INS Flashcards
Insurance Contract Part: Definitions
This part explains the key policy terms.
Insuring agreements
This part spells out the basic promises of the insurance company.
Insurance Contract part: Conditions
This part spells out in detail the duties and rights of both parties.
Section 162
BONUS, usually LI but can be DI.
(tax deductible to firm. Bonus to empEE so therefore taxable, so then tax free benefit)
Exceptions to transfer for value
I C Dead People
Insured
Corp
Divorce
Partnerships
Parts of Ins contract
DICE
Declaration/definitions
Insuring agmts
Conditions
Exclusions
HO Ins parts
A
B
C
D
E
F
A - abode… dwelling (A looks like a house)
B - backyard…pools, other structure
C - content…personal prop
D - Day’s Inn…loss of use
E - everyone wants to sue…liability
F - first aid…limited medical ($5K/person)
Basic Form Perils
WHARVES/FLT
Windstorm, hail, aircraft, riot, vandalism, explosion, smoke, fire, lightning, theft
Broad Form Perils
Everything in basic PLUS “RAFF”
Rupture of system
Artificially generated electricity
Freezing pipes
Falling objects
HO 1 thru 8
1 - dwelling
2/3/5 - home
4 - “for” renters (4 letters in rent)
6 - condos (6 letters in condos)
7 - trailer (7 letters in trailer)
Exclusions to HO coverage
OPEN WIF
Ordinance of law
Power failure
Earthquake
Neglect/nuclear
War
Intentional loss
Flood - biggest one
Dividend Options
CRAPO
Cash
Reduced premium due for next year
Accumulate with interest
Paid-up additions
One year term (fifth dividend option)
Non-forfeiture options
“Can’t Even Pay”
Cash
Extended term
Paid-up reduced insurance
Life insurance Death Benefit totals…incl cash value or not?
DEFAULT is option A.
Exam must STATE option B.
