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Licensing > Chapters 1 - 7 Comprehensive (no KS) > Flashcards

Chapters 1 - 7 Comprehensive (no KS) Flashcards

1
Q

Pro Rata Loss Payment

A

Each Insurer pays their fair share

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2
Q

Absolute Liability

A

No fault

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3
Q

Bodily Injury Liability

A

Legal liability for sickness, disease or death

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4
Q

elements of negligence

A

Duty owed, duty violated, dv is proximate cause, foreseeable consequence

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5
Q

Punitive damages

A

$ paid out on top of compensatory, usually to discourage from further torts

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6
Q

Special damages

A

Bills, Loss of Income, cost to repair or replace

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7
Q

Loss of Consortium

A

Compensation for death of spouse

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8
Q

Gross Negligence

A

Dui - failure to use any sort of care

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9
Q

Attractive Nuisance

A

Attracts kids - pool, trampoline, etc.

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10
Q

Negligence

A

failure to use ordinary care

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11
Q

tort

A

wrongful act

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12
Q

Vicarious Liability

A

Parent/Child

Employee/Employer

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13
Q

Strict Liability

A

Manufacturer held liable

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14
Q

Limit of Liability

A

$ amount of coverage for specified liability loss

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15
Q

Comparative Negligence

A

Fault on all parties, damages paid out based on % of negligence

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16
Q

General Damages

A

Pain, Suffering, Mental Anguish (losses can’t be objectively calculated)

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17
Q

D.I.C.E.

A

Declarations, Insuring Agreement, Conditions & Exclusions

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18
Q

Lloyds of London

A

Underwriter Syndicates - not an insurance company

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19
Q

Reciprocal

A

group owned, risk sharing

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20
Q

Fraternal Benefits Society

A

non-profit, life & health offered to members, lodge, given faith, society, order

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21
Q

Insurance Agent also known as _____

A

Insurance Producer

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22
Q

NAIC stands for

A

National Association of Insurance Commissioners

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23
Q

NAIC consists of….

A

state and territorial insurance commissioners or regulators

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24
Q

FIO stands for…

A

Federal Insurance Office

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25
Q

What Act created the FIO?

A

Dodd Frank Wall Street Reform and Consumer Protection Act (monitors)

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26
Q

McCarren- Ferguson Act of 1945

A

Federal Government can’t regulate Insurance where States have the authority

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27
Q

Governmental Based Insurance

A

Last Resort

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28
Q

Stock Insurance Company

A

Stockholders, taxable dividends

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29
Q

Mutual Insurance Company

A

Policyholders (members)

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30
Q

EC Perils DP-1

A

WC SHAVER

Windstorm, Civil Commotion
Smoke, Hail, Aircraft, Vehicle & Volcanic ERuption

31
Q

DP-2 Cost Basis

A

Replacement Cost

32
Q

DP-2 Broad Form - Named Perils

A

B.B. B.I.C.E. G.O.L.F.

33
Q

B.B. B.I.C.E. G.O.L.F.

A

👽Bursting of heating systems 👽Burglary Damage 👽Breaking of water heaters 👽Ice, snow, sleet weight 👽Collapse of building 👽Electrical damage

👽Glass breakage 👽objects falling from outside 👽 Leakage of water/steam 👽Freezing of plumbing

34
Q

DP-3 Special Form has ____ Perils

35
Q 
1st = \_\_\_\_\_
2nd = \_\_\_\_\_
3rd = \_\_\_\_\_
A

Insured, Insurer, Others

36
Q

Repeated exposure to the same harmful conditions

A

Occurrence

37
Q

Proximate Cause

A

Primary Cause

38
Q

Personal Injury

A

Libel, Defamation, Slander

39
Q

Friendly Fire

A

Intentionally set, stays within bounds

***Fireplace

40
Q

Hostile Fire

A

Burns outside of its boundaries

***Wildfire

41
Q

Inherent Vice

A

Property has a quality that causes it to damage or destroy itself

***Faded paint, rust, rot

42
Q

Binder

A

Temporary Proof of Insurance (60 days max)

43
Q

Unoccupancy

A

things no people

44
Q

Vacancy

A

No things, no people

45
Q

Burglary

A

Forcible Entry theft

46
Q

Robbery

A

Threat of Bodily Harm theft

47
Q

how is ACV calculated

A

cost to replace - depreciation = ACV

48
Q

Agreed Value

A

Specific amount stated

49
Q

Stated Value

A

Insurer pays lesser of ACV or stated value

50
Q

Appraisal

A

2 appraisers 1 ump

51
Q

What’s on the Declaration page?

A

Who, what, when, where and how much

52
Q

Deductible

A

Amount of loss insured bears

53
Q

Concurrent Causation

A

If 2 perils happen simultaneously and 1 is excluded, the insurer pays regardless

54
Q

Replacement Value is __% of the damaged property.

55
Q

Market Value

A

What a willing buyer would pay a willing seller

56
Q

Loss Settlement

A

Specifies which loss value will be applied

57
Q

Other Insurance

A

Pays their fair share of damages

58
Q

Dwellings must be used for ______ purposes, with no more than __ dwelling units and __ boarders.

A

Residential

no more than 4 dwelling units and 5 boarders

59
Q

DP-1 Perils

A

Fire, Lightning & Internal Explosion

60
Q

DP-2 & DP-3 losses are paid on what basis?

A

Replacement Cost

61
Q

What does Coverage A (home and dwelling) protect?

A

Dwelling & attached structures

62
Q

What does coverage E (h & d) protect?

A

Additional living expenses

63
Q

What does Coverage B (h&d) protect?

A

other non-attached structures

64
Q

What does coverage c protect?

home & dwelling

A

Personal Property

***C for contents

65
Q

What does Coverage D (d only) protect?

A

Fair rental value

66
Q

On Dwelling trees, shrubs and other plants are covered for a max of $____ each and up to __% of Coverage A.

A

$500 and 5%

67
Q

Is theft covered under DP-2?

A

Only if it is Endorsed.

68
Q

Is a mobile home eligible for Dwelling coverage? If so, which form?

A

Yes, if they are affixed to a foundation permanently they can be on a Basic Form of DP-1 coverage.

69
Q

What perils are covered on a Special Form?

A

It is an open peril form (DP-3) so all is covered except the exclusions.

70
Q

On a dwelling policy how much will the policy cover for a fire department service charge?

A

up to $500

71
Q

On a dwelling policy, how much is covered for loss assessment on a HOA?

72
Q

Describe the coverages on a PAP

A, B, C, D, E, & F

A 
A - Liability Coverage
b. Medical Payments
C. UM/UIM
D. Coverage for Damage to Your Auto
E. Duties After an Accident or Loss
F. General Provisions
\+ Selected Endorsements
73
Q

What is the maximum weight for a vehicle on a PAP?

A

10,000 lbs

74
Q

Arbitration

A

Each party picks 1 arbitrator for themselves and then another one they jointly pick, then they all duke it out

Licensing (10 decks)

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