Misc. Personal Lines Flashcards
a form of coverage used to insure moveable property against direct loss. Since moveable property is known as floating property, the word floater is often used.
can be attached by endorsement to a Homeowners or Dwelling Policy
Personal Inland Marine Insurance
basic form used to insure “individual” items of personal property on a scheduled basis. Claims are normally settled on an “actual cash value basis” with some exceptions.
worldwide w/ exeptions, open perils basis few exclusions(wear and tear, insects, vermin, intentional loss, war)
Personal Articles Floater (Scheduled Article Floater)
Personal Articles Floater (Scheduled Article Floater)
Coverage may be provided for classes of property consisting principally of the following:
Jewelry Furs Cameras Musical Instruments Silverware and Goldware Golfer’s Equipment Fine Arts Stamp Collections Coin Collections China and crystal
If a covered loss occurs to an item that is part of a set, the value of the remaining item(s) is reduced based on the difference between the value of the total set and the value of each item individually.
clause specifies the conditions and the policy limit should this type of loss occur.
“Pair and Sets Clause” under Personal Jewelry Floater
When insuring most items on a floater, the insured must submit an ______ that documents both a description of the property to be insured and its value.
appraisal
Newly acquired items are automatically insured if they are _______ already insured by the floater. The limit of coverage is no more than a specific percentage of the value shown on the schedule. Automatic coverage for newly acquired items is only provided for______
the same class of property; 30 days
This floater provides open peril coverage for items worn or carried by tourists and travelers. The coverage applies worldwide, but not at the insured’s home.
Personal Effects Floater
This floater covers such items as paintings, etchings, pictures, tapestries, rare manuscripts, and antiques. The floater provides automatic coverage for 90 days for newly acquired items.
Fine Arts Floater
Coverage for personal effects floater and fine arts floater is usually written on a ________.
Additional exclusions include:
Loss caused by the restoration or repairing process.
Breakage that is not caused by fire, lightning, explosion, aircraft, collision, windstorm, earthquake, flood, malicious mischief, theft, or derailment or overturn of a conveyance.
Mysterious disappearance.
valued, or agreed, basis;
The insured items are scheduled, with the exception that blanket coverage is provided on items such as shades, filters, etc. Automatic coverage is provided on newly acquired items for 30 days at a limit of insurance up to 25% of the limit designated on the schedule.
Cameras Floater
No coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. The insured must report newly acquired items within 30 days.
Musical Instrument Floater
Which of the following types of property are covered by the Personal Effects Floater?
A
Coin collections
B
Paintings, etchings, and pictures
C
Golfer’s equipment
D
Personal property carried by travelers
D: Personal property carried by travelers
This floater covers a traveler’s personal property on an open perils basis anywhere in the world EXCEPT at the insured’s home. (The types of property listed in the other answer choices would require the Personal Articles floater.)
a package policy that provides both property and liability coverage and is similar in design to the homeowners policy. The coverage it provides is similar to that provided by the personal auto policy. The policy is generally used to insure boats that can be towed by a car.
Boatowners Policy
Section I of a boatowners policy provides:
open perils coverage for the hull, motor, trailer, equipment, and accessories manufactured for marine use. Losses are settled on an actual cash value (ACV) basis.
Section II of a boatowners policy provides:
Watercraft Liability, Medical Payments for passengers, and Uninsured Boaters coverages. (Does not include Personal Injury Liability.)
designed for larger vessels, many of which have crew members. Larger vessels are normally insured under the complete package of yacht coverages, which includes in addition to Hull Insurance, Protection and Indemnity and Medical Payments.
Yacht Policy
when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. If the insured operates the yacht during the —- period (or lives on it), no coverage is provided.
“Lay Up Warranty”
In a yacht policy, The insured does NOT have coverage if the boat is:
navigated outside the designated territory. If the insured wishes to change or broaden the navigation territory, the insurer must issue an endorsement.
In addition to providing property and liability coverage, a yacht policy also offers the following coverages:
Protection and indemnity coverage for the insured’s legal liability for bodily injury and damage to property of others.
Personal property coverage for property on the yacht.
Coverage for fuel spills, commercial towing, and dinghies.
————-requires the use of a special form designed to fill in the coverage gaps contained in a property policy. There is no standard policy form
Difference in Conditions (DIC)
DIC Coverage is generally written on————–basis
an open perils basis, excluding losses by perils that are covered under standard property forms (such as fire, lightning, windstorm, hail, etc.).
—–form is often written to provide coverage in the event of earthquake, flood, collapse, and subsidence. does not contain coinsurance or pro-rata cause. normally carries a high deductible
Difference in conditions (DIC)
may be added to most homeowners policies by endorsements and, in some jurisdictions, such as California, may also be purchased as a separate policy.
Earthquake endorsement
In order to be considered a single occurrence, the Earthquake endorsement covers all earth movement that occurs within what time period?
A
12 Hours
B
72 Hours
C
48 Hours
D
36 Hours
B: 72 hours
Earth movement includes earthquakes, land shock waves or tremors, landslides, mudslides, mudflows, sinkhole, and the rising, sinking, or shifting of the earth, and must occur within 72 hours.
a federal program that enables certain property owners to purchase _____insurance. ——- administers the program under FEMA. Fed government makes payment for, or subsidizes all ____losses
National Flood Insurance Program (NFIP); flood
Flood policies are available from participating private insurers who participate in the ________
Write Your Own (WYO) Program, and directly from the NFIP.
True or false: Agents do not have authority to bind coverage with the NFIP
True: Agents do not have authority to bind coverage with the NFIP, but all licensed agents and brokers may write flood insurance with the NFIP.
Communities in flood-prone areas must have established an approved flood control program in order to participate in the NFIP and are called:
participating communities.
Flood policies provide protection for _____ loss to insured property such as a dwelling and its contents
direct
To be considered a flood:
he land MUST be normally dry land and the flood must involve:
2 or more acres of the insured’s land, OR the insured’s entire piece of property AND an adjacent piece of property
The inundation of land may be the result of:
Overflow of inland or tidal waters, such as a tidal wave generated by a hurricane
Unusual and rapid accumulation or runoff of surface waters
Mudflow caused by accumulation of water
Collapse or destabilization of land along a shoreline resulting from erosion or the effect of waves or water currents exceeding normal, cyclical levels
Dwellings eligible for flood coverage must have: 2 or more rigid outside walls, a fully secured roof, and be affixed on a permanent foundation.
2 or more rigid outside walls, a fully secured roof, and be affixed on a permanent foundation.
