Lines of Insurance Flashcards
1943 New York Standard Fire Policy
Traditionally referred to as the first standard property policy. Its provisions are incorporated into many state statutes regarding minimum coverage that must be provided.
Define: Casualty Insurance
Encompasses three general areas: Liability
Personal
Property
Thought of as a “Catch all”
Originally the term casualty meant insurance against losses from accidents (casualties).
Define: Inland Marine
Traditionally provides protection for property in transit over land, and today, to collections, personal property, and other coverages for movable property.
Define: Marine Insurance
Insurance that covers property that is in someway related to transportation
Define: National Marine Definition
Lists what may and may not be written as marine insurance
May write: Imports Exports Domestic shipments Means of communication Personal property floaters Commercial property floaters
*revised 1953 & 1976
Define: Negligence
Failure to exercise the degree of care that a reasonable and prudent person would use under similar circumstances
Define: Ocean Marine
Provides protection for a water borne property
Define: Property Insurance
Insurance that covers property at a fixed location
Define: Warehouse-to-warehouse Clause
This clause provides protection for the cargo from the time it leaves the first warehouse until it reaches its final destination point
P&C Major Lines
1 Marine —Hull policies (vessel & water types) —Liability to 3rd parties —Loss/damage to cargo —Freight ($ payable by customers) 2 Property 3 Casualty
Define: Floater
A policy to cover high value property, ANYWHERE.
What general ideas does Casualty Insurance encompass…and explain them?
Casualty covers risks left over after marine, property, and life coverages are excluded.
Three general ideas:
—LIABILITY- covers injuries to others or damage to property of others done by insured.
—PERSONAL - Covers losses resulting from sickness (eg Health, accident, disability)
—PROPERTY - two types of property fall under casualty:
-BOILER & MACHINERY
-CRIME
How might one be be liable to others?
Out of….contract, the law, or negligence.
Liability is the area most folks think of when hearing “casualty insurance”
Is there a Personal Liability Policy? Explain.
Kinda. It’s packaged with Property coverings in a HOMEOWNERS POLICY. A renters policy is for those who don’t own a home.
Section II of HO Policy is where personal liability coverage is.
Explain what Section II of HO policy is and what it covers.
It is personal liability coverage.
Promises to cover insured for “damages bc of BODILY INJURY or PROPERTY DAMAGE”.
Covers named insured: —broadly of named insured and all resident family members —if someone is hurt on premises —if he accidentally hurts someone else —if he damages someone’s property
