P&C Flashcards
Open Perils:
all perils are covered except those specifically excluded.
Open Perils Exclusions:
Typical exclusions include neglect (termite damage), flood, war, intentional acts, earthquake, etc.
Basic Named Perils Include:
Fire, Vehicles, Lightning, Smoke, Windstorm, Vandalism, Hail, Explosion, Riot, Theft, Aircraft, Volcano
Broad Named Perils:
(Include Basic Named Perils) Plus:
Falling Objects, Weight of ice, snow, sleet, Accidental overflow of water, Sudden bursting of appliances, Freezing of system or appliance, Damage from electrical current
GENERAL EXCLUSIONS FOR ALL HO POLICIES
Movement of ground, Ordinance or law, Damage from water, War or nuclear hazard, Power failure, Intentional act, Neglect.
What are Basic Section I Coverages for Homeowners:
A: Dwelling
B: Other Structures
C: Personal Property
D: Loss of Use
What are Basic Section II Coverages for Homeowners:
E: Personal Liability
F: Medical Payments to others
Assignment of a Homeowners policy to another
is not valid without the insurance company’s
written consent.
The insured may be required to assign his or her
right of recovery against a third party if the
insurance company pays for a loss caused by
the third party (subrogation).
The policy is void if the insured willfully
misrepresented or concealed any material fact
concerning the insurance.
Coinsurance Formula is:
(Amount of Insurance Carried / Coinsurance Requirement) * Amount of Loss
EXCLUSIONS TO COVERAGE F
(MEDICAL PAYMENTS) ONLY
- Sustained by the insured or any family member
- Sustained by a regular resident of an insured location
- Sustained by a residence employee of the insured that occur outside of the scope of employment
- Sustained by anyone eligible to receive benefits for their injuries under a workers’ compensation or similar disability law
- Resulting from nuclear reaction, radiation, etc., regardless of the cause
HO-2 Broad Form
Covers both basic and broad named perils (1-18)
HO-3 Special Form
Provides coverage on dwelling and other structures on an open perils basis.
Personal property is covered on a named perils basis.
Allows loss of use on an open perils basis and the personal property coverage is 50% of the insurance on the dwelling.
Provides coverage on the same perils as HO-2 but an endorsement can be added so that personal property is covered on an all risk basis.
HO-4 Contents Broad Form
(designed for renters)
*Designed for tenants, and provides protection for furniture, clothes, and other personal property against the same perils as HO-2 Broad Form.
* Loss of use coverage is limited to 30% of the amount of Coverage C (personal
Property).
* Tenant’s improvements and betterments coverage protects the insured for use value for any additions, installations or improvements made by the insured to the rented dwelling.
* This coverage is limited to 10% of the amount of personal property coverage.
HO-5 Comprehensive Form
Dwelling and personal property covered on an open perils basis.
HO-6 Unit Owners Form
designed for condo owners
* Covers basic and broad named perils, but not building coverage
* The insurance responsibility in a condo arrangement is divided between the condo
unit owner and the condo association.
* Provides coverage for the personal property of the condo owner for the same named perils as HO2.
* Provides for loss of use coverage equal to 40% of the amount of Coverage C (personal property).
* Provides coverage for building alterations and additions, which include appliances, fixtures, real property that pertains exclusively to the insured’s premises, property that is the insured’s responsibility under the condo association agreement and structures owned by the insured other than the condo unit.
* Endorsements can be added to HO-6 to provide open peril coverage on the unit owner’s building items (carpet, inside walls), personal property, loss of unit rental and assessment coverage.
HO-8 Modified Form
- Covers repair rather than replacement cost, basic perils are covered
- Designed to cover losses to structures where the replacement cost for the home exceeds the market value for the home.
- Theft coverage applies to the premises only and is limited to $1,000 per occurrence.
- May cover dwelling using current materials and labor rather than attempting to replace older materials and craftmanship.
List PERSONAL AUTO INSURANCE POLICY Part A-F
Part A: Liability Coverage
Part B: Medical Payments
Part C: Uninsured Motorists
Part D: Coverage for Damage to Your Auto
Part E: Duties After an Accident or Loss
Part F: General Provisions
A covered auto is defined as any of the following:
- Any vehicle shown in the policy declarations
- Any new vehicle in addition to those shown in the declarations,
but only for 30 days or until the new vehicle is reported to the insurer.
The insurer will charge a premium from the date the vehicle was acquired.
The new vehicle will have the broadest coverage provided on any declared vehicle for the 30-day period. - Any trailer the insured owns
- Any auto or trailer that the insured does not own, but that is used as a temporary substitute while a covered vehicle is unavailable due to loss, breakdown, repair, service, or destruction
PERSONAL AUTO POLICY Part A Covers:
Liability Coverage;
Split Limits: 50/100/25
* Bodily Damage Per Person
* Bodily Damage Per Occurrence
* Property Damage Per Occurrence
PERSONAL AUTO POLICY Part B Covers:
Medical Payments:
Per Person, Per Occurrence Basis
Covered persons include you or any family member while occupying the auto, you or any family member as a pedestrian struck by an auto, any other person while
occupying your covered auto.
PERSONAL AUTO POLICY Part C Covers:
Uninsured Motorists:
* Pays what an underinsured or uninsured driver should have paid.
* Underinsured or uninsured motorist must have been at fault.
* Covered persons include you or any family member while occupying the
auto, any other person while occupying your covered auto, any person who might have been entitled to damages, you or your family member as a pedestrian when struck by an uninsured motorist.
PERSONAL AUTO POLICY Part D Covers:
Provides direct damage coverage on your covered auto
and any non-owned auto (rental or borrowed car).
Insurance company has the option of paying for repairs or actual cash value of auto.
Comprehensive and Collision
PERSONAL AUTO POLICY Part E:
The duties of the insured after an accident or loss:
* Notify the insurer.
* File a proof of loss (affidavit).
* Cooperate with the insurer
in the investigation of the
loss.
* The insured must file a
police report if the cause of
the loss was theft or
uninsured motorist.
PERSONAL AUTO POLICY Part F:
Only provides coverage in the United States, Puerto Rico and Canada.
* A personal auto policy is not effective in Mexico
PERSONAL LIABILITY
UMBRELLA POLICY (PLUP)
A PLUP pays the costs, up to the face of the policy, that result in liability.
* Usually provides legal defense for the insured in the event of a lawsuit.
* A PLUP requires higher liability limits on underlying auto and homeowner policies.
* It is not only for high-net-worth individuals, as liability lawsuits can also garnish future wages from less wealthy insureds.
PERSONAL LIABILITY
UMBRELLA POLICY (PLUP) Exclusions:
- Coverage for bodily injury or property damage if the act that created the injury or damage was intentional
- Liability that is a result of business owned or conducted by the insured
- Liability that arises from rental operation conducted by the insured
- Professional liability
- Liability that occurs on an uninsured location that is owned by the insured
BUSINESS AND PROFESSIONAL INSURANCE
Business Liability Umbrella Policy (BLUP)
Commercial Liability Umbrella Policy (CLUP)
Product Liability Insurance
Business Liability Insurance
Business Auto Policy
The Business Owners Policy
Commercial Package Policy
BUSINESS AND PROFESSIONAL INSURANCE (Other)
Malpractice Insurance
Errors & Omissions
