Final Quiz Flashcards
How many CE credits are needed in 2 years to renew license
24
4 elements of legal contract
Offer and Acceptance, Competent Parties, Legal Purpose, Consideration (exchange)
How many days is a temporary license good for?
180 days
Who is a non-resident producer?
Does not live or have an office in PA
How long do you have to report a misconduct action against you in another jurisdiction?
30 days
Making an incomplete comparison
Twisting
Claims-made Policy expired 1/1/2019. Claim was made 1/15/2019. The Occurrence happened prior to the retro active date. Is there coverage
No, occurrence must be after the retro date
How long after your claims-made policy expires does the insurer have to give you to purchase the SERP
60 days
Main difference in Occurrence vs. Claims-made policies
Coverage trigger
Provides Seamen with a tort remedy when a work related injury occurs
Jones Act
Endorsement that prevents a $10,000 per day penalty for not complying with the Motor Carrier Act of 1980
MCS-90
Endorsement that prevents a $10,000 per day penalty for not complying with the Motor Carrier Act of 1980
ID Card
Special Causes of Loss (All-Risk) covers
All unless excluded
Endorsement needed to cover loss of income from a power outage that is due to a fire at the power company’s switch station
Utility Service – Time Element
Four Common Law Defenses
Assumption of Risk, Act of God, Intervening Cause, Contributory Negligence
Cause of Loss
Peril
Condition that increases the probability or extent of loss
Hazard
Hazard Type – Reporting a theft when no theft occurred
Moral Hazard
How often must the Do Not Call list be consulted to remain current
31 days
Act that requires an annual privacy notice be given to all customers
Gramm-Leach-Bliley Act
Circumstances leading to the possibility of a loss
Exposure
Group of insureds have a greater than average number of losses is a condition known as
Adverse Selection
Policy written to Supplement other coverage to fill in gaps – usually for flood, earthquake or weather conditions.
Difference in Conditions
Similar organizations create a group to cover liability losses. Must be licensed as an insurance company
Risk Retention Group
Bonded person that is responsible to fulfill the contractual obligation
Principal
Difference between bond and insurance
Insurance = transfer
Bond = guarantee and is paid back
Insurance = transfer Bond = guarantee and is paid back
Indemnify
Contract where each party relies on the other to be honest
Utmost Good Faith
Contract drafted by one party of power and the weaker party can take it or leave it
Contract of Adhesion
The larger the number of exposures, the closer to the results will be to the expected outcome
Law of Large Numbers
Purpose of Underwriting
Avoid Adverse Selection
Most favorable construction type for fire rates
Fire Resistive
Replacement Cost – Depreciation =
ACV
Unendorsed Homeowners Policy – what basis do we settle personal property claims
ACV
Non-economic damages including pain and suffering
General Damages
Coverage E of the Homeowners Policy
Personal Liability
Coverage D of the Farm Policy
Loss of use
Coverage B of Commercial General Liability Policy
Personal & Advertising Injury
Taking of Property by violence or threat of violence
Robbery
Purpose of an Umbrella Policy
Higher Limits/ Broader Coverage
Purchases Liability Insurance on a group basis for its members liability exposure
Risk Purchasing Group
Injured employee can no longer do a portion of the job they did before and will lose income potential because of it – Which type of Disability
Permanent Partial
Measures employers WC loss experience against the average loss experience of its job classification
Experience Modification (Mod)
New Fur coat burns up in fire – how much coverage in HO5
up to COV C limit
State minimum limits for Personal Auto Policy
15,000 per person 30,000 per accident 5,000 property damage
HO-3 provides how much coverage for Coverage B
10% of COV A
Resident Producer License fee
$55
Has sole authority as producer for geographical area for an insurer
Exclusive General Agent
Rate in which insureds with similar characteristics are charged the same rate
Manual or Class Rate
Auto Symbol – Specifically Described “Autos” Only
7
Motor Carrier Act of 1980 – Limit required for hauling radioactive material
$5,000,000
Hitting a deer is what type of auto property damage claim
Comprehensive
Which is not Inland Marine type for coverage – Land, Water, Air or Rail
Water
*Ocean Marine
What is covered by Part B of Commercial General Liability
Personal & Advertising Injury
Broadest Coverage For Crime
Theft
Maximum amount that can be charged for a Supplemental Extended Reporting Period
200% of Expiring premium
Unlawful taking with evidence of forcible entry
Burglary
Lapse license fee to get it reinstated
$165
Producer acting honestly and faithfully with premiums is
Fiduciary Responsibility
Monetary Fine for going without Work Comp
$2,500 per day
In Work Comp – a short-term total disability
Temporary Total
Two Aggregate limits of the CGL
General Aggregate and Products/Completed Ops Agg
Personal Auto Endorsement used to change covered vehicle definition to include motorcycles or ATV’s
Miscellaneous Type Vehicle Endorsement
Commercial Auto Endorsement that gives Liability, UM/UIM, and Physical Damage Coverage to a named individual while using a non-owned auto for personal use
Drive Other Car Coverage
Must purchase Work Comp from the state fund
Monopolistic State
If the umbrella coverage is broader and drops down to cover because the underlying policy excluded coverage, what has to be paid by the insured
Self-Insured Retention
Will the unendorsed General Liability policy cover liquor liability for a restaurant that serves alcohol?
No, not if in the business of selling alcohol
Burial Allowance under the Workers’ Compensation Policy
$3,000
The BOP Protective Safeguard Endorsement can restrict what peril?
Fire
In crime policy, an employee is considered an employee for up to how long after termination
30 days
A resident producer must live and work in PA
False
Method of Handling risk where you assume the risk and pay if there is a loss
Retention
Method to promote insurance to Value in property insurance
Coinsurance
Dwelling Policy – household furniture falls under Coverage
COV C
Homeowners – what form has open perils for Dwelling and Named Perils for personal property
HO-3
Personal Auto Liability is covered for how long for a replacement vehicle
Remainder of Policy Period
Overturn of a vehicle is what type of property damage coverage
Collision
Commercial package that is in force for more 60 days can be cancelled for non-payment of premium with how many days notice
15 days
Coverage A of the CGL policy
Bodily Injury and Property Damage
Travelers Checks are considered what in the Crime Policy
Money
Work comp survivor benefit is paid to the spouse for how long
For life or remarriage, then 2 year lump sum
Covers for an employee alleging a hostile work environment
Employment Practices Liab
Who does the insurance department turn issues over to in order to prosecute
Attorney General
An agency contract gives what type of authority
Express Authority
Determines how a claim will be paid when more than one insurance policy covers the same claim
Other Insurance Clause
A fence would be covered under what Dwelling Policy coverage
COV B
Homeowners Coverage F – Medical Payments provides what basic limit of coverage
$1,000
Max gross vehicle weight for pickups or vans to be eligible for personal auto policy
9,000lb GVW
Garagekeepers covers
Customer Autos in your Care, Custody, Control
What endorsement would be appropriate for a business with predictable fluctuation of inventory certain times of year
Peak Season Limit of Insurance
A slip and fall on a wet floor is which exposure under the CGL
Premises and Operations
Employee Theft Coverage covers what types of property
Money, Securities and Other Property
Three limits under Employers Liability part of Work Comp
BI by Accident - each accident
BI by Disease – Policy Limit
BI by Disease – Each Employee
Three parties to a surety bond
Principal, Obligee and Surety
Wheat, barley, oats are small grains. Corn is a
Coarse Grain
Who certifies an Act of Terrorism
Secretary of Treasury in Consultation with Sec of Homeland Security
TCPA no calls before when and no calls after when
Before 8AM and After 9PM
Insurance company owned by its policyholders. Policyholders receive profits as dividends
Mutual Company
Limit that is the most that will be paid for all claims in one policy period
Aggregate Limit
Organization that will pay claims for policyholders who’s insurance company went insolvent
Pennsylvania Insurance Guaranty Association
