Exam 1 Part A Flashcards
Commercial Insurance Policies
Usually broken up into various lines of business (Property, Crime, etc.)
ISO
”- Advisory organization that advises companies:
- Creates standards, forms, and policies “
ISO Benefits
“-Saves time and money,
- Uniformity for court and legal consistency
- Proven track record”
Monoline Policy
Covers only one line of business (Property)
Package Policy
Includes 2 or more lines of business
Declarations “Dec Page”
"- Policy Number - Insurance Company Name - Producer Name - Information on insured - Effective date and experation of policy - Premium for each component - Total Premium "
Policy Conditions
”- Cancellations
- Changes
- Examinations of Records
- Inspection
- Premium to be paid
- Transfer of Rights and Duties
- Package Modifications”
Cancellation Requirements for Insurer
”- Not required to prove that insured received it
- Only needs to mail it to the address on the policy
- Can cancel at any time by written notice; sometimes by phone
- Have higher standards
- Must be mailed
”
How many days notice required for cancellation for non-payment?
10 Days
How many days notice required for cancellation for reason other than non-payment?
30 Days
“Requirements for Changes
- Why?””
”- Insurance company has up to three years after the policy termination to examine records
- Fraud”
Inspection Requirements
“Insurance company has the right to inspect but no obligation to:
- Inspect
- Return a report
- Or make a garuantee of safety”
Transfer of Rights/Duties Requirements
“Must be approved by insurance company:
- Selling a property
- Death of an insured”
When does the transfer of rights/duties requirement not apply?
Transfer of an estate
What is included in package modifications?
”- Discounts for having multiple lines
- Factor is applied to additional lines
- Move from ““science to art”” for underwriters”
