Katrina Study Notes Flashcards
What Does Extended Coverage Perils acronym WCSHAVVER stand for?
Wind
Civil Commotion
Smoke
Hail
Aircraft
Vehicles
Volcanic eruption
Explosion
Riot
Vandalism & Malicious Mischief - optional coverage
What does the broad form perils acronym BIG AFFECT stand for?
Burglary Damage
Ice, sleet, and snow
Glass Breakage
Accidental discharge of water or steam
Freezing objects
Falling objects
Electrical current
Collapse
Tearing asunder
What are the Special Form excluded perils?
-flood
-earthquake
-mold
-intentional damage caused by the insured
-losses incurred due to updated building codes
-parts of the property in disrepair such as worn out electrical wiring and plumbing, HVAC units, and roofs
-Damage caused by a power outage caused off the insured premises
-government seizure of property
What are Special Damages?
include awards for actual economic loss such as medical expenses, lost wages due to bodily injury, and property damage caused by the defendant.
What are General Damages?
compensate for losses of an intangible nature such as pain and suffering, mental anguish, or disfigurement. General Damages refer to as “full tort”
Pure Comparative Negligence vs. Modified Comparative Negligence
Pure Comparative Negligence - damages are redunce to the extent of the inured party’s (plaintiff’s) negligence
vs.
Modified Comparative Negligence - the plaintiff cannot recover damages if he/she is found to be equally responsible, or more responsible.
In HO, what is coverage E
Personal Liability
In HO, what is coverage F
Medical Payments to Others
What are the 10 HO Endorsements
- Permitted Incidental Occupancies Endorsement
- Home Business Endorsement
- Business Pursuits Endorsement
- Home Day Care Endorsement
- Personal Injury Endorsement
- Identity Fraud Expense Endorsement
- Watercraft Endorsement
- Assisted Living Care Endorsement
- Additional Residence Rented to Others
- Refrigerated Property Coverage
What are the Watercraft Endorsement parameters for coverage?
- powered by outboard engine or motors of more than 25 hp
- powered by inboard or inboard/outdrive engines greater than 50 hp
- sailing vessels with or without auxiliary power of 26 feet or more in length
HO Personal Liability Supplement -
The personal liability supplement can be written as a monoline policy or attached to a dwelling policy as an endorsement to add coverage for personal liability and medical payments to others.
Personal Liability Supplement - Coverage L & M
L - Personal Liability - minimum limits $100,000 per occurance
M - Medical Payments - minimum limit $1,000 per person
Personal Umbrella Policy
Begin with $1 million limit and can be increased in increments of $1 million not to exceed $10 million.
Personal Automobile - PAP coverage parts?
Part A - Liability
Part B - Medical Payments
Part C - Uninsured Motorists
Part D - Damage to Your Auto (PD Coverage)
What are the PAP - Part A Liability Limits of Coverage
$25,000 per person for bodily injury
-
$50,000 per accident for bodily injury
-
$10,000 per accident for property damage
What is Part E of the PAP?
Duties of the insured after an accident or loss
What is Part F of the PAP?
General Provisions
What are the 5 Commercial Auto Coverage Forms?
- Business Auto
- Business Auto Physical Damage
- Garage
- Truckers
- Motor Carrier
What are the 5 Sections of the Business Auto Policy?
Section I - Covered Auto Symbols
Section II - Liability Coverage
Section III - Physical Damage Coverage
Section IV - Business Auto Conditions
Section V - Definitions
What are the Business Auto Policy Symbols for Section I - A?
Symbol 1 – Any Auto
Symbol 2 – Owned Autos Only
Symbol 3 – Owned Private Passenger Autos Only
Symbol 4 – Owned Autos Other Than Private Passenger Autos
Symbol 5 – Owned Autos Subject to No-Fault (Personal Injury Protection) Benefits
Symbol 6 – Owned Autos Subject to Compulsory Uninsured Motorist Law
Symbol 7 – Specifically Described Autos Only
Symbol 8 – Hired Autos Only
Symbol 9 – Non-owned Autos Only
Symbol 19 - Mobile Equipment Subject to Compulsory auto Financial Responsibility Requirements.
Which of the following “coverage parts” of the Commercial Package Policies are NOT eligible for inclusion in the CPP?
- Commercial Auto (Business Auto form rrost often used);
- Business Income;
- Disability Insurance;
- Coverage; excluded by state statute.
- Commercial Crime;
- Life Insurance;
- Risks eligible for a Homeowners policy; and
- Commercial Inland Marine;
- Farm;
- Equipment Breakdown;
- Employment Practices Liability (EPL);
- liquor Liabi lity; and
- Pollution Liability.
- Commercial General Liability;
- Workers’ Compensation;
- Aviation Insurance;
- Directors & Officers (D&O);
- Ocean Marine Coverages;
- Workers’ Compensation;
- Aviation Insurance;
- Directors & Officers (D&O);
- Ocean Marine Coverages;
- Life Insurance;
- Risks eligible for a Homeowners policy; and
- Disability Insurance;
- Coverage; excluded by state statute.
THE BUILDING & PERSONAL PROPERTY COVERAGE FORM
Additional Coverages limits for:
debris removal –
Preservation of Property -
Fire department service charge -
Pollution Clean Up and Removal -
Increased cost of construction -
Electronic Data -
debris removal – the policy provides up to 25% of the amount of the direct physical loss or damage including the deductible to pay for debris removal. If the coverage limit of the policy is exhausted by the payment of claims and or debris removal expense. The policy will pay an additional $25,000 for removal of debris. If the insured has not suffered a direct physical loss to cover property the policy will pay up to $5000.
Preservation of property – if the insured removes covered property from the premises when endangered by an insured peril the property is covered for any direct loss while it is being moved and while temporarily stored elsewhere for 30 days. Fire department service charge – the policy will pay up to $1000. Pollution Clean Up and Removal – These expenses must be reported to the insurance company within 180 days of when the cause of loss because of pollution. The policy will pay up to $10,000 at each described premises and for each separate occurrence within the 12 month policy period. Increased cost of construction – this additional coverage covers the increased costs involved in complying with ordinances or laws, when the covered building is being rebuilt or repaired after a covered loss. This coverage applies only if the building has been insured on a replacement cost basis. The maximum amount payable under this coverage is $10,000 or 5% of the limit of insurance coverage on the building itself whichever is less. This is additional coverage and the expenses must be reported to the insurer within 2 years. Electronic data – covers up to 2500 for the cost to replace or restore electronic data that has been destroyed or corrupted by a covered cause of loss.
Commercial Property COL Special Causes of Loss form limitations:
- $2,500 for furs, fur garments, and garments trimmed in fur
- $2,500 for jewelry, watches, jewels, pearls, precious and semi-precious stones, gold, silver, and platinum, however this coverage does not apply to jewelry/watches worth less than $100 per item
- $2,500 for patterns, dies, molds and forms
- $250 for stamps, tickets, lottery tickets held for sale and letters of credit.
CGL 5 Types of Exposures?
Exposures
1.premises and operations
2.products and completed operations
3.fire damage liability
4.independent contractors legal liability
5.contractual liability
CGL Coverage A?
Bodily Injury (BI) & Property Damage (PD)
CGL Coverage B?
Personal & Advertising Injury
CGL Coverage B Exclusions?
-knowing violation of rights of another
-material published with knowledge of falsity
-material published prior to policy period
-criminal acts
-contractual liability
-breach of contract
-quality of performance of goods – failure to conform to statement
-wrong description of prices
-infringement of copyright, patent, trademark or trade secret
-insureds in media and Internet type business
-electronic chat rooms or bulletin boards
-unauthorized use of another’s name or product
-pollution
-pollution related loss
-war
CGL Coverage A & B Supplementary Payments?
BAD ICE
BAD ICE.
B – Bail Bonds
A – Attachment bond releases
D – Defense costs and all other expenses incurred by the insurer
I – Interest, both pre-and post judgment interest
C – Court costs
E – Expenses incurred by the insured at the request of the insurer
CGL Coverage C?
Medical Payments
CGL Limits of Insurance
- General aggregate limit
a. this is the most I will be paid for all claims during the policy period for the sum (total) of coverages A, 8, and C except for BJ or PD arising out of the products completed operations hazard. The Basic limit of $200,000 applies to all claims during each poUcy period. Because the general aggregate limit does not apply to the products completed operations
hazard, there is a separate Umit for this hazard. - Per Occurrence Umit - a basic Umit of $100,000 applies to each occurrence of bodily injury and property damage, whether they arise from premises-operations or products-completed operations hazards.
- Products completed operations aggregate Limit - a separate Umit of S200,000 is included to pay coverage a claims arising from products completed operations hazards. Although these claims are not subject
to the general aggregate limit they are subject to the per occurrence limit for bodily injury and property damage. - Personal and advertising injury limit - a separate limit applies to all damages sustained by any one person. This limit is usually written in the same amount as the per occurrence limit for bodily injury and property damage.
- Fire damage legal limit (damage to premises rented to you) - a basic $100,000 Limit applies to cover damages for each fire to a premises rented to the insured.
- MedicaL payments Limit - a baaic limit of $5000 applies to each person per medical payments coverage
BOP Policy Eligibility:
- eligible risks cannot exceed 35,000 ft.² in total floor area
- eligible risks cannot exceed $6 million in annual gross sales at each location
BOP POLICY STRUCTURE
Section I – Property
Coverage A – Building
Coverage B – BPP
Section II – Liability
Coverage C – Business Liability
Medical Expenses
Section III – Conditions
What are the 4 sections in the Farm Policy
Section 1: Coverages (Insuring Agreements A- G)
Section II: Coverage Extensions
Section Ill: Additional Coverages
Section IV: Other Provisions
7 Crime Insuring Agreements
Insuring Agreement 1 - Employee Theft
Insuring Agre ement 2 - Fo rgery or Alterat ion
Insuring Agreement 3 - Inside the Premises - Theft of Money & Securities
Insuring Agreement 4 - Inside the Premises - Robbery or Safe Burglary of other Property
Insuring Agreement 5 - Outsid e· the Premises
Insuring Agreement 6 - Computer & Funds Transiier Fraud
Insuring Agreement 7 - Money Orders and Count er feit Money
WORK COMP POLICY - The components of the standardized policy include:
information page
general section
parts one through six:
o Part One: Work Camp
o Part Two: Employers Liability Coverage
* Employers Liability Coverage Limits
* Damages the Insurer Will Pay (Exclusions to the
Exclusive Remedy)
* Additional Expenses Paid by the Insurer
* Employers Liability Exclusions
o Part Three: Other States Insurance
o Part Four: Duties of the Insured if Injury Occurs
o Part Five: Premium
o Part Six: Conditions
Work Comp Part Two: Employers Liability Limits:
Three Limits of Liability:
- A limit for all claims in one accident
- A limit par employee for bodily injury by disease
- A limit for all bodily injury by disease claims
Basic minimum Limits are $100,000/$100,000/$500,000 but higher limits are
available for purchase.
