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102 Cards in this Set

  • Front
  • Back
Personal Auto Policy

widely used throughout US
Eligible vehicls
four wheeled vehicle owned or leased by insured for at least 6 consecutive months

a pick up van with a gross vehicle wieght of 10,000 pounds or less
cannot be used for deliveries
Autos covered by policy include
any auto shown in declarations
newly aquired auto
trailer owned by named insured
temp or substituve vehicle non owned
newly aquired auto
overage depends on whether it is replacement or addtion and whether the declarations indicates atl east one auto for collision
liability coverage
it protects a covered person against a suit or claim arising out of ownership or operation of a covered vehicle
split liimits
liability coverage is done unders split limits

aomounts fo insurace for bodily insurance property damage liablilt are stated separately
defense costs
insurere also agrees to provide defense and pay all legal defense costs for claims covered by the policy
liability coverage applies to who
tha named insured and any resident family emembers
any person using the named inusred auto
any person or organizaion llegally responsible for any insureds use of a covered auto on behalf of htem

any person or org legally responsible for the named insureds or family emembers use of any auto or trailer other than a ocvoered uaot or the one owned by the prson
Supplementary payments can be maid
the cost of a bail bond
premiums on appeals bonds
interest accruing afera judgment
loss of earnings 200/day
other reasonable expenses
intentional injury or damage
proptery owned or transported
proptery rented used or in the insured car
bodily injury to an employee
use as a public livery or conveyance
vehicles used in auto business
vehicles with less htan 4 wheels
vehicles funished for insured regular use
if accident occurs in another state
if the financial responsibilty law int hat state has higher iability limits PAP will automatically provide the higher limit
if more than one liabilytpocily covers a loss...
the insurere pays its pro rata of the loss for owned vehicle
the insurance coverage is excess over any other insurance for a non owned vehicle
Medical payment coverage
covers all reasonable medical and funeral expenses incurred by an insured in an accident
2 groups covered medically
the named insured and fmaily members are covered
while occupying the vehicle or as a pedestrian strcuk by a car

other persons occupying a covered auto are covered
no completely covered in nonowned vehicle
how long can medical services be rendered
3 years
is it based on fault
exclustions to the coverage includ injuries sustained
in a vehicle w/ less then 4 wheels
operating a vehicle for livery or conveyance
when the vehicle is used as a residence
when the vehicle is used w/o reasonable belief or permission
when the vehicle is compting in races
if more than one auto policy covers a loss
the insureer pays its pro rata share of the loss for an owned vehicle
the insurace coverage is excess over any other insurance for a non owned vehicle
unisured motorist coverage
the unisnured motorist coverage pays for the bodily injusry coaused by an unisured motoris by a hit and run drive or by negligent driver whos inuce copmay is insolvent

the unisured driver must e legally liable
cover applys too
named insured and family memebers

any other person occupying the covered auto

any person legall entitled to recover damages- living spouse

coverage doesnt apply when
an insured is injured in or by an auto owned by the named insured bu tnot insured by the policy

ther is primary coverage under another policy
the vehicle is used for livery or conveyance - not carpool

when workers compensation benefits are applicable
limitation when more than one iuninured motoris coverage provision applies
ex- if an isurer proveds coverage ona vehicle not owned by the named insured, the insuace proveded is excess over any collectile insurace proveded ona primary basis
coverage for damage to vehicle
the insurer aggrees to pay for any direct and acidental loss to a covered auto or any non owned auto
2 optional coverages available
collision coverage
other than collision coverage
the upset of our covered auto ornonowned auto or its impact with another vehicle or object
other than collision
a loss because of
missles or falling object
malicious mischief
hail water flood
riot or civil commotion
contact w/animal
glass breakage
non owned aut o is also covered uner coverage for damange to vehicle
a non owned aut is a private passenger auto, pickup van or trailer not owne or funishd or made availabe for regular use of the named insured or family member whi l it is in the custody of or being operated by named insured or family member
substitut cars - coverage damange
also covered the policy ofers broadest coverage applicable to any covered auto shown in declaration
collision damage waiver
maybe necesar when reenting a car most independent agents recomend it
temporary transporation
PAP also pays for tem transporation

expense must be a result of a covered loss

includes charges from rental cars
coverage is subject to a daily and total limit

coverae for towing an dlabor costs can be added by endorsment
use as a pbucli livery and conveyance

damage from wear and tear freezing and mechanical or electical breakdown

radioaactive or war
certain electronic equipment
rtapes reconrds disks
gov destrcutions or confiscations
trailer camper body or motor home
racing vehicle
total loss
the policy pay for actual cash value less than deductable
partial loss
the policy pays only the amount necessary to repair or replace vehiclethe damage property of like kind and quality
clarifying endorcement
to exlude coverage for diminution in value from a direct and accident physical damage loss
gap insurance
insured can purchase gap insureance to cover the dfference between amaoun insurere pay and toatled car the amount owed by lease or loan
if more than one autop olicy voers physical damant
insurer pays it pro rate share of loss ofr owned vehicle
the insuracen coverage is excess over any other insurace fo a non owneved vehicle
apprasial provision
policy for damage includes an appraisal proision for nhandling disputs over the amount of physical damage and loss

either side can bring an appraisal up
duties after accident
promptly notify insruance company
cooperate with the insuree int he investigagtion and settlement
send the insure copies of any legal notices received in concetion w/ accident
take phsical exam
other duties
policy must be notified for a hit and run
insured must be allowed to inspect vehicle the insured can deny coverage only if failur to comply to prejudicial to the insurer
general provisionst
coverage in us us territori pr and canada
all stats restrict right to cancel
can canel at any time by returning policy or a written notice
insurere can cancel if
the premium has not been paid
drivers lisence hs been suspended
policy was obtained through material misrepresentation
if insurer decides to discontion coverage the insured mmust be notified at least 20 days before end of pd
automatic ermination
policy is automitcally terminated if the insured declins the insures off to renew
ISO commercial propetery program
insurance services office
what does it do
has designed a mjor a commercial protery program that makes avaialbe packaged policies
packaged policy
tailored to meet the specific needs of the business

combines two or more coverages into a single policy
advantages of package policy
fewere gaps in coverage

lower premiums and convenience
policies contain
common policy declarations
common policy conditions
coverage parts commercial propety, crime
buildint and personal property coverage form
this ia commerical property coverage part that is widely used to cover direct physical damage loss to commerical vildings and personal property
wha does it cover
building describe in declartions including fixtures and permantilly installed machinery and equipment

busines persoanl propert such as furniter oand coputers
personapl propetery of other in the care custody or control or the named insured is also covered
cause of loss form
must be added to the policy to have a complete contract

specifies the coverd perils for the business and personal property coverage
cause of loss form proveds 11 basical cause of loss
fire lighting explosion windstorm or hail, smok, aircraft, riot, vandalaism, sprkler leagage, sinkhole, covacnic actions
COL also covers
falling objects, wight of snow ice or sleet, water damage also collaps is converd for certain causes such as hiddne decay
col special form
risks of direct physical loss unless specifically exlluded

also includes glass damage
reporting form
used to insure fluctuations in business personal property
what are premiums based on
based on actual value of the covered propert
when can insured report inventory
daily, monthly , quarterly or annual basis
if a loss occurs a that location revoery is limited to the proportion that the last value reported bears to the correct value that should have been reported
busines income insurance
designed to cover the loss of business income, expense that contineu during shut down period and extra expense because of loss
business income and extra expense coverage form
form covers the loss ofbusiness income due to suspension of operations udring a period of restoration

extra expense such as relocation,
and extedned busines income provitions covers the reduction in earning for a limited period after the business reopens
busines incomes is defined as the net profit or loss before income taxes that woudl have been earned andcontinuion normal opersate epxpense including payrol
busines income coverage can be purchase w/ how much co insurance
how is coinsurance selected
depends on teh lenght of time it takes to complete repairs and resume operations

a higher percentage would be selected if the busines expects to be shut downf or a whil
optional coverage includs
maximum period of indemnity of 120 days- elimitaned the coinsurance requirement

monthly limit of indemnity- elinates coinsurace requirement and limits maximom monthly amouth that iwll be paid for each 30 day period

businss inccome agreed value- this opeion supsends coinsurace clause and places limint on monthly amount paid provded the agree amout of insurance is carreid
extra expense coverage from
separae fromt hat can be used to cover the extra expense incurred by the firm in continuing persation during a period of restoration

can be sued by firms that mus continue to operate after loss occurs

the form does not coer loss of business income

expense to continu operation are coverd, subject to certain limits
endorsment can be added to...
a business income policy to cover the loss of business income from dependeent properties
when is an endorsment used
when a business depends ona sing supplieer for raw materials or reliseon a single scustomer to purchase its produces
the loss of income must result drom direct damage to propert or the dependent property
ocean marine insurace
providd protection for goods transpored by water

one of the oldest forms of transp insurance
ocean marine insurance forms
hull insurance

gargo insurace
hull insurance
covers physical damage to ship or vessel
a collision liablity clause ocovers the owners legal liablilty if the ship collides with another vessel or dammagesthe cargo
cargo insurace
covers the shippof the goods if the goods are damaged or lose

regular shipment can ve covered w/ an open cargo policy
what does the converage require regarding reports
this coverage requires ths hipper to report periodically the shipments that are made
business owner policy BOP
a package policy spefically dsigend for small to medium sized reail stores ofice building apartment bilding and similar firms
what does it provid
liability and property coverage
when are business ineligible for BOP
how are property losses covered
all risk basis, coverage includes building described in declaration, fixures, pernmanetly installed machinery and equipment
Busines personal property is it covered
yes, including property int he sured care
peak season provision
provids for a temporary icncreas of 25% of the amount of the insurance when inventeory values are at their peak
additional coverage
debris removal, collapes and interruption of comptuer operations
for additional costsBOP
outdoor signs c, money and security, dmployee dishonesty, mechanicla brak down
standard deductible for proptery
500 per occurance
does BOp also cover liability
yes similar to CGL

the buisnes ownere is insured for bodily injury and property damage liabilty and advertising and persona injury liabilty

medical expense insurace is also provided.
General liablity loss exposure
refers to legal liablity arising out of business operations other than auto or aviation accdients and empoloyee injurees
some important gernal exposures include
premises and operation liabilty arising out of ownership and maintenance of the premises

products liabilty , arisitn out of manufacturing and sales products

completed operations liabilty rising out of aulty work preformed away fromt he premises afer the work or operatin is completed

contractual liability arising out of the assumption of legal liabilty through a written or roal contract

cintigent liabilty arisiong out of work done by independent contractors
Comercial general liabilty policy
widely used by firms to cover their general liabilty loss exposure
policy has two forms
occurence form and claims made form
occurence policy form
covers liabilty claims arising out of occurences that ake place during the policy period regardless of when the claim is made
calimes made form
covers only claims that are first reported ruing the policy ped or extended reporting pd , provided the event occured after the retroactive date if any stated in policy
how can the CGL be written
alone or part of a package
3 major parts of coearage
bodily injruy property damage and liabilty
what must be caused by an occurance
bodily injury or property damange

ex- accident
when does coverage not apply
when loss is known or is apprent before the policy inception date
what does coverage include
defense cost, and the insurer has the right to investigage a claim or suit and settle it at its decision
CGL policy
coverage for fire legal liabilty
fire legal liabilty
covers fire damage to premise rented ot the name insured or temp occupied by the named isure w/ the permission of the owner
separate limit of coverage applies
other damages?
other damages to proerty rented by the insured is not covered
Personal and advertising liabilty
insurer agrees to pay those sums that insured is legally liable to pay as damages brcause of personal and advertisein justy
policy ocvers legali liabilty resulting from
false arest, maliciou prosecution, wrongful eciction or entry, slander, violation of privace, and copy right infingement
medical payments
insurere will cover the medical expense fo person who are injur in an accdient on the preses or on the ways next to the premises or as a result of the insured operations
how long do payments have to be incurred
one year after accdient
doe slegal liabilty matter
NO payments are made w/o regard to leagal liabiltiy