Insurance - Property, Casualty And Liability Insurance

Front 1

What are the 12 perils included in basic coverage for homeowners?

Back 1

fire, lightning, windstorm, hail, riots, aircraft, vehicles, smoke, vandalism, explosion, theft, volcanic eruption

Front 2

What are the perils included in broad coverage for homeowners?

Back 2

falling objects, weight of snow, accidental discharge or overflow of water, sudden steam or hot air; freezing of plumbing, damage from artificial electricity

Front 3

What is open perils coverage?

Back 3

All perils except those specifically excluded, typically earthquake, flood, neglect, war, power failure, intentional loss

Front 4

What is the alphabet of a standard homeowners policy

Back 4

A=Dwelling
B=Other structures-storage shed usually limited to 10%
C=Personal property-50% of A
D=Loss of use, 20% of coverage A
E=Personal liability
F=Medical payments to others

Front 5

What amount of insurance must be carried on the dwelling in order to receive a total reimbursement for a loss

Back 5

80% of replacement cost of dwelling. Business can be 90%

Front 6

What type of coverage is provided for personal property

Back 6

actual cash value.

Front 7

What are the 9 types of personal property exclusions?

Back 7

animals, motorized land vehicles, aircrafts, property of roomers, tenant property, rental personal property, business data including software, credit cards and articles specifically insured

Front 8

What are the basic forms and contractual provisions of ho policies

Back 8

HO2=broad perils
HO3=special form -open perils
HO4=contents broad (for tenants or renters
HO5-Comprehensive form open perils
HO6-Condos
HO8 modified form for historic houses

Front 9

What type of policies are issued for buildings in construction?

Back 9

Monoline fire forms. Companies whose sole line of business is providing a particular type of insurance, called monoline insurers.Note that the insurance term “monoline” means only that these companies do not have other insurance lines, such as life or property/casualty. Theft coverage is by endorsement only in monoline insurance policies.

Front 10

What is inland Marine Coverage

Back 10

Insurance on specific personal property that are not covered under the homeowners policy--furs, jewelry, etc. It can be an endorsement or separate policy

Front 11

What are the basic provisions of auto insurance

Back 11

A=Liability
B=Medical
C=Uninsured motorists
D=property damage to your auto other than collision
Collision-impact of auto with auto or object
Comprehensive
E: duties after an accident or loss
F general provisions

Front 12

What factors determine the cost of auto insurance

Back 12

location, age, gender, marital status, use, # of automobiles, driving record

Front 13

What are the exclusions of an umbrella (PUP)

Back 13

business activities, intentional, director or officers liability and workers comp
Usually require to purchase a certain amount of underlying insurance b4 purchasing umbrella. Absence of umbrella insurance for high net worth is consiered a weakness

Front 14

What is "stated value"

Back 14

With total loss "stated value" is used as actual cash value and replacement cannot be determined. usually represent maximum amount for item per insurance policy

Front 15

What is actual cash value

Back 15

Applies to personal property under all forms except endorsements. It is replacement cost minus depreciation.
Dwellings and structures are covered at replacement cost

Front 16

What does section I of a HO policy cover

Back 16

Coverages A through D

Front 17

What does section II of a HO policy cover

Back 17

Coverages E through F

Front 18

What does Section I Part A cover

Back 18

structures attached to the dwelling and materials and supplies intended for use in construction

Front 19

What are the limitations on coverage for personal property?

Back 19

1) $200 for cash and currency; 2)$500 property away from dwelling used for business purposes; 3) $1.5K for papers, trailers, jewelry, watches, furs, electronic equipment; $2.5K each for firearms, property at dwelling used for business, silverware and gold=plated ware, and pewter ware

Front 20

What are the 8 exclusions

Back 20

War, Nuclear Hazard,Earthquakes, Water damage, power failure, law ordinances, neglect, intentional loss

Front 21

Is deductible required if damage exceeds insured amount.

Back 21

If coinsurance requirement has been met, insurance company pays maximum amount and deduction is ignored. If coinsurance requirement has not been met, deduction is required.

Front 22

What is the doctrine of concurrent causation?

Back 22

If a loss results from two causes, one excluded and one not, the loss is covered through the doctrine of concurrent causation.

Front 23

What is the difference between HO2 broad coverage and HO3 open perils

Back 23

Under HO2 broad coverae, a loss is covered if it falls within the named 18 perils whereas with HO 3 special form, losses are covered unless specifically excluded.

Front 24

What are some of the additional exclusions under open perils coverage HO3

Back 24

Weather related damage, i.e., mudslides, losses caused by failure of government to maintain flood control structures, loss caused by faulty design, maintenance or planning of a buildiing.

Front 25

What types of perils are covered for HO4 (renters) and HO6(condos?

Back 25

Same as broad coverage HO2

Front 26

When is HO8 coverage appropriate?

Back 26

HO8 policies does not include a standard replacement cost provision. It is for homes wherein the replacement cost exceeds the home's FMV such as historic homes. Theft coverage is limited to premise only and limited to $1K

Front 27

How is coverage for a mobile home provided?

Back 27

HO2 or HO3

Front 28

Who provides flood insurance and what are some of the standard provisions?

Back 28

National flood insurance Program. Loss settlements on an actual cash value basis but replacement cost is available for a one-4 family dwelling that is occupied by owner at least 80% of year
Enforceable during first 30 days, afterwhich there is a 5 day wait

Front 29

What is comprehensive personal liability coverage

Back 29

Designed to protect against all types of liability hazards and includes exposure at or away from residence. Provides coverage for insured's legal obligation. Personal liability is included in section II of homeowners policy with a standard limit of $100K Business liability not included.

Front 30

What is professional liability insurance

Back 30

covers professionals for malpractice and errors and omissions

Front 31

What is an umbrella liability policy

Back 31

Provides against catastrophic liability by providing broader coverage and excess coverage. Coverage is inexpensive. Insurance company usually requires insured to purchase certain underlying liability insurance Coverage is at least as broad as the underlying liability coverage but also covers personal injury liability.

Front 32

What are the 8 factor that affect premium for auto insurance

Back 32

territory, age/sex/marital status, use of auto, driver education, auto tpe, driving record, credit score, good student discount

Front 33

What is the alphabet for PAP, auto insurance

Back 33

A=liability (mandatory)
B=medical payments
C=uninsured motorists
d=damage to your auto
E=duties after an accident or loss
F=general provisiions

Front 34

What does part A of PAP cover?

Back 34

persons other than insured and family members if they had right to use the auto; 2) any vicariously liable for the operation of the vehicle such as an ER of person operating a covered auto; 3) anyone vicariously liable for the operation of a nonowned auto does not cover damage to rented cars

Front 35

What are the supplementary payments by insurance company on auto policies

Back 35

Cost of bail bonds up to $250, premium on appeal bonds, interest on a judgment, loss of earnings up to $200 a day and other expenses incurred at the request of the insurance company

Front 36

What part of your auto policy, PAP, covers collisions with animals

Back 36

Comprehensive. part D

Front 37

What is the CPP, commercial package policy

Back 37

Covers business buildings and personalty. May also need general liability insurance, inland marine coverage-if transporting goods, build on risk insurance--if construction, commercial auto insurance-if autos, commercial umbrella olicy for excess liability coverage.