Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Insurance CFP > Property and Casualty Insurance > Flashcards

Property and Casualty Insurance Flashcards

You may prefer our related Brainscape-certified flashcards:
CFP® flashcards
1
Q

Is a homeowner’s policy a single policy?

A

No it is a series of policy forms for different scenarios

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How many standard homeowner’s insurance services office forms

A

6

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Homeowner’s 2

A

Broad form - designed for owner occupants of 1-4 family dwelling units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Homeowners 3

A

Special form - designed for owner occupants of 1-4 family dwelling units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Homeowners 4

A

Contents broad form - tenants of residential property and owner of a building who lives in the units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Homeowners 5

A

Comprehensive form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Homeowners six

A

unit owners form - owners of condominium units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Homeowners 8

A

Modified coverage form - owner occupants of 1-4 family dwelling units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Homeowner’s Section I

A

provides property coverage, in this section policy forms differ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Homeowner’s Section II

A

liability section - identical in all six forms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Could vacant land have homeowner’s insurance?

A

Yes if its owner or rented to an insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Can you have homeowner’s insurance on a place you are temporarily residing?

A

Yes even if you do not own where you are temporarily residing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Can homeowner’s extend to a cemetary?

A

yes to individual or family cemetery plots or burial vaults of insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How are losses on Coverage A settled?

A

on a replacement-cost basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the amount of insurance under coverages B, C and D

A

a percent of the Coverage A limit
B = 10%
C = 50%
D = 30%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the standard limits for B C and D coverage

A

B - 10% of A
C - 50% of A
D - 30% of A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Can you have endorsements that modify section I and II homeowner’s?

A

Yes
Home daycare coverage
Flood Ins
Earthquake Ins
Inflation guard
Personal property - antiques, fine art, instruments, other collectibles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Coverage A for the Dwelling

A

-property ins for the residence premises listed in the declarations page of the policy
-also applies to structures attached to dwelling like garage, decks, fences, construction supplies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Where would coverage for structures attached to the dwelling fall?

A

Coverage A for the Dwelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does Coverage A not cover

A

-Freezing - plumbing, ac, appliances, fences, pavement, patio, pool, docks foundations, retaining walls
-Theft
-Vandalism
-Wear and tear, marring, deterioration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Under HO-3 Policy - if unexcluded water damage occurs, water damage is covered, what is not covered

A

The system or appliance from which the water escaped

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

If a water pipe breaks and bathroom leaks under H-03 what is covered

A

Fixing the pipe is not covered, but tearing out part of the building to repair the pipe is covered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Coverage B for other structures

A

other structures on the residence that are SET APART by a clear space. Detached garage, swimming pool, garden shed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

If the structure is used for business purposes is it covered under Coverage B?

A

No - but garage can be used to store biz property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Coverage C for personal property

A

-coverage for property other than the residence
-limit is greater than 10% of Coverage C limit or $1000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Coverage C personal property covered what perils

A

Named basis. Includes fire, windstorm vandalism, theft, falling objects, electrical current, volcanos!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How are Coverage C losses settled?

A

actual cash value basis - replacement cost basis can be added through an endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How can you increase the limits for Coverage C?

A

endorsements $200 for monies, $1500 for securities, passports, stamps, $2500 for property used for biz purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Coverage D for loss of use

A

Can live elsewhere while property is repaired or rebuilt - for those named as insured in Sec I

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Coverage E for personal liability

A

damages for which the insured is liable - Typically 100k limit per occurrence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Coverage F medical payments to others

A

$1000 for mdeical expenses for someone who is injured on your property

32
Q

Will property insurance cover things that happen off the property?

A

Yes - caused by insured - caused by employee, caused by animal owned by insured

33
Q

PAP

A

-personal auto policy
-package policy
-property and liability insurance for family members

34
Q

Do motorcycles or off road vehicles fall under PAP?

A

Not ATV - motorcycles added with endorsement

35
Q

How long much the car be owned/leased to be eligible for a PAP

A

6 continuous months or longer

36
Q

How is auto liability coverage split up

A

3 parts
ex 25k/150k/10k
one person bodily injury / max all bodily injury claims / property damage

37
Q

Time limit on medical expense payment for car insurance

A

3 years

38
Q

Part B auto medical payments coverage

A
  • covers if you’re hit as pedestrian
    -covers all in your car
39
Q

Part C uninsured motorist coverage

A

-also covers if persons insurance is less than legal limits
-hit and runs where offender isn’t IDd
-whos insurer denies coverage or becomes insolvent

40
Q

When would you opt out of part D coverage for damage to an auto

A

if your car is old and value has diminished

41
Q

Part D coverage for damage to an auto

A

coverage for physical damage for collision and other than collision

42
Q

“Other than collision” includes

A

falling objects, fire, theft or larceny, earthquake, windstorm, hail, water, flood, malicious mischief or vandalism, riot, bird or animal, breakage of glass

43
Q

PAP Endorsements

A

covers other vehicles motor homes, motorcycles, ATVs, golf carts

44
Q

No Fault Insurance

A

owner required to carry first party insurance to compensate all parties injured by that vehicle

45
Q

Modified No Fault

A

law limits but does not eliminate the right of an injured party to recover damages from a negligent party

46
Q

2 types of Modified No Fault

A

Dollar Threshold
Verbal Threshold

47
Q

Dollar Threshold (modified no fault)

A

if injuries below the threshold, they can collect from first party benefits and can’t sue - if over thresh then can sue

48
Q

Verbal Threshold (modified no fault) think V very bad

A

allows suit if fatal injury, serious injury, serious disfigurement

49
Q

Add on plan (no fault)

A

no restrictions on right to sue negligent party, but first no-fault benefits are available. after that insurance co has subrogation against negligent party

50
Q

Hard to insure drivers

A

find coverage in residual market/substandard market
“available” not necessarily affordable

51
Q

Watercraft

A

-coverage under a homeowners policy
-not for larger boats/little physical damage for any boat.
-large boat available under “yacht policy”

52
Q

personal umbrella liability

A

-protection against catastrophic legal claims/judgements
-smallest usually 1 mil -& up to 5/10mil
-have to have coverage for smaller amounts and umbrella covers when those are used up

53
Q

How Umbrella works re:judgements

A

Auto coverage of 50k and auto accident judgement of 700k - 50k used up and umbrella covers the 650k

54
Q

Commercial Property Insurance

A

-losses to real and personal property
-named or open perils
-endorsements to expand coverage to earthquake and flood

55
Q

Commercial liability ins.

A

-premises liability, injury or damage on site
-operations liability injury or damage from employee or owner off sit

56
Q

Product Liability policy

A

caused by defective product company manufactured or sold

57
Q

Corp Auto liability policy

A

company cars or trucks - fleet policy is often used

58
Q

Biz Umbrella policy

A

losses that exceed the underlying primary policies

59
Q

Professional Liability policy

A

-malpractice against client
- “errors and omissions” for negligence error and omissions

60
Q

Liability occurrence basis

A

damage that occurs during policy period, regardless of when the claim is made

61
Q

Liability occurrence basis

A

damage that occurs while policy is in force, regardless of when the claim occurs

62
Q

Directors and officers liability

A

for breaches of their corp duties

63
Q

Workers comp and employers liability

A

-employer is required to carry workers comp ins

64
Q

3 types of workers comp

A

-state workers comp
-employees injured during employment not covered under state
-when traveling for work in another state

65
Q

Home cost 200k to rebuild. Insurance on home is 120k w/500 deductible. Kitchen fire causes 30k damage - how much is covered?

A

80% of 200k = 160k
120k/160k = 75%
75% of 30k = $22,500
22,500 - 500 = 22k paid by insurer

66
Q

Can you insure raw land?

A

No

67
Q

6 parts of auto policy

A

A - Liability
B - Medical Payments
C - Uninsured Motorist
D - Damage to your Auto
E - Duties after accident or loss
F - General Provisions

68
Q

Umbrella coverage is used with what type of insurance?

A

Auto and Home - not disability or life

69
Q

Basic Covered perils acronym

A

HARVEST WFL

70
Q

What does HARVEST WFL stand for

A

Hail, aircraft, riot, vandalism, vehicles, volcanic eruption, explosion, smoke, theft, windstorm, fire, lightning

71
Q

Broad form Acronym

A

HARVEST WFL + FAR

falling objects, freezing pipes, artificially generated electricity, ruptured system

72
Q

How does a threshold work re:your ability to sue

A

If its over the threshold then you can sue

73
Q

Does a properties replacement cost take into account depreciation?

A

No

74
Q

2 methods to value property that take depreciation into account

A

Book value
actual cash value

75
Q

In modified no fault dollar threshold, what happens if injuries are below the threshold?

A

If injuries are below the threshold, they collect from first party benefits and cant sue

76
Q

In modified no fault dollar threshold, what happens if injuries are above the threshold?

A

They can sue

Insurance CFP (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions