Module 2: Property and Casualty Insurance Flashcards
Peril’s of Basic Coverage (12)
- Fire
- Hail
- Vehicles
- Expulsion
- Lightning
- Riot
- Smoke
- Volcano
- Windstorm
- Aircraft
- Vandalism
- Theft
Peril’s of Broad Coverage (Basic plus 6)
- Falling Objects
- Ice, Sleet, Snow weight
- Overflow from a stream
- Sudden accidental tearing apart, cracking, burning or bulging of a steam, hot water, air conditioning or auto fire sprinkler
- Freezing of plumbing, heading or A/C
- Sudden or accidental damage from an artifically generated electrical current
Open-Peril’s Coverage Exclusions
- Earthquakes
- Flooding
- Neglect
- War or Nuclear
- Power Failure
- Intentional Loss
Homeowners Coverage A
Insures the dwlling, including additions and other structures, also provides limited coverage on landscaping around the dwelling
HO Coverage B
Detached Structures
HO Coverage C
General Personal Property not specifically named within the contracts
HO Coverage D
Loss-of-use coverage, includes expenses incurred while dwelling is uninhabitable due to damage caused by a covered peril
HO Coverage E
Comprehensive Liability
HO Coverage F
Medical Payments to others, claim expenses or damage to property of others
HO-2 Form
Broad Form - provides broad coverage for the dwelling and personal property
HO-3 Form
Coverage A+B - Open Peril
Coverage C - Broad Form
Coverage D - Open Peril
HO-4 Form
Renters Insurance
Coverage C+D - Broad Form
HO-5 Form
Comprehensive Form
Open Peril for all coverages
HO-6 Form
Condo Owners Form
Broad Form for all and Coverage B included in Coverage A
HO-8 Form
Modified form for specific risk, for those who live in an older home that has replacement cost exceeding market value. Covers basic peril’s only.
General Exclusions
- The cost of bringing up a partially hurt room to code
- Earth Movement
- Water Damage - external water not covered
- Power Failure
- Neglect
- War or Nuclear Hazard
- Intentional Loss
Coverage C Exclusions
- Items covered by other insurance
- Animals
- Motrized Land Vehicles
- Aircraft and parts
- Business books of accounts
- Credit Cards
- Property of other tenants
- Rental Property Items
Flood Insurance
Primary provider is the government through the National Flood Insurance Program
High Value Property Coverage
Tough to come by sometimes because the law of large numbers
HO-15 Rider
Provides open-peril coverage to personal property
Coinsurance Penalty Formula
amnt of ins/amnt of ins. required * loss - deductible
ACV
Replacement cost minus depreciation
Inflation Guard Endorsement
Automatically increases the dwelling coverage each year by an amount that is usually tied to an index.
Personal Liability Exclusions (8)
- Business Pursuits
- Rental of Property
- Professional Liability
- Motor Vehicles
- Watercraft
- Aircraft
- Communicable Disease
- War, Sexual Abuse, Drug Use, Contract Liab, Workers Comp, Nuclear Peril
Personal Injury Liability
libel, slander, defamation, alse arrest, false detention
Personal Liability Umbrella Policy (PLUP)
Broadens overall coverage, still need underlying policies but adds more coverage.
PLUP Exclusions
aircraft, watercraft, business pursuits, professional services, workers compensation, intentional harm
Personal Auto Policy Factors (5)
- Age and Gender of Drive
- Use of Vehicle
- Type of Vehicle
- Drivers Record
- Credit
Personal Auto Policy Loss Coverages (3)
- Legal Liability
- Injury to the insured family
- damage to the vehicle
Parts of a PAP
Part A: Liability Coverage Part B: Medical Payments Part C: Uninsured Motorist Part D: Damage to your Auto Part E: Duties after accident Part F: General Provisions
Type of Physical Damage Coverage
- Collision Damage - when auto hits something else
- Comprehensive Damage - when natures hits the auto
PAP Endorsements (5)
“Coverage for toys”
- Extended liability coverage
- Named non-owner
- Misc. Vehicle Endorsement
- Motorhome endorsement
- Special Antique Motor Vehicle Coverage
Categories of Business Owners Coverage (7)
- Commercial Property
- Boiler and Machinery
- Transportation
- Crime
- Commercial Liab
- Commercial Auto
- Workers Comp and Employee Liability
Business Owners Policy (BOP)
for smaller business owners who don’t want a monoline insurance
- Business Owners Common Policy Condidtions
- Business Owners Property Coverage
- Business Owners Cause of Loss and Exclusions
- Business Owners Liability Coverage
Commercial Package Policy
for larger businesses
- Generally includes coverage for buildings and content with general liability.
Commercial Liability Insurance
- non auto, non employee injury liability
comes in: - Employer Liability Insurance
- Directors and Officers E+O INsurance
- Employment Practices Liability Insurance
Professional Liability Insurance
- Malpractice
- Defense and Settlement
- E+O Insurance (for financial harm)
Social Insurance
- Workers Compensation Insurance
- Unemployment Insurance
Assessed Value
- What the taxing authority places on the property
