pc_flashcards
What is the statute of limitations for PIP coverage?
2 years
Medpay covers medical expenses incurred up to how long after dol?
2 years
How long does an insured have to complete an auto proof of loss?
91 days after dol.
What is the statute of limitations for PIP coverage?
2 years
How does contribution by equal shares work? If insurer A provides $150,000 of coverage, insurer B provides $50,000 of protection and there is a $125,000 covered loss, how much will each insured pay?
a. Insurer A pays $75,000 and insurer B pays $50,000
b. Insurer A pays $125,000
c. Insurer A pays $50,000 and insurer B pays $75,000
d. Insurer A pays $100,000 and insurer B pays $25,000
Insurer A pays $75,000 and insurer B pays $50,000
In most insurance policies, a written proof of loss must be submitted by an insured to an insurer within:
60 days of the carrier’s request
All of the following are true regarding the Second Injury Fund, EXCEPT:
a. Workers’ Compensation medical benefits in this state are paid by the Second Injury Fund
b. It is designed to pay all or part of the additional compensation when a subsequent injury occurs
c. It encourages employment of persons with a physical impairment
d. The source of the fund is a 1/4 percent premium tax on insurance companies
a
Which statement is not true regarding Workers’ Compensation rating?
a. Premiums are determined by multiplying a manual rate by each $100 of payroll for that particular classification
b. For each job classifications code there is a manual rate
c. Rates are higher for high-risk occupations than for low-risk occupations
d. The premium base for each job classification is payroll
a.
Covered Perils on DP-1 (Coverage A&B)
Fire, Lightning, Internal Explosion. EC & VMM by end.
EC Perils
VWSHAVER: vehicles, wind, smoke, hail, aircraft, volcanic eruption, explosion, riot
Broad Form Perils
BIGAFFECT: burglury dmg, ice/snow weight, glass, accidental discharge water/steam, falling objects, freezing pipes, electrical damage, collapse, tearing/cracking/burning or bulging
Covered Perils DP-2 (Coverage A&B)
Everything on DP-1, EC, V&MM, Broad form perils (BIGAFFECT)
Covered Perils DP-3 (Coverage A&B)
Open on A, B. Broad Form on C.
One eruption = __ hours?
72
Covered Perils HO-2
Fire, Lightning, Internal Explosion , V&MM, EC, Broad Form (BIGAFFECT)
Covered Perils HO-3
All risk A & B, HO-2 perils on C, Theft
Coverage C is __% of A?
50
Coverage Parts on a DP-1?
A. Dwelling, B. Other Structures C. Personal Property D. Loss of Rents
Property Removed on DP-2 & DP-3?
30 days
Is a borrowed 250 hp boat covered under HO?
Yes
Is owned boat with 25 hp covered under HO?
Yes
Is 27’ owned sailboat covered under HO?
No. 26’ max.
Is rented 49 hp i/o covered under HO?
Yes. < 50 hp i/o covered
Definition of one earthquake?
72 hours
CPL covers?
Named Insured, resident relatives, under 21 in insured’s care (foster child), resident relative under 24 at school
Coverage B is __% of Coverage A?
10%
Sublimit on HO for jewelry, watercraft, trailers, electronic apparatus & valuable papers.
$1,500
Sublimit on HO for firearms, silverware, business property on premises
$2,500
HO sublimit for business property off-premises
$500
What are trees shrubs and plants covered for on a HO?
TVVFLARE, Theft, Vandalism, Vehicles of Others, Fire, Lightning, Aircraft, Riot, Explosion
HO policies include a $____ limit for loss assessment?
$1,000
What are the coverages under a Building Personal Property?
A. Building B. Business Personal Property (within 100 ft)
How much for cleanup on BPP?
25% of amount paid on fire loss + additional $10k
How much coverage is there for new buildings on BPP(if insured to value)?
$250k
How much does a DP coverer for a tree?
$500
How much does HO cover for tree?
$500
How much does CPP cover for tree?
$250
When is a multi-unit office building vacant under CPP?
More than 70% unoccupied
Basic CPP Cause of loss perils
SDEVVS Sprinkler Leakage DP-1 E.C volcanic action V&MM sinkhole collapse
Broad CPP Cause of loss perils
FBGIWC Falling objects Basic Perils Glass Ice, weight of (and snow) Water, internal Collapse
Special CPP Cause of loss perils
Open, includes theft, no coverage for cash
What are the coverage sections on CGL?
A. BI and PD (Premises and ops, Products & Completed Operations, fire legal) B. Personal Injury/Advertising C. Medical Payments
Covered contracts under CGL:
LEASE: Lease, Easement, Agreement with municipality (sign permit), Elevator maintenance agreement
Fire Legal Limit on CPP
$100k
Symbol 1 BAP
Any auto - liability
Symbol 2 BAP
Owned BI/PD & physical damage
Symbol 3 BAP
Owned private passenger for BI/PD & physical damage
Symbol 4 BAP
Owned other than private passenger for BI/PD
Symbol 5 BAP
Owned - no fault
Symbol 6 BAP
Owned - uninsured
Symbol 7 BAP
listed - BI/PD, physical damage
Symbol 8 BAP
Hired BI/PD (rent for business trip)
Symbol 9 BAP
Non-owned - BI/PD
What does equipment breakdown cover?
The vessel, Physical damage to building and contents, Liability, Expediting expenses $25,000, Accidents from disintegration not breakdown
Size limit for apartment buildings under BOP?
None
Size limit for office buildings under BOP?
6
Are contractors eligible for BOP?
No
Are banks eligible for BOP?
No
Are car dealers eligible for BOP?
No
What are two cause of loss forms available for BOP?
Standard, Open
What are covered perils on standard peril BOP?
FVLVESTS Fire, Volcanic, Lightning V&MM EC Sprinkler leakage Transit Sinkhole
Is business income included in BOP?
Yes. No co-insurance
Is extra expense included in BOP?
Yes
What is standard BOP deductible?
$500
Under protective safeguards credit, how long can sprinklers be shut off before notifying insurance company?
48 hours.
What does time element utility services endorsement cover?
Loss of use and income
What does direct damage utility services endorsement cover?
Property (florist)
What are coverage parts on Farm Coverage
(A-D = HO Sec 1) A: Dwelling, B: Private Structures C: Personal Property D: Loss of use ? E. Scheduled Farm Property F. Unscheduled Farm Property, G: Farm structures H: BI/PD (premises/operations) I: Personal & Advertising liability J: Med Pay
What are 3 cause of loss forms on Farm?
Basic, Broad, Special
3 Common law defenses for employer on WC:
1) employee negligence 2) fellow employee negilgence 3) assumption of risk
What are wc coverage parts?
- Statutory: Cash (wages), medical (no limit), rehab/retrain, survivor 2. Employers Liability: 3’rd party legal suits, family suing for loss of child/etc,
Which states are monopolistic for WC?
NOWW ND, OH, WA, WY
What is Employer’s liability limit on WC?
$100k/accident, $500k aggregate, $100k disease
What are the 4 types of coverage under WC Part II (employer’s liability?)
3’rd party over, dual capacity, consequential injury to 3’rd party, care & loss of services
This wc endorsement adds coverage for state exempt workers
voluntary compensation
Which workers are exempt from wc?
domestic employees, part-time, casual (contractors)
How long are children of injured worker paid through wc if father dies on job?
to 18 or out of college.
What are the 3 parties to a bond?
Surety, Obligee, Principal (The surety is obligated to indemnify the obligee against acts of the principal)
Bid that guarantees the difference in bids from low bid to next higher bid if a contractor doesn’t finish a project.
Performance bond.
bond that protects an employer from an employee
Fidelity bond
What are coverages on Flood policy?
A: Dwelling B: Contents Additioal: Sandbagging $1k no deductible
Minimum flood deductible?
$2,000
Waiting period for new flood policy (except when federally backed mortgage)
30 days
Who are parties to viatical settlement?
Viatee (Firm buying policy from insured) Viator (insured), Broker (negotiator)
Cost of producer license?
$225
Expiration of producer license?
3 years
If broker license laps for less than 12 months what is penalty to renew?
Double license fee
If broker license laps for more than 12 months what is penalty to renew?
Retake exam
What are requirements for Advisor license?
Resume, 18 yo, test, honest, license fee $200 (3 years)
How long to notify commissioner of new appointment?
15 days from nb or agency contract signed
How long to notify commissioner termination of appointment?
30 days notice to commissioner, 15 days notice to agent
How many ces for 1’st 3 year period?
60
How many ces after 1’st 3 year period?
45
Who prosecutes violation of insurance laws?
AG
Who makes insurance laws?
Legislature
Who administers insurance laws?
Commissioner
What does the commissioner require of insurer’s with regard to monitoring their solvency?
statement of financial condition every 5 years, paid for by insurer.
Penalty for violating cease & desist order
$10k
Fine for Larceny & Misrep?
$1,000
Fine for things other than larceny & misrep?
$500
Penalty for Misrep
MISREP - 6 letters - 6 mos jail ($1k fine) ? others get 6 months jail
Penalty for Rebating, Fraud & Larceny?
Rebating $500/6 mo, Fraud $1k/ 6 mo, Larceny $1k/1 year
Penalty for embezzlement
5 years jail, 15 years jail if company bankrupt
notice insurer has to give to agent to cancel contract
180 days
Time allowed for producer to give new address to commissioner?
30 days
Cancellation dates HO: nonpay?
10 insured/20 mortgagee
When policy is < 60 days old when can company cancel for any reason?
5 days insured/20 days mortage
What can company cancel HO for after 60 days?
Fraud, misrep in app, increase in hazard, convition of crime that increases risk
How long for non-renewal?
45 days (other states = 30)
How much notice has to be given on liquor liability?
30 days nonpay, 60 days other
Waiting period for wc payments?
5 days. Once person is out for 21 days then the first 5 days are paid.
How much of wage is paid for permanent disability?
66.67%
How much of wage is paid for temporary disability?
60%
What are wages based on?
last 26 weeks
How much are alterations, improvements and additions covered for under DP1?
10% of coverage C
Maximum part A and B flood limts?
$250k/$100k
Good policy for travelers?
personal effects
Coverage D limit on a DP1 policy?
20% of A
How much is available for improvements, alterations and additions on a DP1 policy?
10% of coverage C
How much notice does an insurer have to give to cancel a CPP policy for nonpayment of premium?
10 days
How much notice does an insurer have to give to cancel a CPP policy for a reason other than nonpayment?
30 days
What is the limitation for personal property of others on business personal property policy?
$2500
How much is covered under coverage a building coverage for debris removal?
Up to 25% of the amount the insurer pays for damage to the property, plus an additional $10,000 if needed
On a business personal property policy what is outdoor property covered against?
FLARE
Definition of occurrence on the earthquake form of a cpp.
168 hrs
Mnemonic for BAP symbols.
Fun shore great wine, Dive Tricks
A, O, OPP, NOPP, O, O, S, H, N
How much coverage for civil authority is there under the business income form?
Up to four consecutive weeks
