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54 Cards in this Set
- Front
- Back
What is the purpose of the declaration page?
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used for underwriting and rating purposes and for identification of the property or activity that is insured.
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Information provided on the declaration page is
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Property- id of insurer, name of insured,location, amount insured, premium, deductible, policy number
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What is the purpose of the insuring agreement?
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summarizes the major promises of the insurer
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What is usually in the insuring agreement?
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named perils policy or all risk policy
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What are the 3 main exclusions?
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excluded perils, excluded losses, excluded property
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what things could be excluded?
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personal property, cars, animals,certain physical damages
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why are exclusions needed
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- some perils considered uninsurable, presence of hazrds, coverage provided by other contracts, moral hazard, coverage not needed by typical insureds
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Conditions?
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provisions in the policy that qualify or place limitations on the insurer's
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named insured?
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is the person or persons named in the declarations section of the policy
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endorsements and riders?
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in property and casualty insuracnce, an endorsement is a written provision that adds to,deletes from or modifies the provisions in the original contract.
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Deductible?
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provision by which a specified amount is subtracted from the total loss payment that otherwise would be payable
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Other insurance provisions?
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prevent profiting from insurance and violation of the principle of indemnity.
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Homeowner policy: what is a section 1 coverage?
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Sec. 1- Property Coverage
*Dwelling * Other structures *Personal Property *Loss of use *add coverage |
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what is a section 2 coverage?
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Sec 2- Liability Coverage
* personal liability * medical payments to others |
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Insurance Service Office(ISO) Homeowners Program are what forms?
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HO-2
HO-3 HO-4 HO-5 HO-6 HO-8 |
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HO-2
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Standard, named peril bases; names losses it covers.
Some covered are: fire, lighting, windstorm, hail |
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HO-5
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Standard,all risk unless exclusion all loss will be covered
*growing in popularity |
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HO-3
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Standard, all risk and named peril: personal property covered on named peril and dwelling and structure covered on all risk
* most popular |
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HO-4
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Renters policy; belongings in it, personal property
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HO-6
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Condo form, from the walls in, limited coverage to structure
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HO-8
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Modify coverage plan; based on required to repair.
If RC> MC you get MC *Reduce moral hazard |
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What are the 3 special ISO forms?
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HO-4 Renters
HO-6 Condo HO-8 Modify |
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What are the 3 standard ISO forms?
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HO-2 Named peril
H0-5 All Risk HO-3 All risk/named peril |
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Determine Policy Amount?
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A-Dwelling is the appraisal value not the MV b/c MV would include land
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What is a package policy?
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Combines 2 or more separate coverages into one policy.
*Total premiums less *Fewer gaps in coverage *Insured deals w/only one insurer |
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Eligibility for HO-3
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*Designed to cover residential properties not commercial
*Private res * Multi unit dwellings but can't have more than 4 * In multi unit you have to live in one of the units |
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you and your vs us and we
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your name v insurance
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Business 4 exceptions to HO-3
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1. Certain amount of money ie mowing lawn
2. Volunteer 3. home day care 4. home day care keeping relative |
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HO-3 Employee v Residence Employee
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Residence Employee such as house keeper, nanny, on a regular basis
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H0-3 insured location
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not only your home but land you own in case someone gets hurt on it
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Persons that are insured under Sec 1 coverage?
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*resident relatives
*other persons under 21 *full time student away from home *named insure and spouse |
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Coverage A
What is covered? How? Limit? Losses paid? |
*Dwelling
*All Risk *RC>MV * RC except if you under insured ur home |
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Coverage B
What is covered? How? Limit? Losses paid? |
*Other sturctures
*All risk *10% of A * RC except |
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Coverage C
What is covered? How? Limit? Losses paid? |
*Personal Property
*named peril * 50% of A *ACV |
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Coverage D
What is covered? How? Limit? Losses paid? |
*Loss of use
*Sec 1 loss, civil auth * 30% of A * add expenses fair rental value |
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Coverage E is?
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Additional Coverage
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Underinsured Clause
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If insurance carried is less han 80% of replacement cost, the insured receives larger of ACV or
[(Amount Insurance carried)/ (80% X RC)] X loss |
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Exclusions for all of Sec. 1
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Flood, earth movement
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Sec 1 Exclusions for A and B
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Freezing
*Theft @ residence under construction *Vandalism *Mold,Fungus *Wear and Tear *Birds or vermin *Animals owned by insurer |
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Sec 1 Exclusions for C
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*Animals
*Motor Vehicles *Aircraft |
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Section 2 of the coverages cover?
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protects the named insured and family members against legal liability arising out of their personal acts.
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What is Coverage E?
How? Limit? Losses? |
Personal liability and will compensate for any bodily injure or prop you caused to a 3rd party
*legally liable *100,000 per occurence * |
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Coverage F
What is it? How is it covered? Limit? Loss? |
Medical Payment to others
*for anyone injured on your property *only medical expenses * predetermined 1,000 per person * within 3 years of incident |
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Auto Policy Part A
What is it? How? Limits? Loss payment? |
Liability Coverage
*PD/BI, defense cost *legally liable *split dollar limit, single dollar * pd/bi |
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What does this mean?
25,000/50,000/10,000 |
Split Dollar Limit
per person BI/Per occ BI/PD |
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Part B
What? How? Limits? Loss payments? |
Medical Payment Coverage 1st party coverage
* struck by or driving a covered auto *per person *reasonable and nec w/in 3 years, funerals |
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Part B
Insured persons? |
*u n family members, any motor vehicle designed for roads, pedestrians covered, your covered auto any1 in car w/u
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Part B
Exclusions? |
*business, vehicle use as residence, use neighbors car, stolen vehicle, racing
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Part C
What? How? Limit? Loss pay? |
Uninsured Motorist
*legally liable *split v single * comp damages |
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Part D
What? How? Limit? Loss pay? |
Damage to your auto
*regardless of fault *lesser of actual cash value *repair/replace |
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Bailee
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* they don't have control of your vehicle
* if they caused fault like not properly securing they will have to pay for damages |
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Part E
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Duties after accident
*give access to med records *do physical exam *sumit proof of loss *protect prop after loss *notify police of stollen or hit n run |
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Part F
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General Provisions
*Changes made to premium, alter type of vehicle, add car, operators using vehicle |
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can you collect from your insurance?
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Minor accidents can go to own insurance meeting a verbal or mixed threshold if less than $5,000
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