All Cards Flashcards
1
Q
What is risk?
A
The chance of loss.
2
Q
What is pure risk?
A
A risk that only involves the possibility of loss (insurable).
3
Q
What is speculative risk?
A
A risk that includes the possibility of loss or gain (not insurable).
4
Q
What is a peril?
A
The cause of a loss (e.g. fire, windstorm, theft).
5
Q
What is a hazard?
A
A condition that increases the likelihood of a loss.
6
Q
What are the three types of hazards?
A
Physical, Moral and Morale Hazards.
7
Q
What is the law of large numbers?
A
A principle that helps predict future losses for insurance underwriting.
8
Q
What is the principle of indemnity?
A
Insurance restores the insured to their original financial position before the loss.
9
Q
What is subrogation?
A
The insurer’s right to recover from a third party responsible for a loss.
10
Q
What is insurable interest?
A
A financial interest in the subject of the insurance required at the time of loss
11
Q
What is adverse selection?
A
The tendency of high-risk individuals to purchase more insurance.
12
Q
What is an aleatory contract?
A
A contract where the exchange of value is unequal.
13
Q
What is a unilateral contract?
A
A contract where only the insurer makes a legally enforceable promise.
14
Q
What is an adhesion contract?
A
A contract that the insured must accept as written by the insurer.
15
Q
What is a named peril policy?
A
A policy that covers only perils specifically listed.
16
Q
What is an open peril policy?
A
A policy that covers all perils except those excluded.
17
Q
What is replacement cost (RCV)?
A
Pays to replace damaged property without depreciation.
18
Q
What is actual cash value (ACV)?
A
Replacement cost minus depreciation.
19
Q
What is a coinsurance clause?
A
Requires the insured to maintain a certain percentage of insurance to avoid penalties.
20
Q
What is bodily injury liability?
A
Coverage for medical expenses and lost wages due to injury.
21
Q
What is property damage liability?
A
Coverage for damage to another person’s property.
22
Q
What is personal injury liability?
A
Coverage for non-physical harm (e.g. defamation, false arrest).
23
Q
What is negligence?
A
Failure to exercise reasonable care.
24
Q
What is absolute liability?
A
Liability without proof of negligence (e.g. hazardous activities).
25
What is vicarious liability?
Liability for the actions of another person (e.g. employer liability for employee).
26
What is an occurrence policy?
Covers losses occurring during the policy period, regardless of when the claim is filed.
27
What is a claims-made policy?
Covers claims filed during the policy period, regardless of when the incident occurred.
28
What are split liability limits?
Separate limits for bodily injury per person, per accident, and property damage.
29
What is a single liability limit?
A total payout limit for all damages from one accident.
30
What is an aggregate limit?
The total payout an insurer will make for all claims in a policy period.
31
What is a deductible?
The amount the insured must pay before insurance covers the remaining loss.
32
What is proximate cause?
The primary cause of a loss in an unbroken chain of events.
33
What is the difference between vacancy and unoccupancy?
Vacancy means no people or property; unoccupancy means no people but with property.
34
What is a valued policy?
A policy that pays a pre-agreed amount regardless of actual loss.
35
What is the declarations page?
The section of the policy providing essential details (names, coverage, premium, etc.).
36
What is an insuring agreement?
The section of the policy that outlines what is covered.
37
What are exclusions in an insurance policy?
Sections that specify what is not covered.
38
What is an endorsement?
An amendment that modifies coverage in a policy.
39
What is a waiver?
The voluntary relinquishment of a known right.
40
What is estoppel in insurance?
Prevents an insurer from denying coverage after previously accepting a situation.
41
What is the assignment clause?
A policy cannot be transferred without insurer consent.
42
What are the standard Homeowners (HO) policy forms?
HO-1, HO-2, HO-3, HO-4, HO-5, HO-6, HO-8
43
What does an HO-3 policy cover?
Open perils for the dwelling; named perils for personal property.
44
What does an HO-4 policy cover?
Renters insurance; covers personal property for tenants.
45
What does an HO-6 policy cover?
Condo insurance; covers personal property and condo improvements.
46
What does Coverage A in a homeowners policy cover?
Dwelling coverage.
47
What does Coverage B in a homeowners policy cover?
Other structures (e.g. detached shed).
48
What does Coverage C in a homeowners policy cover?
Personal property.
49
What does Coverage D in a homeowners policy cover?
Loss of use/additional living expenses.
50
What does Coverage E in a homeowners policy cover?
Personal liability.
51
What does Coverage F in a homeowners policy cover?
Medical payments to others.
52
What are the basic auto insurance coverages?
Liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, personal injury protection (PIP).
53
What is collision coverage?
Pays for damage to the insured's vehicle in an at-fault accident.
54
What is comprehensive coverage?
Pays for damage from non-collision events (e.g. theft, fire, hail).
55
What is uninsured motorist (UM) coverage?
Covers injuries if hit by an uninsured driver.
56
What is underinsured motorist (UIM) coverage?
Covers injuries if the at-fault driver's insurance is insufficient.
57
What is personal injury protection (PIP)?
Pays for medical expenses, lost wages and essential services regardless of fault
58
What is a no-fault insurance system?
Each driver's own insurer pays for their injuries, regardless of fault.
59
What is a tort system in auto insurance?
The at-fault driver is responsible for paying damages.
60
What is a business owners policy (BOP)?
A bundled policy covering property and liability for small businesses.
61
What are the key coverages in a commercial package policy (CPP)?
Property, liability, crime, inland marine, auto, equipment breakdown
62
What is general liability insurance?
Covers business liability for bodily injury property damage, and personal injury.
63
What is professional liability insurance?
Covers errors and omissions (E&O) for professional services.
64
What is workers' compensation insurance?
Pays for employee injuries or illnesses related to work.
65
What is a surety bond?
A financial guarantee ensuring contract obligations are met.
66
What is a fidelity bond?
Protects businesses from employee dishonesty.
67
What is inland marine insurance?
Covers movable property and goods in transit.
68
What is umbrella insurance?
Provides additional liability coverage above standard limits.
69
What is the National Flood Insurance Program (NFIP)?
A federal program providing flood insurance.
70
What is earthquake insurance?
A separate policy covering earthquake-related damage.
71
What is ordinance or law coverage?
Pays for rebuilding to meet updated building codes.
72
What is vacancy permit endorsement?
Extends coverage for vacant properties beyond the standard exclusion period.
73
What is a fidelity bond?
Protects businesses from employee dishonesty and theft.
74
What is the FAIR plan?
State-mandated insurance for high-risk properties.
75
What is terrorism risk insurance?
Federal program providing coverage for certified acts of terrorism.
76
What is a liability umbrella policy?
Extends liability coverage beyond home and auto policies.
77
What is an occurrence policy?
Covers losses occurring during the policy period, regardless of when the claim is filed.
78
What is a claims-made policy?
Covers claims filed during the policy period, regardless of when the incident occurred.
79
What is an aggregate limit?
The total amount an insurer will pay during a policy period.
80
What is an extended reporting period (ERP)?
Provides extra time to report claims after a claims-made policy expires.
81
What is a surplus lines insurer?
A non-admitted insurer covering high-risk individuals/businesses.
82
What is the difference between admitted and non-admitted insurers?
Admitted insurers are state-licensed; non-admitted insurers are not.
83
What is the state guaranty fund?
Covers policyholder losses if an insurer becomes insolvent.
84
What is rebating in insurance?
Offering an illegal incentive to buy insurance.
85
What is twisting in insurance?
Persuading someone to replace a policy for financial gain when it's not in their best interest.
86
What is an insurance binder?
A temporary agreement providing immediate coverage until a policy is issued.
87
What is the purpose of underwriting?
To assess risk and determine eligibility for insurance.
88
What are the four parts of an insurance contract?
Agreement, consideration, competent parties, legal purpose.
89
What is a policy lapse?
A policy termination due to non-payment.
90
What is a grace period in insurance?
The time after a missed payment before coverage is canceled.
91
What is a retroactive date in claims-made policies?
The earliest date an event can occur and still be covered.
92
What is a nonrenewal?
When an insurer decides not to renew a policy at expiration.
93
What is a cancellation?
When a policy is terminated before the expiration date.
94
What is an assignment clause?
A policy cannot be transferred without the insurer's consent.
95
What is a loss settlement provision?
Defines how claims will be paid (e.g. ACV, RCV).
96
What is a direct loss?
Physical damage to property.
97
What is an indirect loss?
A financial loss resulting from a direct loss (e.g. Loss of income).
98
What is the primary purpose of reinsurance?
To spread risk among multiple insurers.
99
What is facultative reinsurance?
Reinsurance for a specific policy or risk.
100
What is treaty reinsurance?
An agreement covering a portfolio of risks.
101
What is a warranty in insurance?
A specific promise or condition in a policy that must be met.
102
What is a representation in insurance?
A statement made on an application that is believed to be true.
103
What is a material misrepresentation?
A false statement that affects an insurer's decision to issue a policy.
104
What is the difference between peril and hazard?
A peril is the cause of a loss (e.g. fire) While a hazard increases the likelihood of loss.
105
What is a moral hazard?
A hazard based on dishonesty or fraud (e.g. Lying on an insurance application).
106
What is a morale hazard?
A hazard caused by carelessness or indifference (e.g. leaving doors unlocked).
107
What is an insuring agreement?
The section of the policy that outlines the insurer's promises and coverage details.
108
What is an insurance endorsement?
An amendment that modifies the policy coverage.
109
What is a floater policy?
A policy covering personal property that moves (e.g. jewelry, cameras).
110
What is inland marine coverage?
Covers goods in transit or movable property.
111
What is ocean marine insurance?
Covers cargo and ships on open waters.
112
What is business interruption insurance?
Covers lost income if a business must close due to a covered peril.
113
What is builders risk insurance?
Covers buildings under construction.
114
What is an insurance deductible?
The amount the insured must pay before the insurer covers the loss.
115
What is replacement cost?
Pays to replace property with no deduction for depreciation.
116
What is depreciation?
A decrease in property value over time.
117
What is liability coverage?
Covers bodily injury and property damage to others.
118
What is the definition of bodily injury?
Physical harm to another person, including medical expenses and lost wages.
119
What is loss of use coverage?
Pays for additional living expenses if a home is uninhabitable.
120
What is an insurable risk?
A risk that meets insurance company requirements to be covered.
121
What is risk retention?
Choosing to self-insure instead of purchasing insurance.
122
What is risk transfer?
Shifting the financial burden of loss to an insurance company.
123
What is risk avoidance?
Eliminating an activity to prevent the risk of loss.
124
What is a waiver of subrogation?
Prevents the insurer from recovering damages from a third party.
125
What is an independent adjuster?
A claims adjuster who works for multiple insurance companies.
126
What is a public adjuster?
A claims adjuster who represents the policyholder, not the insurer.
127
What is an appraiser's role in insurance?
Determines the value of damaged property in a disputed claim.
128
What is arbitration in insurance?
A method to settle claim disputes outside of court.
129
What is mediation?
A negotiation process to resolve insurance disputes.
130
What is salvage in insurance?
Insurers may take ownership of damaged property after paying a total loss claim.
131
What is an umbrella policy?
Provides excess liability coverage beyond standard policies.
132
What is a primary insurance policy?
The first layer of insurance that responds to a claim.
133
What is an excess insurance policy?
Covers losses above the primary policy limits.
134
What is a fidelity bond?
Covers losses due to employee dishonesty.
135
What is a performance bond?
Guarantees a contractor will complete a job as agreed.
136
What is a license bond?
Ensures a business complies with regulations.
137
What is an insurance fraud?
Intentional deception to obtain a financial gain from insurance.
138
What is a controlled business?
Selling insurance primarily to oneself, family, or employer, which may be legal
139
What is an unfair claims settlement practice?
An insurer's improper handling of claims, such as delaying payments.
140
What is the difference between admitted and non-admitted insurers?
Admitted insurers are state-approved; non-admitted insurers operate without state approval.
141
What is the McCarran-Ferguson Act?
A federal law that gives states the authority to regulate insurance.
142
What is the Gramm-Leach-Bliley Act?
Protects consumer privacy in financial institutions, including insurance companies.
143
What is the purpose of a risk retention group?
A group of businesses that pool resources to self-insure against liability risks.
144
What is surplus lines insurance?
Insurance for risks that standard insurers won't cover.
145
What is the Insurance Commissioner's role?
Regulates insurance companies, enforces laws and protects consumers.
146
What is a catastrophe loss?
A large-scale disaster resulting in massive insurance claims.
147
What is an extended replacement cost endorsement?
Covers rebuilding costs even if they exceed policy limits.
148
What is an insurance rider?
An additional policy feature that enhances coverage.
149
What is an umbrella policy used for?
Provides additional liability protection beyond auto and home insurance.
150
What is the purpose of FEMA in insurance?
Administers the National Flood Insurance Program (NFIP).
151
What is the definition of an insurable event?
An unforeseen and accidental occurrence that results in a covered loss.
152
What is the main goal of underwriting?
To evaluate risk and determine appropriate policy terms.
153
What is a business liability exclusion?
Excludes coverage for damages related to business activities in personal policies.
154
What is the difference between arbitration and litigation?
Arbitration is a private dispute resolution method; litigation involves court proceedings.
155
What is a premium audit?
An insurer reviews a business's actual operations to adjust the premium.
156
What is loss reserve?
Money set aside by an insurer to cover future claims.
157
What is an experience rating?
Adjusts premiums based on an employer's prior claims history.
158
What is a blanket insurance policy?
Covers multiple properties or risks under one limit.
159
What is a scheduled insurance policy?
Lists specific items and their insured values.
160
What is a reinsurance treaty?
An agreement between insurers to share risk over time.
161
What is facultative reinsurance?
Reinsurance on a case-by-case basis.
162
What is the definition of a policyholder?
The person or entity that owns an insurance policy.
163
What is a policy rider?
An optional addition to modify an insurance contract.
164
What is a claims-made policy?
Covers claims filed during the active policy period, regardless of when the incident occurred.
165
What is an occurrence-based policy?
Covers losses occurring during the policy period, even if claims are filed later.
166
What is the definition of insurance fraud?
Intentional deception to obtain an unearned insurance benefit.
167
What is a nonrenewal notice?
A notification that the insurer will not renew the policy.
168
What is an insurance endorsement?
A document modifying coverage in an insurance policy.
169
What is business income coverage?
Pays lost income if a business is forced to close due to a covered peril.
170
What is contingent business interruption coverage?
Covers lost income if a supplier or partner experiences a covered loss.
171
What is errors and omissions (E&O) insurance?
Covers professionals for claims of mistakes or negligence.
172
What is malpractice insurance?
Covers medical professionals against claims of negligence or errors.
173
What is liquor liability insurance?
Covers businesses serving alcohol for liability related to intoxicated patrons.
174
What is product liability insurance?
Covers businesses for defective products causing harm.
175
What are the named perils covered under a Basic Form policy?
Fire, Lightning, Explosion, Windstorm, Smoke, Riot or Civil Commotion, Aircraft damage, Vehicles (damaged by others), Vandalism, Volcanic Eruption, Sprinkler Leakage (Commercial Properties Only)
176
What additional perils are covered in a Broad Form policy?
Basic Form perils plus: Falling objects, Weight of snow/ice/sleet, Water damage (sudden & accidental discharge or overflow), Freezing plumbing/heating/AC, Sudden tearing apart of appliances, Collapse (due to specified perils).
177
What perils are covered in a Special Form policy?
All risks are covered except exclusions, which may include Earth movement, Governmental action, Ordinance/law changes, Power failure (off-premises), War, Nuclear hazard, Intentional Damage, Mold, Rust or corrosion (unless sudden & accidental).
178
What is ordinance or law coverage?
Pays for increased costs to meet new building codes after a covered loss.
179
What is debris removal coverage?
Pays for cleanup costs after a covered loss.
180
What is pollutant cleanup coverage?
Covers expenses to remove pollutants after a covered event.
181
What is newly acquired property coverage?
Covers newly purchased business property for a temporary period.
182
What is property in transit coverage?
Protects business property while being transported.
183
What is fire department service charge coverage?
Pays fees charged by fire departments responding to insured losses.
184
What is equipment breakdown coverage?
Covers sudden mechanical failures of business equipment.
185
What is electronic data processing (EDP) coverage?
Covers loss of digital data, software, and hardware.
186
What is peak season coverage?
Temporarily increases business property coverage during high inventory periods.
187
What is builders risk insurance?
Covers buildings under construction.
188
What is garage liability insurance?
Covers auto-related businesses for liability exposures.
189
What is garagekeepers insurance?
Covers damage to customers' vehicles in an auto shop's care.
190
What is motor truck cargo insurance?
Covers goods transported by trucking companies.
191
What is trip transit insurance?
Covers goods in transit for a single shipment.
192
What is bailees coverage?
Covers property of others while in the insured's care (e.g. dry cleaners or repair shops).
193
What is business auto liability coverage?
Covers businesses for liability from vehicle use.
194
What is hired & non-owned auto insurance?
Covers liability for rented or employee-owned vehicles used for work.
195
What is workers compensation insurance?
Pays for medical costs and lost wages due to workplace injuries.
196
What is the exclusive remedy doctrine?
Employees cannot sue employers for workplace injuries if covered by workers' compensation.
197
What is employer's liability insurance?
Provides protection for workplace injuries not covered by workers comp.
198
What is an experience modification factor (MOD)?
Adjusts workers comp premiums based on a company's claims history.
199
What is the National Flood Insurance Program (NFIP)?
A federal program providing flood coverage.
200
What is the standard waiting period for an NFIP policy?
30 days from application.
201
What is an emergency program in NFIP?
Temporary flood coverage for high-risk areas.
202
What is earthquake insurance?
A separate policy covering earthquake damage.
203
What is boiler & machinery insurance?
Covers mechanical breakdown of boilers and equipment.
204
What is surety bond insurance?
Ensures contractual obligations are met.
205
What is a fiduciary bond?
Guarantees ethical handling of another person's assets.
206
What is a performance bond?
Ensures a contractor completes a project.
207
What is a payment bond?
Guarantees subcontractors and suppliers are paid.
208
What is a state insurance guaranty fund?
Pays claims if an insurer goes bankrupt.
209
What is rebating?
Offering a customer something of value to purchase insurance (illegal in most states).
210
What is twisting?
Persuading someone to switch policies for financial gain, even if not beneficial to them.
211
What is churning?
Encouraging unnecessary policy replacements to generate commissions.
212
What is an unfair claims practice?
An insurers failure to handle claims fairly.
213
What is an insurance producer?
A licensed agent who sells insurance.
214
What is an insurance adjuster?
Investigates and settles claims.
215
What is a certificate of insurance (COI)?
A document proving insurance coverage.
216
What is a claims reserve?
Money set aside for expected claim payouts.
217
What is insurable interest?
A financial stake in the insured property.
218
What is a tort?
A civil wrong leading to legal liability.
219
What is negligence?
Failure to exercise reasonable care.
220
What is proximate cause?
The primary event leading to a loss.
221
What is comparative negligence?
Assigns partial fault in liability cases.
222
What is contributory negligence?
Prevents recovery if the claimant is even partially at fault.
223
What is absolute liability?
Liability without proof of negligence.
224
What is strict liability?
Holds manufacturers responsible for defective products.
225
What is vicarious liability?
Employers can be liable for employees' actions.
226
What is assumption of risk?
When an individual knowingly accepts a risk.
227
What is a waiver?
The intentional relinquishment of a right.
228
What is estoppel?
Prevents denying coverage if previously accepted.
229
What is additional insured coverage?
Extends policy benefits to another party, such as a landlord or contractor.
230
What is retroactive coverage in a claims-made policy?
Covers claims arising from incidents that occurred before the policy start date, if within the retroactive period.
231
What is a discovery period in claims-made policies?
Allows claims to be reported after the policy expires, within a set time frame.
232
What is a reporting form in commercial property insurance?
Allows businesses to adjust coverage for fluctuating inventory values.
233
What is a valued policy law?
Requires insurers to pay the full insured amount for a total loss, regardless of actual value
234
What is a blanket policy?
Covers multiple locations or types of property under one limit.
235
What is a specific policy?
Covers a single item or location with its own insurance limit.
236
What is expediting expenses coverage?
Pays for temporary repairs or expedited replacement of damaged equipment.
237
What is functional replacement cost?
Pays for repairs using modern materials that serve the same function.
238
What is civil authority coverage?
Covers lost income when government actions restrict business operations due to a covered peril.
239
What is a joint loss agreement?
Ensures timely claim payments when multiple insurers cover a property.
240
What is a coinsurance penalty?
A reduction in claim payout if the insured fails to maintain the required coverage amount.
241
What is business personal property coverage?
Covers office furniture, equipment and inventory inside a business location.
242
What is liability assumed under contract?
Coverage for obligations agreed upon in a contract, also called contractual liability.
243
What is an indemnity agreement?
A contract where one party agrees to compensate another for losses.
244
What is waiver of premium?
A policy provision that waives insurance premiums if the insured becomes disabled.
245
What is employer's non-ownership liability?
Covers employers when employees use personal vehicles for business.
246
What is a hold harmless agreement?
A contract where one party agrees not to hold another liable for potential losses.
247
What is punitive damages coverage?
Covers damages meant to punish negligent behavior, though often excluded from policies.
248
What is a loss payable clause?
Specifies how claim payments are distributed, often involving a lender or lienholder
249
What is liberalization in insurance?
If an insurer broadens coverage without increasing premiums, existing policyholders receive the benefit automatically.
250
What is a protective safeguard endorsement?
Requires insured businesses to maintain safety systems (e.g. sprinklers, alarms) for coverage to remain valid.
251
What is Alabama's minimum auto liability coverage?
25/50/25, which means $25,000 per person/$50,000 per accident for bodily injury/$25,000 for property damage
252
What is the continuing education (CE) requirement for Alabama insurance agents?
24 CE hours every 2 years, including 3 hours of ethics.
253
What is Alaska's unique insurance regulation?
Alaska allows electronic proof of insurance but has no personal injury protection (PIP) requirement.
254
What is Arizona's uninsured motorist coverage rule?
Not required, but must be offered and waived in writing.
255
What is Arkansas' requirement for earthquake insurance?
Not required, but insurers must offer it in certain areas.
256
What is California's Proposition 103?
Requires prior approval of property/casualty insurance rates and mandates insurance rebates.
257
What is Colorado's at-fault insurance system?
Drivers must carry liability insurance, and the at-fault driver pays for damages.
258
What is Connecticut's underinsured motorist conversion coverage?
Provides additional coverage beyond the at-fault driver's policy limit.
259
What is Delaware's personal injury protection (PIP) minimum?
$15,000 per person/$30,000 per accident
260
What is Florida's no-fault insurance law?
Requires $10,000 PIP coverage for medical expenses, regardless of fault.
261
What is Georgia's workers compensation requirement?
Businesses with 3+ employees must carry workers�� comp insurance.
262
What is Hawaii's unique auto insurance requirement?
Hawaii is a no-fault state and requires PIP coverage.
263
What is Idaho's minimum financial responsibility requirement?
$25,000 bodily injury per person/$50,000 per accident for bodily injury/$15,0000 property damage
264
What is Illinois' mandatory uninsured motorist coverage?
Insurers must include $25,000 per person/$50,000 per accident unless rejected in writing
265
What is Indiana's licensing requirement for insurance agents?
Must complete 24 hours of continuing education every two years.
266
What is Iowa's rule on proof of financial responsibility?
Drivers must show proof of insurance if involved in an accident or cited for a violation.
267
What is Kansas' unique auto insurance requirement?
Kansas is a no-fault state and requires PIP coverage.
268
What is Kentucky's basic reparation benefits?
Kentucky requires a minimum of $10,000 in PIP coverage.
269
What is Louisiana's No Pay
No Play law? Uninsured drivers can't collect the first $15,000 of bodily injury or $25,000 of property damage from insured drivers.
270
What is Maine's minimum auto liability coverage?
50/100/25, $50,000 per person/$100,000 per accident for bodily injury/ $25,000 for property damage
271
What is Maryland's requirement for flood insurance?
Flood insurance is required for properties in high-risk FEMA zones with mortgages.
272
What is Massachusetts' compulsory auto insurance?
Drivers must have PIP, bodily injury, uninsured motorist, and property damage liability
273
What is Michigan's no-fault insurance reform?
Michigan offers different PIP coverage levels instead of unlimited lifetime medical benefits.
274
What is Minnesota's state-specific insurance rule?
No-fault state; requires PIP and uninsured/underinsured motorist coverage.
275
What is Mississippi's workers' compensation exemption?
Employers with fewer than five employees are exempt from workers' comp requirements.
276
What is Missouri's financial responsibility law?
Drivers must carry proof of insurance and maintain liability coverage.
277
What is Montana's insurance continuing education requirement?
Producers must complete 24 CE hours every 2 years, including 3 ethics hours.
278
What is Nebraska's SR-22 requirement?
Drivers with violations must file an SR-22 form proving financial responsibility.
279
What is Nevada's minimum liability insurance?
25/50/20 which means $25, 000 per person/$50,000 per accident for bodily injury/$20,000 for property damage
280
What is New Hampshire's auto insurance requirement?
New Hampshire doesn't require auto insurance but does require financial responsibility.
281
What is New Jersey's basic auto policy option?
Offers a low-cost alternative to standard policies with limited PIP and liability.
282
What is New Mexico's uninsured motorist coverage rule?
Must be offered, but policyholders can reject it in writing.
283
What is New York's auto insurance rule?
Requires minimum liability no-fault (PIP), and underinsured motorist coverage.
284
What is North Carolina's Safe Driver Incentive Plan (SDIP)?
Increases rates for drivers with at-fault accidents or violations.
285
What is North Dakota's auto insurance system?
A no-fault state requiring PIP coverage.
286
What is Ohio's minimum liability insurance requirement?
25/50/25 which means $25,000 per person/$50,000 per accident for bodily injury/$25,000 property damage
287
What is Oklahoma's Homeowner Insurance Fair Access to Insurance Requirements (FAIR) plan?
Provides coverage to high-risk homeowners unable to obtain insurance.
288
What is Oregon's PIP requirement?
Minimum PIP coverage of $15,000 per person for medical expenses
289
What is Pennsylvania's tort option for auto insurance?
Drivers choose between full tort (higher premiums, right to sue) or limited tort (lower premiums, restricted lawsuits).
290
What is Rhode Island's unique auto insurance regulation?
Requires insurance companies to offer premium discounts for safe driving courses.
291
What is South Carolina's state-mandated uninsured motorist coverage?
Auto policies must include uninsured motorist coverage equal to liability limits.
292
What is South Dakota's workers compensation exemption?
Small employers with fewer than three employees are exempt from coverage requirements.
293
What is Tennessee's financial responsibility law?
Drivers must provide proof of insurance or post a bond to cover potential claims.
294
What is Texas' liability insurance rule?
Texas follows a fault-based system and requires $30,000/$60,000/$25,000 minimum liability coverage.
295
What is Utah's state-mandated auto insurance coverage?
A no-fault state requiring PIP and minimum liability limits.
296
What is Vermont's uninsured motorist requirement?
Must match liability limits for bodily injury coverage.
297
What is Virginia's uninsured motor vehicle fee?
Drivers can legally drive uninsured by paying a $500 annual fee.
298
What is Washington State's earthquake insurance requirement?
Not required, but insurers must offer it to homeowners
299
What is West Virginia's minimum auto insurance coverage?
25/50/25, which means $25,000 per person/$50,000 per accident bodily injury/$25,000 property damage
300
What is Wisconsin's proof of insurance law?
Drivers must carry proof of insurance and present it upon request.
301
What is Wyoming's liability insurance requirement?
25/50/20, which means $25,000 per person/$50,000 per accident bodily injury/$20,000 property damage
302
What are the monopolistic workers' compensation states?
Ohio, North Dakota, Washington, Wyoming. These states require employers to purchase workers compensation from a state-run fund.
303
What is Alabama's workers' compensation requirement?
Employers with 5+ employees must carry workers' compensation insurance.
304
What is Alaska's workers' compensation law?
Required for all employers with at least one employee; includes medical and wage loss benefits.
305
What is Arizona's workers' compensation requirement?
All employers must carry coverage, but sole proprietors and partners can opt out.
306
What is Arkansas' workers' compensation law?
Required for employers with 3+ employees, excluding agricultural workers.
307
What is California's workers' compensation rule?
Mandatory for all employers, including part-time employees.
308
What is Colorado's workers' compensation requirement?
All employers must carry coverage, including contractors.
309
What is Connecticut's workers' compensation rule?
Employers must provide coverage unless they qualify for a specific exemption.
310
What is Delaware's workers' compensation requirement?
Mandatory for all employers, including part-time employees.
311
What is Florida's workers' compensation law?
Required for businesses with 4+ employees; construction companies must have coverage for all workers.
312
What is Georgia's workers' compensation rule?
Employers with 3+ employees must carry coverage.
313
What is Hawaii's workers' compensation law?
Mandatory for all employers, including part-time employees.
314
What is Idaho's workers' compensation requirement?
Required for all employers with 1+ employees, except agricultural workers.
315
What is Illinois' workers' compensation law?
All employers must provide coverage, regardless of company size.
316
What is Indiana's workers' compensation rule?
Mandatory for all employers, including family-run businesses.
317
What is Iowa's workers' compensation requirement?
All businesses with employees must provide coverage, with some exceptions.
318
What is Kansas' workers' compensation law?
Employers with a payroll of $20,000+ must provide coverage.
319
What is Kentucky's workers' compensation requirement?
All employers must provide coverage, except for certain agricultural workers.
320
What is Louisiana's workers' compensation rule?
Employers with 1+ employees must carry worker's compensation.
321
What is Maine's workers' compensation requirement?
Mandatory for all employers with exemptions for some agricultural workers.
322
What is Maryland's workers' compensation law?
Employers with 1+ employees must provide coverage.
323
What is Massachusetts' workers' compensation rule?
All employers must carry coverage, including family businesses.
324
What is Michigan's workers' compensation law?
Required for employers with 3+ employees or a payroll exceeding $1000 per week.
325
What is Minnesota's workers' compensation requirement?
All employers must provide coverage, even for part-time employees.
326
What is Mississippi's workers' compensation law?
Employers with 5+ employees must carry coverage.
327
What is Missouri's workers' compensation requirement?
Employers with 5+ employees must have coverage; construction businesses must have it regardless of size.
328
What is Montana's workers' compensation law?
Required for all employers, but independent contractors can opt out.
329
What is Nebraska's workers' compensation requirement?
Employers with 1+ employees must carry coverage.
330
What is Nevada's workers' compensation law?
All businesses must provide coverage, regardless of size.
331
What is New Hampshire's workers' compensation requirement?
Employers with 1+ employees must carry coverage.
332
What is New Jersey's workers' compensation law?
Required for all employers, including LLCs and partnerships.
333
What is New Mexico's workers' compensation rule?
Mandatory for businesses with 3+ employees; construction companies must have coverage regardless of size.
334
What is New York's workers' compensation requirement?
All employers must provide coverage, including part-time employees.
335
What is North Carolina's workers' compensation law?
Employers with 3+ employees must carry coverage.
336
What is North Dakota's workers' compensation rule?
Monopolistic state; employers must purchase coverage from the state fund.
337
What is Ohio's workers' compensation requirement?
Monopolistic state; all businesses must purchase coverage from the state fund.
338
What is Oklahoma's workers' compensation law?
Employers with 1+ employees must provide coverage, with some exceptions.
339
What is Oregon's workers' compensation requirement?
Mandatory for all employers, with few exceptions.
340
What is Pennsylvania's workers' compensation law?
Employers must carry coverage for all employees, including part-time and seasonal workers.
341
What is Rhode Island's workers' compensation rule?
Required for all employers, except or sole proprietors.
342
What is South Carolina's workers' compensation law?
Employers with 4+ employees must provide coverage.
343
What is South Dakota's workers' compensation requirement?
Not mandatory, but highly encouraged by state law.
344
What is Tennessee's workers' compensation rule?
Employers with 5+ employees must provide coverage; construction firms must have coverage regardless of size.
345
What is Texas' workers' compensation law?
Not mandatory, but employers who opt out lose legal protections against employee lawsuits.
346
What is Utah's workers' compensation requirement?
Mandatory for all employers, with limited exceptions.
347
What is Vermont's workers' compensation law?
Employers must provide coverage for all employees.
348
What is Virginia's workers' compensation rule?
Employers with 3+ employees must carry coverage.
349
What is Washington's workers' compensation law?
Monopolistic state; all businesses must purchase coverage from the state fund.
350
What is West Virginia's workers' compensation requirement?
Mandatory for all employers, except agricultural businesses.
351
What is Wisconsin's workers' compensation rule?
Employers with 3+ employees must provide coverage.
352
What is Wyoming's workers' compensation law?
Monopolistic state; employers must buy coverage through the state fund.
