All Cards Flashcards
What is risk?
The chance of loss.
What is pure risk?
A risk that only involves the possibility of loss (insurable).
What is speculative risk?
A risk that includes the possibility of loss or gain (not insurable).
What is a peril?
The cause of a loss (e.g. fire, windstorm, theft).
What is a hazard?
A condition that increases the likelihood of a loss.
What are the three types of hazards?
Physical, Moral and Morale Hazards.
What is the law of large numbers?
A principle that helps predict future losses for insurance underwriting.
What is the principle of indemnity?
Insurance restores the insured to their original financial position before the loss.
What is subrogation?
The insurer’s right to recover from a third party responsible for a loss.
What is insurable interest?
A financial interest in the subject of the insurance required at the time of loss
What is adverse selection?
The tendency of high-risk individuals to purchase more insurance.
What is an aleatory contract?
A contract where the exchange of value is unequal.
What is a unilateral contract?
A contract where only the insurer makes a legally enforceable promise.
What is an adhesion contract?
A contract that the insured must accept as written by the insurer.
What is a named peril policy?
A policy that covers only perils specifically listed.
What is an open peril policy?
A policy that covers all perils except those excluded.
What is replacement cost (RCV)?
Pays to replace damaged property without depreciation.
What is actual cash value (ACV)?
Replacement cost minus depreciation.
What is a coinsurance clause?
Requires the insured to maintain a certain percentage of insurance to avoid penalties.
What is bodily injury liability?
Coverage for medical expenses and lost wages due to injury.
What is property damage liability?
Coverage for damage to another person’s property.
What is personal injury liability?
Coverage for non-physical harm (e.g. defamation, false arrest).
What is negligence?
Failure to exercise reasonable care.
What is absolute liability?
Liability without proof of negligence (e.g. hazardous activities).
What is vicarious liability?
Liability for the actions of another person (e.g. employer liability for employee).
What is an occurrence policy?
Covers losses occurring during the policy period, regardless of when the claim is filed.
What is a claims-made policy?
Covers claims filed during the policy period, regardless of when the incident occurred.
What are split liability limits?
Separate limits for bodily injury per person, per accident, and property damage.
What is a single liability limit?
A total payout limit for all damages from one accident.
What is an aggregate limit?
The total payout an insurer will make for all claims in a policy period.
What is a deductible?
The amount the insured must pay before insurance covers the remaining loss.
What is proximate cause?
The primary cause of a loss in an unbroken chain of events.
What is the difference between vacancy and unoccupancy?
Vacancy means no people or property; unoccupancy means no people but with property.
What is a valued policy?
A policy that pays a pre-agreed amount regardless of actual loss.
What is the declarations page?
The section of the policy providing essential details (names, coverage, premium, etc.).
What is an insuring agreement?
The section of the policy that outlines what is covered.
What are exclusions in an insurance policy?
Sections that specify what is not covered.
What is an endorsement?
An amendment that modifies coverage in a policy.
What is a waiver?
The voluntary relinquishment of a known right.
What is estoppel in insurance?
Prevents an insurer from denying coverage after previously accepting a situation.
What is the assignment clause?
A policy cannot be transferred without insurer consent.
What are the standard Homeowners (HO) policy forms?
HO-1, HO-2, HO-3, HO-4, HO-5, HO-6, HO-8
What does an HO-3 policy cover?
Open perils for the dwelling; named perils for personal property.
What does an HO-4 policy cover?
Renters insurance; covers personal property for tenants.
What does an HO-6 policy cover?
Condo insurance; covers personal property and condo improvements.
What does Coverage A in a homeowners policy cover?
Dwelling coverage.
What does Coverage B in a homeowners policy cover?
Other structures (e.g. detached shed).
What does Coverage C in a homeowners policy cover?
Personal property.
What does Coverage D in a homeowners policy cover?
Loss of use/additional living expenses.
What does Coverage E in a homeowners policy cover?
Personal liability.
What does Coverage F in a homeowners policy cover?
Medical payments to others.
What are the basic auto insurance coverages?
Liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, personal injury protection (PIP).
What is collision coverage?
Pays for damage to the insured’s vehicle in an at-fault accident.
What is comprehensive coverage?
Pays for damage from non-collision events (e.g. theft, fire, hail).
What is uninsured motorist (UM) coverage?
Covers injuries if hit by an uninsured driver.
What is underinsured motorist (UIM) coverage?
Covers injuries if the at-fault driver’s insurance is insufficient.
What is personal injury protection (PIP)?
Pays for medical expenses, lost wages and essential services regardless of fault
What is a no-fault insurance system?
Each driver’s own insurer pays for their injuries, regardless of fault.
What is a tort system in auto insurance?
The at-fault driver is responsible for paying damages.
What is a business owners policy (BOP)?
A bundled policy covering property and liability for small businesses.
What are the key coverages in a commercial package policy (CPP)?
Property, liability, crime, inland marine, auto, equipment breakdown
What is general liability insurance?
Covers business liability for bodily injury property damage, and personal injury.
What is professional liability insurance?
Covers errors and omissions (E&O) for professional services.
What is workers’ compensation insurance?
Pays for employee injuries or illnesses related to work.
What is a surety bond?
A financial guarantee ensuring contract obligations are met.
What is a fidelity bond?
Protects businesses from employee dishonesty.
What is inland marine insurance?
Covers movable property and goods in transit.
What is umbrella insurance?
Provides additional liability coverage above standard limits.
What is the National Flood Insurance Program (NFIP)?
A federal program providing flood insurance.
What is earthquake insurance?
A separate policy covering earthquake-related damage.
What is ordinance or law coverage?
Pays for rebuilding to meet updated building codes.
What is vacancy permit endorsement?
Extends coverage for vacant properties beyond the standard exclusion period.
What is a fidelity bond?
Protects businesses from employee dishonesty and theft.
What is the FAIR plan?
State-mandated insurance for high-risk properties.
What is terrorism risk insurance?
Federal program providing coverage for certified acts of terrorism.
What is a liability umbrella policy?
Extends liability coverage beyond home and auto policies.
What is an occurrence policy?
Covers losses occurring during the policy period, regardless of when the claim is filed.
What is a claims-made policy?
Covers claims filed during the policy period, regardless of when the incident occurred.
What is an aggregate limit?
The total amount an insurer will pay during a policy period.
What is an extended reporting period (ERP)?
Provides extra time to report claims after a claims-made policy expires.
What is a surplus lines insurer?
A non-admitted insurer covering high-risk individuals/businesses.
What is the difference between admitted and non-admitted insurers?
Admitted insurers are state-licensed; non-admitted insurers are not.
What is the state guaranty fund?
Covers policyholder losses if an insurer becomes insolvent.
What is rebating in insurance?
Offering an illegal incentive to buy insurance.
What is twisting in insurance?
Persuading someone to replace a policy for financial gain when it’s not in their best interest.
What is an insurance binder?
A temporary agreement providing immediate coverage until a policy is issued.
What is the purpose of underwriting?
To assess risk and determine eligibility for insurance.
What are the four parts of an insurance contract?
Agreement, consideration, competent parties, legal purpose.
What is a policy lapse?
A policy termination due to non-payment.
What is a grace period in insurance?
The time after a missed payment before coverage is canceled.
What is a retroactive date in claims-made policies?
The earliest date an event can occur and still be covered.
What is a nonrenewal?
When an insurer decides not to renew a policy at expiration.
What is a cancellation?
When a policy is terminated before the expiration date.
What is an assignment clause?
A policy cannot be transferred without the insurer’s consent.
What is a loss settlement provision?
Defines how claims will be paid (e.g. ACV, RCV).
What is a direct loss?
Physical damage to property.
What is an indirect loss?
A financial loss resulting from a direct loss (e.g. Loss of income).
What is the primary purpose of reinsurance?
To spread risk among multiple insurers.
What is facultative reinsurance?
Reinsurance for a specific policy or risk.
What is treaty reinsurance?
An agreement covering a portfolio of risks.
What is a warranty in insurance?
A specific promise or condition in a policy that must be met.
What is a representation in insurance?
A statement made on an application that is believed to be true.
What is a material misrepresentation?
A false statement that affects an insurer’s decision to issue a policy.
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.
What is a moral hazard?
A hazard based on dishonesty or fraud (e.g. Lying on an insurance application).
What is a morale hazard?
A hazard caused by carelessness or indifference (e.g. leaving doors unlocked).
What is an insuring agreement?
The section of the policy that outlines the insurer’s promises and coverage details.
What is an insurance endorsement?
An amendment that modifies the policy coverage.
What is a floater policy?
A policy covering personal property that moves (e.g. jewelry, cameras).
What is inland marine coverage?
Covers goods in transit or movable property.
What is ocean marine insurance?
Covers cargo and ships on open waters.
What is business interruption insurance?
Covers lost income if a business must close due to a covered peril.
What is builders risk insurance?
Covers buildings under construction.
What is an insurance deductible?
The amount the insured must pay before the insurer covers the loss.
What is replacement cost?
Pays to replace property with no deduction for depreciation.
What is depreciation?
A decrease in property value over time.
What is liability coverage?
Covers bodily injury and property damage to others.
What is the definition of bodily injury?
Physical harm to another person, including medical expenses and lost wages.
What is loss of use coverage?
Pays for additional living expenses if a home is uninhabitable.
What is an insurable risk?
A risk that meets insurance company requirements to be covered.
What is risk retention?
Choosing to self-insure instead of purchasing insurance.
What is risk transfer?
Shifting the financial burden of loss to an insurance company.
What is risk avoidance?
Eliminating an activity to prevent the risk of loss.
What is a waiver of subrogation?
Prevents the insurer from recovering damages from a third party.
What is an independent adjuster?
A claims adjuster who works for multiple insurance companies.
What is a public adjuster?
A claims adjuster who represents the policyholder, not the insurer.
What is an appraiser’s role in insurance?
Determines the value of damaged property in a disputed claim.
What is arbitration in insurance?
A method to settle claim disputes outside of court.
What is mediation?
A negotiation process to resolve insurance disputes.
What is salvage in insurance?
Insurers may take ownership of damaged property after paying a total loss claim.
What is an umbrella policy?
Provides excess liability coverage beyond standard policies.
What is a primary insurance policy?
The first layer of insurance that responds to a claim.
What is an excess insurance policy?
Covers losses above the primary policy limits.
What is a fidelity bond?
Covers losses due to employee dishonesty.
What is a performance bond?
Guarantees a contractor will complete a job as agreed.
What is a license bond?
Ensures a business complies with regulations.
What is an insurance fraud?
Intentional deception to obtain a financial gain from insurance.
What is a controlled business?
Selling insurance primarily to oneself, family, or employer, which may be legal
What is an unfair claims settlement practice?
An insurer’s improper handling of claims, such as delaying payments.
What is the difference between admitted and non-admitted insurers?
Admitted insurers are state-approved; non-admitted insurers operate without state approval.
What is the McCarran-Ferguson Act?
A federal law that gives states the authority to regulate insurance.
What is the Gramm-Leach-Bliley Act?
Protects consumer privacy in financial institutions, including insurance companies.
What is the purpose of a risk retention group?
A group of businesses that pool resources to self-insure against liability risks.
What is surplus lines insurance?
Insurance for risks that standard insurers won’t cover.
What is the Insurance Commissioner’s role?
Regulates insurance companies, enforces laws and protects consumers.
What is a catastrophe loss?
A large-scale disaster resulting in massive insurance claims.
What is an extended replacement cost endorsement?
Covers rebuilding costs even if they exceed policy limits.
What is an insurance rider?
An additional policy feature that enhances coverage.
What is an umbrella policy used for?
Provides additional liability protection beyond auto and home insurance.
What is the purpose of FEMA in insurance?
Administers the National Flood Insurance Program (NFIP).
What is the definition of an insurable event?
An unforeseen and accidental occurrence that results in a covered loss.
What is the main goal of underwriting?
To evaluate risk and determine appropriate policy terms.
What is a business liability exclusion?
Excludes coverage for damages related to business activities in personal policies.
What is the difference between arbitration and litigation?
Arbitration is a private dispute resolution method; litigation involves court proceedings.
What is a premium audit?
An insurer reviews a business’s actual operations to adjust the premium.
What is loss reserve?
Money set aside by an insurer to cover future claims.
What is an experience rating?
Adjusts premiums based on an employer’s prior claims history.
What is a blanket insurance policy?
Covers multiple properties or risks under one limit.
What is a scheduled insurance policy?
Lists specific items and their insured values.
What is a reinsurance treaty?
An agreement between insurers to share risk over time.
What is facultative reinsurance?
Reinsurance on a case-by-case basis.
What is the definition of a policyholder?
The person or entity that owns an insurance policy.
What is a policy rider?
An optional addition to modify an insurance contract.
What is a claims-made policy?
Covers claims filed during the active policy period, regardless of when the incident occurred.
What is an occurrence-based policy?
Covers losses occurring during the policy period, even if claims are filed later.
What is the definition of insurance fraud?
Intentional deception to obtain an unearned insurance benefit.
What is a nonrenewal notice?
A notification that the insurer will not renew the policy.
What is an insurance endorsement?
A document modifying coverage in an insurance policy.
What is business income coverage?
Pays lost income if a business is forced to close due to a covered peril.
What is contingent business interruption coverage?
Covers lost income if a supplier or partner experiences a covered loss.
What is errors and omissions (E&O) insurance?
Covers professionals for claims of mistakes or negligence.
What is malpractice insurance?
Covers medical professionals against claims of negligence or errors.
What is liquor liability insurance?
Covers businesses serving alcohol for liability related to intoxicated patrons.
What is product liability insurance?
Covers businesses for defective products causing harm.
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)
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).
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).
What is ordinance or law coverage?
Pays for increased costs to meet new building codes after a covered loss.
What is debris removal coverage?
Pays for cleanup costs after a covered loss.
What is pollutant cleanup coverage?
Covers expenses to remove pollutants after a covered event.
What is newly acquired property coverage?
Covers newly purchased business property for a temporary period.
What is property in transit coverage?
Protects business property while being transported.
What is fire department service charge coverage?
Pays fees charged by fire departments responding to insured losses.
What is equipment breakdown coverage?
Covers sudden mechanical failures of business equipment.
What is electronic data processing (EDP) coverage?
Covers loss of digital data, software, and hardware.
What is peak season coverage?
Temporarily increases business property coverage during high inventory periods.
What is builders risk insurance?
Covers buildings under construction.
What is garage liability insurance?
Covers auto-related businesses for liability exposures.
What is garagekeepers insurance?
Covers damage to customers’ vehicles in an auto shop’s care.
What is motor truck cargo insurance?
Covers goods transported by trucking companies.
What is trip transit insurance?
Covers goods in transit for a single shipment.
What is bailees coverage?
Covers property of others while in the insured’s care (e.g. dry cleaners or repair shops).
What is business auto liability coverage?
Covers businesses for liability from vehicle use.
What is hired & non-owned auto insurance?
Covers liability for rented or employee-owned vehicles used for work.
What is workers compensation insurance?
Pays for medical costs and lost wages due to workplace injuries.
What is the exclusive remedy doctrine?
Employees cannot sue employers for workplace injuries if covered by workers’ compensation.
What is employer’s liability insurance?
Provides protection for workplace injuries not covered by workers comp.
What is an experience modification factor (MOD)?
Adjusts workers comp premiums based on a company’s claims history.
What is the National Flood Insurance Program (NFIP)?
A federal program providing flood coverage.
What is the standard waiting period for an NFIP policy?
30 days from application.
What is an emergency program in NFIP?
Temporary flood coverage for high-risk areas.
What is earthquake insurance?
A separate policy covering earthquake damage.
What is boiler & machinery insurance?
Covers mechanical breakdown of boilers and equipment.
What is surety bond insurance?
Ensures contractual obligations are met.
What is a fiduciary bond?
Guarantees ethical handling of another person’s assets.
What is a performance bond?
Ensures a contractor completes a project.
What is a payment bond?
Guarantees subcontractors and suppliers are paid.
What is a state insurance guaranty fund?
Pays claims if an insurer goes bankrupt.
What is rebating?
Offering a customer something of value to purchase insurance (illegal in most states).
What is twisting?
Persuading someone to switch policies for financial gain, even if not beneficial to them.
What is churning?
Encouraging unnecessary policy replacements to generate commissions.
What is an unfair claims practice?
An insurers failure to handle claims fairly.
What is an insurance producer?
A licensed agent who sells insurance.
What is an insurance adjuster?
Investigates and settles claims.
What is a certificate of insurance (COI)?
A document proving insurance coverage.
What is a claims reserve?
Money set aside for expected claim payouts.
What is insurable interest?
A financial stake in the insured property.
What is a tort?
A civil wrong leading to legal liability.
What is negligence?
Failure to exercise reasonable care.
What is proximate cause?
The primary event leading to a loss.
What is comparative negligence?
Assigns partial fault in liability cases.
What is contributory negligence?
Prevents recovery if the claimant is even partially at fault.
What is absolute liability?
Liability without proof of negligence.
What is strict liability?
Holds manufacturers responsible for defective products.
What is vicarious liability?
Employers can be liable for employees’ actions.
What is assumption of risk?
When an individual knowingly accepts a risk.
What is a waiver?
The intentional relinquishment of a right.
What is estoppel?
Prevents denying coverage if previously accepted.
What is additional insured coverage?
Extends policy benefits to another party, such as a landlord or contractor.
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.
What is a discovery period in claims-made policies?
Allows claims to be reported after the policy expires, within a set time frame.
What is a reporting form in commercial property insurance?
Allows businesses to adjust coverage for fluctuating inventory values.
What is a valued policy law?
Requires insurers to pay the full insured amount for a total loss, regardless of actual value
What is a blanket policy?
Covers multiple locations or types of property under one limit.
What is a specific policy?
Covers a single item or location with its own insurance limit.
What is expediting expenses coverage?
Pays for temporary repairs or expedited replacement of damaged equipment.
What is functional replacement cost?
Pays for repairs using modern materials that serve the same function.
What is civil authority coverage?
Covers lost income when government actions restrict business operations due to a covered peril.
What is a joint loss agreement?
Ensures timely claim payments when multiple insurers cover a property.
What is a coinsurance penalty?
A reduction in claim payout if the insured fails to maintain the required coverage amount.
What is business personal property coverage?
Covers office furniture, equipment and inventory inside a business location.
What is liability assumed under contract?
Coverage for obligations agreed upon in a contract, also called contractual liability.
What is an indemnity agreement?
A contract where one party agrees to compensate another for losses.
What is waiver of premium?
A policy provision that waives insurance premiums if the insured becomes disabled.
What is employer’s non-ownership liability?
Covers employers when employees use personal vehicles for business.
What is a hold harmless agreement?
A contract where one party agrees not to hold another liable for potential losses.
What is punitive damages coverage?
Covers damages meant to punish negligent behavior, though often excluded from policies.
What is a loss payable clause?
Specifies how claim payments are distributed, often involving a lender or lienholder
What is liberalization in insurance?
If an insurer broadens coverage without increasing premiums, existing policyholders receive the benefit automatically.
What is a protective safeguard endorsement?
Requires insured businesses to maintain safety systems (e.g. sprinklers, alarms) for coverage to remain valid.
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
What is the continuing education (CE) requirement for Alabama insurance agents?
24 CE hours every 2 years, including 3 hours of ethics.
What is Alaska’s unique insurance regulation?
Alaska allows electronic proof of insurance but has no personal injury protection (PIP) requirement.
What is Arizona’s uninsured motorist coverage rule?
Not required, but must be offered and waived in writing.
What is Arkansas’ requirement for earthquake insurance?
Not required, but insurers must offer it in certain areas.
What is California’s Proposition 103?
Requires prior approval of property/casualty insurance rates and mandates insurance rebates.
What is Colorado’s at-fault insurance system?
Drivers must carry liability insurance, and the at-fault driver pays for damages.
What is Connecticut’s underinsured motorist conversion coverage?
Provides additional coverage beyond the at-fault driver’s policy limit.
What is Delaware’s personal injury protection (PIP) minimum?
$15,000 per person/$30,000 per accident
What is Florida’s no-fault insurance law?
Requires $10,000 PIP coverage for medical expenses, regardless of fault.
What is Georgia’s workers compensation requirement?
Businesses with 3+ employees must carry workers�� comp insurance.
What is Hawaii’s unique auto insurance requirement?
Hawaii is a no-fault state and requires PIP coverage.
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
What is Illinois’ mandatory uninsured motorist coverage?
Insurers must include $25,000 per person/$50,000 per accident unless rejected in writing
What is Indiana’s licensing requirement for insurance agents?
Must complete 24 hours of continuing education every two years.
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.
What is Kansas’ unique auto insurance requirement?
Kansas is a no-fault state and requires PIP coverage.
What is Kentucky’s basic reparation benefits?
Kentucky requires a minimum of $10,000 in PIP coverage.
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.
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
What is Maryland’s requirement for flood insurance?
Flood insurance is required for properties in high-risk FEMA zones with mortgages.
What is Massachusetts’ compulsory auto insurance?
Drivers must have PIP, bodily injury, uninsured motorist, and property damage liability
What is Michigan’s no-fault insurance reform?
Michigan offers different PIP coverage levels instead of unlimited lifetime medical benefits.
What is Minnesota’s state-specific insurance rule?
No-fault state; requires PIP and uninsured/underinsured motorist coverage.
What is Mississippi’s workers’ compensation exemption?
Employers with fewer than five employees are exempt from workers’ comp requirements.
What is Missouri’s financial responsibility law?
Drivers must carry proof of insurance and maintain liability coverage.
What is Montana’s insurance continuing education requirement?
Producers must complete 24 CE hours every 2 years, including 3 ethics hours.
What is Nebraska’s SR-22 requirement?
Drivers with violations must file an SR-22 form proving financial responsibility.
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
What is New Hampshire’s auto insurance requirement?
New Hampshire doesn’t require auto insurance but does require financial responsibility.
What is New Jersey’s basic auto policy option?
Offers a low-cost alternative to standard policies with limited PIP and liability.
What is New Mexico’s uninsured motorist coverage rule?
Must be offered, but policyholders can reject it in writing.
What is New York’s auto insurance rule?
Requires minimum liability no-fault (PIP), and underinsured motorist coverage.
What is North Carolina’s Safe Driver Incentive Plan (SDIP)?
Increases rates for drivers with at-fault accidents or violations.
What is North Dakota’s auto insurance system?
A no-fault state requiring PIP coverage.
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
What is Oklahoma’s Homeowner Insurance Fair Access to Insurance Requirements (FAIR) plan?
Provides coverage to high-risk homeowners unable to obtain insurance.
What is Oregon’s PIP requirement?
Minimum PIP coverage of $15,000 per person for medical expenses
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).
What is Rhode Island’s unique auto insurance regulation?
Requires insurance companies to offer premium discounts for safe driving courses.
What is South Carolina’s state-mandated uninsured motorist coverage?
Auto policies must include uninsured motorist coverage equal to liability limits.
What is South Dakota’s workers compensation exemption?
Small employers with fewer than three employees are exempt from coverage requirements.
What is Tennessee’s financial responsibility law?
Drivers must provide proof of insurance or post a bond to cover potential claims.
What is Texas’ liability insurance rule?
Texas follows a fault-based system and requires $30,000/$60,000/$25,000 minimum liability coverage.
What is Utah’s state-mandated auto insurance coverage?
A no-fault state requiring PIP and minimum liability limits.
What is Vermont’s uninsured motorist requirement?
Must match liability limits for bodily injury coverage.
What is Virginia’s uninsured motor vehicle fee?
Drivers can legally drive uninsured by paying a $500 annual fee.
What is Washington State’s earthquake insurance requirement?
Not required, but insurers must offer it to homeowners
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
What is Wisconsin’s proof of insurance law?
Drivers must carry proof of insurance and present it upon request.
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
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.
What is Alabama’s workers’ compensation requirement?
Employers with 5+ employees must carry workers’ compensation insurance.
What is Alaska’s workers’ compensation law?
Required for all employers with at least one employee; includes medical and wage loss benefits.
What is Arizona’s workers’ compensation requirement?
All employers must carry coverage, but sole proprietors and partners can opt out.
What is Arkansas’ workers’ compensation law?
Required for employers with 3+ employees, excluding agricultural workers.
What is California’s workers’ compensation rule?
Mandatory for all employers, including part-time employees.
What is Colorado’s workers’ compensation requirement?
All employers must carry coverage, including contractors.
What is Connecticut’s workers’ compensation rule?
Employers must provide coverage unless they qualify for a specific exemption.
What is Delaware’s workers’ compensation requirement?
Mandatory for all employers, including part-time employees.
What is Florida’s workers’ compensation law?
Required for businesses with 4+ employees; construction companies must have coverage for all workers.
What is Georgia’s workers’ compensation rule?
Employers with 3+ employees must carry coverage.
What is Hawaii’s workers’ compensation law?
Mandatory for all employers, including part-time employees.
What is Idaho’s workers’ compensation requirement?
Required for all employers with 1+ employees, except agricultural workers.
What is Illinois’ workers’ compensation law?
All employers must provide coverage, regardless of company size.
What is Indiana’s workers’ compensation rule?
Mandatory for all employers, including family-run businesses.
What is Iowa’s workers’ compensation requirement?
All businesses with employees must provide coverage, with some exceptions.
What is Kansas’ workers’ compensation law?
Employers with a payroll of $20,000+ must provide coverage.
What is Kentucky’s workers’ compensation requirement?
All employers must provide coverage, except for certain agricultural workers.
What is Louisiana’s workers’ compensation rule?
Employers with 1+ employees must carry worker’s compensation.
What is Maine’s workers’ compensation requirement?
Mandatory for all employers with exemptions for some agricultural workers.
What is Maryland’s workers’ compensation law?
Employers with 1+ employees must provide coverage.
What is Massachusetts’ workers’ compensation rule?
All employers must carry coverage, including family businesses.
What is Michigan’s workers’ compensation law?
Required for employers with 3+ employees or a payroll exceeding $1000 per week.
What is Minnesota’s workers’ compensation requirement?
All employers must provide coverage, even for part-time employees.
What is Mississippi’s workers’ compensation law?
Employers with 5+ employees must carry coverage.
What is Missouri’s workers’ compensation requirement?
Employers with 5+ employees must have coverage; construction businesses must have it regardless of size.
What is Montana’s workers’ compensation law?
Required for all employers, but independent contractors can opt out.
What is Nebraska’s workers’ compensation requirement?
Employers with 1+ employees must carry coverage.
What is Nevada’s workers’ compensation law?
All businesses must provide coverage, regardless of size.
What is New Hampshire’s workers’ compensation requirement?
Employers with 1+ employees must carry coverage.
What is New Jersey’s workers’ compensation law?
Required for all employers, including LLCs and partnerships.
What is New Mexico’s workers’ compensation rule?
Mandatory for businesses with 3+ employees; construction companies must have coverage regardless of size.
What is New York’s workers’ compensation requirement?
All employers must provide coverage, including part-time employees.
What is North Carolina’s workers’ compensation law?
Employers with 3+ employees must carry coverage.
What is North Dakota’s workers’ compensation rule?
Monopolistic state; employers must purchase coverage from the state fund.
What is Ohio’s workers’ compensation requirement?
Monopolistic state; all businesses must purchase coverage from the state fund.
What is Oklahoma’s workers’ compensation law?
Employers with 1+ employees must provide coverage, with some exceptions.
What is Oregon’s workers’ compensation requirement?
Mandatory for all employers, with few exceptions.
What is Pennsylvania’s workers’ compensation law?
Employers must carry coverage for all employees, including part-time and seasonal workers.
What is Rhode Island’s workers’ compensation rule?
Required for all employers, except or sole proprietors.
What is South Carolina’s workers’ compensation law?
Employers with 4+ employees must provide coverage.
What is South Dakota’s workers’ compensation requirement?
Not mandatory, but highly encouraged by state law.
What is Tennessee’s workers’ compensation rule?
Employers with 5+ employees must provide coverage; construction firms must have coverage regardless of size.
What is Texas’ workers’ compensation law?
Not mandatory, but employers who opt out lose legal protections against employee lawsuits.
What is Utah’s workers’ compensation requirement?
Mandatory for all employers, with limited exceptions.
What is Vermont’s workers’ compensation law?
Employers must provide coverage for all employees.
What is Virginia’s workers’ compensation rule?
Employers with 3+ employees must carry coverage.
What is Washington’s workers’ compensation law?
Monopolistic state; all businesses must purchase coverage from the state fund.
What is West Virginia’s workers’ compensation requirement?
Mandatory for all employers, except agricultural businesses.
What is Wisconsin’s workers’ compensation rule?
Employers with 3+ employees must provide coverage.
What is Wyoming’s workers’ compensation law?
Monopolistic state; employers must buy coverage through the state fund.
