence if the insured is legally liable.
Under Employee theft what triggers immediate cancelation.
Discovery of any dishonest act commited by the employee whether before or after employment by the insured. The company can cancel for any employee with 30 days notice
What are the coverages provided by Employee Theft?
Loss of or damage to money securites and other property resulting from theft commited by an employee.
Define Safe Burglary
Taking or attempted taking of property from within a locked safe or vault by unlawful entry, with visible marks of forced entry, or taking of the safe or vault from inside the premises
What is the special limit per occurance for precious metals, stones, furs, and the the physical or intrinsic value of manuscripts, drawings or records.
$5,000 per occurance
What does outside the Premises coverage apply to?
Loss of money, Securities outside the premises in the care custody and control of a messanger or an armored care service resulting from TDD. Also covers robbery of other property under the same circumstance.
What is the additional exclusion that applies to computer fraud.
Inventory Storage.
What is the special limit for loss to manuscripts, drawings, and records that applies to computer fraud?
What does Money Orders and Counterfiet Paper Currency coverage apply to?
Loss resulting from having accepted counterfiet currency or money orders in good faith in exchange for merchandise, money or securities. Includes money orders and counterfeit paper currency from other countries
How many primary insuring agreements are included in the basic Commercial Crime Coverage form?
Name the seven insuring agreements that may be added to the basic Commercial Crime coverage Form by endorsment.
Extortion, Clients Property, Funds Transfer Fraud, Lessee of Safe Deposit Boxes, Securities Deposited with others, safe depository, Guests Property
Explain the Discovery Basis for Loss.
Any loss discovered during the policy period or within 60 days after expiration is covered reqardless of when it occured
What is the standard deductable under Employee theft?
Under what coverage form does the insured have legal expenses included?
Forgery or Alteration
Which coverage specifically excludes the loss of property contained in Money operated devices?
Inside the Premises - Theft of money & securites
Explain the Loss sustained basis of loss.
Covers only losses that both occured and were discovered within the policy period or within one year of expiration.
How are the following valued for payment of loss? Money, securities, other property.
Money - Face ValueSecurites - Value on the day loss is discovered.Other property - acv or cost to repair or replace whichever is less.
What are the three ways employee theft may be written
Employee Schedule, Employee postion or blanket.
Inland Marine was written as an extention of what coverage
Ocean Marine
What are the six catergories of risks eligible for Marine Coverage under the Nationwide Definitions?
1. Imports2. Exports3. Domestic Shipments4. Instrumentalities of Trans & Comm5. Personal Property Floater6. Commercial Property Floater
What is the characteristic that make a risk eligible for Inland Marine Coverage?
An element of Portability
THe Function of Inland Marine is generally considered to be covering what type of property?
Property in transit or subject to transit, land mobile equipment, instrumentalities or transportation & communication.
What is a "controlled" line of coverage?
A standard provision form is promulgated be a bureau such as ISO and filed for uniform use.
What are the Principal Inland Marine specific coverage forms?
1. Cameras2. Fine Arts3. Golfers Equip4. Jewerly & Furs5. Musical Instruments6. Stamp & Coin Collections7. Silverware
What is the difference between an Inland Marine on a Homeowners forms versus a stand along policy?
The personal coverage form is written on which, basic, broad or all risk?
all risk
What does inherent vice mean?
A quality within an object that results in the object tending to damage or destroy itself.
What is the Territory for Personal articles floater?
How is the loss valued under Personal Articles Floater?
Lesser of ACV, cost to repair or replace of the limit specified for coverage.
What is the pairs, set and parts condition under the PAF?
If there is loss to a pair or set the company may elect to repair or replace in a way to restore the pair or set to original value, or pay the diff between ACV before and after the loss. For loss of a part of covered property made up of parts, responsibility is only for the value of the part loss or damaged.
What does the definition of Jewerly Include?
articles of personal adornment containing percious metals, whether or not conatining jewels, pearls or semiprecious stones. Other Articles such as pens, flasks, smoking equipment, trophies and other similar items.
What is the automatic coverage provision?
25% of the coverage limit when property is of the same class but over $10,000 for 30 days after acquisition.
What does the definition of Furs Include?
Garments that are wholly genuine or imitation fur or trimmed in fur, fur rugs.
What does the defintion of Cameras Include?
All types of personal photography equipment, binoculars, telescopes, film and carrying case.
How is professional use covered under musical instruments?
Excluded but maybe endorsed to cover
What are the additional exclusions for organs that are not mobile?
Mechanical or electrical breakdown or failure, loss caused by repairing, adjusting, servicing or maintenance.
How are golf balls covered under Golfers Equipment?
Only for loss by fire or Burglary by forcible entry into a building, room or locker.
How is a loss valued under Fine Arts?
Valued Coverage (the amount specified in the policy)
What is the automatic coverage provision for fine arts?
90 days 25% of the total limit for scheduled items.
How does coverage apply to fine arts on exhibition away from the premises?
How does the pairs sets and parts provision apply to fine arts?
The company pays the full scheduled amount on the pair or set and the insured surrenders the remaining articles to the company.
What does postage stamps include?
Due, Envelope, official, revenue, match & medical stamps, covers, locals, reprints, essays, proofs, and other philatelic property including books, pages and mountings.
What does rare and current coins include?
Medals, paper money, bank notes, tokens of money and other numismatic property, coin albums, containers, frames, cards display cabinets in use.
When coverage is blanket what is the limitation for unscheduled coin collections, any one stamp, coin, or individual article or one pair, strip, block, series sheet, cover, frame, or card.
$1,000 and $250 for any one.
The controlled coverage forms provide which type of coverage? Basic, Broad or all risk?
All risk
Which policy covers insureds goods either incoming or outgoing on an annual basis?
Annual Transit Policy
Which policy covers insureds goods on a per trip basis
Trip transit
Which policy protects the carrier instead of the shipper for good in transit?
Motor Truck Cargo
What does the mail coverage form do?
All risk coverage for loss of property sent by registerd mail, first call mail, certified mail, or express mail.
What are some examples of Instrumentalities of Transportation & Communications?
Bridges, tunnels, oil pipelines, dam, piers, docks, radio/tv towers.
What is bailment?
Delivery of property by the owner to someone else to be held for a specific purpose then returned to the owner.
What is a bailee?
One who recives the property.
What is bailor?
one who owns the property
Which form covers "confusion of goods"?
when damage to goods renders the goods unmatchable with the owner.
Which form covers heavy machinery, equipment and tools?
Contractors Equipment Floater.
Which form covers medical surgical and dental instruments on and off the premises, as well as furniture and fixtures in the DR. office?
Physicians and surgeons equipment coverage form.
Under the theatrical property coverage form what type of risks are specifically excluded?
Rental companies, supply houses, circuses, carnivals, rodeos.
What is covered under film coverage form?
Exposed motion picture film including sound track & properly recorded tapes until production is complete and positive prints are made.
What is the Commercial Articles Floater for used for?
Photographic equipment or musical instruments used commercially.
Which form reinburses the insured for amounts which can't be collected from customers due to damage to the company's accounts recievable records, extra collection expenses, costs to reestablish records and intrest on any loans the insured must obtain to stay in busisness while collections are impared?
Accounts Recievable coverage form.
Which form would be used to cover equipment, machinary, building materials in transit or during the course of installation, testing, building, renovating, or repair?
Installation coverage form.
Which form covers hardware, data, media and software, extra expense, buisness interruption and liability?
Electric Data Processing Insurance
Which coverage form is used to cover merchandise for sale that has been financed and is written only on a reporting basis?
Floor plan form.
What is the basis for rating commercial inland marine policies?
the rating the is applicable for commercial property i.e. grp I & grp II plus a loading for all risk.
What is the oldest form of Insurance known?
Ocean Marine
What have the courts required for a valid ocean Marine contract to exist?
Utmost Good Faith.
What are the typical coverages under a Hull Policy?
Fire, lighting, earthquake, assailing theives, perils of seas, jettison, barratry of the master or mariners, ans all other like perils.
What are the types of deductables typically available for hull coverage?
Average, Franchise, percent of value.
What are two forms available for providing cargo coverage?
Floating or open or reporting form.
What does Freight Coverage do?
Protection for the Vessel owner in the event frieght charges are not paid.
Which coverage would protect the ship owner from liability for the negligent operation of the vessel in damaging another ship?
Running down clause.
Which coverage protects the ship owner from damage to passengers, crew members, or persons on other ships, damage to cargo dock or other property?
Protection and Indemnity.
What coverage is wind, waves, collision, stranding, sinking, and other such accidents.
perils of the sea
Which form buys back the war exclusion?
Free of capture and Seizure.
Which form provides coverage for all types of taking of the insureds property by force?
What coverage is used for the voluntary throwing overboard of parts of the ship or cargo to save the vessel from sinking of further damage?
Which coverage is for fraud by the master or crew?
Loss which is a voluntary sacrifice of a part of a ship or cargo made by the master to avert a common perils which might destroy the entire ship or cargo is called?
General Average Clause
Which clause requires the insured to take all steps necessary to save and preserve the goods from loss or to minimiza a loss which has occured?
Sue and Labor Clause
When the property no longer exists or is beyond salvage what type of loss is it?
Actual total loss
What type of loss is it when the costs to salvage plus the cost to recondition exceeds the value?
Constructive total Loss
When the buyer assumes responsibilty for the cargo once goods reach the designated point?
Free on Board F.O.B
The seller assumes complete responsibilty for securing which necessary insurance?
Cost, Insurance & Freight CIF
When the buyer purchases his own insurance?
Cost & Freight
When the seller assumes cost and risk until delivery alond side overseas vessel and withing reach of loading tackle?
Free along side FAS
Damages which a charterer agrees to pay as damages for delay in loading, unloading, or time lost by a vessel prevented from pursuing profitable employment by perils of the sea or accidental clause
What trigger the financial responsibility law?
accident that occurs involving bodily injury, serious traffic violation
Minimum limits required by state law?
what are the alternative way of satisfying the law?
Being self insuredPosting a bondcash in the amount of 10/20/10
What is hangerkeepers coverage used for?
Aircraft in the hanger owners CCC simialr to garagekeepers.
name three general exclusions found in the aviation policy.
-Lack of Current GFAA airqorthiness certification.-If craft is used or maintained for purposes other than its classification- if operated by other than pilot named in declerations.
What type of deductible is generally used in Aircraft Hull Policies?
Percent of Value
Loss to the Aircraft Huss is generally valued on what basis?
Stated Value.
What are the usual coverages written on an Aircraft Liablity Policy?
Bodily Injury excluding passengers/ passenger liabilty / property damage.
How does the Aircraft policy cover an insured who has received a special permit or waive from the FAA?
Not Covered.
What coverage would be needed for passagners baggage?
Define the ways in which hull coverage can be written?
1. all risk not in flight2. named perisl not in flight3. all risk in flight
What does Expediting Expense Cover?
Cost of Temporary reapirs and cost to hasten permanent repairs or replacement.
Define the Property covered under Boiler/Machinery Policy.
Property of the insured/property in insureds care custody and control if he is legally liable.
For the small buisness B/M form what is the maximum 80% replacement cost that may be written?
What is the standard deductable under Boiler & Machinery
Automatic coverage for new locations is what time period?
90 days
How is indirect loss covered?
Either Valued or actual cash loss sustained
For replacement cost to apply what is the time limit for the insured to repair or replace
18 months
What is the maximum limit for expediting expenses in Boiler & Machinery?
What is the Maximum Expediting Expenses in Small Buisness B/M?
Spoilage loss from lack of power.
What is the definition of "Accident"
Sudden & accidental breakdown of the object of part of the objet
Explain the suspension Condition
Allows immediate suspension of coverage under certain circumstances.
Explain Valued Business Interruption endorsment.
Is indirrect coverage that pays an agreed amount each day of interruption with a daily limit and total dollar limit w/deductable that can be either days or dollars.
Explain Actual Loss Sustained endorsment.
Covers lost profits & continuing expenses subjec to 100% coinsurance.
Define the three parties to a surety bond
Surety, Obligee, principal.
Some bonds have a fourth party who is?
Define Bid Bond.
Guarntees that the bidder will enter into contract & satisfy furture bonding requirements.
Define Performance Bond.
guarantees the obligee indemnification resulting in losses from principals failure to complete per contract.
Define Payment Bond.
guarantees payment by the contractor for labor and materials.
Define Maintenance Bond
guarantees replacement or correction of faulty work/ Materials for a specific period of time.
Define Fiduciary Bond
Performance and utmost good faith of a person appointed by the court.
Define Court Bond.
required of plaintiffs and or defendants to protect opposing parties from loss if legal entitlement is not shown.
Define Public official bond.
principal will uphold oath of office and faithfully perform.
Define License Bond.
required by public bodies to protect the public by guaranteeing compliance by the bondee with laws, ordinances.
Define Loss Instrument bond.
Protects the issuer of the instrument from loss when they make a replacement.
Define Blue Sky Bond.
required of investment companies to protect the public from fraud and misrepresentation.
Define customs bond.
guarantees the payment of duties/taxes.
Optionally Renewable (health Insurance).
Insuror can't cancel during term but can non renew at expiration.
Conditionally Renewable (Health Insurance)
Insuror can refuse to renew only under certain conditions.
Guaranteed Renewable.
Insuror is required to renew to a stated age and can increase premium in that class.
non cancellable.
Insuror can't cancel, or increase premiums and must renew to a stated age.
Generally what does an AD&D policy provide coverage for?
Death benefit, Dismemberment benefits as a percentage of principal sum or partial benefits for other diablements, hopstial & Med. Expense Reinbursment, earning.
Grace Period in Florida For Health Insurance/
Weekly 7 daysMonthly 10 DaysAll other 31
Cancellation requirments (Fla Law) # of days during th policy term.
20 days
Explain the reinstatment provision in health policies in Florida.
reinstatment is at time of approval or automatic after 45 days is insurer fails to notify of dis-approval. at Reinstatment accident coverage is immediate, sickness 10 days waiting period.
Define elimnation period.
Same as waiting period. The time between when the policy is issued & accepted & sickness benefits begin.
What does hospitalization expense policy cover?
Basic cost of room & board nursing care, lab fees, operating room, medical supplies, etc.
What does hospitality indemnity cover?
Flat amount per day of hospitalization regardless of other insurance.
What does surgical expense cover?
Physicians fees for surgury.
What does physicians coverage do?
Non Surgical Care by a Doctor.
What does major medical refer to?
Coverage for a catastrophic loss usually w/ high max limit & co ins.
What type of coverage replaces income?
Disability insurance.
Florida has set standards for Medicare Supplmental policies they are?
Policy must: specify min limits that fill medicare gaps, must be in understandable language, pre-existing cond limit can't exceed 6 months
The standards for Medicare Supplmental Insurance are set by whom?
Florida Statutes.
From where are the majority of health insurance premiums derived?
Group Insurance.
What happens if the health policy is not paid by the end of the grace period?
It expires.
Define: Tmie limit on Certain Defenses Clause:
after 2 years a claim may not be reduces or denied due to preexisting conditions unless specifically excluded before date of loss.
What is the waiver of Premium?
Eliminates premium payment when insured is totally diabled.
What is the death benefit under Workers Compensation.
What is the limit of coverage under Part 1 WC?
No Limit under part one pays medically necesaary expenses forever.
To be eligible for JUA Wc what is required?
Rejected by 2 other carriers, no umpaid premiums including audits.
For permanent total disability how is compensations caclcuated?
66 2/3% of AWW
What is the basic for determining disability beneifts?
Workers AWW past 13 wks.
Construction Industry- requires how many employees for WC?
One- sole proprietor are employees.
What is the purpose of the Statewide Average Weekly Wage?
sets the maximimum benefit for WC
What benefits are provided under the WC Policy?
Medical Expenses, death benefits, disability compensation.
What does part II of WC cover?
Employers liablility claims by employees for injuries not subject to WC lawm, claim by others for their liablities to insureds employees, claims by relatives of injured employees for consequential dgs.
What is the max time for partial disablility to be compensated?
10 weeks
What is part III other states coverage designed to do?
Provide Coverage in states where the insured begins operations after the policy is written.
What are the Statutory limits under Part Two?
What is the time limit for Death benefits under WC?
5 years if continuous Disability existed.
What is the time limit under WC for?
Waiting period 7 daysRetroactive period 21 days
What are the types of employment exempt from WC law?
Domestic, farm work less than 5 employees, professional athletes.
Define casual labor:
less than $100, not more thans 10 dys, not the same type of work insured normally performs.
Define the workers not considered to be employees under WC law?
Independent contractors, casual labor, unpaid volunteer in non-profit agencies.
Which department regulates WC law?
Dept of Labor & Employment security.
What is the time limit for auditing WC policies?
anytime during policy term & three years after expiration.
What is the limitation for medical expenses under WC?
No $ amount no time limit.
How does WC law address an employee waiving his rights to wc?
What are the eligibilty requirements for the Homeowners program?
owner occupied 1-4 family dwelling, rents in residential building, condo or co-op owner occupied.
What incidental non dwelling occupany is allowed?
not more than 2 roomers or borders.
What types of occupancies are specifically excluded under HO?
farm property other than light farming.
How is dwelling under construction treated?
its covered
Who are considered insureds under the Ho policy?
named insured, spouse, and residing relatives, anyone under 21 in care custody and control.
What is the standard deductable under the Ho for AOP-hurricane
$500 or 2% minimum
What is the definition of dwelling under the HO6?
What is the territory limitation under coverage C- personal property?
wherever it is located.
How are animals, birds, or fish covered under coverage C?
not covered.
Under the HO6 what is the basic limit for coverage A?
What is the limit for money, precious metals, & medals under the HO6?
$200.00 money $1,500 Precious metals, and metals theft only.
What is the limit from securities?
What is the limit for watercraft, trailers, accessories, etc?
$1,500 also $1,500 for trailers not with watercraft.
What is limit for theft ir silverware, goldware, pewterware?
$2,500 theft only
What is the limit for theft of firearms?
under additional coverages what is the limit for debris removal?
no limit
What is the limit for Fire Department service charges?
What is the limit for unauthorized use of credit cards, forgery, counterfeit money?
What is the limitation for building ordances and law?
10% of coverage A additional amount to coverage A
What are the names perils under H02?
there are 18 perils.
Under the HO8 what is the limitation for theft?
named perils only. glass $100 ded. $1,000 ded teft @ premises.
UNder conditions, which properties are ACV in Lieu of RC?
owning, carpets, appliance, outdoor antennas, outdoor equipment.
Under Section II liability what is teh covered territory?
What is an HO3, HO4, or HO6?
HO3- single family owner occupiedHO4- renters policyHO6- Condo unit owned policy (incl townhouse or villa.)
Under Section II what are the allowed buisness pursuits that will be covered?
Occational renting to others; the use as a studio, office, or private gargage; the partial rental.
Under Section II how are golf carts covered?
covered at an insured location while on a golfing facility being used for golf or other permitted activites and within a private residential which contains the insureds residence and the community has control over the roads and allows the use of golf carts on them.
What are the supplementary coverages under section II?
$250 loss of earnings per day.
What are the basic limits under section II?
Liability and med-pay
What is the limit for vicarious parental liability?
What is the cancellation/ non-renewal provision?
Non-pay 10 days writtenfirst 90 - 20 writtennon renewal 90 days written.
What is the inflation guard endorsment?
It increases the policy limit over the year by a certain %
What are the increased limits available on A: money B: securities C: jewerly/furs D: silverware E: firearms F: Electronic Apparatus
A: 1,000B: 2,000C: 5,000 1,000 EACH ITEMD: 10,000E: 6,500F: 6,000
What are the two standard policy forms for commercial packages?
commercial package & buisness owners.
All classes of risk are eligible for CPP except?
Under the BP what is the limitaition for permitted incidental occupancies for apartments & residential condo?
No more than 25,000 sq ft.
what is the limitation for offices & office condos under the BP
not over 6 stories or 100,000 sq ft no more than 25,000 sq ft for one building.
What is the square foot limitaion and gross sales limitation for mercantile, wholesale & processing risks under the BP?
25,000 sq ft and 3 million
Under the BP for resturants what does "limited cooking" mean?
does not need fans or chemical system, no frying.
What are the 2 forms under the BP?
standard and special.
Under the BP property is what ACV or RP?
Replacment cost
What is the limitation for outdoor property under the BP?
$2,500 not more than $250 for any one.
What is the built in % for inflation guard under the BP?
Under the BP which classes of personal property are at ACV in lieu of RC?
HOusehold contents, property of others, used goods, manuscripts, works or art or antiques.
What is the limitation for personal property other than money/securites?
What is the on premises limitation for valuable papers/records?
$5,000 on premises $2,500 while away
What is the limitation for accounts receivable: 1: on premises 2: off premises?
1: $5,0002: $2,500
What is the loss of income provision in the BP?
12 months.
What are the limits available under BP for Employee dishonesty?
*optional coverage* $5,000 , $10,000 , $25,000 , $50,000 , $100,000.
What is the minimum liability limit avaiable under the BP?
What limits of fire legal liability are available under the BP?
$50,000 , $100,000 , $250,000 $500,000 , $1 million
What must an insured do to avoid penalties for non compliance with the Fr law?
claims must be satisfied, must provide Fr for future accidents.
What is the purpose for an Sr-22?
certifies coverage is in effect.
When an operator who does not own an auto needs an sr-22 what is required?
named non-owner policy.
Violations under the law such as making misstatments, commiting forger, filing false affidavits are punishable how?
2nd degree mistermeanor.
who administers the FR law?
Department of Highway safety & motor vehicles.
Define Motor vehicles?
self propelled vehicles with 4 or more wheels.
How does PIP apply to Non-Residents?
still are required to carry on any defined motor vehicles after 90 days.
What are the penalties for non compliance with the PIP law?
denied immunites, ownerpersonally liable, license registration suspension.
What are the four catergories of PIP benefits?
medical, work loss, death, replacement services.
What is the standard PIP deducatible?
$250, $500, $1,000
What is the death benefit under PIP?
In which situations would PIP not apply?
when work comp present.
What are 4 things that pierce the tort threshold?
signifigant perm lose to a bodily function, permt injury other than scaring, signifigant permanent scaring, death.
What does the tort threshold refer to?
exceptions allowed for recovery of non economic loss.
When can and insured person sue for economic loss?
when threshold is met
A personal auto policy may not be issued for what type of risk?
incidental to insureds business of furniture or equipment install or repair, ranch , maintance, or farming.
For a newly aquired additional vehicle what is the time limit required for reporting to the insurer?
14 days.
For physical damage on a newly aquired auto when when there is no physical damage on any of the vehicles on the policy, what is teh time limit for reporting the vehcile to have it covered for physical damage?
4 days.
What are the supplementary payment on an auto policy?
$250 a day.
What is uninsured Motorist coverage used for?
Coverage to pay compensatory damages for bodily injuries, under one's own policy for amounts which would have otherwise not been recovered.
To whom does UM apply?
other persons as well as named insured, family member in their own vehicle as well as a passanger or pedestrian.
when does Um coverage apply?
injury must be cause by a vehicle with no liability or not enough.
what is the minimum single limit available for UM?
What is the minimum split limit available?
How does FL state law say UM will be written if no elections?
What are the UM elections available?
Stacked, Non-stacked.
Are excess policies required to provide UM?
What does other than collision coverage provide?
covers indirect and accidental losses not covered by collision
What are the limits for transportation expenses?
20 a day max $650.00
What are the time limits for transportation expenses?
24 hrs after loss.
How are losses paid for physical damage?
payment of the lesser of actual cash value or cost to repair or replace.
What is the limit for physical damage on a non-owned trailer?
What is the policy territory?
Us territory, possessions , canada, and puerto rico.
Which endorsment covers for liability and or medical expenses for a non owner auto furnished or available for regular use, using non owned autos in buisness and using non owned autos when carrying persons or property for a fee?
extended non owned coverage.
Which endorsments may be issued to cover motor homes, motorcycles, golf carts, atvs?
misc type vehicle.
Which endorsment increases PIP from 80% to 100% for MP, and work loss from 60% to 80%?
Extendid PIP
Which endorsment would be uses to increase the dollar limit on PIP?
Additional PIP
Under BAP what is the Max. Load Capacity of trailers for automatic Liability coverage?
2,00o lbs or less.
How is mobile equipment covered under the BAP?
While being carried or towed by a covered auto.
What is the definition of comprehensive under the BAP?
covers unexcluded loss other than collision.
What is the limitation for transportation expense in the BAP?
How are PIP, UM, and Med Pay added to the BAP?
by endorsment.
What is the purpose of Named Individual-Broadened PIP?
Person named will be treated as named insureds.
What is the purpose of drive other car endorsment?
covers vehicles non-owned, or covered on BAP
Define the following radius of operations:Local, intermediate, long haul.
Local:50 milesIntermediate 50-200Long Haul - 200 ->
What is the expanded definition of insured?
anyone from whom a vehicle is hired or borrowed.
What is section III on Treuckers coverage form?
trailer interchange coverage.
What is trailer interchange?
legal liability coverage to trailers owned by others.
Garage is a combination of which two forms?
auto and general liability.
Which symbol is appropriate for dealers liability?
What is symbol 29 used for?
non owned autos used in buisness.
What symbol is used for garagekeepers?
What symbol is used for dealers autos?
What is the defintion of Garage operations?
the ownership, maintance or use of locations for garage buisness and the bays adjoining and all opertions necessary or incidental to the buisness plus those autos as indicated by the covered auto symbols in the Dec Page.
What ar the two coverage forms for CGL?
occurance & claims made
What is the cancellation provision under the Fla Law on GL?
45 days.
How may the policy be changed?
By endorsment from the company and 1st named insured.
When may the company audit the insureds books & records?
whenever they want.
How many the the policy rights bor duties be transfered?
With written concent.
Define Property damage.
physical damage to tangible property including loss fo use.
When is "work" deemed complete?
when work @ site is complete.
What does"product" mean?
goods other than real property that is manufactured sold or distributed by the insured.
What is an "occurance"?
accident including continuous or repeated exposeure to same harmful conditions.
What is the coverage trigger under the occurance form?
when loss occurs.
What is the coverage trigger under claims made?
when claim is made
What is the purpose fo teh retroactive date in claims made?
the date on or after claims will be paid.
what is the "known loss rule"?
can't cover a loss that knowly has already occured.
What is the basic general aggregate limti under the CGL?
2x occurance.
What is the coverage territory under premises/operations?
the us, its territories or possesions, puerto rico, canada and including international water and airspace between these places.
How is the territories different if its under products/comp ops?
its extendid to worldwide if the BI or Pd. if the prodct is made or sold in the defined territories.
What is the basic extendid reporting period do?
provides that if the policy is canceled or non renewed or is renewed w/a retroactive date stated in the declerations or is renewed by a policy in other than a claims made basis, then claims are recieved and recorded w/in 60 days after policy expirations or w/in 5 years after policy expiration if the occurance was reported no later than 60 days after policy expiration will be considered to have been made on the last day of the policy period and thus will be eligible for coverage.
What does the supplemental reporting period do?
must be requested within 60 days of policy expiration - it extends the basic period - to unlimited duration.
What contractors are specifically excempt from the contractual liability exclusion?
leases, side track agreement, easment agreements, elevator maintance agreements.
How is liquor liability covered under the CGL?
coverage for host liquoor liability.
How is pollution covered under the CGL?
its not its excluded.
How is mobile equipment covered under the CGL?
while its at the premises, jobsite, or put to its intended use.
How is the damage to the insureds products covered?
Its excluded
How are defects and delays covered?
its excluded.
what of the CGL exclusions do not apply to fire legal liability?
all except intentional injury and contractual.
What are the supplementart payments under the CGL?
$250 per day.
What is the basic limit of liability under the CGL?
What is the minimum limit under the CGL?
What does owners & contractors proptective liability do?
protects insureds against claims for BI or PD arising out of work performed for the insured by another (OCP)
What are two basic types of excess liability?
umbrella, excess.
What does Professional liability cover?
Liability arising from rendering of or failure to rendur professional svcs.
Physicians, surgeons, & Dentists has two coverages what are they?
individual professional liability, partnership association or corporation professional liability.
What are the basic limits of the PS&D?
What is the definition of Insured under Hospital prof. Liability?
named insured, partner, executive officers, hospital admin, stock holders, directors, trustees, or govereners.
What are the additional exclusions under Veterinarians Prof. Liability?
Contractual theft of an animal injury due to fire and liability to any type of vehicle.
How are claims expenses handled under lawyers professional?
included with policy limits.
What are the basic limits under lawyers liability?
What are the minimum basic limits under personal liability?
What is the limit for Property Damage under Personal Liability?
What is the limitation for custom farming operations under farm liability?
$5,000 in reciepts
What does the employment related practices liability do?
provides employeers with claims made coverage for liability arising out of claims or injury related to employee
Comm property is used to cover direct and indirect losses for what type of property?
other than 1-4 family dwelling.
What is the purpose of the causes of loss form?
perils to be covered with exclusions that limit application of coverage.
What is the cancellation provision on commercial property?
45 days written 10- non pay
How may the insured cancel the policy?
written request agreed to by the company.
How may the insured transfer coverage when the property is sold?
in writing to the company with company approval.
What is the commerical policy territory?
Us, puerto rico & canada.
What is the standard deducatable under the Commerical property?
What is the standard wind/hail deducatable in the lower east coast on beach premises?
a percentage of the property value.
What does the building and personal property coverage form do?
defines the property covered, not covered and what is excluded. its describes how limits and ded apply its adds conditions and provides for certain optional coverages.
What are the three general types of property that can be covered under the Comm prop?
Building, Buisness personal property, and personal property of others.
What does the defintion of building include?
means the structure described in the declerations, included completed additions including anything within 100 sp ft.
What does personal property of others include?
Furnature, value labor services by others.
What is the provision for Debris Removal?
up to 25% fo the amount paid for loss paid. additional $10,000 is given if amount is exceeded.
Under automatic coverages what are the built in limitations?
30 days for new building under construction @ the premises or max of $250,00 per building newly aquired $100,000 under personal property.
Under personal effects and property of others, what are the limitations?
$2,500 @ each premises, pays to restore, research or replace lost info.
What coverage applies to : Fences, Radio/tv antennas, detached signs, & trees, shrubs, plants.
Outdoor Property.
What is the $ limit for outdoor property?
$1000 not more thatn $250 for any one tree, plant or shrub.
What are the covered perils for outdoor property?
fire, lighting, explosion, riot, civil commotion, aircraft.
What happens if a builing is vacant for more than 60 consecutive days prior to a loss?
coverage is suspendid for vandalisim, sprinkler leakage, water damage, theft or attempted theft and reduction of other coverages by a percentage.
What endorsment waived the co-insurance clause?
Agreed Value.
What endorsment automatically through out the year?
Inflation guard.
Which endorsment replaces the ACV basis of loss settlement?
Replacement Cost.
What are the two endorsments available to address increases in inventory during the policy term?
Value reporting, Peak season.
Which endorsment provides coverage for the operation of laws or ordinances related to increased costs in repair or to demolition of a damaged building?
Building ordance coverage.
Which form is used to cover buildings under construction?
Builders risk form.
Under the builders risk form what does the definition of covered property include?
Foundations, fixtures, machinary, or equipment to service the buildings, owned material and supplies at the sight.
What is the limitation on building material/supplies owned by others, in the care, custody and control?
What replaces the CO-insurance clause in the builders risk form?
need for adequate insurance.
When does coverage cease under a builders risk form?
the property is canceled or expired the property is accepted by purchase, insureds intrest in the property ceases, the prop is abandoned and no intent to complete, build comp 90 days after construction, 60 days after building is put to its intended use.
Under the buisness income coverage forms when does the "period of restoration" begin?
72 hrs after the date of direct damage.
What are the optional co-insurance percentages in the buisness income form?
50%, 60%, 70%, 80%, 90%, 100%, 125%.
What does the maximum period of indemnity form do?
it replaces the co-insurance condition and limits the period of indemnity to 10 days following the 72 hr period.
Which optional coverage limits the amount of recovery to a fraction of the coverage limit during each consecutive 30 days during the period of restoration?
monthly limit of indemnity.
What are the fractions available under this option?
1/3, 1/4, 1/6.
What must an insured submit to the company in order to have the agreed value form apply?
financial data for prior and next 12 months.
What option can the insured select to increase the period of indemnity to 360 days?
extendid period of indemnity.
Which form reimburses the insured for extrodinary expenses incurred to maintain uninterrupted operations?
extra expense form?
Which condition applies to limit recoveries to 40%, 80%, 100%?
limits of lose payment.
Which endorsment provides coverage for a tenant loss of a favorable lease 2. tenant loss of a faborable subleas 3. loss of the remaining calue of all bonus paif to aquire a lease 4.loss of remaining value of improvments/ betterments made by a tentant 5 loss of remaining value of prepaid rents?
lease hold intrest form.
What form covers the insured for negligently damaging property owned by others but in the insured's care, custody, and control?
legal liability coverage form.
Which form insures a condominium association against loss or damage to buildings, buisness personal property and personal property of others in the CCC of the Association?
Condiminum association coverage form.
Which endorsment in mandatory on all commercial property forms?
Sinkwhole collapse.
What is the glass breakage limit under commercial property forms?
$100 per max $500
Under the special cause of loss form what is the limitation for property in transit?
Which form is used for 3-4 family dwellings, dwellings rented to others by the owner, dwellings owned by business entities, owner occupied dwellings with values lower than company minimums for HO coverage?
dwelling program forms.
What forms apply to the following: 1. dwelling property basic form. 2. dwelling property broad form3. dwelling property special form
What perils are included in extended coverage in the DP form?
windstorm, hail, explosion, riot, or civil commotion, aircraft, vehicles, smoke, or volcanic eruption.
IN the DP1 how are losses settled?
IN the DP2 when will losses be settled on replacement cost rather then the ACV?
when in complaince with co-insurance.
Under the farm property coverage form what are some coverages that are unique to the farm risk?
electricusion, drowing, accidental shooting, dog or animal attack, loading or unloading accidents?
When a farmer wishes to insure only his agricultural machinary which form would be used?
agricutural machinary & equipment form.
Which form would be used to cover only livestock?
livestock coverage form.
Which policy would cover the following: General & Temporary condition of partial or complete inundation of normally dry land caused by overflow or inland or tidal waters, or rapid and unusual accumulation or runoff from any source?
What is the size of area that must be inundated for this policy to apply?
2 acres.
What are two programs available under the NFIP?
emergency and regualar.
What is required for a building to be eligible for flood coverage?
it must have walls & roof and principally above ground and located withing an eligble community.
What is required for contents to be eligible on a flood policy?
has to be in and eligible building they must be tied down if the building is open sided so they dont float away.
What insurance forms are available for Flood Coverage?
Dwelling, PRP, General property form, and RC B.A.C
How are autos rented or leased to others covered?
no coverage unless rented to a customer while a customers auto is left for service or repair.
How is product of work recall covered?
its not
What is the limitation for customers liability under the dealers policy?
no coverage for damage while in a customers care custody and control. is covered if in custody of garage while being serviced, repaired, parked or stored.
What is the deducatble for accidents resulting from property damage as a result of work done by or on behalfof the insured?
$100 per car $500 per occurance
What is section III?
What is the purpose of garagekeepers?
Provideds coverage for which the insured is liable to customers care for which the insured has for repair, servicing, storing or parking.
What does garagekeepers cover?
Comprehensive- fire, theft, explosion, mischef, vandalism...collision.
What are the covered causes of loss under specified causes of loss?
fire, explosion, theft, mischef, vandalism.
What are the standard deducatble under collision?
$100, $250, $500
In garagekeepers, what does legal liability mean?
see book.
What are the alternate coverages under garagekeepers?
insured may provide direct physical damage coverage on customers cars or on a direct basis with the garage coverage being excess.
How is theft or converstion by the insured, employees or share holders covered?
its not
What are the additional exclusions under dealers blanket coverage?
expected profit, loss @ newly aquired unreported location, if the loss occurs 45 days after aquistion. collision damage to autos being driven or transported from point of purchase or distribution to destination more than 50 miles apart, specified perils coverage excludes loss to a covered auto caused by collision or upset of the transporting vehicle.
There are two types of medical payments on a garage liability?
Garage Premises & operations / operations away from the premises.
What is the endorsment that buys back coverage for damage to the insureds own product?
broad form products
What is the built in deducatible for the above form? (Broad Form)
Which endorsment would be used to provide coverage on dealers autos driven or transported over 50 miles?
Dealers drive away - collision.
Which endorsment provides physical damage for loss from voluntarily parting with a covered auto by trick or scheme or where there is not a valid title?
False Pretence.
The florida Law law requarding cancellation of auto insurance.
First 60 any reasonafter 60 only non-pay.
Information disclosure to claimants says what?
requires liability insurer to disclose full policy info to claimant upon written request.
What is the provision for glass breakage deducatable?
prohibits application of any deducatable.
What does mechanical breakdown insurance provide?
provides coverage against the failure of an original or replacement part, when properly cleaned or serviced to perform any function for which it was designed.
What is the rental reinbursment provision in mechanical breakdown?
$15 per day $75 max
What is the Policy territory?
Us, territories or possessions, and canada.
How may an insured prove he has complied with the provision for proper maintance of the vehicle?
reciepts for work done.
What are the policy terms that are available under Mechanical breakdown.
new car - 36 mths / 36,000used car - 12 mths / 12,000
Which coverage is NO Fault?
see book.
How are covered autos designated on a buisness auto policy?
see book.
Moral Hazard
Intentionally caused losses
Morale Hazard
Physical Hazard
Laws of nature
Proximate Cause
That cause which directly through an unbroken chain of events brings about a loss -- if a covered peril is proximate cause policy must pay.
Actual Cash Value (ACV)
Replacement cost less depreciation
Replacement Cost
Actual cost to repair or replace -- no depreciation. Repairs must be done before full payment is made. (New for old)
Coinsurance Formula
(Amount Carried/Amount Required) Loss
Specific Insurance
Separate amount of insurance on each item insured. Name each item with an amount.
Blanket Insurance
Single amount of insurance on several items to be covered. All items under one limit.
Direct Loss
Physical harm to tangible property e.g. water damage.
Indirect Loss
Economic loss in consequence of direct loss e.g. financial loss.
A mortgage clause protects?
Lender's interest in real property.
Loss payable clause protects?
Lender's interest in personal property.
Three ways to be held civilly liable?
1. Breaches of contract2. Intentional torts3. Torts arising from negligence
A civil wrong, which for insurance purposes must be caused by negligence.
The failure, by act of commission or omission, to do what a reasonable and prudent person would do in the same situation.
Comparative Negligence
When both parties are negligent each shall bear the proportionate share of the other's damage i.e. both parties are at fault.
Special Damages
Actual economic loss i.e. tangible.
General Damages
Pain, suffering, anguish, loss of companionship i.e. intangible.
After paying insured, Company owns rights against party who caused insured's loss.
Insurance coverage applies to separately to each insured.
Primary (insurance payout)
Policy pays first; when limit is exhausted Excess policies pay.
Pro rata (insurance payout)
Each policy pays its proportionate share.
Equal Shares (insurance payout)
Each policy pays an equal part of loss.
Florida No-Fault Law
Law that applies to B.I. for Defined Motor Vehicles.
Exceptions to Florida No-Fault Law
Mobile homes; taxis and limos; government owned transit vehicles for five or more passengers.
Residing Relative
Anyone related to the named insured by any degree of blood or marriage, who usually lives with the family, even if temporarily living elsewhere.
How many days out of the previous year must a car be in Florida to fall under Florida No-Fault?
90 out of the last 365
Coverage under FNF that is mandatory for all owners of Defined Motor Vehicles.
Penalties for not holding PIP if in an accident?
1. Loses exemption for tort liability.2. Becomes personally liable for benefits under act.3. Driver's license and car registration suspended.
PIP Coverage applies to whom?
Named insureds, residing relatives. In Florida in car or as a pedestrian, elsewhere in insured vehicle only.
PIP Benefits
1. Medical - reasonable medical, surgical, dental, prosthetic, remedial and rehabilitative treatment. (80%)2. Disability - pays 60% loss of income, 100 % cost of household services.3. $5,000 death benefit.
PIP Coverage Limits
$10,000 per person, per accident, including the $5,000 death benefit; no limit per accident. Recovery under PIP reduces amount recoverable in tort.
PIP Deductible
$250, $500, $1000 applying to insured and resident relatives available. Deductibles may apply to insured only or insured and dependent resident relatives.
PIP Exclusions
1. Named Insured, Resident Relative when in another owned defined motor vehicle that isn't covered under policy2. Anyone who intentionally injures self3. Injured committing a felony4. Operating auto without owner's consent
PIP Tort Exemption does not apply if?
Can be referred to as thresholds. If no threshold is crossed, insured is immune from lawsuit for non-economic loss, no matter how large to economic loss.1. Permanent loss of important bodily function2. Permanent injury other than scarring or disfigurement e.g. whiplash3. Significant scarring or disfigurement4. DeathMust have one of these to sue under liability.
How are benefits for PIP paid out?
1. WC (if work related)2. PIP3. MedPay4. UM
PAP: Eligible Insureds
1. Individual2. Spouses3. Family Members4. Non-related members of the household
PAP: Eligible Vehicles
1. Private passenger autos.2. Pickups and vans that weigh less than 10,000 pounds.
PAP Scope of Coverage
1. Named insured2. Family members3. Borrowers4. Others "legally responsible"for use of covered auto or other auto not regularly furnished.
Covered Auto can be?
1. Listed in the declaration2. Temporary substitute3. Newly acquired replacement auto for policy period4. Additional auto for 14 days
Part A Non-owned Autos
1. Coverage on auto's policy is primary; user's policy is excess.2. Owned trailers, non-owned trailers while attached.
PAP Part A Defense
Where coverage exists, company may elect to:1. Defend*2. Settle out of court, as it chooses3. If policy limit is exhausted company has no further obligation to defend. *If Company defends. defense cost are paid in addition to policy limit.
PAP Part A Supplementary Payments
B Bail Bond cost up to $250A Appeal bond or release of attachment bond premiumsI Interest on judgement, until carrier pays its share of sameL Loss of pay up to $200 per day attending court or hearings at company request. E Expense incurred at company request.
PAP Part A
Legally responsible - split or single limit. 10/20/10 or 30,000 - Basic Limit
PAP Part B
Medical Payments