2-20 General Lines Florida Insurance

Front 1

Abandonment Clause

Back 1

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.

Front 2

Accident

Back 2

Sudden fortuitous event

Front 3

Accounts Receivable Coverage Form

Back 3

Inland Marine Coverage form which insures against loss the insured suffers becasuse of an inability to collect from customers when AR records are damaged.

Front 4

Actual Cash Value (ACV)

Back 4

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"

Front 5

Admitted Aircraft Liability Coverage

Back 5

Coverage sometimes written in conjunction w/ Aircraft Passenger Liability which can provide reimbursement for death of dismemberment.

Front 6

Aggregate Limit

Back 6

Type of policy limit found in liability policies which limits coverage to a specified total amount for all losses occurring within the policy period.

Front 7

Agreed Value

Back 7

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

Front 8

Aircraft Hull Insurance

Back 8

Physical damage insurance provided to cover the loss or damage to an insured aircraft, in motion, not in motion or both.

Front 9

Aircraft Liability Insurance

Back 9

Coverage written to cover public and passenger liability and property damage

Front 10

Aircraft Liability Insurance

Back 10

Coverage written to cover public and passenger liability and property damage

Front 11

Airport and Air Meet Liability

Back 11

Coverage that provides protection to airports for bodily injury and property damage liability

Front 12

Allied Lines

Back 12

Property coverages which are closely associated and frequently sold w/ fire ins. i.e. Dwelling, Earthquake, Sprinkler ins.

Front 13

All Risk Insurance

Back 13

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

Front 14

Annual Transit Policy

Back 14

Inland Marine transportation insurance which insures a property owner for goods being transported.

Front 15

Appraisal Clause

Back 15

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.

Front 16

Assignment Clause

Back 16

Condition in policy that specifies that transferring the policy to another is not valid unless the company consent in writing.

Front 17

Automobile Mechanical Breakdown Insurance

Back 17

Coverage designed to indemnify against the costs of mechanical failures or breakdowns not covered under the manufacturer's warranty.

Front 18

Avaition Insurance

Back 18

provides both liability and physical damage coverage for aircraft. aka Aircraft Hull Insurance. Liablity coverage available seperately for hangarkeepers and airport owners.

Front 19

Bail Bond

Back 19

Surey bond that guarantees the principal will appear in criminal proceedings.

Front 20

Bailee

Back 20

One who has temporary custody of property belonging to another. i.e. dry cleaners

Front 21

Bailee's Policy

Back 21

Inland Marine ins. obtained by bailee, to cover loss or damage to customers' property in the bailee's custody, without regard to liability.

Front 22

Barratry

Back 22

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.

Front 23

Bid Bonds

Back 23

Type of K bond which guarantees the obligee that if a contractor's bid is accepted, the contracor will provide the required performance bond.

Front 24

Binder

Back 24

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.

Front 25

Blanket Insurance

Back 25

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.

Front 26

Blue Sky Bond

Back 26

Surey bond required of investment companies, guaranteeing against misrepresentations of securities and defrauding the public.

Front 27

Bodily Injury

Back 27

Usually defined to include physical harm, sickness, disease, or death resulting from any of these.

Front 28

Boiler and Machinery Coverage Form

Back 28

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.

Front 29

Builder's Risk Coverage Form

Back 29

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.

Front 30

Building and Personal Property Coverage Form

Back 30

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.

Front 31

Burglary

Back 31

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.

Front 32

Business Auto Coverage Form

Back 32

form which is part of the Commercial Auto Coverages and is designed to cover the auto exposures of business, other than truckers or garages.

Front 33

Business Income Form

Back 33

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.

Front 34

Business Pursuits Endorsement

Back 34

endorsement to Homeowners policy which provides coverage against occupational liabilities for those who are employed by others.

Front 35

Businessowner's Policy

Back 35

multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.

Front 36

Camera and Musical Instrument Dealers Form

Back 36

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.

Front 37

Cargo Liability Coverage

Back 37

Protects against legal liability for loss or damage to cargo or baggage. May be part of an Ocean Marine or Aviation Policy

Front 38

Casualty Insurance

Back 38

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

Front 39

Causes of Loss Form

Back 39

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

Front 40

Claim

Back 40

Assertation of a legal right against an insurer, that carries with it damand for appropriate relief.

Front 41

Claims-Made Form

Back 41

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.

Front 42

Coinsurance Clause

Back 42

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.

Front 43

Collision

Back 43

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.

Front 44

Commercial Articles Coverage Form

Back 44

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.

Front 45

Commercial Package Policy

Back 45

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.

Front 46

Common Policy Conditions

Back 46

form containing conditions that apply to all coverages issued under the Commercial Package Policy.

Front 47

Comprehensive Coverage

Back 47

In automobile insurance, a broad physical damage coverage which covers all property losses except collision and those perils or property shich are specifically excluded.

Front 48

Computer Fraud Coverage Form

Back 48

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.

Front 49

Concealment

Back 49

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.

Front 50

Conditionally Renewable

Back 50

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.

Front 51

Conditions

Back 51

Portion of an insurance K which sets forth the rights and duties of the insured and the insurance company.

Front 52

Condominium Association Coverage Form

Back 52

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).

Front 53

Condominium Commercial Unit-Owners Coverage Form

Back 53

Part of the Commercial Property Coverage part of the Commercial Package Policy which covers the unit-owners business personal property.

Front 54

Consequential Damage

Back 54

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.

Front 55

Conservation Bond

Back 55

Fiduciary bond for those appointed to manage and preserve property other that estates of decendents.

Front 56

Constructive Total Loss

Back 56

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.

Front 57

Contingent Liability

Back 57

Liability which an insured or business incurs because of the actions of others (i.e. family or employees). aka Vicarious Liability

Front 58

Contract

Back 58

Legal agreement between two parties promising certain performance in exchange for a certain consideration.

Front 59

Contract Bond

Back 59

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.

Front 60

Contractors Equipment Coverage Form

Back 60

Part of the Inland Marine Coverage part of the Commerical Package. Covers various types of contractors mobile equipment needed to conduct business.

Front 61

Contractual Liability

Back 61

Provides coverage against liability rising out of an insured's contractula obligations. Excluded in the Commercial General Liability Policy, subject to several exceptions.

Front 62

Controlled Lines

Back 62

Classes of Inland Marine coverage for which standardized forms have been prepared as part of the Commericial Package. Contrast uncontrolled lines.

Front 63

Court Bond

Back 63

Category of judicial bonds required for most types of court litigation: civil suits, criminal actions, appeal, bail bonds, etc. Includes Bail and Litigation Bonds

Front 64

Coverage Trigger

Back 64

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.

Front 65

Crime Coverage Plans

Back 65

Various groups of Crime Coverage forms designed to provide a package of crime insurance to meet the insured's needs.

Front 66

Customs Bond

Back 66

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.

Front 67

Dealer's Drive-Away Collision

Back 67

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

Front 68

Debris Removal

Back 68

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.

Front 69

Declarations

Back 69

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.

Front 70

Deductible

Back 70

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.

Front 71

Direct Loss

Back 71

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.

Front 72

Disability Insurance

Back 72

Line of insurance which includes coverages that are designed to protect the insured against a loss of income resulting from injury or sickness.

Front 73

Discovery Period

Back 73

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.

Front 74

Double Indemnity

Back 74

Health policy provision that doubles death benefits otherwise applicable for accidents under specified circumstances.

Front 75

Dread Disease Policy

Back 75

Health insurance policy which provides benefits for a single illness.

Front 76

Drive Other Car Coverage

Back 76

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.

Front 77

Dwelling Policy

Back 77

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.

Front 78

Earthquake Coverage

Back 78

Available under Commercial Package. Requires Causes of Loss form.

Front 79

EDP Electronic Data Processing Coverage

Back 79

Inland Marine insurance designed to cover computer hardware and software.

Front 80

Employee Dishonesty Coverage Form

Back 80

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.

Front 81

Employers Liability Coverage

Back 81

Coverage under workers comp policy to cover the employer's liability arising out of employee's work related injuries.

Front 82

Endorsement

Back 82

A document which is attached to the policy and modifies or changes the original policy in some way.

Front 83

Equal Shares Clause

Back 83

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.

Front 84

Equipment Dealers Coverage Form

Back 84

Inland Marine form which provides all risk coverage for mobile agricultural and construction equipment owned by or in the care of an equipment dealer.

Front 85

Exemplary Damages

Back 85

Damages awarded to make and example of the wrongdoer.

Front 86

Excess Coverage

Back 86

Coverage which applies only after limits of primary insurance have been exhausted.

Front 87

Exclusions

Back 87

Section of insurance policy which lists property, perils, persons, or situations which are NOT covered by the policy.

Front 88

Expediting Expenses

Back 88

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

Front 89

Extended Nonowned Coverage Endorsement

Back 89

Personal Auto Policy endorsement that extends liability coverage to named individuals for nonowned automobile which is furnished for their regular use.

Front 90

Extended Reporting Period

Back 90

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.

Front 91

Extortion Coverage Form

Back 91

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.

Front 92

Extra Expense Coverage Form

Back 92

Covers additional expenses incurred by insured business to continue operations following a direct loss by a peril isured against. part of Commerical Package

Front 93

False Pretense Coverage

Back 93

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.

Front 94

Farm Coverage Part

Back 94

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.

Front 95

Farm Liability Coverage Form

Back 95

Part of the Farm Coverage Part. Provides libility coverage for farm operations.

Front 96

Farm Property Coverage Form

Back 96

Part of the Farm Coverage. Provides seven seperate property coverages designed specifically for farms.

Front 97

Fidelity Bond

Back 97

Class of bonds which guarantees an employee's honesty. Generally provided through Employee Dishonesty insurance.

Front 98

Fiduciary

Back 98

Person or institution which has responsibility for money, property or financial affairs of another.

Front 99

Fiduciary Bond

Back 99

Judicial bond commonly used to bond fiduciaries: guardians, administrators, trustees and executors, or persons appointed by a court to manage the property of others.

Front 100

Film Coverage Form

Back 100

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.

Front 101

Financial Responsibility Law

Back 101

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.

Front 102

Floor Plan Coverage Form

Back 102

Inland Marine Coverage form that provides all risk coverage for merchandise for sale that has been financed.

Front 103

FAJUA - Florida Joint Underwritering Association

Back 103

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.

Front 104

Foirgery or Alteration Coverage Form

Back 104

Commercial Crime form that covers loss from the forgery or alteration of checks, drafts, promissary notes or similar.

Front 105

Franchise Bond

Back 105

Surety bond that may be required by a public body when it awards a franchise.

Front 106

Franchise Deductible

Back 106

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.

Front 107

Fraud

Back 107

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.

Front 108

Freight Coverage

Back 108

Open Marine coverage that provides protection for the vessel owner in the event that freight charges are not paid.

Front 109

Garage Coverage Form

Back 109

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.

Front 110

Garagekeepers Liability

Back 110

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.

Front 111

General Average

Back 111

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.

Front 112

General Liability

Back 112

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.

Front 113

Grace Period

Back 113

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.

Front 114

Guranteed Renewable

Back 114

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.

Front 115

Hangarkeepers Liability

Back 115

Form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping.

Front 116

Hazard

Back 116

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)

Front 117

Health Insurance

Back 117

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.

Front 118

HMO Health Maintenance Organization

Back 118

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.

Front 119

Homeowners Policy

Back 119

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)

Front 120

Hospital Indemnity Insurance

Back 120

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.

Front 121

Hospital Expense Insurance

Back 121

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.

Front 122

Hull Insurance

Back 122

Ocean Marine Aviation insurance, insurance against physical damage to plane or ship.

Front 123

Improvements And Betterments

Back 123

Permanent alterations which a tenant makes to rental property which will not be removed when tenant leaves.

Front 124

Indemnitor

Back 124

In a Surety agreement, one who agrees to reimbursement the surety for any loss it may suffer from having bonded the principal.

Front 125

Indemnity

Back 125

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.

Front 126

Indeminity Bond

Back 126

A License bond which holds the government harmless from injuries or damages caused by the principal's activities.

Front 127

Indirect Loss

Back 127

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.

Front 128

Inflation Guard

Back 128

Property insurance option which provides that the policy limites will increase a certain percentage at regular intervals, for instance, annually.

Front 129

Inland Marine Insurance

Back 129

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.

Front 130

Insolvency Bond

Back 130

Fiduciary bonds that are required of persons appointed to conserve remaining assets and protect creditors.

Front 131

Installation Form

Back 131

Uncontrolled Inland Marine form that covers property in transit and at the premises when the installation is to be made.

Front 132

Installment Sales Form

Back 132

An Inland Marine form which covers property sold on an installment basis.

Front 133

Instrumentalities of Transportation and Communication

Back 133

Category of Inland Marine insurance covering such property as bridges, tunnels, pipelines, etc.

Front 134

Insurable Interest

Back 134

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.

Front 135

Insurance

Back 135

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

Front 136

ISO Insurance Service Organization

Back 136

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.

Front 137

Insuring Agreement

Back 137

Section of an insurance policy which states which losses will be indemnified, what property is covered, which perils are insured against.

Front 138

Jettison

Back 138

Voluntary action to rid the ship of cargo in order to prevent further damage or peril.

Front 139

Jewelers Block

Back 139

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.

Front 140

Judicial Bond

Back 140

Fiduciary Bond

Front 141

Labor and Materials Bond

Back 141

Payment Bond

Front 142

Leasehold Interest Coverage Form

Back 142

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.

Front 143

Legal Liability

Back 143

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.

Front 144

Legal Liability Coverage Form

Back 144

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.

Front 145

Liability Insurance

Back 145

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.

Front 146

Liberalization Clause

Back 146

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.

Front 147

License and Permit Bonds

Back 147

Category or Surety bond which covers a wide variety of occupations and operations, and which are often required as a condition of doing business.

Front 148

Limits of Liability

Back 148

Maximum amount of insurance the insurance company will pay for a particular loss, or for a loss during a period of time.

Front 149

Liquor Liability Coverage

Back 149

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.

Front 150

Litigation Bond

Back 150

Court Bond

Front 151

Loss of Use Coverage

Back 151

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.

Front 152

Lost Instrument Bond

Back 152

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.

Front 153

Mail Coverage Form

Back 153

Part of Commercial Inland Marine Coverage part of Commercial Package. It provides all risks coverage of valuable contents of mail.

Front 154

Major Medical Insurance

Back 154

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.

Front 155

Marine Insurance

Back 155

Form of insurance primarily designed to cover property in transport over land or sea.

Front 156

Medicare Supplement Insurance

Back 156

Type of Health insurance designed to cover medical costs not payable under the Federal Medicare program.

Front 157

Miscellaneous Type Vehicle Endorsement

Back 157

An endorsement which may be added to Personal Auto Policy to cover motorcycles, motor homes, golf carts, mopeds and other recreational vehicles.

Front 158

Misrepresentation

Back 158

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.

Front 159

Mortgagee Rights

Back 159

Rights granted to a mortgagee, under a property contract issued to a mortgagor, by virtue of mortgagee's financial interest in the property.

Front 160

Motor Truck Cargo Policy

Back 160

Inland Marine transportation insurance which protects the carrier against its liability for damage to domestic shipments in it custody.

Front 161

Name Schedule Coverage

Back 161

Employee Dishonesty insurance that covers loss only from named employees.

Front 162

Name Nonowner Coverage

Back 162

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.

Front 163

Negligence

Back 163

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.

Front 164

No-Fault Insurance

Back 164

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 vehicleNote: Applies only to bodily injuries.

Front 165

Noncancelable

Back 165

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.

Front 166

Nuclear Energy Liability Exclusion Endorsement

Back 166

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.

Front 167

Objects Definition Form

Back 167

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.

Front 168

Obligee

Back 168

In bonds, the one who is to be guaranteed that the principal will perform.

Front 169

Occurrence

Back 169

In Liability policies, generally defined to be and accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Front 170

Occurrence Form

Back 170

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.

Front 171

Optionally Renewable

Back 171

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.

Front 172

Owners and Contractors Protective Liability

Back 172

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.

Front 173

Particular Average

Back 173

Ocean Marine insurance, a partial loss which is not part of general sacrifice or property (general average).

Front 174

Payment Bond

Back 174

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.

Front 175

Peak Season Endorsement

Back 175

Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak.

Front 176

Penalty

Back 176

the amount of a bond.

Front 177

Percentage Deductible

Back 177

Deductible which requires a deduction from the loss of a percentage of the value of the property or a percentage of the policy limits.

Front 178

Performance Bond

Back 178

Contract bonds which guarantee that jobs will be completed by the contractor according to contract specifications.

Front 179

Peril

Back 179

Contingency that may cause loss. i.e. fire, windstorm, explosion. Insurance protects against specific perils recognized in the policy contract.

Front 180

Perils of the Sea

Back 180

Unique perils to which property in transit by water is exposed. Include unusual action of wind or waves, stranding, lightning, collision and sinking.

Front 181

Personal and Advertising Injury

Back 181

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.

Front 182

Personal Articles Floater (PAF)

Back 182

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.

Front 183

Personal Auto Policy

Back 183

Easy-to-read policy which provides broad coverage for both owned and non-owned autos, used, maintained or operated by the insured and family.

Front 184

Personal Effects Floater

Back 184

Provides all risk coverage for individuals and families who desire to insure their personal belonging (baggage) while traveling or vacationing.

Front 185

Personal Injury Protection

Back 185

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.

Front 186

Personal Liability Policy

Back 186

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.

Front 187

Personal Property Floater

Back 187

Personal Inland Marine floater which provides all risk coverage on unscheduled personal property.

Front 188

Physical Damage

Back 188

Auto insurance, damage or loss to the insured's own auto or autos in the insured's care, custody or control.

Front 189

Physicians and Surgeons Equipment Coverage Form

Back 189

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.

Front 190

Physicians Coverage

Back 190

Type of Health Insurance that reimburses the isnusred for nonsurgical care provided by a physician.

Front 191

Policy

Back 191

Insurance Contract

Front 192

Pollution Liability Coverage

Back 192

Form of liability insurance that can be added to the CGL section of the Commerical Package to provide limited coverage from pollution.

Front 193

Position Schedule Coverage

Back 193

Form of Employee Dishonesty insurance which covers only people who fill positions named in the policy.

Front 194

Premises Burglary Coverage Form

Back 194

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.

Front 195

Premises Theft and Robbery Outside the Premises Coverage

Back 195

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.

Front 196

Preservation of Property

Back 196

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.

Front 197

Primary Insurance

Back 197

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.

Front 198

Principal

Back 198

In bonds, the party who promises to do (or not to do) a special thing.

Front 199

Private Passenger Autos

Back 199

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.

Front 200

Probate Bond

Back 200

Fiduciary bond dealing w/ those who administer estates of a deceased person.

Front 201

Products and Completed Operations

Back 201

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.

Front 202

Professional Liability

Back 202

Liability arising our of the rendering or failure to render services of a professional nature.

Front 203

Proof of Loss

Back 203

(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.

Front 204

Property Damage

Back 204

Type of loss covered under many liability contracts. Property damage means physical injury to tangible property, including loss of use.

Front 205

Protection and Indemnity

Back 205

Ocean Marine insurance, a form of liability insurance.

Front 206

Proximate Cause

Back 206

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.

Front 207

Public Official Bonds

Back 207

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.

Front 208

Punitive Damages

Back 208

Damages that punish the wrongdoer for anti-social actions, rather than compensating for loss.

Front 209

Replacement Cost

Back 209

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.

Front 210

Replacement Cost Endorsement

Back 210

Endorsement that can be added to an HO-3 form to provide replacement cost coverage on persoanl property (w/ limiations).

Front 211

Reporting Form

Back 211

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.

Front 212

Representation

Back 212

Statements an applicant for the insurance believes to be true. Does not carry as much force as warranty.

Front 213

Residual Market

Back 213

Organization created by the Florida Legislature to provide Florida residents with crucial or required coverages generally unavailable in the voluntary market.

Front 214

Retroactive Date

Back 214

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.

Front 215

Robbery

Back 215

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.

Front 216

Robbery and Safe Burglary Coverage

Back 216

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.

Front 217

Running Down Clause

Back 217

Ocean Marine clause that provides protection should the ship owner be held liable for the negligent operation of the vessel in damagaing another ship.

Front 218

Safe Drive Insurance Plan

Back 218

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.

Front 219

Salvage

Back 219

Damaged property that may be retreived, reconditioned, and sold to reduce insured loss.

Front 220

Scheduled Persoanl Property Endorsement

Back 220

Endorsement to Homeowners policy that schedules specific amounts of coverage for one or more of several categories of personal property on all risks basis.

Front 221

SR-22 Filing

Back 221

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.

Front 222

Self-Insurance Bond

Back 222

Surety Bond that can be provided as evidence of compliance w/an insurance requirement.

Front 223

Settlement

Back 223

Adjustment where the disposition of the claim involves the payment of a sum of money to the insured or third-party claimant.

Front 224

Severability Clause

Back 224

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.

Front 225

Signs Coverage Form

Back 225

Commercial Inland Marine Coverage form that provides all risk coverage for neon, flourescent, automati or mechanical electrical signs.

Front 226

Single Limits

Back 226

Auto Liability, policy limits that apply to all bodily injury and property damage arising out of a single accident.

Front 227

Small Business Boiler and Machinery Coverage

Back 227

form designed specifically for small businesses. Does not require attachment of Object Definition form, since definitions are built in.

Front 228

Small Business Boiler and Machinery Broad Form

Back 228

form that provides somewhat broader coverage than the standard.

Front 229

Specific Insurance

Back 229

Property specifically listed and covered for a specific amount. Coverage subject to such sperate limit. aka Scheduled Coverage

Front 230

Split Limits

Back 230

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

Front 231

Straight Deductible

Back 231

Deductible that specifies the deduction of a flat amount from a loss payment, regardless of the size of loss.

Front 232

Subrogation

Back 232

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.

Front 233

Subdivision Bond

Back 233

Contract bond that may be required by an authority, guaranteeing that promised streets, walks, sewers, lights and other reuired improvements will be installed.

Front 234

Sue and Labor Clause

Back 234

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.

Front 235

Supplementary Payments

Back 235

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.

Front 236

Supply Contract Bond

Back 236

Guarantees that a supplier will furnish supplies, products or equipment, sometimes including installation.

Front 237

Surety

Back 237

Party (insurance company) which agrees to be responsible for loss which may result if the principal does not keep his promise.

Front 238

Surey Bonds

Back 238

Bonds which guarantee someone will perform faithfully whatever he agrees to do or that someone will make an agreed upone payment to another party.

Front 239

Surgical Expense Insurance

Back 239

Type of health insurance that covers fees fo physicians for performing surgery, with a maximum amount payable for each procedure.

Front 240

Theatrical Property Coverage Form

Back 240

All risks Commercial Coverage form that covers scenery, costumes, theatrical property for either a single production or a blanket for all productions.

Front 241

Theft

Back 241

Crime insurance, a broad term encompassing any unlawful taking of property, but usually meant to exclude employee dishonesty and mysterious disappearance.

Front 242

Theft, Dissappearance and Destruction Coverage Form

Back 242

form which covers money and securities for loss by theft, disappearance, destruction, both inside and outside premises.

Front 243

Third-Party Insurance Coverage

Back 243

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.

Front 244

Towing and Labor Endorsement

Back 244

can be added to an auto policy to cover towing and labor at site of disablement.

Front 245

Trailer Interchange Insurance

Back 245

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.

Front 246

Truckers Coverage Form

Back 246

Part of the Commercial Auto Part. Designed specifically for the trucking industry.

Front 247

Uncontrolled Lines

Back 247

Commercial Inland Marine coverages which are not standardized.

Front 248

Unfair Insurance Trade Practices Act

Back 248

Florida law describing certain practices that are prohibited, such as misrepresentation, denying claims w/out reasonable investigation, etc.

Front 249

Uninsured Motorist Coverage

Back 249

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.

Front 250

Unscheduled Coverage

Back 250

single coverage amount which applies generally to personal property. aka blanket insurance

Front 251

US Internal Revenue Bond

Back 251

Surety bond required of thos who collect and must report taxes for certain controlled commodities, such as liquor and tobacco.

Front 252

Utmost Good Faith

Back 252

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.

Front 253

Vacancy

Back 253

Absence of people and personal property from a building. Property coverage is often restricted when there are long periods of vacancy.

Front 254

Valuable Papers Insurance

Back 254

Inland Marind coverage form which provides all risk coverage for valuable papers such as manuscripts, blue prints, records and other printed documents.

Front 255

Value Reporting Endorsement

Back 255

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.

Front 256

Valued Policy Law

Back 256

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.

Front 257

VMM Vandalism and Malicious Michief

Back 257

Protects property against damage caused by vandals.

Front 258

Vicarious Liability

Back 258

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.

Front 259

Waiting Period

Back 259

Disability or Health insurance, period of time between issuance and acceptance before sickness benefits begin.

Front 260

Waiver

Back 260

Voluntary intentional relinquishment of a known right. Expressed or implied.

Front 261

Waiver of Premium

Back 261

Optional provision in Health Insurance policies that states that if the insured becomes totally disabled, premiums will be waived and coverage remains in force.

Front 262

Warranty

Back 262

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.

Front 263

Watercraft Endorsement

Back 263

Endorsement to a Homeowners contract which provides coverage for watercraft which is excluded under the HO policy itself.

Front 264

Workers Compensation Insurance

Back 264

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.

Front 265

Lender Interests

Back 265

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.

Front 266

Mortgage ClauseMortgagee ClauseMortgage HoldersLenders Interest of Real Property

Back 266

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.

Front 267

Comparative Negligence

Back 267

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

Front 268

Insurance Policy Conditions

Back 268

1) Insured's Duties Following Loss2) Subrogation - transfer rights to insurer3) Assignment - personal contact, cannot be assigned.4) Changes - must be in writing5) Policy period - loss must occur or begin prior to term date6) Policy Territory - US, Canada7) Other Insurance - Pro Rata, Primary, Excess, Equal Shares8) 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.

Front 269

Bases for Insurer to Avoid Performance

Back 269

1) If the insured is trying to profit by intentionally causing damage to property2) 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

Front 270

PIP - Motor Vehicle

Back 270

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.

Front 271

PIP - Owner

Back 271

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.

Front 272

PIP - Nonresidents

Back 272

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

Front 273

PIP - Penalties

Back 273

1) owner is denied immunity from legal liabilities2) owner is personally liable for payment of benefits entitled to such benefits3) DL and registration suspended

Front 274

PIP - Benefits $10K

Back 274

1) medical - 80% of reasonable2) work loss - 60% of gross3) replacement services4) death benefitcan not exceed $10K

Front 275

PIP - Extended Coverage

Back 275

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.

Front 276

PIP - Primary/ Excess

Back 276

PIP is primary against all other forms fo medical and dental insurance, except workers comp. PIP is the excess over WC

Front 277

PIP - Who is covered

Back 277

1) Injuries to named insured a) occurs in FL in a defined vehicle or hit by a defined vehicleb) occures outside FL while occupying the insured vehicle or vehicle owned by resident relative2) Injuries to relatives of named insured who reside w/ named insured - apply outside of FL so long as relative is occupying insureds vehicle3) 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.

Front 278

PIP - Benefits

Back 278

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.

Front 279

PIP - Exclusions to benefits

Back 279

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.

Front 280

PIP - Tort Exemption

Back 280

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 function2)pemanent injury3)permanent scarring or disfigurement4)deathexceptions "pierce the threshold"

Front 281

PAP -Personal Auto Policy

Back 281

Private family exposure. Individual, family members and residents. gross vehicle weight less than 10K and not use to deliver goods unless incidental

Front 282

PAP - Parts

Back 282

A - Liability CoverageB - Medical Payments CoverageC - Uninsured Motorist D - Damage to AutoE - Duties after accident or lossF - General provisions

Front 283

PAP - Dec Page

Back 283

Named insuredMailing AddressPolicy PeriodList of coverages and limitsloss payees - allows lenders to control disbursement

Front 284

PAP - Your Covered Auto

Back 284

1) Vehicle on Dec Page2) Newly aquired auto3) Trailer you own4) Any Auto or trailer you are temporarily using in lieu of declared vehicle because of breakdown or repair.

Front 285

PAP - Newly acquired auto

Back 285

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.

Front 286

PAP - Liability CoveragePart A

Back 286

1) policy protects the "insured"2) Payment is only for legal liability arising out of negligent act or omission associated w/ vehicle3) Trigger of payment is a pre-judgement awarded for bodily or physical damages4) 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

Front 287

PAP - Medical PaymentsPart B

Back 287

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 pedestrian2) other persons while occupying "your covered auto"

Front 288

PAP - Medical Exclusions

Back 288

1) operating motorized vehicle w/ less than 4 wheels2) public or livery (except car pooling)3) If workers comp is payable4) while occupying other than "your covered vehicle"5) occupying vehicle w/out permission6) occupying for business purpose7) occupying any vehicle inside a facility designed for racing.

Front 289

PAP - Uninsured MotoristPart C

Back 289

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.

Front 290

PAP - Coverage for Damage to AutoPart D

Back 290

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 objectOther than Collision - missiles, falling objects, fire theft, larceny, explosion, earthquake, windstorm, hail, water, flood, vandalism, riot, civil comotion, contact w/animal, breakage of glass.

Front 291

PAP - Part D Additional Benefits

Back 291

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

Front 292

PAP - Part D Exclusions

Back 292

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 government4) camper or trailer not shown on dec page (unless w/ in 14 days of purchase)5) Awnings or cabanas6) radar detectors7) custom furnishings and decals

Front 293

PAP - Other ProvisionsPart E

Back 293

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

Front 294

PAP - Other ProvisionsPart F

Back 294

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 transportPolicy termination and nonrenewal

Front 295

PAP - Endorsements

Back 295

Extended Nonowned Coverage - modifies PAP exclusions for named insured and family, adds Liability coverage to furnished autoTowing and Labor - costs and labor at disablement $25 - $100Coverage 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/ restrictionsJoint Ownership Coverage - 2 or more relatives or nonrelatives living togetherIncreased Transport Expense - increase $20/day-$600max limitsExtended PIP - For named insured or family members, Medical up to 100% from 80%, work loss up to 80% from 60%. Max limit remains $10KAdditional PIP - $10K, 25K, 40K, 90KName

Front 296

PAP - Ratings

Back 296

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

Front 297

PAP Cancellation - First 60 days

Back 297

1) Insurer may cancel for any reason except descrimination2) 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

Front 298

PAP Cancellation - After 60 days

Back 298

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

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Auto - Mechanical Breakdown

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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

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Auto - Mechanical Breakdown Exclusions

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1) lack of maintenance2) collision, fire, theft, vandal3) tampered odometer4) Towing/Storage5) Seals, gaskets, oil, refigerant unless part of repair6) tune-ups7) breakdown from racing8) breakdown associated w/ towing another vehicle or trailer unless properly equipped9) used for hire or rental

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Auto - Mechanical Breakdown Policy Terms

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New - 36mo/36K milesUsed - 12mo/12K milesCancellation requires 45 day notice, nonpayment 10 days

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Homeowners - 6 Forms

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HO-2 BroadHO-3 SpecialHO-4 Contents Broad (apartment dwellers)HO-5 ComprehensiveHO-6 Unit-Owners (Cond/Coop)HO-8 Modified Coverage

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HO Section I -Property Coverage

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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.

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HO Section I - Coverages

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A - Dwelling and attached structures. A may be increased from HO-6, A not included on HO-4B - 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.

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HO - Limits

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HO-6 (Condo) basic limit of $5K for Coverage ACov B (other structures) automatically limited to 10% of Cov ACov C (personal prop) normally 50% of A

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HO - Coverage C Limits

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* 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

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HO - Additional Coverages

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* 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

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HO - Laiblity CoverageSection II

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Basic limit of $100K/occurenceE - Liability - protects the insured from legal liability for bi or pd to othersF - Medical Payments- pays med for members of public injured through personal activities at residence or newly acquired, w/out regard to legal liability.

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HO - Additional Coverages

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1) Claims Expense - court, judgements, bonds, defense expense, etc. and $250 day loss work2) First Aid expenses3) Damage to property of others $1K w/o regard to legal liability4) Loss Assessment - $1K to HOA

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HO - Cancellation

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* 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

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HO - EndorsementsPolicy Limits

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1) Inflation Guard - % increase annually2) 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 - $6K4) $500 to $10K fo credit cards/forgery5) Cov C of 10% can be increased for 2nd res. property6) $1K HOA assessment increased7) 10% Cov A for building ordinances increased.

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HO - Section I Broadened Coverage

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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

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HO - Section II Endorsements

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1) Add certain watercraft excluded2) permitted Incidental occupencies and home business insurance coverage3) Include other structures of 1-4 family dwellings at other locations4) Incidetal farming and liability from5) Personal Injury Liability - false arrest, detention, imprisonment, wrongful eveiction.

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HO - Rating Based On 3 elements

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1) fire protection available2) construction of dwelling3) location in state

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Dwelling - 3 categories

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DP1 - BasicDP2 - BroadDP3 - Special

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Dwelling Declarations

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A - Dwellings - min $12K DP2 $15K DP3, building and additions in contactB - Other Structures -if selected C - Personal Property $4K - excludes money, collectibles, boats, equipment, credit cardsD - Fair Rental Value - if uninhabitable for period during restore.E - Additional Living Expenses - add expenses to maintain living standards if uninhabitable

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Dwelling Exclusions

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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

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Dwelling DP-1"Other Coverages"

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1) Cov B - Up to 10% Cov A added for "other structures"2) Debris Removal can be added3) 10% of Cov C limit for improvements and alterations4) 10% of Cov for property off premises5) UP to 20% of Cov A for fair rental value for Cov D, limited to 1/12th of 20%/month6) company will pay reasonable costs for damage repair in preventing further loss7) coverage provided for up to 5 days when property is removed to prevent loss from peril8) $500 fire dept reimbursement

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Dwelling DP-1"Perils Insured Against"

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3 Primary: Fire, Lightning, Internal Exposion (called Fire)FL adds Catostrophic Ground Cover (collapse)Extended Cov's added (EC): Hail, Windstorm, Smoke, etcVandalism Malicious Mishchief (VMM) added

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Dwelling DP-1"Conditions"

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1) Loss Settlement -ACV2) Other Insurance - Policy pays pro rata3) Cancellation: 100 days written notice or 45 days after renewal, w/in first 90 days 20 days written

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Dwelling DP-2 - Broad Form

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Includes : Fire, EC, VMM w/ more coverages added and variations to other coverages.

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Dwelling DP-3

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Same as DP-2, except building structures is covered on an "open perils" basis

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Dwelling Coverages Summary

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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"

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Flood InsuranceNFIP

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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".-

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Flood Insurance Policy

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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) Mudflow2) Colapse of subsidence of land along shore or lake resulting in erosion or undermining cause by waves or currents exceeding cyclical levels

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NFIP Eligible Community

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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".

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NFIP Elgible BuildingEligible Contents

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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.

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Flood Insurance 4 Coverages available

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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 RCBAP4) 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.

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Personal Liability - Dwelling

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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.

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Personal Inland Marine

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Special property floaters: Cameras, Fine Arts, Golf Equipment, Jewels, Fur, Musical Instruments, Stamp, Coin, SilverwareGeneral: Personal Effects, Personal PropertyMajority 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.

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Personal Inland MarineUncontrolled Lines

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Forms which may include , outboard boats, gun floaters, sporting equipment, wedding present floaters

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PAF Losses

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1) Jewelery - Scheduled w/ limits. Newly aquired (30 days) covered up to 25% of limit2) Furs - same as jewelry3) 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 explosion5) Silverware - scheduled or blanket6)Golf clubs, euipment, clothing (including public locker). No scheduling7) 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 articles8) 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

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Excess Liability / Umbrella

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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.

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Excess Liablity - 2 Types

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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.

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Umbrellas

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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.

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Commercial Auto

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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)

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Commercial Auto Coverages

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Includes on of 3 coverages in addition to coverages on Commercial Package delarations: 1) Garage - insured engaged in selling, repairing, parking or storing autos2) Truckers - covers businesses hire to transport goods for someone else.3) Business Auto - all other expsosures other tha above.

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Commercial AutoBusiness Auto Coverage Form

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Sec I Covered Auto -SymbolsSec II - Liability - covers "insureds"Sec III - Physical Damage 1) Comprehensive2) Specified Cause of Loss3) CollisionSec IV - Business Auto ConditionsSec V Definitions

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Commerical AutoSymbol 1

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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.

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Commercial AutoSymbol 2

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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

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Commerical AutoSymbol 3

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Owned Private Passenger Autos Only - Like Symbol 2 blanket, automatic for only passenger type autos, applied to Liab, Med, UM, Physical Damages

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Commercial AutoSymbol 4

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Owend Autos other than private passengers - Like Symbol 2 - blanket, automatic

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Commercial AutoSymbol 5

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Owned Autos subject to No-Fault - blanket, automatic. applies in conjunction w/ PIP

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Commerical AutoSymbol 6

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Not subject to No-Fault - not available in FL

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Commercial AutoSymbol 7

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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

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Commercial AutoSymbol 8

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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

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Commercial AutoSymbol 9

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Nonowned Autos Only - available only in conjunction with Liability