Insurance Flashcards
What is excluded from Umbrella liability coverage?
- Intentional Acts
- Your own stuff
- Business pursuits
- Worker’s comp obligation
- Malpractice
- D&O activity
What does each category of split limit auto coverage cover?
(A/B/C)
A - Limit for any ONE injured body
B - Limit for ALL injured bodies
C - Limit for ALL property damage
Auto Policy Coverage Categories
“Let Me Understand Dis”
A - Liability
B - Medical pmts
C - Uninsured motorist
D - Damage to auto
Insurance Non-forfeiture options
- Cash; cash value (-) loan
- Reduced Paid-up; lower DB
- Paid-up Term; same DB, less time
What are common benefits under a Cafeteria Plan?
- Term life (x2 salary)
- Medical Insurance
- Disability
- 401k
- FSA
Medicare B Exclusions
- Eyes, ears, mouth
- Dental, eyeglass exam, hearing exam
- Shots (1 free flu/yr; 1 free pneumonia/yr)
- Rx
What does Medicare B cover?
A - Dr. Services
B - Tests, Transfusion, Infusion, PT
C - Outpatient
D - Unlimited home health service
E - Preventative Care
F - Counseling (drug, depression)
HO - 2 Coverage
ALL BROAD
A - Dwelling
B - Structure
C - Property
D - Loss of Use
What is excluded in Sec II of a HO policy?
(Liability Exclusions)
- Boats > 50hp or >26ft
- Aircraft
- Vehicles & Rec Vehicles off property
- Someone eligible for worker’s comp
- Activity from a biz
HO Sec I Exclusions
“OPENN WIF”
- Ordinance (law)
- Power Failure
- Earthquake
- Nuclear
- Neglect
- War
- Intentional
- Flood
SINKHOLE COVERED IF HOUSE DAMAGED
What does Medicare A cover?
A - ≤ 150 Day Hospital stay
After Hospital Stay:
B - ≤ 100 days Skilled Nursing Home
C - Unlimited home health service
D - Hospice
E - Blood AFTER 1st 3 Pints
What is excluded from Commercial Umbrella liability coverage?
Professional Liability
- Error/Omission (financial dmg.)
- Malpractice (bodily dmg.)
Capital Retention Life Insurance Formula
(Annual Income need/ROR) + 1st year of income need = Total Life Insurance Needed
HO - 4
Renters Policy “Broad city rented”
C - Broad
D - Broad (30% of C)
No A
No B
Basic HO Coverage
“WHARVES FLT”
- Wind
- Hail
- Aircraft
- Riot
- Vandalism
- Explosion
- Smoke
- Fire
- Lightening
- Theft
Annuity Exclusion Ratio Formula
- Monthly PMT x Life Expectancy (in Mo.) = Expected Return
- TTL Premium Paid / Expected Return = Exclusion Ratio
NOTE: Annuity PMT x Ex. Ratio = TAX-FREE AMT
HO - 6
Condo Owner
A - Limited (loss assessment)
C - Open
D - Broad (50% of C)
No B
YES $5k loss assessment coverage
HO - 8
Old House
BASIC
A - Dwelling
B - Structure
C - Property
D - Loss of Use
What is Broad HO Coverage?
*Basic coverage +
“RAFF”
- Rupture of a system
- Artificial Generated Electricity
- Falling Objects
- Freezing Pipe
*Basic:
- Wind
- Hail
- Aircraft
- Riot
- Vandalism
- Explosion
- Smoke
- Fire
- Lightening
- Theft
HO - 5
A - Open
B - Open 10% of A
C - Open 50% of A
D - Open 30% of A
HO - 3
A - Open
B - Open 10% of A
C - Broad 50% of A
D - Open 30% of A
HO - 5 with worse Property coverage
What is covered in HO Sec I
A - Dwelling
B - Structure
C - Property
D - Loss of Use
Real Property Loss Formula
- Replacement cost x coinsurance % = Required Insurance
- [(Ins. Carried/ Required Insurance) x Loss] - Deductible = Amt. Paid by Insurance
ACV Property Loss Rule
IF:
Insurance carried is < 80% of replacement cost
THEN:
Use GREATER of:
- ACV
- Amt. Paid by Insurance (Real prop loss formula)