D Education Glossary Flashcards
What does the Louisiana Insurance Code require to receive and individual producer license?
18 years of age.
Reside or work mainly from an office located in Louisiana.
Complete pre-licensing education.
Pay fees and submit application.
Pass exam with a 70% or higher.
lower or poorer risks more prone to losses than normal risks.
Adverse Selection
the consideration that is being exchanged is unequal or unrelated to the consideration given by the other party.
Aleatory Contract
named peril coverage, the least coverage available. In dwelling policies it includes: fire, lightning, removal, and internal explosion.
Basic
named peril coverage, covering more named perils than the basic form. In dwelling coverage it covers all perils under basic including EC and V&MM plus: damage by burglars (not theft); weight of ice, snow or sleet; accidental discharge or overflow of water or steam; freezing of plumbing, heating, a/c, or sprinkler systems; falling objects; artificially generated electrical current; and tearing apart, cracking, burning, or bulging of a steam or water system.
Broad
used to insure buildings under construction.
Builder’s risk
(time element form) – covers loss of income when a business has to suspend because of a direct loss.
Business income
is covered over the time the operations are suspended while the building is being repaired or replaced.
Business income
Is calculated as the net income that would’ve been earned if the loss occurred and the cost to continue operations including payroll.
Business Income
termination of a policy by either the insurer or insured before the expiration date.
Cancellation
what the ship is hauling
Cargo
after choosing commercial property coverage for the type of property your business needs covered, you then need to choose the causes of loss that will be covered.
Causes of Loss
A business may choose Basic, Broad, or Special cause of loss forms and the extra is Earthquake (volcanic eruption additional) – that state the perils protected against.
Causes of Loss
an official legal document that will require an individual to stop doing something.
Cease & Desist
makes the insurer an admitted company and proves that the Department of Insurance finds the company financially sound and structured well enough to meet the requirements of the state insurance code to conduct insurance business in Louisiana.
Certifiate of Authority
computing a rate for insurance that applies to all applicants in a certain risk class.
Class Rating
covers unexpected falling down or caving in of a building.
Collapse
pays for direct and accidental loss due to upset or collision of the vehicle with another object.
Collision
would provide protection for an insured auto due to impact with another vehicle, impact with another object such as a bridge or tree, and upset or overturn of the vehicle subject to a deductible.
Collision
a commercial organization that transports goods or passengers.
Carrier
dedicates its property to public use in such a manner that its services are available to the public on a regular basis.
Common Carrier
hold themselves out to the public as engaged in the business of transporting persons or property from site to site for compensation or a fee
Common Carrier
Examples of common carriers include
railroads, bus companies, trucking firms, taxicab companies, airlines, and ferries.
apply to all coverage parts such as cancellation, changes, inspections, examination of books and records, etc.
Common Conditions
provides information as to who, what, when, where and how much.
Common Declarations
include the insurance company name, the named insured, policy period, business description, coverage parts, premium, and policy forms
Common Declarations
contains the list of 7 coverage parts followed by the appropriate premium if there is coverage for the part, but no premium listed if the part is not included in the package.
Common Declarations
states with laws that require employers to provide worker’s compensation insurance under penalty of law.
Compulsory
when a producer gets into the insurance business in Louisiana to sell only to themselves, their family and employer.
Controlled Business
in states that have elective laws for workers compensation, an employer does not have to be subject to the State’s WC laws, but if they choose not to be subject to it they lose their common law defenses against liability suits.
Elective
insurance for claims that are not covered under Workers compensation laws including: exempt employments, illegal employments, and non-compensable injuries.
Employer’s Liability
coverage protects insurance agents and brokers from financial losses they may suffer as a result of a client that sues for damages because the insured gave incorrect advice or didn’t inform the client about important issues.
Errors and Omissions
the coverage will pay for damage property caused by the object described in the declarations. object must be in use or connected and ready for use when accident occurs
Equipment Breakdown
insurance that covers the same thing as another policy, but only the amount of a claim or loss after the limit of the other policy is reached and may include amounts or events that may not be covered by the other policy.
Excess Coverage
the rate is affected by the insured’s own past loss experience. Insured’s with fewer claims pay a lower premium.
Experience Rating
authority to do certain things on behalf of the insurance company because those functions were expressed orally or in writing.
Express Authority
in dwelling policies, extended coverage basic (EC) adds coverage for: windstorm or hail, explosion, volcanic eruption, riot or civil commotion, aircraft or vehicles (damage due to direct physical contact with an aircraft or vehicle not owned by the resident), and smoke to the basic coverage of fire, lightning and internal explosion.
Extended Coverage
covers expenses more than normal business expenses the business will incur to keep it operational following a direct loss to the business property
Extra Expense
covers property and liability for the business of a farm operation as well as a residence
Farm Policy
What are the eligible risks included in a farm policy?
growing and marketing crops fruits mushrooms vegetables flowers green house or nursery stock sod raising or keeping of livestock poultry fur bearing animals bees aquaculture (fish farms)
incorporated in states (or U.S. territories) other than Louisiana
Foreign
the revenue to the ship owner to deliver the cargo.
Freight
a type of bailee coverage (protecting the business for damage to the property of their customers) available to automobile dealerships
Garage Keepers
provides coverage for damage to automobiles of others arising out of the general operations of the business
Garage Keepers
does not cover property damage losses to automobiles in an insured’s care, custody, or control.
Garage Liability Insurance
defined as an ocean marine loss which occurs through the voluntary sacrifice of any part of the vessel or cargo to safeguard the vessel or cargo
General Average
coverage provided to an insured if a claim is made or a suit is brought against the insured for damages due to bodily injury or property damage to others.
Liability
the decline in value of a person or thing, the decrease that is suffered after a peril occurs
Loss
a base rate that includes the policy’s share of claims and expenses
Loss Cost
coverage is for either additional living expenses or fair rental value if the premises become uninhabitable due to a covered loss
Loss of use
when property ceases to be a thing of the kind insured and is payable as a total loss
Loss of Specie
for physical damage or loss of the ship (Ocean Marine)
Hull Coverage
the interest an insured may have in property that is the subject of insurance where damage or destruction of the property or a casualty occurrence would cause financial loss.
Insurable Interest
endorsements that apply to more than one coverage part and are included in one page.
Interline Endorsements
reports may come directly from interviews with friends and neighbors and affiliates of the consumers and cannot be made without consent within 3 days of the request.
Investigative Consumer Report
It is the judgment of the underwriter to determine the risk and required rate
Judgement Rating
the insurer will pay necessary medical expenses incurred or medically discovered within three years from the date of an accident that causes bodily injury
Medical Payments
reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services.
Medical Expenses
coverage is provided without the necessity of proving fault or liability for the accident-causing injury and does not apply to the insured or regular residents of the household except residence employees.
Medical Payments
an auto that may be driven by the insured, but he does not own it
Nonowned
termination of a policy at its expiration date by not agreeing to continue or renew the policy.
Non-renewal
individuals not living in Louisiana and those without an office in Louisiana
Non-resident
pays up to a limit for the additional cost of construction to comply with building codes or land use regulations when repairing or rebuilding a covered premise after a covered loss.
Ordinance or Law
provides coverage for any direct and accidental damage to the vehicle
Other than Collision
Comprehensive Coverage is also known as
Comprehensive
What are common other than collision coverage perils?
fire theft explosion earthquake windstorm missiles falling objects hail or water flood vandalism/malicious mischief riot and civil commotion glass breakage contact with birds or animals
a clause that explains that, in the case of a loss to something that is part of a pair or set, the company may elect to repair, replace, or restore the damaged item(s) or pay the difference between actual cash value of the property before and after the loss.
Pair and Set
premium dollars that are collected in excess of what is needed to run each year is given back to the policyholder (return of premium) similar to a dividend.
Participating Policy
causes of loss or actual events from which decreases are suffered that are covered by the policy.
Peril
provides coverage for private passenger autos (limited to 10,000 lbs.)
Personal Auto
may include collision, other than collision, and liability coverage
Personal Auto
physical condition or status that increases the chance for a loss.
Physical Hazard
all persons or business entities referred to as an agent, broker, solicitor, or surplus lines broker that sell, solicit, or negotiate insurance are required to be licensed as an insurance producer.
Producer
coverage is needed by individuals who provide professional services to others for a fee.
Professional Liability
coverage for the dwelling, other structures, personal property, and loss of use such as in a homeowner’s policy, but not including liability coverage.
Property Coverage
Ocean marine liability
Protection and Indemnity (P&I)
no opportunity for financial gain, only loss is suffered
Pure Risk
offering and accepting any incentives for buying a policy, including money, unauthorized discounts or money back, special favors or personal services.
Rebating
groups of people that use individual indemnity agreements to insure each other as a group.
Reciprocal
under workers compensation, injured employees are entitled to…
Rehabilitation
Who is responsible for selecting a vocational counselor to evaluate and assist the employee to select the appropriate method of rehabilitation?
The employer
insure other insurance companies against the risk of higher-than-expected losses.
Reinsurance
the actual losses during the policy period determines the final premium
Retrospective Rating
applying a list of charges and/or credits to a class rate to determine the proper rate for a particular risk.
Schedule Rating
created to encourage employment of physically handicapped employees
Second Injury Fund
covers the cost for employers in the event re-injury of the same injury on the job
Secondy Injury Fund
all perils are covered with replacement cost unless specifically excluded In dwelling policies, it only covers the dwelling and other structures on an open peril basis
Special Form
What is also known as an open peril form?
Special Form
What form includes coverage for: theft of part of the dwelling; accidental discharge or overflow of water from off the premises; and the coverage of falling objects includes antennas, outdoor equipment, fences, and awnings?
Special Form
policy will pay the labor cost of crew to protect cargo from further loss
Sue and Labor Expenses
companies or independent truckers that transport or haul goods and other types of property owned by others for a fee are known as truckers
Truckers Coverage
Where would you find public truckers coverage?
Commercial Auto
coverage includes drivers insured but carry limits of liability too low to cover the damages sustained by the injured party
Underinsured
Obtaining and reviewing information for an application
Underwriting
coverage is designed to reimburse the insureds for amounts due from negligent drivers who do not carry insurance
Uninsured
What is a vehicle that has no liability coveragecalled?
Uninsured Vehicle
when no people have been living in or using the property for a period of time, but it is still the insured’s location (on vacation).
Unoccupancy
vandalism and malicious mischief covers vandalism damage to the property but excludes coverage for glass or theft of property.
V&MM
vacant is when no one is living in the property or it is empty (moved out).
Vacancy
