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Main Focus Flashcards

0
Q

Coverage A: dwelling

A

Include garage, attached patio cover, etc. can also include building materials used in the construction and/or repair of the covered structures and building it outdoor equipment used to service the premises

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1
Q

ISO

A

Insurance services office, the advisory organization that develops forms for the standard market

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2
Q

Coverage B: other structures

A

Limits insured buildings on the same proper as the dwelling but not attached to it: Detached garage, fencing, gazebo, or work shed

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3
Q

Coverage C: personal property

A

Insured contents and personal possessions kept at the primary resident. Coverage may be extended to cover personal property of guests and servants. Standard limit of coverage is 50% of coverage A

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4
Q

Coverage D: fair rental value

A

Cover the loss if fair rental value minus expenses that are not required due to the uninhabitable nature of the premises. Up to 10% of the insurance in the dwelling is available

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5
Q

Coverage E: additional living expense

A

If the insureds home is uninhabitable due to covered loss, this will cover the additional living expenses related to maintaining the insureds normal standard of living at an alternate resident until the property is repaired or the coverage limit is reached, whichever occurs first. Motel, dining, laundry, and transportation expenses.!

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6
Q

Eligible property for a dwelling policy

A

Personal residents except farm with no more than four family units and/or five timers or boarders. Manufactured mobile homes in permanent foundations, only covered by the basic form. Private out buildings used with mobile homes: household and personal property in eligible properties. Vacant buildings

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7
Q

DP-1: the basic dwelling policy

A

Automatically covers buildings and personal property for fire,lightening and internal explosion. Furnace, stove or hot water heater. Stems explosions are excluded if the equipment is owned, leases or operated by the insured party.

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8
Q

Extended coverage (EC)

A

May be added to extend the perils covered to also include: windstorm, hail, aircraft, riot and civil misconduct, vehicle, explosions, smoke.

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9
Q

DP-2: the broad dwelling policy

A

Covers building and personal property from the basic perils of perils of fire, lightning and internal explosion. Automatically provides the extended coverage perils and VMM. Falling objects, burglary, weight if Ice sleet or snow, discharge/overflow, tearing apart, freezing or plumbing, artificially generated electric current, smoke damage, vehicle damage. Minimum insurance requirement is 12,000 for the dwelling or 4,000 if the policy is written for personal property only.

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10
Q

VMM

A

Vandalism and malicious mischief

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11
Q

DP-3: the special dwelling policy

A

Written on an all-risk basis for real property and broad form for personal property. It covers the dwelling and other structures for all risk of direct physical loss. Pays replacement cost on buildings if they are insured to 80% of value and ACV on personal property. Minimum insurance requirement is 15,000 for dwelling or 4,000 if the policy is written for personal property only.

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12
Q

Homeowners insurance

A

Considered package or multi-line policies, meaning they provide both property and liability coverage. It’s divided into two sections, section 1 provides property insurance and section 2 provides liability and medical payments insurance

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13
Q

Coverage A: dwelling

A

Insures the dwelling and attached structures including garage or attached patio cover. Paint for the interior of the house is personal property that would be under coverage A

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14
Q

Coverage B: other structures

A

Insures buildings on the same property as the dwelling but not attached to it. Detached garage, fencing, gazebos or work she’s. Limit is 10% of coverage A

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15
Q

Coverage C: personal property

A

Insured contents and personal possessions kept at the primary residence for ACV. Limit is 50% of coverage A. Also insured personal property in the insureds possession anywhere in the world up to the full limit of 100% of the personal property limit/

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16
Q

Coverage D: loss of use

A

If a covered property loss leaves the insureds primary residence premises uninhabitable, the insured will have coverage for additional living expenses related to maintaining the insureds normal standard if living until resident is repaired

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17
Q

HO-8

BASIC

A

Privies basic form coverage on an ACV basis for the dwelling and personal property. HO-8 is an option for insurers when the replacement cost if the home exceeds the value. A home that is too old to qualify for replacement coverage or has historic value can be covered under HO-8

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18
Q

HO-2

BROAD

A

The standard broad form homeowner policy covering both real property and personal property for names perils. Adds some perils not covered by the DP-1 basic form and broadens the. Coverage for others. See page 16 chapter 2 for coverage

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19
Q

HO-4: the renters form

A

Used to provide coverage for tenants. Only their own personal property. Provides coverage for personal property and liability coverage at home and away.

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20
Q

HO-6: the condominium unit form

A

Provide coverage for a condominium unit owner. Designed to provide named peril or broad form coverage for personal property. Has a flat $1,000 coverage under coverage A for dwelling coverage.

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21
Q

HO-3: special form

A

Provides all risk or open peril coverage for real property and broad form or named peril basis for personal property. Exclusions are: earthquake, flood, sewer back up, building ordinance, war and nuclear hazard, wear and tear, rust, dry rot, wet rot, smoke, corrosion, deterioration, birds, rodents, animals as pets

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22
Q

Insurance

A

A contract whereby one undertakes to indemnify another person against loss, damage, or liability arising from a contingent or unknown event

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23
Q

Insurable events

A

Are past, present, and future events that may be insured. With no potential of gain or profit. There must be an insurance interest to qualify to purchase insurance policy

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24
Q

Parts of insurance contracts

A

Declaration page, insuring clause, conditions, exclusions, endorsements, and definitions. (DICEED)

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25
Q

Element for an insistence contract to be valid- contract law

A

Competent parties, consideration, agreement, legal valid purpose. (CCAL)

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26
Q

All insurance policies must provide the following information.

A

Parties to the contract. what is being insured-such as home, car, life, business. financial interest- amount of coverage. perils insured- fire, death. Premium. Policy period.

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27
Q

Insurance policy

A

Is a written instrument in which the insurance contact is set forth

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28
Q

Fraud

A

Is intentional fraudulent omission in part of an insured, and entitles the insurer to rescind contract.

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29
Q

Concealment

A

Is failure, it neglect to communicate material facts to a person who knows, that the other party does not know. Hiding, or deciding not to communicate, material facts. Entitles the injured party to rescind contract

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30
Q

Required disclosure

A

The requirement that each party shall communicate to each other, in good faith, all facts sitting their knowledge, they believe to be material to the contract.

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31
Q

Information not required to be communicated

A

Information known by the other party, information that is waived by the other party, or information which is immaterial to the contract being insured.

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32
Q

Determination if materiality

A

Based on the influence of facts provided by each party, and being aware of the disadvantages of the proposed contract

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33
Q

Right of rescission

A

Termination if a contract as if it never existed. Contract is voided, and entire premium paid to company is refunded

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34
Q

An insurer has right of rescission.

A

Anytime before the insured files a claim, or upon discovery of misrepresentation, concealment, fraud, increase risk exposure or non payment if premium

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35
Q

A representation

A

May qualify to be considered the best if belief and knowledge of the party providing information.
Is false when facts do not agree with it’s assertions or stipulations.
Can be altered it withdrawn before the policy is issues but not after issuance

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36
Q

Misrepresentation

A

No insurer, officer, or agent shall in any shape it form, misrepresent the terms, benefits, privileges, or payment of future policy dividends.

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37
Q

Pure risk

A

Loss exposure that is subject to loss only, therefore may be Insurable

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38
Q

Speculative risk

A

Loss exposure that provides possibility of gain/profit therefore is uninsurable

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39
Q

Peril

A

A cause it trigger of a loss also known as event or situation, that leads up to a loss

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40
Q

Hazard

A

Anything that increases chances if loss

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41
Q

Physical hazard

A

For example, driving on worn tires, walking in wet floor, living next to an explosive factory

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42
Q

Moral hazard

A

Intentionally creating a situation to file a claim on a loss

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43
Q

Morale hazard

A

Unintentionally creating a situation to file a claim on a loss, such as bad habits, irresponsibility, or carelessness

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44
Q

Law of large numbers

A

Is a theory used to predict losses an determine premiums

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45
Q

Types of exposures

A

Are property, liability, and human loss exposures

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46
Q

Types of loss exposures

A

Are real property and personal property loss exposure

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47
Q

Types of liability exposures

A

Are personal liability, personal automobile, professional liability, business general liability, commercial automobile liability, workers compensation, and ocean marine loss

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48
Q

Human loss exposure

A

Personal loss exposure (buying life insurance for personal needs) and personnel loss exposure (purchasing life insurance on life of valuable employee to protect business needs)

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49
Q

Requirements for a risk to be Insurable

A

Law if large numbers, measurable, uncertainty, cases economic hardship, and excludes catastrophic perils

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50
Q

Insurable interest

A

Defined as financial interest, economic interest, and emotional interest

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51
Q

Insurable interest in property and casualty

A

Required interest to exist when insurance takes effect and when loss occurs

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52
Q

Principle of indemnity

A

Means to restore insured to the same financial position, as prior to the loss (supports Insurable interest)

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53
Q

Private insurers

A

Stock insurers, mutual insurers, and reciprocals. But not fraternal a or Lloyd’s

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54
Q

Stock insurer

A

Owned by stock/shareholders/owners. Issued non participating policies

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55
Q

Mutual insurer

A

Owned by policyholders who are issued a participating policy. Any person holding a participating policy may be entitled to receive policy dividends

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56
Q

Policy dividends

A

Are not taxable or guaranteed. Any licensed person who uses policy dividends to mislead insured into purchasing insurance shall be guilty of misdemeanor

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57
Q

Underwriting

A

Is selection, classification, and rating of an application. Before accepting or rejecting a risk

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58
Q

Adverse selection

A

Risk exposure higher than the average may be rejected it have a higher premium

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59
Q

Self-funded

A

Retains risk exposure by setting an account with the runes to cover losses/claims. Allows benefits to be tailored

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60
Q

Deductibles

A

Are “first dollars” of expenses that insured agreed to pay before insurer pays for May losses. Higher deductible, loser premium. Lower deductible, higher premium.

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61
Q

Reinsurance

A

When ceding (original) insurer goes to a third party to insure themselves.

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62
Q

Reinsurance (section 620 of CIC)

A

Is used to allow ceding insurer to go over retention limit.

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63
Q

Retention limit

A

Is the maximum amount if risk an insurer can assume in any one policy

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64
Q

Total classes of insurance

A

Twenty

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65
Q

Insurance regulation

A

Is provided by federal regulation, state regulation, and self regulation

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66
Q

Competent parties

A

Must be legal age, not intoxicated, mentally capable, and the insurer is agent licensed

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67
Q

Legal valid purpose

A

Is not contrary to public policy. All parties will benefit from contract

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68
Q

Agreement

A

Includes offer and acceptance

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69
Q

Considerations

A

Includes anything if value, such as money, promise, premium, policy, giving up or exchange of an act.

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70
Q

Adhesion

A

Relates to the insurer creating contract. If there is a dispute it unclear terms in the contract, court will rule either against, or in favor of the insured. Take it or leave it

71
Q

Conditional contract

A

Means both the insurer and insured just fulfill conditions in the contract to enforce rights

72
Q

Aleatory

A

Is the nature of an insurance contract because both parties, insurer and insured, have an element of uncertainty of what each will receive

73
Q

Unilateral

A

Is the exchange of unequal values (exchange if an act for a promise) and only the insurer must love up to it’s side if the contract

74
Q

Utmost good faith

A

Means both parties enter into contract in good faith

75
Q

Th major operating divisions if insurers

A

Are marketing and sales, underwriting, claims, and actuarial

76
Q

Personal contract

A

Does not allow policy owners to transfer their right in policy to another person, without consent if insurer

77
Q

Waiver

A

Relinquishment of a known righ

78
Q

Estoppel

A

The doctrine that stops the party from taking back what they gave up

79
Q

A standard market insurer

A

An insurer who offers rates for insurance coverage to those who have an average, or better than average, loss exposure

80
Q

Market conduct regulations

A

State laws that regulate insurer practices regarding underwriting, sales, rate making, and claims/handling. May be conducted once every 3 years

81
Q

Insurance rates

A

Shall not be approved or remain in effect, if excessive, inadequate, or unfairly discriminatory. Insurance commissioner shall not give consideration to competition between insurers

82
Q

Rating laws

A

Some states allow insurers to first use the rate, then file- known as use and file. Other states require rate to first be filed then use rate- known as file and use. California uses prior approval if rates, meaning Rates must be filed before an insurer can use any rates

83
Q

Surplus lines

A

Excess and surplus lines insurance derives it’s name from the fact that it is insurance business, legally conducted, with unauthorized or non admitted insurers. Any person may negotiate with a non admitted insurer to produce insurance to protect hire interest in their own property, provided they may require premium taxes

84
Q

Excess and surplus lines (E&S) lines

A

May only be transacted through a licensed surplus lines broker or special one surplus lines broker

85
Q

Tort law

A

Does not cover crime (criminal acts) or breach if contract (contRact law)

86
Q

Torts

A

Can be either intentional or unintentional. Liability insurance provides coverage for unintentional torts.

87
Q

Tort law- civil action

A

Used to establish financial responsibility against party at fault; individuals who are found responsible for losses if, or injuries to, another person can be held liable under tort

88
Q

Intentional torts

A

Are not covered. The exception is when the tort is performed by an individual that is under the responsibility of another person, such as an employer has vicarious liability. Example- libel, slander, false arrest, assault, battery and intentional infliction of emotional distress

89
Q

Negligence

A

Is failure to do what an ordinary person would have done under the same set of circumstances. 4 elements

90
Q

Gross negligence

A

A person has acted so far below the ordinary standard of care, their acts are labeled as being “gross”

91
Q

Comparative negligence

A

Occurs when weighing of the seriousness of negligence on the part if each party is measured in a contributory negligence case

92
Q

Contributory negligence

A

Occurs hen one party’s care for him/herself falls below a required standard and together with the other party’s negligence, contributed to his/her harm. Is like adding woke to the fire; therefore the insurance company will not provide payment on the loss

93
Q

Strict liability

A

Liability imposed to products even though the individual may not have caused damage intentionally

94
Q

Absolute liability

A

Imposed by law on those participating in activities that are viewed as hazardous, within regard to fault or negligence.

95
Q

Absolute and strict liability

A

Refers to situations where a party is liable for injuries no matter what precautions were taken. Recognize situation in which they would apply

96
Q

Vicarious liability

A

Employers are vicariously liable for negligent acts or in omissions in the course if employment by tiger employees

97
Q

Compensatory damages

A

Includes special and general damages. General damages cover intangibles (pains and suffering) special/specific damages pay for the tangible or measurable (loss if earrings or medical exp)

98
Q

General damages

A

Compensate a claimant for the non monetary aspects of the specific harm suffered, usually pain, suffering and loss if amenity. Ex; physical it emotional pain and suffering, loss if companionship, loss of consortium, disfigurement, loss of reputation, loss or impairment of mental or physical capacity, and/or loss if enjoyment of life

99
Q

Special damages

A

Compensate for the quantifiable or measurable/monetary losses suffered by the injured party; extra costs, repair or replacement of damages property, loss of earrings, loss of irreplaceable items, additional domestic costs, medical expenses, etc,

100
Q

Punitive damages

A

Are exemplary damages intended to reform it deter the defendant, and others, from engaging in conduct similar to that which formed the basis if the lawsuit. The purpose is bit to compensate the plaintiff; however, the plaintiff may receive all or part of the punitive damage award

101
Q

Assumption if the risk doctrine

A

A defense in the law if torts. Disallows injured party to seek recovery against a negligent party if defendant can demonstrate that the plaintiff voluntarily or knowingly, assumed the risks at issue inherent to dangerous activity in which he/she was participating at the time if the injury. Does not absolve a defendant of liability for reckless behavior

102
Q

California workers compensation inspection rating bureau

A

Provides reliable statistics an rating information regrading workers compensation and employers liability insurance. Provided statistics for purpose of developing pyre premium rates to be submitted to the commissioner for issuance or approval

103
Q

Identify the terms expenses, losses and combined ratios

A

Expenses + losses combined/ divided by premiums collected= provide the basis, to determine if there is a profit or loss. If percentage is at 100% company is breaking even: over 100% means losses have resulted. Lower than 100% means profits have resulted

104
Q

Short rate/ short change means

A

Insurance company cancels policy and returns all unearned premium minus admin or policy fees. Pro-rate means insurer cancels policy and returns or credits all unearned premium- unused premium. Flat rate insurer returns entire premium usually as result if right to rescind contract is contract was violated

105
Q

Notice if cancellation

A

Requires the insured to be notified in Writing during the policy period. Only if insurer discovers increase risk exposure, material misrepresentation, concealment, fraud or non payment of premium

106
Q

Lapses

A

Are a result on non payment of premium. No insurance protection is in force

107
Q

Non-renewal

A

An insurance policy requires 30 day written advance notice before coverage expires, unless otherwise agreed in original terms

108
Q

Unearned premium

A

Is unused premium. Earned premium is the amount of money insurer gas earned since the insured was protected under the terms of the policy. E.g. Annual premium of $1200 policy is cancelled after 3 months, $300 earned premium, $900 unearned premium

109
Q

Manual rating

A

Underwriter uses that rate published in the manual rating book. Risk may be classified as standard

110
Q

Merit rating

A

Underwriter uses the manual rating and makes adjustments to rate based on variables if insured and risk

111
Q

Judgment rating

A

Allows underwriter to use his/ her own experience and judgement. No manual is used

112
Q

A third party

A

Files claim against the responsible party at fault / insurance company

113
Q

Meaning of claims- first party claims

A

Insured files a loss against those own insurance/personal proper losses or third party claims: liability claims files against the insureds insurance company. The insured is being held responsible for the losses of third party

114
Q

Subtogation

A

Defines as the transfer if injureds party’s rights against party at fault, to their own insurance company, that has paid then for their losses instead of having to wait for party at fault to pay for losses: assigns the rights of the insureds party

115
Q

Arbitration rights

A

Are granted when a loss gas been sustained and the injured party does hit agree with the losses covered or amount if payment agreed to be paid by insurance company. Insurer and insured do not after on amount to settle a claim

116
Q

Loss reserve

A

An estimate if the total amount that an insurers will pay for future claims and current losses, pending proof of loss

117
Q

Assignment

A

A provision that states policy rights or interest may be transferred, only if approval by the officer if the insurance company

118
Q

Difference between property and property liability insurance

A

Property insurance can cover real or personal property, whether personal or business. Liability insurance is written to protect the insured/business against the claims if third parties when insured is found at fault or responsible (on a personal, professional it business level)

119
Q

Concurrent policies

A

When the insured has two or more picked covering the same insured, terms, conditions, coverages and property. When a loss occurs the insurer will pay a proportionate share. Versus non concurrent policies- one policy becomes primary and the other will pay on excess basis

120
Q

Concurrent causation

A

When two perils occur, and one peril is covered and the other peril is excluded. Under concurrent causation all losses will be covered. Versus non concurrent causation that has an exclusion that stated, there will be no coverage for the perils specifically excluded, even if two or more perils occur in any sequence. Perils excludes will not be covered

121
Q

Liberalization

A

Means In the scent that insurer creates a contract revision during policy period, the broadest form of coverage will be provided without additional premium.

122
Q

Supplementary payments

A

Are defined as a form of additional insurance to defend insured against legal costs as a result of third party claims (liability)

123
Q

Severability provision

A

Allows terms inside contract to be separate from each other so that the insurance protection is valid. It Also states that each party insured under the contract shall be provided separate coverage, up to policy limits for each insured

124
Q

Warranty

A

Is a statement if fact. It may be either expresses it implied, but must be truth

125
Q

Express warranty

A

Is a statement in the policy if a matter relating to the person being insured, or thing being insured, or risk wing insured

126
Q

Implied warranty

A

Includes in the contract, even though bit specifically stated. It may qualify as a representation or as an implied warranty

127
Q

Misrepresentation when found guilty

A

May be charges with misdemeanor, punishable by a fine of up to $25,000 or if victim suffered loss of over $10,000, agent may be required to pay up to 3 times the amount of loss and up to one year in jail. Commissioner may revoke license after a hearing

128
Q

Distribution systems

A

Are a means insurance companies use to sell their insurance products, insurance producers, independent/ exclusive, direct writing/ direct mail and internet

129
Q

Admitted insurer

A

Means any person entitled to transact insurance business in this state, after satisfying the laws/ conditions in the state of CA without regard to origin, and holds a certificate of authority

130
Q

Foreign insurers

A

Are organized outside the laws of CA.

131
Q

Alien insurer

A

Organized outside the United States, whether admitted or not

132
Q

Domestic insurers

A

Organized under the laws of their home state, whether admitted or not

133
Q

No -admitted

A

Means any person not entitled to transact insurance business in this state, whether by reason of failure I comply with the conditions or inability to comply

134
Q

Unlawfully acting, aiding, assisting, or advertising for an insurer without a certificate of authority

A

Is a misdemeanor or subject to $500 plus $100 for each month in which the violation continues

135
Q

Person under the insurance code

A

Is any natural Person, corporation. Association, organization, partnership, business trust, it limited liability corp (LLC)

136
Q

Marketing methods

A

Insurance companies May marker their insurance products by mass marketing, direct response or insurance producers

137
Q

Insurance producers

A

Have a legal relationship as agents to insurer and insured. Agents have a fiduciary responsibility to both parties that have trusted them

138
Q

Underwriting applications

A

Requires the gathering if additional information in order to evaluate risk for selection, classification, and rating if the policy to be issues

139
Q

Insurance agent

A

A person authorized by, and on behalf if, an insurer to transact all classes of insurance other than life

140
Q

Insurance biker- section 1623 CIC

A

A licenses person who has a written agreement from the insured, and is transacting insurance in behalf if the insured

141
Q

Insurance solicitor- section 1624 CIC

A

A licenses natural person, that must be appointed by an agent or broker, and hold permanent broker-agent license

142
Q

Authorities if MGA

A

Are granted specified geographic territories, have the ability to appoint and terminate agents under their agency, are able to act as underwriters, and can collect premiums from their producing agents

143
Q

MGA- section 769.81 (C)

A

Negotiated and binds ceding reinsurance in behalf if the insurer. Acts as an agent, and produces and underwrites gross direct written premiums, equal to or more than 5 percent, of the policyholder surplus, as reported in the insurers last annual statement

144
Q

Property broker-agent it casualty broker-agent licensee

A

A person that is authorized to act as an insurance broker, insurance agent, or insurance solicitor, and has the authority to transact 24 hour coverage and any coverage that a personal lines licensee is authorized to transact

145
Q

Personal lines licenses, section 1625.5 CIC

A

A eosin authorized to transact personal automobile, homeowners, watercraft, inland marine, excess, and umbrella insurance

146
Q

Insurance adjusted

A

A person, other than a private investigator, who, for compensation, acts in behalf if or aids in any manner, an insurer in the negotiating for it effecting the settlement of a claim or claims

147
Q

Public insurance adjusted

A

A person who, for compensation, acts on behalf of or aids in any manner an insured in the negotiating for, or effecting of, the settlement if a claim or claims for loss or damage under an insurance policy

148
Q

Surplus line and special surplus line broker, section 1761 CIC

A

Authorized to transact insurance with non admitted insurers, in the event the risk has been rejected by at least three admitted insurers

149
Q

Errors and omission (E&O) coverage available

A

They are: professional liability, directors and officers, and malpractice

150
Q

Definition if transact

A

any person who transacts insurance on behalf if an admitted insurer, must hold a valid insurance license to receive insurance commissions. If not licensed, may be guilty if a misdemeanor, punishable by a fine up to $50,000 and/or jail up to 1 year

151
Q

Solicitation- section 35 (a) CIC

A

The initial contact with the possible purchaser, and includes: calling to set up appointment, passing out flyers or brochures, and hanging out business cards

152
Q

Life broker or health broker

A

Under the CA insurance code, life or health brokers do not exist

153
Q

WhT constitutes transaction of insurance - section 35 CIC

A

The solicitation of insurance, negotiations preliminary to execution if insurance contract, and transaction if matter subsequent to and arising out of a contract of insurance

154
Q

Negotiation -section 35 (b) CIC

A

Gathering information to discover beds/risk and reviewing premiums, coverages, deductibles, types and amounts if insurance, and terms if coverage. Anne’s if insureds to be protected, which leads to execution

155
Q

Execution of a contract of insurance -section 35 (c) CIC

A

Is when agent issues a binder/covering note. Or when the insured signs application, the agent collects check/premium, and then the policy is issues

156
Q

Transaction of matters subsequent to, and arising out of, a contract of insurance m, include:

A

Policy delivery, annual reviews, changes to policy, filing claims, updates to policy coverage, and renewing policy

157
Q

Insurance broker

A

Someone paid, by written agreement, for transacting insurance in behalf of the insured

158
Q

Know life settlement brokers

A

They are licensed to assist the insured to find the best buyer for their existing life insurance policy

159
Q

Code prohibits certain actions by unlicensed peesons

A

It’s prohibits any person to solicit, negotiate or execute and type of insurance contract, or act in any capacity for which a license is required/ shall be guilty if a misdemeanor, punishable by a fine bit to exceed $50,000 or up to one hear in jail or both

160
Q

Life settlement broker

A

It is prohibited to place before the public, directly or indirectly, any means if communication for the purpose if inducing public to purchase, well, assign, devise, or bequest an insurance policy

161
Q

Life settlement brokers, when an insured is terminally I’ll -section 10113.3 CIC

A

Must obtain a written statement from an attending physician that the owner of the policy is of sound mind and under no constraints or influence to enter into contract

162
Q

Life agent

A

May submit proposal for a life policy in behalf of the insurer, to which the agent is not appointed with, provided the insurer submits notice of appointment within 14 days after agent has submitted the insurance application

163
Q

Effect if the code regarding termination if producers license

A

States, upon death if insurance producer, license shall terminate it cease to exist

164
Q

Change if address -section 1729 CIC

A

Must be notified in writing immediately

165
Q

Differentiate between an insurance agent, an insurance broker and an insurance solicitor

A

An agent is appointed by an insurer. A broker is required to have on file. $10,000 bond, on the favor if people of CA. An insurance solicitor is a natural person appointed by an agent or broker to work on their behalf

166
Q

Insurance agents errors and omissions insurance

A

Is professional liability insurance, an is the responsibility of the agent to purchase in case they are used by the insured for an unintentional error or omission

167
Q

Rules regarding fictitious names

A

Must first be filed for approval with the insurance commissioner

168
Q

Identify the prohibitions if free insurance

A

No insurer or agent shall participate in any plan to offer or effect any kind insurance or annuities as an inducement to purchase or rent any real or personal property or services, without a separate agreement and charges for insurance

169
Q

All agency names, or use of name by any person transacting in this state

A

Shall file all names used when transacting insurance. All names may be disapproved by insurance commissioner, except the bona dude natural name

170
Q

Agency barn, use of name

A

Broker agents or life agent who have a contract with corporations or associations m, licensed under the code, must clearly identify in advertisement or printed material, name of corporation or association, and their relationship

171
Q

Rules regarding internet advertising

A

The licensed agent who advertises on the internet shall identify name as it appears on their license, any fictitious name approves by insurance commissioner, principal place of business and the insurance license number: phone number is not required

172
Q

Licensee’s duty for disclosure of the effective date of coverage

A

A life agent, or fire and casualty broker-agent, shall provide to all insureds/applicants at time if application, or upon receipt if premium, the effective date if coverage, if known, or circumstances or conditions before coverage is effective

173
Q

Be able to identify the code specifications regarding producer application denial after a hearing -section 1668 CIC

A

If applicant is not properly qualified to perform the duties if a person holding the license, ten granting license would not be in the best interest of the public. Applicant is lacking integrity, bit trust worthy, or has enhances in dishonest matters.

174
Q

Applications filings and suspension or revocation of license without a hearing

A

Applicant with a conviction of felony, applicant who was convicted if a misdemeanor denounce by insurance laws; or application denied for cause within the past 5 years for a vocational or occupational license, or had a license suspended or revoked for cause wishing past 5 years

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