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347 Cards in this Set

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  • Back
Abandonment Clause
often contained in a p/c policy stating that the insured cannot abandon damaged property to the (dump on) insurer and demand reimbursement for the full value.
Sudden fortuitous event
Accounts Receivable Coverage Form
Inland Marine Coverage form which insures against loss the insured suffers becasuse of an inability to collect from customers when AR records are damaged.
Actual Cash Value (ACV)
Current cost to replace and item of property at the time of loss, less an allowance for depreciation. Most basic way to determine amount of reimbursement for a loss (Replacement Costs -Depreciation). Safegaurds in place to ensure no profit by insureds ("new for old"). i.e coinsurance or stipulations that the repairs must be done prior to payment. Contrasts to "valued policies"
Admitted Aircraft Liability Coverage
Coverage sometimes written in conjunction w/ Aircraft Passenger Liability which can provide reimbursement for death of dismemberment.
Aggregate Limit
Type of policy limit found in liability policies which limits coverage to a specified total amount for all losses occurring within the policy period.
Agreed Value
Written with property insurance policies. It waives the coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company
Aircraft Hull Insurance
Physical damage insurance provided to cover the loss or damage to an insured aircraft, in motion, not in motion or both.
Aircraft Liability Insurance
Coverage written to cover public and passenger liability and property damage
Aircraft Liability Insurance
Coverage written to cover public and passenger liability and property damage
Airport and Air Meet Liability
Coverage that provides protection to airports for bodily injury and property damage liability
Allied Lines
Property coverages which are closely associated and frequently sold w/ fire ins. i.e. Dwelling, Earthquake, Sprinkler ins.
All Risk Insurance
Better known as "open perils" insurance. Ins protecting insured from loss arising from any peril other than those perils specifically excluded by name. Opposite of Named Perils
Annual Transit Policy
Inland Marine transportation insurance which insures a property owner for goods being transported.
Appraisal Clause
provides an appraisal procedure when the insured and the insurer are in disagreement regarding the amount of the loss. Insured and insurer each choose and appraiser, who, failing to agree, select and umpire. Agreement by 2/3 will be decisive (court might be the 3rd). Note the appraisal process is not for the purpose of determining if the claim is covered, only to determine the proper loss payment.
Assignment Clause
Condition in policy that specifies that transferring the policy to another is not valid unless the company consent in writing.
Automobile Mechanical Breakdown Insurance
Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the manufacturer's warranty.
Avaition Insurance
provides both liability and physical damage coverage for aircraft. aka Aircraft Hull Insurance. Liablity coverage available seperately for hangarkeepers and airport owners.
Bail Bond
Surey bond that guarantees the principal will appear in criminal proceedings.
One who has temporary custody of property belonging to another. i.e. dry cleaners
Bailee's Policy
Inland Marine ins. obtained by bailee, to cover loss or damage to customers' property in the bailee's custody, without regard to liability.
Illegal acts committed willfully by a ship's master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement of cargo.
Bid Bonds
Type of K bond which guarantees the obligee that if a contractor's bid is accepted, the contracor will provide the required performance bond.
Oral or written statment providing immediate insurance protection, valid for a specified period. Desined to provide temporary coverage until a policy can be issued or denied.
Blanket Insurance
Insurance where a single amount of insurance applies to two or more coverage items which are subject to specific ratings. May result in coverage advantages to the insured. $300 blanket on 2 buildings (100K and 200K). Building #1 is detroyed. Insured recovers 110K under blanket policy. Contrast against Specific Insurance. Also, a type of Employee Dishonesty coverage that covers the loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.
Blue Sky Bond
Surey bond required of investment companies, guaranteeing against misrepresentations of securities and defrauding the public.
Bodily Injury
Usually defined to include physical harm, sickness, disease, or death resulting from any of these.
Boiler and Machinery Coverage Form
covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of a Commercial Package Policy.
Builder's Risk Coverage Form
provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Propery portion of the Commericial Pakage Policy.
Building and Personal Property Coverage Form
primary coverage form of the Commercial Package policy's Commercial Propery Coverage part. Covers a business's buildings, business personal property and personal property of others.
defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidence by visible signs of forced entry or exit.
Business Auto Coverage Form
form which is part of the Commercial Auto Coverages and is designed to cover the auto exposures of business, other than truckers or garages.
Business Income Form
coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril: available w/ or w/out extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy.
Business Pursuits Endorsement
endorsement to Homeowners policy which provides coverage against occupational liabilities for those who are employed by others.
Businessowner's Policy
multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.
Camera and Musical Instrument Dealers Form
all risk Inland Marine dealers form that covers stocks of merchandise at the insured's premises, in transit, away in an employee's custody or elsewhere.
Cargo Liability Coverage
Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy
Casualty Insurance
insurance line which historically included a wide variety of unrelated coverages other than life and health. One important coverage is the casualty line is Liability. Casualty also includes: Aviation, Auto, Boiler and Machinery, Crime, Workers Comp and Surety Bonds
Causes of Loss Form
form which is part of the Commercial Propery Coverage Part of the Commercial Package Policy. It specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. Earthquake form is also available
Assertation of a legal right against an insurer, that carries with it damand for appropriate relief.
Claims-Made Form
Liability form which is part of the Commercial General Liability part of the Commecial Package Policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.
Coinsurance Clause
Method of providing equity in premiums by granting lower lower rates to those insureds whoc accept the responsibility of insuring for amounts which reflect a high percentage of value of the subject property. It requires an insured to pay part of a loss if the coverage provided under the policy limits is less that a specified percentage of the value of the property at the time of loss.
type of physical damage insurance which covers loss due to the insured object striking another object. may also include the upset of the insured object.
Commercial Articles Coverage Form
Part of the Inland Marine Coverage part of the Commercial Package Policy. Provides all risk coverage for photographic equipment and musical instruments on either a scheduled or blanket basis or both.
Commercial Package Policy
simplified, easy-to-read Commercial Package Policy introduced by the ISO. Includes General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime/Employee Dishonesty, Boiler/Machinery, Commercial Auto, Farm, Liquor Liability, Pollution Liability, Professional Liability and Employment-Related Practices Liability. Forms may be used in the package policy or may be used to issue monoline policies.
Common Policy Conditions
form containing conditions that apply to all coverages issued under the Commercial Package Policy.
Comprehensive Coverage
In automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property shich are specifically excluded.
Computer Fraud Coverage Form
form shich is part of Commercial Computer Crime Coverage part of the Commercial Package Policy. Covers loss of all types of property by theft related to the use of computers to fraudulently cause a transfer of property from inside the insured's or a banking premises.
Withholding of material fact from the insurance company. May void the policy. Insured failing to mention he was guilty of insurance fraud in the past.
Conditionally Renewable
Type of health insurance cancellation clause that states that the insurer can refuse to renew the policy only under certain conditions stated in the policy.
Portion of an insurance K which sets forth the rights and duties of the insured and the insurance company.
Condominium Association Coverage Form
part of the Commercial Property Coverage part of the Commercial Package Policy which covers the buildings in a condominium complex (not the unit-owner's personal property).
Condominium Commercial Unit-Owners Coverage Form
Part of the Commercial Property Coverage part of the Commercial Package Policy which covers the unit-owners business personal property.
Consequential Damage
Damage which occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.
Conservation Bond
Fiduciary bond for those appointed to manage and preserve property other that estates of decendents.
Constructive Total Loss
In Ocean Marine insurance, a loss which occurs when property is not completely destroyed but the cost to salvage or repair would exceed its value.
Contingent Liability
Liability which an insured or business incurs because of the actions of others (i.e. family or employees). aka Vicarious Liability
Legal agreement between two parties promising certain performance in exchange for a certain consideration.
Contract Bond
Category of Surety bonds which guarantees the fullfillment of contractual obligations. Includes Bid bonds, Labor and Materials bonds, Performance bonds, Payment bonds, Payment bonds and Supply K bonds.
Contractors Equipment Coverage Form
Part of the Inland Marine Coverage part of the Commerical Package. Covers various types of contractors mobile equipment needed to conduct business.
Contractual Liability
Provides coverage against liability rising out of an insured's contractula obligations. Excluded in the Commercial General Liability Policy, subject to several exceptions.
Controlled Lines
Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commericial Package. Contrast uncontrolled lines.
Court Bond
Category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, etc. Includes Bail and Litigation Bonds
Coverage Trigger
Event which triggers coverage under a Commerical General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage which occurs during the policy period, regardless of any later time at shich the claim is made. Under Claims-Made form, the trigger is BI or PD which occurs on or after the retroactive date and for which claim is made during the policy period.
Crime Coverage Plans
Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.
Customs Bond
Surety bond that may be required of those associated w/ import/export activities, to guarantee that the required customs will be collected, reported and paid.
Dealer's Drive-Away Collision
Coverage which can bee added to Garage policy by endorsement. It eliminates the Physical Damage exclusion regarding coverage for autos being driven or transported from point of purchase or distribution to destination, if such points are more than 50 miles apart
Debris Removal
Coverage provided in many property contracts which reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against.
Section of an insurance K which shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies.
Dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. Types: 1)Straight - flat amount regardless of size of loss, 2)Percentage - requires deduction from the loss of a percentage of the value of the property or a percentage of the policy limits (windstorm), 3)Franchise - No payment shall be made until losses exceeds a specific amount.
Direct Loss
Physical harm to tangible property. Loss which is a direct result of peril. Also includes loss due to efforts to end the peril or to unavoidable exposure following a peril. When building burns down, physical value is direct loss, loss from business profits is indirect loss. Auto wreck, car damage is direct, rental car expense is indirect.
Disability Insurance
Line of insurance which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.
Discovery Period
Period of time, in Crime insurance, during which losses that occurred during the policy period but are discovered within one year of the expiration will be covered.
Double Indemnity
Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.
Dread Disease Policy
Health insurance policy which provides benefits for a single illness.
Drive Other Car Coverage
Endorsement to a Business Auto Policy which covers named persons for nonbusiness use of autos they do not own. Used when the named insured furnishes an auto to another, such as an employee, who does not own his or her own car.
Dwelling Policy
Allied lines policy which provides coverage for the dwellings and personal property of individuals and families against fire and additional perils. Personal insurance applicable for insuring buildins occupied for dwelling purposes not having more than 4 apartments, mobile homes, apartment, condos, rentals from others.
Earthquake Coverage
Available under Commercial Package. Requires Causes of Loss form.
EDP Electronic Data Processing Coverage
Inland Marine insurance designed to cover computer hardware and software.
Employee Dishonesty Coverage Form
Part of Commercial Crime Coverage part of Commercial Package. This coverage is excluded under other Crime insurance forms. Formerly this coverage was provided under Fidelity bonds or combination policies that included fidelity bonds.
Employers Liability Coverage
Coverage under workers comp policy to cover the employer's liability arising out of employee's work related injuries.
A document which is attached to the policy and modifies or changes the original policy in some way.
Equal Shares Clause
Insurance clause which states that when the insured has other insurances, the loss payment made by the company will be based on the number of applicable policies, not on their limits.
Equipment Dealers Coverage Form
Inland Marine form which provides all risk coverage for mobile agricultural and construction equipment owned by or in the care of an equipment dealer.
Exemplary Damages
Damages awarded to make and example of the wrongdoer.
Excess Coverage
Coverage which applies only after limits of primary insurance have been exhausted.
Section of insurance policy which lists property, perils, persons, or situations which are NOT covered by the policy.
Expediting Expenses
Boiler and Machinery coverage that covers the cost of temporary repairs and the costs of speeding up permanent repairs. i.e. OT and epress delivery
Extended Nonowned Coverage Endorsement
Personal Auto Policy endorsement that extends liability coverage to named individuals for nonowned automobile which is furnished for their regular use.
Extended Reporting Period
Period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage part with isurance that has a retroactive date later than the date shown in the declarations, or with the Occurrence form. Basic ERP runs 5 years. Supplemental is unlimited and available for an extra charge.
Extortion Coverage Form
Commercial Crime form that covers all types of property when surrendered away from the premises as a result of a threat to do bodily harm to the insured or employee, or an invitee of either, shile they are being held captive, or allegedly being held captive.
Extra Expense Coverage Form
Covers additional expenses incurred by insured business to continue operations following a direct loss by a peril isured against. part of Commerical Package
False Pretense Coverage
Coverage that can be added to a Garage policy by endorsement to insure a dealer against loss from voluntary parting w. a covered auto by trick or scheme or acquiring an auto from someone who does not have legal title.
Farm Coverage Part
Part of a Commercial Package policy, provides both property and liability forms that can be used to provide farm coverage on either monoline or package basis.
Farm Liability Coverage Form
Part of the Farm Coverage Part. Provides libility coverage for farm operations.
Farm Property Coverage Form
Part of the Farm Coverage. Provides seven seperate property coverages designed specifically for farms.
Fidelity Bond
Class of bonds which guarantees an employee's honesty. Generally provided through Employee Dishonesty insurance.
Person or institution which has responsibility for money, property or financial affairs of another.
Fiduciary Bond
Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others.
Film Coverage Form
Inland Marin Coverage form that provides all risk coverage for exposed motion picture film, including sound recordings and magnetic or video tapes that havebeen properly recorded until the first full quota of positive prints or film have been made.
Financial Responsibility Law
State law which requires owners or operators of autos to provide evidence that they have the funds to pay for auto losses for which they become liable. Insurance (10/20/10) is usually the proof. If FR did not exist at time of accident, two things must happen to avoid penalties: 1) legally valid claims must be satisfied up to 10/20/10 (or waived by injured party) and 2) owner and operator must provide proof of insurance for future accidents. Failure will result in suspension of tag and license. Responsibility for DMV.
Floor Plan Coverage Form
Inland Marine Coverage form that provides all risk coverage for merchandise for sale that has been financed.
FAJUA - Florida Joint Underwritering Association
Market source for persons unable to purchase Auto insurance through normal channels. It is a syndicate of all licensed companies in Florida that write Auto insurance, with direct operations performed on their behalf by a group of servicing carriers.
Foirgery or Alteration Coverage Form
Commercial Crime form that covers loss from the forgery or alteration of checks, drafts, promissary notes or similar.
Franchise Bond
Surety bond that may be required by a public body when it awards a franchise.
Franchise Deductible
Deductible that specifies that no payment will be made until the loss equals or exceeds a prescribed amount: then the loss is paid in full.
False statement intended to deceive the insurer and induce it to part with something of value or surrender a legal right. May void a policy.
Freight Coverage
Open Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.
Garage Coverage Form
A coverage form that is part of the Commercial Auto Coverage Part and which provides coverage for garage business (dealers, service stations, garages, parking lots, etc). Includes coverage for liability, physical damage and garagekeepers losses arising out of owned, nonowned and hired autos.
Garagekeepers Liability
Coverage which is part of Garage coverage form. Covers a garage risk's legal liability for customers autos in the care, cutody or control of the garage. At the insured's option, can also apply w/out regard to fault, for an additional premium.
General Average
Ocean Marine term used to indicate a partial losss resulting from a sacrafice of cargo to save remaining property (jettison). Each party shares in the loss in proportion to their totatl interest in the property being transported.
General Liability
Category of insurance which includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.
Grace Period
In Health Insurance, a period during which the policy will remain in force, if unpaid by the premium due date. Florida law specifies the required length.
Guranteed Renewable
Health insurance policy provision that states that the insurer must renew the policy to a certain age. Whle the company cannot fail to renew the policy until the specified age, it can increase the premiums.
Hangarkeepers Liability
Form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.
Condition that introduces or increases the chance of loss from a peril. For example, faulty wiring is a hazard because it increases the chance of a fire. Hazards may be classified as:
*physical - characteristic of object that increases probability or severity of loss *moral- conscious mental attitude of insured (e.g. intentional loss) *morale-stems from unconcious mental attitude (e.g. accident poneness)
Health Insurance
Insurance of human beings against bodily injury, disablement, or death by accident of accidental means, or the expense thereof, or against disablement or expense resultin from sickness, and every insurance appertaining thereto.
HMO Health Maintenance Organization
A noninsurance alternative to dealing with the risks of health care costs. HMO provides comprehensive health services to its members for a prepaid fee, equivalent to an insurance premium.
Homeowners Policy
Personal multiple line contract incorporating both property and liability coverages. Several different forms provide varying degree of coverage. Package Policy designed to protect against loss to residences and household personal property, lega liabilities and damages arising from residences and personal activities. Available to owner-occupents for 1-4 family dwelling, renters in any type of building, condo/coop owners. Insures private residence w/ no more than 2 boarders, allows for incidental business and farming. May cover under construction but excludes mobile homes, unless renters of such. Named insured must not be a corp entity or someone who does not occupy. Includes named insured, family, persons under 21/care, student away under 24. Sect I - Property Sect II - Liablity (same in all Forms)
Hospital Indemnity Insurance
Health insurance that pays a flat amount per day of hospitalization, regardless of expenses and other insurance. Its primary purpose is to supplement other coverage which may be inadequate due to rising costs.
Hospital Expense Insurance
Health insurance designed to indemnify the insured for basic hospitalization expenses of room and board in the hospital, nursing care, lab fees, operating room, medical supplies and related items.
Hull Insurance
Ocean Marine Aviation insurance, insurance against physical damage to plane or ship.
Improvements And Betterments
Permanent alterations which a tenant makes to rental property which will not be removed when tenant leaves.
In a Surety agreement, one who agrees to reimbursement the surety for any loss it may suffer from having bonded the principal.
A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
Indeminity Bond
A License bond which holds the government harmless from injuries or damages caused by the principal's activities.
Indirect Loss
Loss which is a result or consequence of a direct loss. (i.e. loss of income, rental car, suspended operations). Exposures to indirect losses are frequently underestimated and in many cases exceed the direct loss exposure.
Inflation Guard
Property insurance option which provides that the policy limites will increase a certain percentage at regular intervals, for instance, annually.
Inland Marine Insurance
Form of insurance originally designed as an extension of Ocane Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.
Insolvency Bond
Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.
Installation Form
Uncontrolled Inland Marine form that covers property in transit and at the premises when the installation is to be made.
Installment Sales Form
An Inland Marine form which covers property sold on an installment basis.
Instrumentalities of Transportation and Communication
Category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.
Insurable Interest
Any actual, lawful and substantial economic interest in the safey or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment. A claim may be paid only when an insurable interest exists. Any insuraable inters is one wherein economis loss would be suffered from and adverse happening to the subject. It must exist in order for insurance to respond, and the extent of the insurable interest establishes the limit of the response. Differentiates insurance from wagering and eliminates incentive for intentionally causing losses.
Contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. Insurance K has:
* Personal - covers the person, not the property
* Conditional - obligation for insurer to pay in conditional of insurer satisfying certain conditions
* Adhesion - Parties are of unequal bargaining power, insured can not negotiate
* Indemnity - One should not profit loss is covered
ISO Insurance Service Organization
Organization made up of member companies, which collects and analyzes statistics collected from members and then establishes and files standard rates for many lines of insurance. Also standardized forms.
Insuring Agreement
Section of an insurance policy which states which losses will be indemnified, what property is covered, which perils are insured against.
Voluntary action to rid the ship of cargo in order to prevent further damage or peril.
Jewelers Block
all risk Inland Marine form for retail jewlers that covers the insured's stock in trade and the property of others, while the insured's premises, in transit and elsewhere.
Judicial Bond
Fiduciary Bond
Labor and Materials Bond
Payment Bond
Leasehold Interest Coverage Form
Form which belongs to the Commercial Property Coverage/Package. It covers a tenant for certain losses following damage to the premises from a cover peril, such as tenant's loss of a favorable lease or loss of remaining value of improvements or betterments made by the tenant.
Legal Liability
Rules of law dictate that a person must pay for damages done to another, usally based on negligence (it is not enough to state that one has suffered injury). Susan may get injured on Sally's property but she would have to prove that Susan was negligent. Settlement does not require a lawsuit. Can be based on what and adjuster decides or what the insurer decides based on prior cases.
Legal Liability Coverage Form
Form belongs to the Commercial Property Coverage/Package. Covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control.
Liability Insurance
Insures individual for financial losses which arise out of the person's responsibilities to others imposed by law or contract. Insurer aggees "to pay on behalf of the insured all sums the insured becomes legally obiligated to pay as damages" (third-party claim). Policy limits can be:single, split, aggregate.
Liberalization Clause
Policy condition found in many standard policies which states that if the insurer adopts a revision that would broaden coverage w/out additional premium w/in some period of time prior of the policy period or during the policy period, the insured receives the benefit of such broadened coverage. Purpose is to avoid the necessity of canelling and re-writing policies to take advantage of a more favorable contract. "one way street" favoring the insured.
License and Permit Bonds
Category or Surety bond which covers a wide variety of occupations and operations, and which are often required as a condition of doing business.
Limits of Liability
Maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.
Liquor Liability Coverage
Form belongs to the Commercial General Liability coverage part of the Commercial Package. Covers liquor liability which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.
Litigation Bond
Court Bond
Loss of Use Coverage
Under th Homeowners contract, covers insured's increase3 cost of living after loss and rental value of any portion of the dwelling that is rented out.
Lost Instrument Bond
Category of Surety bonds issued in situation where a principal loses valuable securities or other papers and requests issuance of duplicates. Should the lost instruments turn up and be redeemed by the holder, the issuer of the instrument should be reimbursed.
Mail Coverage Form
Part of Commercial Inland Marine Coverage part of Commercial Package. It provides all risks coverage of valuable contents of mail.
Major Medical Insurance
Type of Health insurance intended to provide protection against catasrophic losses. Some forms are designed to complement or supplement basic hospital basic hospital/surgical insurance: others provide both basic and catastrophic illness coverage.
Marine Insurance
Form of insurance primarily designed to cover property in transport over land or sea.
Medicare Supplement Insurance
Type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.
Miscellaneous Type Vehicle Endorsement
An endorsement which may be added to Personal Auto Policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.
Statement of something that is known to be untrue by the insured, made in the application for insurance but which does not become a part of the policy. Insured states that there were no prior crime losses when ther actually were.
Mortgagee Rights
Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of mortgagee's financial interest in the property.
Motor Truck Cargo Policy
Inland Marine transportation insurance which protects the carrier against its liability for damage to domestic shipments in it custody.
Name Schedule Coverage
Employee Dishonesty insurance that covers loss only from named employees.
Name Nonowner Coverage
Endorsement that can be added to the Personal Auto Policy to provided coverage for a named individual who does not own an auto while the insured is operating autos owned by another. Can be use for SR-22 insurance.
Failure to excercise that degree of care that the law requires to protect others from an unreasonable risk of harm. The failure to act as a prudent person would have acted under similar circumstances.
No-Fault Insurance
Laws attempt to remove certain claims from the tort liability system and to substitute a system of benefits payable by one's own insurer.
1) those who comply are not subject to the legal liability for causing bodily injury, regardless of fault.
2) As one is not able to seek damages from another for bodily injuries, the law substitutes under one's own coverage named "PIP" that provides first-party coverage regardless of fault.
3) requires PIP insurance to be carried by owners of motor vehicle

Note: Applies only to bodily injuries.
Health insurance policy which the company may not cancel, but must renew to a certain age with no change in premium. Affords the greatest degree of continuation protection to the insured.
Nuclear Energy Liability Exclusion Endorsement
Mandatory endorsement which must be included w/ Commercial General Liability coverage part of Commercial Package. In general, it excludes all hazards relating to nuclear energy.
Objects Definition Form
Part of the Boilder and Machinery Coverage part of The Commercial Package. Defines objects covered by the the Boiler and Machinery Coverage form in great detail.
In bonds, the one who is to be guaranteed that the principal will perform.
In Liability policies, generally defined to be and accident, including continuous or repeated exposure to substantially the same general harmful conditions.
Occurrence Form
Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily or property damage which occur during the policy period, regardless of when claim is made.
Optionally Renewable
Type of Health insurance that cannot be canceled during the policy term, but for which the company reserves the right to nonrenew the policy expiration.
Owners and Contractors Protective Liability
A form of Liability insurance which protects an owner or general contractor against liability arising our of the acts of independent contractors or subcontractors. May be issues to indepedent contractor or subcontractor, or may be issued directly to the owner or general contractor.
Particular Average
Ocean Marine insurance, a partial loss which is not part of general sacrifice or property (general average).
Payment Bond
Type of Contract Bond which guarantees that bills for labor and materials will be paid by the contractor upon completion of work. Also called Labor and Materials Bond.
Peak Season Endorsement
Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.
the amount of a bond.
Percentage Deductible
Deductible which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits.
Performance Bond
Contract bonds which guarantee that jobs will be completed by the contractor according to contract specifications.
Contingency that may cause loss. i.e. fire, windstorm, explosion. Insurance protects against specific perils recognized in the policy contract.
Perils of the Sea
Unique perils to which property in transit by water is exposed. Include unusual action of wind or waves, stranding, lightning, collision and sinking.
Personal and Advertising Injury
coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copywright, title or slogan.
Personal Articles Floater (PAF)
Personal Inland Marine insurance which provides all risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections. Generally combined on one single policy. Dec includes schedule of property and applicable insurance premium for each. "open perils" applies excluding wear and tear, deterioration, vice, etc. Cov is world-wide and is lesser of ACV or repair/replace, special rules apply for pair or set.
Personal Auto Policy
Easy-to-read policy which provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.
Personal Effects Floater
Provides all risk coverage for individuals and families who desire to insure their personal belonging (baggage) while traveling or vacationing.
Personal Injury Protection
A coverage provided in Auto policies in the State of Florida that provides coverage for the insured's owne injuries on a first-party basis, w/out regard to fault. This is required coverage and must be carried by all owners of vehicles in Florida.
Personal Liability Policy
Provides broad coverage for an individual's or family's liability exposure for bodily injury or property damage. Similar to coverage included in Homeowners contract.
Personal Property Floater
Personal Inland Marine floater which provides all risk coverage on unscheduled personal property.
Physical Damage
Auto insurance, damage or loss to the insured's own auto or autos in the insured's care, custody or control.
Physicians and Surgeons Equipment Coverage Form
Part of Commercial Inland Marine Coverage part of Commercial Package. It covers insureds in the medical/dental professions for loss to medical, surgical and dental equipment, furniture, fixtures and improvements or betterments.
Physicians Coverage
Type of Health Insurance that reimburses the isnusred for nonsurgical care provided by a physician.
Insurance Contract
Pollution Liability Coverage
Form of liability insurance that can be added to the CGL section of the Commerical Package to provide limited coverage from pollution.
Position Schedule Coverage
Form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.
Premises Burglary Coverage Form
One of the Commercial Crime Coverage forms which are a part of the Commercial Package. Provides coverage for property other than money and securities if caused by burglary or robbery of a watchperson.
Premises Theft and Robbery Outside the Premises Coverage
One of the Commericial Crime Coverage forms which are a part of the Commerical Package. covers property other than money and securities against any act of stealing from within the premises and robbery outside the premises.
Preservation of Property
This is a Property insurance coverage, sometimes known as removal, which provides coverage for property that has been removed from the premises to protect it following a covered loss.
Primary Insurance
Two or more coverages or policies apply to the same loss, the one which pays first, up to its limit of liability or the amount of the loss, whichever is less.
In bonds, the party who promises to do (or not to do) a special thing.
Private Passenger Autos
Ordinary cars, station wagons and jeeps, utility autos (pickups, panel trucks and delivery vans of 1,500 lbs or less, not used commerically) and utility trailers designed to be pulled by a private passenger auto.
Probate Bond
Fiduciary bond dealing w/ those who administer estates of a deceased person.
Products and Completed Operations
Form of insurance which covers a company against liability arising out of its products or it completed operations. Included in CGL forms or may be purchased seperately.
Professional Liability
Liability arising our of the rendering or failure to render services of a professional nature.
Proof of Loss
(1)evidence offered by the insured to prove entitlement to collect the amount claimed from the insurer.
(2) Statement, signed and sworn by the isured, setting forth the claim information required by the policy.
Property Damage
Type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.
Protection and Indemnity
Ocean Marine insurance, a form of liability insurance.
Proximate Cause
Fundamental doctrine in property insurance that holds that when there is an unbroken connection between and occurrence and damage that grows out of an occurrence, then the resulting damage is a part of the occurrence. i.e. property insurance covers peril of fire, and also smoke, water to extinquish, etc. Fire is the proximate cause.
Public Official Bonds
Category of Surety bonds furnished by principals who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office.
Punitive Damages
Damages that punish the wrongdoer for anti-social actions, rather than compensating for loss.
Replacement Cost
Cost to replace a damaged or destroyed item of property, w/out deducting depreciation. may be the basis of reimbursement for loss to buildings, or by endorsement, to personal property.
Replacement Cost Endorsement
Endorsement that can be added to an HO-3 form to provide replacement cost coverage on persoanl property (w/ limiations).
Reporting Form
Method of collecting premiums for exposures which are difficult to evaluate "before the fact." Instead of paying a flat premium, the insured pays a deposit, then submits periodic reports to the insurer, showing the status of the factors on which the premium is based. From the status reports, premiums are calculated and charged against the deposit.
Statements an applicant for the insurance believes to be true. Does not carry as much force as warranty.
Residual Market
Organization created by the Florida Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.
Retroactive Date
Date stated in the Declaration of CGL Coverage which normally is the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date.
Crime insurance, the taking or attempted taking of property by one whos has caused or threatened to cause bodily harm or committed and witnessed and obviously unlawful act.
Robbery and Safe Burglary Coverage
Commercial Crime Coverage form that covers loss to property other than money or securities from robbery of a custodian, robbery outside the premises and safe burglary.
Running Down Clause
Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damagaing another ship.
Safe Drive Insurance Plan
Automobile insurance rating program which applies the lowest rates to operators w/ the best driving records. Points are assigned for accidents and traffic violations, w/ higher rates resulting as points increase.
Damaged property that may be retreived, reconditioned, and sold to reduce insured loss.
Scheduled Persoanl Property Endorsement
Endorsement to Homeowners policy that schedules specific amounts of coverage for one or more of several categories of personal property on all risks basis.
SR-22 Filing
Form which must be filed by the insurance company stating that automobile liablity insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in and accident or was convicted of a traffic offense and was unable to show financial responsibility. 10/01/07, persons found guilty of DUI must purchase limits of 100/300/50 or bond of $350K for 3 years, then limits may drop.
SR-22 certifies coverage and must be on file for 5 years. Proof must be on person at all times.
Self-Insurance Bond
Surety Bond that can be provided as evidence of compliance w/an insurance requirement.
Adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.
Severability Clause
Standard liability insurance clause which means that insurance applies separately to each insured as if the other insureds do not exist. (aka "seperation of insureds"). Tom and Jane have liabiltiy insurance which excludes intentional injuries. Tom hurts someone. Tom not covered, Jane will be.
Signs Coverage Form
Commercial Inland Marine Coverage form that provides all risk coverage for neon, flourescent, automati or mechanical electrical signs.
Single Limits
Auto Liability, policy limits that apply to all bodily injury and property damage arising out of a single accident.
Small Business Boiler and Machinery Coverage
form designed specifically for small businesses. Does not require attachment of Object Definition form, since definitions are built in.
Small Business Boiler and Machinery Broad Form
form that provides somewhat broader coverage than the standard.
Specific Insurance
Property specifically listed and covered for a specific amount. Coverage subject to such sperate limit. aka Scheduled Coverage
Split Limits
Auto liability, policy limits that apply one limit to each person injured in a single accident, and a seperate limit for all property damage arising out of a dingle accident. aka Dual Limits
Straight Deductible
Deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss.
Transfer to the insurance company of the insured's right to collect damages. When and insured has a right to collect damages from another party, but instead elects to claim insurance under his policy, his rights against the other party are transferred to the insurer. ensures indemnity (insured does not collect from both insurers). Most policies provide that the insurer can refuse to pay a claim when the insured takes any action which impairs subrogation recoveries.
Subdivision Bond
Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other reuired improvements will be installed.
Sue and Labor Clause
Clause in Ocean Marine policies that requires the insured to take all steps necessary to save and preserve goods from loss or to minimize a loss which has occurred.
Supplementary Payments
Foun in most liability contracts. Provide "extra" coverage over and above the insured's limit of liability. Included: defense costs, first aid, bond premiums, accrued interest or judgements.
Supply Contract Bond
Guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation.
Party (insurance company) which agrees to be responsible for loss which may result if the principal does not keep his promise.
Surey Bonds
Bonds which guarantee someone will perform faithfully whatever he agrees to do or that someone will make an agreed upone payment to another party.
Surgical Expense Insurance
Type of health insurance that covers fees fo physicians for performing surgery, with a maximum amount payable for each procedure.
Theatrical Property Coverage Form
All risks Commercial Coverage form that covers scenery, costumes, theatrical property for either a single production or a blanket for all productions.
Crime insurance, a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.
Theft, Dissappearance and Destruction Coverage Form
form which covers money and securities for loss by theft, disappearance, destruction, both inside and outside premises.
Third-Party Insurance Coverage
Coverages under which the insured obtains protection against a legal obligation to pay damages to others because of injuries to persons or damage to property.
Towing and Labor Endorsement
can be added to an auto policy to cover towing and labor at site of disablement.
Trailer Interchange Insurance
Legal liability coverage provided under Truckers Policy. Provides coverage for damage to specific trailer under the policy of trucker whose possession the trailer is at the time of loss, provided the trucker is liable for the damage under a written interchange agreement and the damage is caused by a covered peril.
Truckers Coverage Form
Part of the Commercial Auto Part. Designed specifically for the trucking industry.
Uncontrolled Lines
Commercial Inland Marine coverages which are not standardized.
Unfair Insurance Trade Practices Act
Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims w/out reasonable investigation, etc.
Uninsured Motorist Coverage
Auto coverage designed to provide protestion for the insured should he be included in an accident in which the driver at fault has not insurance or not enough insurance to cover his loss.
Unscheduled Coverage
single coverage amount which applies generally to personal property. aka blanket insurance
US Internal Revenue Bond
Surety bond required of thos who collect and must report taxes for certain controlled commodities, such as liquor and tobacco.
Utmost Good Faith
principle of insurance which states that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligations in good faith.
Absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.
Valuable Papers Insurance
Inland Marind coverage form which provides all risk coverage for valuable papers such as manuscripts, blue prints, records and other printed documents.
Value Reporting Endorsement
Added to Commerical Property policies which sets the limit fo insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averged and the premium is adjusted to reflect the average exposure.
Valued Policy Law
Prohibits the oversale of insurance to consumers - to prevent the collection of premiums for amounts of insurance that will never be realized. States that if there is a total losss by a covered peril to a building, structure, mobile home or manufactured home unit, the insurer must pay the amount provided in the policy for which the premium has been paid. Agents should be careful not to overinsure so as to not create incentives for intentional losses. Safegaurds: 1) insurer does not have to pay if fraud is involved, 2) Insurer has option to repair or replace instead of cutting a check.
VMM Vandalism and Malicious Michief
Protects property against damage caused by vandals.
Vicarious Liability
Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the perosn claimed against is in some what responsible.
Waiting Period
Disability or Health insurance, period of time between issuance and acceptance before sickness benefits begin.
Voluntary intentional relinquishment of a known right. Expressed or implied.
Waiver of Premium
Optional provision in Health Insurance policies that states that if the insured becomes totally disabled, premiums will be waived and coverage remains in force.
Specific agreement between the insured and the insurer that certain conditions will be met. Becomes a part of the policy. Insured claims to have burgular alarm, coverage would be contingent on maintenance of alarm system.
Watercraft Endorsement
Endorsement to a Homeowners contract which provides coverage for watercraft which is excluded under the HO policy itself.
Workers Compensation Insurance
Covers and employer's obligations under law, which make the employer responsible for stated damages in the event of work related injuries. Also includes a seperate coverage for Employer Liability.
Lender Interests
Insurance that gives the lender the needed protection to make the loan, by assuring that the collateral may be restored if it is damaged. Single coverage covers all vested parties (lendor and lendee) and it is not necessary for the insurer to know the degree of interests.
Mortgage Clause
Mortgagee Clause
Mortgage Holders
Lenders Interest of Real Property
Promising to make the mortgagee a payee in any loss to the subject property, the clause may: 1)promise to give the mortgagee advance notice of cancellation, 2)provides coverage to mortgagee even if insured engages in ommission, 3)permits mortgage to "assume" policy by making payments if insurer fails to. Refers to mortgagee as a loss payee - insures that checks will be payable to both parties.
Comparative Negligence
Primary defense for legal liability. Defendent asserts that the plaintiff in some what contributed to the cause of the injuries. example: Jury decides that a plaintiff who suffered $10K in damages was 30% negligent in accident. Rewarded $7K
Insurance Policy Conditions
1) Insured's Duties Following Loss
2) Subrogation - transfer rights to insurer
3) Assignment - personal contact, cannot be assigned.
4) Changes - must be in writing
5) Policy period - loss must occur or begin prior to term date
6) Policy Territory - US, Canada
7) Other Insurance - Pro Rata, Primary, Excess, Equal Shares
8) Cancellation - Insured can cancel at any time. Insured must give not and be in writing.
6) Liberalization - Policy changes that benefit insureds (broaden). No need to re-write.
7) Appraisal - Agree on value of loss.
8) Abandonment - Can not "dump"
9) Severability - insurance applies sperately to each insured.
Bases for Insurer to Avoid Performance
1) If the insured is trying to profit by intentionally causing damage to property
2) Insurance is not enforceable to support a legal purpose. (boat sinks on a drug run vs. freighter w/ one passenger stashing some bud on board w/out captain knowing).
3) Insured breaches warranty of guilty of misrepresentation or concealment
PIP - Motor Vehicle
Deifined to include all self-propelled vehicles w/4 or more wheels which are of a type both designed and required to be licensed in FL, and trailers and semi-trailers designed for use w/ such vehicles. Specifically excluded are mobile homes and government mass transit. Also exempt form "No-Fault" although "MV's" are taxis, limos and public school buses.
PIP - Owner
of a motor vehicle is required to have PIP. defined as: one who holds legal title, debtor in possesion, lessee w/option to purchase, lesse over 6 months. PIP follows the insured while tort immunity follows the motor vehicle.
PIP - Nonresidents
may not be required to register in FL, are subject to the law if defined motor vehicle is present in FL for more than 90 days/365
PIP - Penalties
1) owner is denied immunity from legal liabilities
2) owner is personally liable for payment of benefits entitled to such benefits
3) DL and registration suspended
PIP - Benefits $10K
1) medical - 80% of reasonable
2) work loss - 60% of gross
3) replacement services
4) death benefit
can not exceed $10K
PIP - Extended Coverage
Insureds may elect modifications to apply only to themselves or other family members. Others who might be subject to the insured's PIP benefits are not subject to such elections.
PIP - Primary/ Excess
PIP is primary against all other forms fo medical and dental insurance, except workers comp. PIP is the excess over WC
PIP - Who is covered
1) Injuries to named insured
a) occurs in FL in a defined vehicle or hit by a defined vehicle
b) occures outside FL while occupying the insured vehicle or vehicle owned by resident relative
2) Injuries to relatives of named insured who reside w/ named insured - apply outside of FL so long as relative is occupying insureds vehicle
3) Person other than insured or relative - person not an owner of a vehicle, or entitled to benefits of another owner's insurance, while occupying insured's vehicle or struck by.
PIP - Benefits
1) One who owns a vehicle is expected to fund and be covered by PIP for oneself and residing family (unless they own and have coveerage). Taps PIP rather than looking to other party who may have caused accident. 2) Those who do not own or belong to a family that owns are entitled to PIP benefits of the owner of the vehicle they were occupying or struck by.
PIP - Exclusions to benefits
Denied for:
1) Named insureds and family are not covered on owned vehicles w/out insurance (i.e. first car insured, second not)
2) Person operating w/out owner's consent not covered.
3) No coverage for persons who intentionally inflict self-injury or are injured during the comission of a felony.
PIP - Tort Exemption
If a vehicle is subject to the law and there is PIP coverage, responsible party is exempt from legal claims to the extent of PIP coverage that was paid. Exceptions:
1)signficant or permanent loss of bodily function
2)pemanent injury
3)permanent scarring or disfigurement
exceptions "pierce the threshold"
PAP -Personal Auto Policy
Private family exposure. Individual, family members and residents. gross vehicle weight less than 10K and not use to deliver goods unless incidental
PAP - Parts
A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured Motorist
D - Damage to Auto
E - Duties after accident or loss
F - General provisions
PAP - Dec Page
Named insured
Mailing Address
Policy Period
List of coverages and limits
loss payees - allows lenders to control disbursement
PAP - Your Covered Auto
1) Vehicle on Dec Page
2) Newly aquired auto
3) Trailer you own
4) Any Auto or trailer you are temporarily using in lieu of declared vehicle because of breakdown or repair.
PAP - Newly acquired auto
Coverage begins on date of ownership, broadest applicable coverage. Must contact insurer w/in 14 days or 4 days if no collision coverage is indicated on dec page of at least on vehicle. if collision happens w/in 4 days, $500 deductible will apply.
PAP - Liability Coverage
Part A
1) policy protects the "insured"
2) Payment is only for legal liability arising out of negligent act or omission associated w/ vehicle
3) Trigger of payment is a pre-judgement awarded for bodily or physical damages
4) When claim is made, insurer becomes defense attorney for insured or has right to settle in most advantageous manner.
5) Also pays $250 bail and $200/day for defense trail for missed work
PAP - Medical Payments
Part B
pays expenses incurred for medical (w/in 3 years of accident) and funeral services, regardless of fault or legal liabilities. Covers:
1) insured and family while occupying any motor vehicle or pedestrian
2) other persons while occupying "your covered auto"
PAP - Medical Exclusions
1) operating motorized vehicle w/ less than 4 wheels
2) public or livery (except car pooling)
3) If workers comp is payable
4) while occupying other than "your covered vehicle"
5) occupying vehicle w/out permission
6) occupying for business purpose
7) occupying any vehicle inside a facility designed for racing.
PAP - Uninsured Motorist
Part C
Coverage to pay compensatory damages for bodily injury,under one's own policy, for amounts which would otherwise be paid by another's liability policy. Not intended to duplicate coverage. Does not pay punitive damages. Only available in conjuntion w/ auto liability. Must be "stacked" unless rejected in writing. stacked- coverage limits of 2 or more vehicles is added together.
Ex: Fred permanently injured in accident caused by Mark. Total medical damage $50K. Fred has PIP and has recovered $10K, and has UM of $100K. Mark has Liability 10/20/10. Fred's recovery will be $30K. $50K less his PIP and less Mark's liability limit.
PAP - Coverage for Damage to Auto
Part D
Pays for accidental loss to "your covered auto" or any "nonowned auto" (other vehicle operated or in care of named insured). 2 coverages: Collision - upset or impact w/ another object
Other than Collision - missiles, falling objects, fire theft, larceny, explosion, earthquake, windstorm, hail, water, flood, vandalism, riot, civil comotion, contact w/animal, breakage of glass.
PAP - Part D Additional Benefits
1) $20/day - $600max for (1)transportation expenses for covered auto, (2) loss of use expenses incurred because of a covered loss to a "nonowned auto". Deductible does not apply. 24hr waiting, 48hr for theft
PAP - Part D Exclusions
1) Electronic Equipment - $1K in permanent factory installed equipment is covered.
2) Tapes, CD's and accessories use with above.
3) auto that is destroyed or confiscated by government
4) camper or trailer not shown on dec page (unless w/ in 14 days of purchase)
5) Awnings or cabanas
6) radar detectors
7) custom furnishings and decals
PAP - Other Provisions
Part E
Responsibilities of insured, after accident or loss: Prompt notice, forwarding of lega papers, cooperation, submission to physical exam, exam under oath, proof of loss, report from police for UM hit-and-run or theft, protect against further loss, allow inspection and appraisal
PAP - Other Provisions
Part F
Contract conditions: policy changes, coverage denial for fraud, suing company, subrogation rights, transfer of interest. Policy period and territory - US Canada, PR during policy period involving "covered auto" or while in transport
Policy termination and nonrenewal
PAP - Endorsements
Extended Nonowned Coverage - modifies PAP exclusions for named insured and family, adds Liability coverage to furnished auto
Towing and Labor - costs and labor at disablement $25 - $100
Coverage for Excluded Equipment - Electronics, Media, Customizations, awnings, etc.
Named Nonowner Coverage - provides Liab, MP, UM for individuals who do not own car.
Misc. Type Vehicle - motor homes, motorcycles, golf carts, ATV's w/ restrictions
Joint Ownership Coverage - 2 or more relatives or nonrelatives living together
Increased Transport Expense - increase $20/day-$600max limits
Extended PIP - For named insured or family members, Medical up to 100% from 80%, work loss up to 80% from 60%. Max limit remains $10K
Additional PIP - $10K, 25K, 40K, 90K
PAP - Ratings
based on ISO - factors : territory, age, sex, marital status, use, prior record, value of car (autos=symbol, van/truck - original cost less deprec.), multi-car discounts,. safe driver,. driving school, good students, anti-theft devise
PAP Cancellation - First 60 days
1) Insurer may cancel for any reason except descrimination
2) Insurer may not cancel from nonpayment of premium unless it was a bad check or insured failed to respond to valid notice of additional premium.
2) insured my not cancel except for: total destruction of vehicle, transfer of title, purchase coverage elsewhere, or is deployed
PAP Cancellation - After 60 days
Insurer may only cancel for nonpayment, material misrep, fraud, suspension of license during policy term of w/in previous 180 days. When cancellation if permitted, 45 days notice must be given. Nonrenewal must be given 45 day notice. Valid cancellation re: reason must be sent to state and also insured re: right to appeal w/ State and availability for FJUA Insurer must return unearned premiums w/in 30 days
Auto - Mechanical Breakdown
Protects against a failure of original or replacement part when properly maintained. typically includes: engine, transmission, drive axle, steering assembly, ac, front suspension. Pays fair charge for repair/replacement , may reimburse for rental $15/$75 max
Auto - Mechanical Breakdown Exclusions
1) lack of maintenance
2) collision, fire, theft, vandal
3) tampered odometer
4) Towing/Storage
5) Seals, gaskets, oil, refigerant unless part of repair
6) tune-ups
7) breakdown from racing
8) breakdown associated w/ towing another vehicle or trailer unless properly equipped
9) used for hire or rental
Auto - Mechanical Breakdown Policy Terms
New - 36mo/36K miles
Used - 12mo/12K miles
Cancellation requires 45 day notice, nonpayment 10 days
Homeowners - 6 Forms
HO-2 Broad
HO-3 Special
HO-4 Contents Broad (apartment dwellers)
HO-5 Comprehensive
HO-6 Unit-Owners (Cond/Coop)
HO-8 Modified Coverage
HO Section I -
Property Coverage
Standard deductible is $500 for all perils excluding hurricane. Standard Hurricane is $500, options of 2%, 5% or 10% is chosen in writing for dwellings less than $500K. Must state dollar amounts of % on Dec page. Hurricance deductible are on an annual basis. Hurricane can be excluded by homeowner w/ a written statement. sections: coverages, perils insured against, exclusions, conditions.
HO Section I - Coverages
A - Dwelling and attached structures. A may be increased from HO-6, A not included on HO-4
B - Other Structures - Shed, fence, guest house, fence, B excluded from HO-4, HO-6.
C - Personal property, wherever it is located if owned by named insured or owned by other if at insured's residence.
C - Exclusions - Specifically insured articles, animals, motorized vehicles, radio equipment from car, aircrafts, property of boarders unless relatives, rental property, business data, water/steam.
D - Loss of Use - unfit for occupancy.
HO - Limits
HO-6 (Condo) basic limit of $5K for Coverage A
Cov B (other structures) automatically limited to 10% of Cov A
Cov C (personal prop) normally 50% of A
HO - Coverage C Limits
* property usually situated at other residence, 10% of C
* $200 money, gold, platinum, silver, giftcards
* $500 business property away from residence
* $1500 securities, watercraft (including trailer), trailer, jewlery, watch, furs, precious stones, electronic apparatus
* $2500 - silverware, goldware, firearms, business property
HO - Additional Coverages
* Tree, shrubs, debris removal, 5% of cov A, not more than $500/tree
* $500 fire dept fee
* $500 credit cards, forgery, counterfeit, etc.
* $1000 for loss assesments by HOA becuase of peril insured against
* $2500 for landlord furnishings for apt. on residence.
* glass breakage so long as not vacant for 60 days
HO - Laiblity Coverage
Section II
Basic limit of $100K/occurence
E - Liability - protects the insured from legal liability for bi or pd to others
F - Medical Payments- pays med for members of public injured through personal activities at residence or newly acquired, w/out regard to legal liability.
HO - Additional Coverages
1) Claims Expense - court, judgements, bonds, defense expense, etc. and $250 day loss work
2) First Aid expenses
3) Damage to property of others $1K w/o regard to legal liability
4) Loss Assessment - $1K to HOA
HO - Cancellation
* 100 days written notice for cancellation or nonrenewal, including reason, uless for nonpayment.
* 20 days if during first 90 days and reason, except material misrepresentation or failure to comply
* 10 days for nonpayment
* 45 days notice of renewal premium.
* 180 days notice if insured has been with carrier for 5 years
HO - Endorsements
Policy Limits
1) Inflation Guard - % increase annually
2) Cov B (additional structures) increased of 10% of A.
3) Increased limits for pp: money $200 to $1K, securities $1.5K to $2K, jewels from $1.5K to $5K, Silverware $2.5K - $10K, Firearms $2.5K to 6.5K, bus prop. $2.5K-$10K, electronics $1.5k - $6K
4) $500 to $10K fo credit cards/forgery
5) Cov C of 10% can be increased for 2nd res. property
6) $1K HOA assessment increased
7) 10% Cov A for building ordinances increased.
HO - Section I Broadened Coverage
1) Loss settlements at replacement instead of ACV 2) "special coverage" or "open perils added to condo policy 3) Scheduled jewelry, collectibles, silver, golf equipment, etc. 4) Theft coverage added to occassionally rented prop. 5) Structures not included in B (rented guesthouse) can be included. 6) student not meeting def of "insured" can be added 7) assisted living relative 8) HO-4 can add open peril for personal property 9) residence in trust 10) open peril golf cart 11) H0-8 broadened off-premises to $1K
HO - Section II Endorsements
1) Add certain watercraft excluded
2) permitted Incidental occupencies and home business insurance coverage
3) Include other structures of 1-4 family dwellings at other locations
4) Incidetal farming and liability from
5) Personal Injury Liability - false arrest, detention, imprisonment, wrongful eveiction.
HO - Rating
Based On 3 elements
1) fire protection available
2) construction of dwelling
3) location in state
Dwelling - 3 categories
DP1 - Basic
DP2 - Broad
DP3 - Special
Dwelling Declarations
A - Dwellings - min $12K DP2 $15K DP3, building and additions in contact
B - Other Structures -if selected
C - Personal Property $4K - excludes money, collectibles, boats, equipment, credit cards
D - Fair Rental Value - if uninhabitable for period during restore.
E - Additional Living Expenses - add expenses to maintain living standards if uninhabitable
Dwelling Exclusions
1) loss from enforcement of law 2) earth movement 3) flood or sewer back up 4) power interruption 5) property neglect 6) war 7) nuclear 8) intentional loss 9) gov action DP-1 exludes outside lawns, trees, shrubs, plants
Dwelling DP-1
"Other Coverages"
1) Cov B - Up to 10% Cov A added for "other structures"
2) Debris Removal can be added
3) 10% of Cov C limit for improvements and alterations
4) 10% of Cov for property off premises
5) UP to 20% of Cov A for fair rental value for Cov D, limited to 1/12th of 20%/month
6) company will pay reasonable costs for damage repair in preventing further loss
7) coverage provided for up to 5 days when property is removed to prevent loss from peril
8) $500 fire dept reimbursement
Dwelling DP-1
"Perils Insured Against"
3 Primary: Fire, Lightning, Internal Exposion (called Fire)
FL adds Catostrophic Ground Cover (collapse)
Extended Cov's added (EC): Hail, Windstorm, Smoke, etc
Vandalism Malicious Mishchief (VMM) added
Dwelling DP-1
1) Loss Settlement -ACV
2) Other Insurance - Policy pays pro rata
3) Cancellation: 100 days written notice or 45 days after renewal, w/in first 90 days 20 days written
Dwelling DP-2 - Broad Form
Includes : Fire, EC, VMM w/ more coverages added and variations to other coverages.
Dwelling DP-3
Same as DP-2, except building structures is covered on an "open perils" basis
Dwelling Coverages Summary
1) Basic DP-1 covers limited named perils and ACV for loss.
2) Broad for DP-2 covers additional named perils, boradened "other coverages" and may provide replacement costs settlement.
3) Special DP-3 includes the features of DP-2 and covers buildings for "all-risks"
Flood Insurance
Exposure in FL to flooding is typically excluded from property policies. Flood Insurance is provided by Fed Gov - National Flood Insurance Program (NFIP). NFIP also 100% backs private carrier coverage through "Write Your Own" program. NFIP only available on "eligible buildings" or "eligble contents" , only if located in and "eligible community".-
Flood Insurance Policy
1) General or temporary condition of inundation fo 2 or more acres of normally dry land form: a)tidal overflow, b) unusual or rapid accumulation of surface water, c) Mudflow
2) Colapse of subsidence of land along shore or lake resulting in erosion or undermining cause by waves or currents exceeding cyclical levels
NFIP Eligible Community
Not automatic. Community must apply and request a flood study. Study results in a Flood Hazard Boundary Map w/limited coverage amounts available - community in "Emergency Program". Next, a detailed study results in publication of Flood Insurance Rate Map (FIRM). this will make higher applicable limits, but only if the community agrees to pass building/ zoning ordinances designed to lessen exposure to flooding. Once requirements are met, community is said to be in the "Regular Program".
NFIP Elgible Building
Eligible Contents
Must be structure w/ 2 or more rigid outside walls and fully secure roof, affixed on a permanent site, w/50% of value above ground level, located in elfgible community. Contents must be in fully enclosed building or secured to prevent floatation. Basements are excluded.
Flood Insurance
4 Coverages available
1) Dwelling - 1-4 family dwellings, 10% of limit applies to detached garages. Other seperate structures which service dwellings (garage apartments, utility buildings) are also insured under General Property Form, require seperate policy.
2) Preferred Risk Policy (PRP) written for all risks except RCAP. Only available in flood zones B,C,X, not in Emergency Program and subject to special limits.
3) General Property Form - applies for all buildings and/or contents not eligble to be insured under Dwelling form, except those elgible for RCBAP
4) RCBAP - Residential Condo Build Assoc Policy - Applies for any condo w/one or more residential units if (1) at least 75% of total floor area is residential (2) building loacated in Regular Program Community
* Losses paid at Replacement Cost provided it is principal residence (80%) RCBAP is replacement cost subject to coinsurance.
Personal Liability - Dwelling
Policy that can be written w/ or seperately from dwelling. Covers liabilities arising from private residences and personal activities. Includes Medical Payments to Others covergage.
Available to all occupants. performs like Section II HO.
Basic limits are $100K for liliability, 1K med, damage to other's property $500, $10k cap on stat vicarious liability.
Endorsements can be: 26ft and up sailboats, 26 and under watercraft 25 hp. no farm, personal injury, or condo assesments.
Personal Inland Marine
Special property floaters: Cameras, Fine Arts, Golf Equipment, Jewels, Fur, Musical Instruments, Stamp, Coin, Silverware
General: Personal Effects, Personal Property
Majority of Inland Marine ccovers specific forms or personal propery and is written w/ HO, under scheduled property endorsements, coverage is generally the same either way.
Floaters liste above are controlled lines.
Personal Inland Marine
Uncontrolled Lines
Forms which may include , outboard boats, gun floaters, sporting equipment, wedding present floaters
PAF Losses
1) Jewelery - Scheduled w/ limits. Newly aquired (30 days) covered up to 25% of limit
2) Furs - same as jewelry
3) Cameras - inludes also, binoculars, telescopes, micro. Can be blanket for misc items.
4) Musical - same as photo, includes sheet music. Professional use requires endorsement, exludes organ repair unless caused by fire or explosion
5) Silverware - scheduled or blanket
6)Golf clubs, euipment, clothing (including public locker). No scheduling
7) Art can be scheduled, blanket or "valued". Auto coverage for 90day, 25% of limit. Not covered while away from premises, pair or sets - insurance pays scheduled amount and insured surrenders remaining articles
8) Stamps and Coins - scheduled or blanket $1K limit on any unscheduled coin or $500 on any one unscheduled stamp, excludes fading, denting, scratching, damage from being handled, disappearance
Excess Liability / Umbrella
Adds to limits of underlying policies. While only the umbrella is standardized, some insurers use several variations of each, issuing whichever is deemed necessary by underwriter.
Excess Liablity - 2 Types
Follow form - follows underlying policy: excat same coverages, provisions, exclusions, insureds, etc. Make policy simple to underwrite and is generally cheaper.
Stand Alone - provides only the same coverages but each form but each form does so on its own terms. adjusters must understand underlying policies to see if Excess will respond.
Coverage operates much like a stand alone, except if provides coverages not included in standard policy. examples may include: nonowned air/watercraft, property in care, personal injury, world wide premises liability, limited pollution, prefessional liability, product recall. Typically responds to underlying coverage like stand-alone. If not a part of underlying policy, umbrella will respond subject to an (SIR) self-insured retention deductible.
Commercial Auto
Covers auto exposures of a business: private passenger type autos/trailers, commercial type autos (trucks, truck tractors) public autos (taxi, livery, buses), special types of vehicles (snow removal, street maintenance, cherry pickers)
Commercial Auto Coverages
Includes on of 3 coverages in addition to coverages on Commercial Package delarations:
1) Garage - insured engaged in selling, repairing, parking or storing autos
2) Truckers - covers businesses hire to transport goods for someone else.
3) Business Auto - all other expsosures other tha above.
Commercial Auto
Business Auto Coverage Form
Sec I Covered Auto -Symbols
Sec II - Liability - covers "insureds"
Sec III - Physical Damage
1) Comprehensive
2) Specified Cause of Loss
3) Collision
Sec IV - Business Auto Conditions
Sec V Definitions
Commerical Auto
Symbol 1
Any auto. covers any auto, weheter owned by the insured, hired by the insured or neither owned nor hire by insured. Blanket coverage applying only to liability coverage.
Commercial Auto
Symbol 2
Owned Autos Only - All autos owned by insured dueing policy period. Automatic, no need to report new or additional autos. Applies to Liability, Med, UM and Physical
Commerical Auto
Symbol 3
Owned Private Passenger Autos Only - Like Symbol 2 blanket, automatic for only passenger type autos, applied to Liab, Med, UM, Physical Damages
Commercial Auto
Symbol 4
Owend Autos other than private passengers - Like Symbol 2 - blanket, automatic
Commercial Auto
Symbol 5
Owned Autos subject to No-Fault - blanket, automatic. applies in conjunction w/ PIP
Commerical Auto
Symbol 6
Not subject to No-Fault - not available in FL
Commercial Auto
Symbol 7
Specifically Described Auto - Identified in Decs.
Newly acquired only covered if: 1) insured already covers all autos, or 2) auto replaces same. 30 day notification
Commercial Auto
Symbol 8
Hired Autos Only - includes only those that name insured hires, rents, leases from nonemployees or nonmembers of household. Maybe used for liablility and physical damage
Commercial Auto
Symbol 9
Nonowned Autos Only - available only in conjunction with Liability