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Insurance > Insurance Notecards #2 > Flashcards

Insurance Notecards #2 Flashcards

1
Q

Personal Effects Floater

A

Covers items carried by tourists and travelers around the world.

Scheduled a sublimit to 10% of scheduled limits

Insurer pays up to $100

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2
Q

Tort exemption

A

With the no limitations lawsuit option a person is liable for non-economic loss
Liability may extend to person who are not required to keep PIP Cov
If no tort selection, limitations on lawsuit applies

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3
Q

Purpose of NJIUA

A

Provide needed goods, services, jobs
Attract and retain private capital in central city areas
Provide insurance to enable homeowners to purchase and improve property

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4
Q

Dwelling insured by NJIUA cost and coverage

A

600k and max PPC if coverage is 50% of building limit

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5
Q

Producers that hold a resident producer license in a state other than NJ may obtain a non resident license if:

A

The person is currently licensed in good standing in their home state

Paid required fees

Reciprocal basis

A nonresident producer must file a change of address and provide certification from the new resident state within 30 days of legal change of residencey

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6
Q

Certificate of Diligence Effort

A

Producer and surplus line agent must keep certificate at least 5 years
Applies only after declined 3 times by issuer
Submit to surplus agent within 30 days

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7
Q

General Service Fee

A

1 Per year
May not exceed $20
No fee for sale or service of insurance

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8
Q

To be negligent

A

Duty owed
Violation of duty
Proximate cause
Foreseeable consequences

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9
Q

HO 1 Section is

A

Coverages A, B, C, D
Dwelling
Other structures
Personal Property
Loss of use - Additional living, fair rental

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10
Q

HO 2 Section is

A

Coverages E and F
Personal Liability
Medical Payments

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11
Q

Only renew / cancel policy after X days

A

Not less than 30 or more than 120

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12
Q

Net Participation determines

A

Profit or loss relative to all participants

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13
Q

Personal Jewelry Floater

A

30 days auto coverage
25% of amount of insruance or less than 10k

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14
Q

Broker

A

Represent insured
Place insurance with company not an agent

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15
Q

Penalty for decpetion

A

5k and 10k if they know

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16
Q

insuranable interest

A

Lawful and substantial economic interest in safety or preservation of property from loss and destruction

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17
Q

FAIR Plan

A

Provide adequate market, a means to purchase basic property insurance when it cant be obtained by regular markets
Loss paid by insurance industry
Must be insurable risk
Every Insurer must be a member of the association

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18
Q

Fine Art Floater

A

Excluded: Breakage of window, glass wear
Covered: Fire or lightning, explosion, windstorm, earthquake, theft
90 days 25% coverage

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19
Q

Fraud act violation costs

A

1 - $5k
2 - $10k
3 - $15k

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20
Q

Unfair method of competition violation

A

$5k initial
$10k secondary

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21
Q

Essential property insurance

A

Minimum insurance provided by FAIR plan, as defined and limited in the policy with extended coverage

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22
Q

FAIR Violation

A

1 - $2k
2 - $5

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23
Q

PAIP Rates (Personal Auto Insurance Plan) Collision and comprehensive

A

Valued between 15k and 25k - Must be experience rated
25K and up must be experienced rated

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24
Q

Uninsured Definition

A

Hit and run vehicle
BI liability but was denied
BI but insurer was insolvent
Special Automobile insurance

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25
Q

Uninsured Coverage Requirments Limit

A

250k per person BI
500k per accident BI
100k Per person damage - $500 deducible

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26
Q

US vs South EAsten Associations

A

Insurance was interstate Commerce and when conducted across state line subject to federal regulations

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27
Q

Minimum Liability Coverage for uninsured BI

A

15k for 1 person
30k for 2+ people
5k for property damage caused by uninsured, $500 deductible

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28
Q

Eligibility Points

A

Point value based on driving record

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29
Q

Auto Inspection after accident

A

Inspect auto before coverage
Request inspection of damage before repair
Can pick repair shop but might invalidate warranties
No inspection for new cars

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30
Q

Denial of coverage Median

A

The applicant same median the application is made and why it is denied
If orally, written explanation within 90 days

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31
Q

Required to insure

A

Must provide auto coverage if eligible except:
Exceed quota of UEZ
Financially unsafe
May dey coverage as allowed by Law competition

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32
Q

Residence burglary and robery limits

A

15k

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33
Q

PAIP Service Carriers

A

LAD

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34
Q

UEZ Program

A

Underserved areas
Designed to increase insurance
Quarterly report within 10 days of quarter ending
Violation - 1k, 2k not exceed 5, suspension of insurance certificate

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35
Q

PAIP Coverage to NJ

A

Qualified applicants and apportion these risks equally among insurer in order to insure competition in auto market
Must be NJ resident and garaged in NJ
Expect military

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36
Q

Permanent total

A

Injury prevents worker from being able to do any work for rest of life
Schedule of benfits

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37
Q

Temporary Total

A

Injury employee is expected to revoer and return to work
Unable to do work while recovery

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38
Q

Temporary Partial

A

Do some work but is unable to earn full wage until recovered

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39
Q

Permanent Partial

A

Employee is able to do some work but will never fully recover

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40
Q

CAIP Purpose

A

Provides and apportions among insurers coverage for commercial auto
Every insurer must participate
Applicant = owner of vehicles in NJ who is unable to obtain insurance
5+ vehicles = fleet

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41
Q

CAIP Liability Single Limit Coverage

A

Single limit 35k
Coverage 5 mill excess is conditioned being able to get reinsurance

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42
Q

CAIP Physical Damage

A

Provides mandatory PIP coverage
Physical Damage Cov = Private passenger, light truck, motorcycle,
Policy may not provide if 25 older, trucks, 20+ persona car
Comp + Collision = ACV - Deductible

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43
Q

CAIP Service Carrier

A

Profits credited
Losses will be charged for each participant, annual audit of carrer
Cant be government commitee
20 days to appeal

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44
Q

CAIP COv

A

Policy may not be more than 5 years
Must certify inability to obtain insurance on ordinary market in 60 days
Quality = NJ

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45
Q

PIP Coverage Personal Injury Protection

A

15k and up to 250k per person per accident
25k medically necessary for treatment of nerve or disfigurement
Loss of income = $100 / 5,2k life time
Essential Benefits = $12 0 4.3k life time
Funeral Benefits = 1k

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46
Q

Paul vs Virgina

A

Each state to regulate insurance
Reversed 1944

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47
Q

Basic Act Policy non renwal days

A

60 days but no more than 90

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48
Q

PIP Nonrenwal

A

15 days cancelled if no premium
20 days is cancelled

49
Q

PIP Payments of benefits

A

60 days
If investigate claim = 45 days
5k, 1k, 1.5k, 2k, 2.5k
Deductible for accident if coverage health not in forced because covered accident = 750

50
Q

Mccarren Ferguson 1945

A

Public law 15
Regulate and taxation on insurance by individual state
Power = state
Federal can intervene

51
Q

PAIP Coverage bodily sublimits

A

250 /500/ 100
Physical damage = ACV - Deductible up to 60k

52
Q

PAIP Split limits or combined

A

50 / 100 / 25

53
Q

Producer May Not

A

Issue policy, binder, or cancellation. Change coverage through endorsement assign any loss

54
Q

Notice of non payment of premium

A

10 days

55
Q

Mercantile Rate

A

inside = $1k
Outside = $1k
Outside with armed guard = $5k
Safe Burglary = $5k
Open stock = $10k or coninsurance limits

56
Q

Notice of Moral Hazard

A

10 days
If insured will destroy covered property for purpose of collecting proceeds

57
Q

Office Burglary and Robbery Limits

A

1k

58
Q

Store keeps burglary and robbery

A

1k

59
Q

Personal limits building and contents

A

900k
600k building
300k contents

60
Q

Musical Instrument Floater

A

If instruments are used by any person in a paid performance, must have performance for pay coverage
Named Perils
30 days, 25% coverage / 10k or less

61
Q

Scheduled Benefits

A

Applies to specific permanent injuries such as a $ amount for loss of an eye or hand

62
Q

Coastal Prep and Hurricane Risk

A

May increase rates by 5% max
Must file within 30 days
When H/O insurance policy is delivered:
Explain hurricane deductible program
Flood insurance program
Policy summary

63
Q

Commercial Limits

A

1.5mm

64
Q

Symbol 19

A

Mobile equipment

65
Q

Symbols 30

A

Autos left with insured for service, repair, storage

66
Q

Symbol 31

A

Dealers, autos, physical damage covered

67
Q

Workers Comp Section

A

Part 1 - W.C Insurance
Part 2 - Employers Liability - Limits
Part 3 - Other state insurance
Part 4 - Duties if injuries occur
Part 5 - Premium
Part 6 - Conditions - Cancellation policy

68
Q

Rate and rate making

A

Must have five rates with commission
At least 30 days before
Must consider:
Past and prospective loss exp
Foreseeable and catastrophic hazard
Reasonable profit

69
Q

Camera Floater

A

30 days
25% or 10 whichever is less
TV Camera are excluded

70
Q

Notification NJ a producer has been appointed

A

15 days of a contract signed or when producer sublimit first policy application

71
Q

Commercial insurance deregulation act of 1982

A

Encourage price competition - to prevent monopolies

72
Q

Exportable list

A

Risks for which no market insurs
List created by commissioner
Only coverages on list may be placed with surplus lines

73
Q

Insurance agent

A

Sell, solicit, negotiate - insurance ocntract
Collect premiums and countersign

74
Q

HO-6

A

Unit Owners -
Named Perils - A & C - Can add B through endorsement
Insures real property

75
Q

H0-8

A

Modified Form
Named perils, Older homes
ACV - if exact materials are avaiable - R.C

76
Q

HO-5

A

Broadest coverage - A,B,C
A B - RV
C - ACV

77
Q

HO-4

A

Renters and tenants
Personal Prop = C

78
Q

HO-3

A

Special Form
A & B open peril = replcaement cost
C = named p erils

79
Q

HO-2

A

Braod Form
Named perils - A, B, C
Replacement cost - A & B (losses to the dwelling)
COverage C = ACV (Personal Prop)

80
Q

DP-3

A

Special form - open.
Dwelling and contents - RC / Personal Property - ACTV

excluded
Ordinance or law.
Earth movement.
Water damage.
Power failure.
Neglect.
War.
Nuclear hazard.
Intentional loss.
Governmental action.
Mold.

81
Q

DP-2

A

Broad named perils
Lossing to dwelling RC / Personal Property ACV
Fires and lightning
Hailstorms and windstorms
Smoke
Explosions - both internal and external
Riots or civil commotions
Burglary
Vandalism
Accidental or sudden power surges
Vehicle damages
Aircraft damages
Accidental or sudden water damage
Freezing pipes
Volcanic eruptions
Falling objects, like a tree
Snow
Structure collapse
Glass breakage
Accidental or sudden cracking, bulging, or tearing

82
Q

DP-1

A

Basic & EC
ACV
Named
Fire lightning, explosion

Fire and lightning

Internal and external explosions

Windstorms

Hail

Riots and civil commotions

Smoke

Aircrafts

Vehicles

Volcanic explosions

83
Q

Symbol 9

A

Non owned autos only
insured does not own, lease, hire or rent
Used for business

84
Q

Symbol 8

A

Hired autos only
Insured leases, hires, rents,
May not owned by insured

85
Q

Symbol 7

A

Described vehicles listed on declaration

86
Q

Symbol 6

A

Owned autos subject to a complosorty uninsured motorist law

87
Q

Symbol 1

A

Any auto if it is used in the insureds business

88
Q

Symbol 2

A

Owned Auto only

89
Q

Symbol 3

A

Owned private passanger auto only

90
Q

Symbol 4

A

Owned auto other than private

91
Q

Symbol 5

A

Owned autos subject to no fault

92
Q

Personal articles floater

A

ACV / worldwide / open peril
Insures individual on items on scheduled basis - personal property

93
Q

Vicarious Liability

A

Assigned to one party for conduct to another, based on relationship
attachment of responsibility to a person for harm or damages caused by another person in either a negligence lawsuit or criminal prosecution.

94
Q

Uninsured Motorist

A

Coverage if insured is involved in accident with at fault uninsured

95
Q

Revoke producer license is/for

A

Failure to pay tax
Cheat on exam
Convicted of a felony

96
Q

SERP

A

Can’t cancel premium once paid
1 time charge
endorsement purchased within 60 days to end

97
Q

Comparative negligence

A

Tort principle used by the court to reduce the amount of damages that a plaintiff can recover in a negligence-based claim according to the degree of negligence each party contributed to the incident.

98
Q

Installation Floater

A

Property being installed Electrical / plumbing / heaitng
Equipmente used by contractor for installation is seperate

99
Q

Aggregate Limit

A

Applies to losses from all occurences within a specific time period

100
Q

Prior Approval

A

Requires rates cannot be used until the commissioner approves the rate, or until a set time period has expired

101
Q

How long does coverage extend for new cards

A

14 days

102
Q

Personal Auto A,B,C,D

A

A - Liability
B - Medical Payments
C - Un/underinsured Motorist
D - Damage to your auto

103
Q

Part A Liability Covers

A

Named insured
Insured spouse
Other family member who resides with the named insured
Any person borrowing a covered auto with permission

104
Q

Pure no fault plan

A

A pure no fault plan system would abolish use of the tort system for bodily injuries from an auto accident

105
Q

Does liability pay the owner

A

NEVER

106
Q

What personal automobile are required to be purchased together

A

Bodily Injury and Property damage

107
Q

Who gets paid for property damage - Personal Auto

A

Other guy

108
Q

Who gets paid for phsyical damage - Personal Auto

A

Me

109
Q

Liability payment

A

Inside car = Med pay

Outside car = liability

110
Q

Does medical pay for someone getting in / out of your car

A

YES MEDICAL PAY

111
Q

DO You and your resident relatives have medical payment coverage while occupying a vehicle or as a pedestrian

A

YES MEDICAL PAY

112
Q

aRE Other people covered under your medical med pay coverage while driving your vehicle or a vehicle you are driving.

A

YES MEDICAL PAY

113
Q

Does medical pay cover your for injuries sustained in your own car

A

YES

114
Q

Standard Mortgage Clause

A

Specifies the right and duties of the mortgage company under the policy.

115
Q

The cause of loss form lists

A

The perils the property is insured against

116
Q

Garage Cover Form

A

For Auto Dealerships

117
Q

Form MCS-90

A

provides evidence of financial responsibility, on behalf of the motor carrier, to the Federal Motor Carrier Safety Administration. The endorsement must be included on all policies, and a policy must meet the financial responsibility requirements set by the Department of Transportation.

118
Q

All of the following must be listed on Form MCS-90, excep

A

The policy premium amount

Insurance (3 decks)

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