FROM CLASS Flashcards
pure risk is
insurable risk
risk retention group corp or llc
spreads all or most liability
purchasing group
purchases for group
fidciary
finances / handles money for insurers
loss ratio
example, a firm pays $100,000 of premium for workers compensation insurance in a given year, and its insurer pays and reserves $50,000 in claims, the firm’s loss ratio is 50 percent ($50,000 incurred losses/$100,000 earned premiums).
manual rating is also known as
class rating
loss exposure is when one may be affected by a
peril
material statement
disclosure or lack of disclosure would change the insurer’s decision to issue a policy for the same premium
producer/agent exceeds the authority expressed in his/her contract, and the insurer does nothing to counter the public impression that such authority exists (renewed after renewal)
apparent authority
authority explicitly written in agency contract
express
authority that the public assumes a producer has based on his/her actions
implied
insured is ___, insurer is ___
first, second
Insuring agreement is the
PROMISE
ACV
today’s replacement minus depreciation
an accident is a type of
occurrence
subrogation
insurers right to recover payment from third party
subrogate
third party pays
policy premium is fully earned at
the end or expiration date
pure no-fault
completely abolishes blame
assumption of risk is not an
element of risk
actual cause of loss
proximate
statuary defense against negligence is
comparitive
coverage D limit in DP policy is __% of coverage A
20%
coverage a is settled on a __ on DP2 and DP3
Replacement Cost
coverage is settled on a __ for DP1
Actual Cash Value
__% of Coverage C will pay for alterations, additions, and improvements
10%
dwelling policies do not have __, must be added by endorsement
liability
HO-3 and HO-8 have what in common
personal liability and medical payments
HO-3 is on a what basis
ACV
HO-5 is on a what basis
RCV
HO-2 has
property
HO-4 has
contents
HO-3 differs with HO5 in coverage
C
other structures of what % in coverage B in DP and HO
10%
OTC (other than collision) covers
earthquake
good driver discount is at least
20%
how many days notice for non renewal
30
CAARP is
15/30/5
Low Cost auto is
10/20/3
duties of insured with uninsured motorist is to
notify the police
FAIR plan relates to
fire ion brush area
FAIR plan is not available for
auto or farm land
coin collections covered under
personal article floater
Boat Owners does not cover
personal injury
floor covers
structures and contents
property removed to protect it from floor is covered for
45 days
SIR is
self insured retention
SIR is not required for
umbrella policies
Builders risk coinsurance must be at
100%
coinsurance is located on what page
the declaration page
Building and personal property does not cover
foundation
building and personal property are paid on what basis
Actual Cash Value
Commercial general Liability covers what only
customers
who is considered an insured
anyone on the declaration page
what liability can be endorsed onto CGL or its own policy
Pollution
what is not an insured contract
employment
broadest coverage for crime is
theft
loss sustained form is used for
occurrence
discovery form is used for
claims made
__ and __ is not a crime coverage form
premises and operations
Inland marine almost always provides what peril basis
OPEN peril basis
freight insurance covers
freight and import duties
what type of insurance coverage is used for strict liability
railroad protection
which of the following is excluded as money in a crime policy
checks
what type of hazard is a deliberate creation of loss by an insured in order to collect insurance payment or benefits? (gambling)
moral hazard
NAIC
National Association of Insurance Commissioner consists of all state and territorial insurance commissioner regulations
stock insurance
owned by stockholders
mutual insurance company
owned by policy holders
demutualization
mutual becomes stock
