Property, Casualty, and Liability Insurance Flashcards
Coverage A: Dwelling
Insures dwelling and structures attached to it
- land is excluded
Coverage B: Other Structures
set apart from dwelling by clear space
Coverage C: Personal Property
covered anywhere in the world
- sublimits
- exclusions: animals, birds, fish, motor vehicle, aircraft, property of roomers and boarders, rented to others
Coverage D: Loss of Use
additional living expenses arising from damage of property
Coverage E: Personal Liability
insured is legally liable arising out of BI/PD
company agrees to defend insured and has right to settle any suit
Personal Liability Exclusions
- business/ professional services
- motorized land vehicles (besides rec or gold carts)
- watercraft (besides less than 50 horsepower or 26 feet)
- aircraft
- BI for someone eligible for workers comp
Coverage F: Medical payments
limited amounts per person for medial expenses for people other than insured
Basic perils
WHARVVES/FLT
- windstorm
- hail
- aircraft
- riot
- vandalism
- vehicles
- explosion
- smoke
- fire
- lightning
- theft
Broad perils
basic plus RAFF
- rupture of system
- artificially generated electricity
- falling objects
- freezing plumbing
Open perils
- any perils except those excluded
Homeowner exclusions
OPENN WIF
- ordinance of law
- power failure
- earthquake
- negligent
- nuclear hazard
- war
- intentional loss
- flood
HO -1 / HO -8
- Basic (A,B,C,D)
- same for HO8 but for older home
HO - 2
- Broad (A,B,C,D)
HO - 3
- Open (A, B (10%), D (30%))
- Broad (C (50%) )
HO - 5 (HO3 + HO15)
Open (A, B (10%) , C (50%) , D (30%))
HO - 4
renters
- Broad (C, D (30%))
HO- 6
Condo
- Open (C)
- Broad (D (50%)
- maybe A and B for carpet and cabinets
Scheduled personal property endorsement (floater)
normally limitations on personal property that is easily stolen
cover valuables with floater - open peril
Actual Cash Value (ACV)
replacement - depreciation
- original cost is immaterial
- dwelling typically replacement cost basis
- contents typically ACV
Property loss calculation
[(insurance carried / insurance required) * Loss ] - deductible = amount paid by insurance
replacement cost * coinsurance percentage (80% or 90%) = insurance required
PAP coverage
- Part A: liability
- Part B: medical
- Part C: uninsured motorist
- Part D: damage to auto (collision and other than collision)
PAP eligibility
- can be written on eligible vechicles owned or leased by individual or spouse living in same household
- business not insured
Covered auto
- any vehicle listed in policy declaration
- also newly acquired, trailers, temporary substitute vehicles
Newly acquired auto
- if replaced only auto, covered A, B, C
- no automatic coverage for D unless company is notified within 14 days of acquisition of new car
Temporary substitute vehicle
- covers any auto being used while covered auto is out for repairs, etc
Covered Drivers
- named insured
-family member living in same household - person using auto with permission
- spouse of named insured living in house
Spouse not resident of household
still covered until earliest of
- end of 90 days following change of residency
-effective date for spouses own policy
- end of policy period
Auto - Part A - Liability
BI/PD
Single Limit
- one amount applies to all BI/PD from one accident
Split Limits
- separate limits to each accident
- first limit: BI to one person
- second limit: BI for all claims
- third limit: aggregate PD
100/300/500
Auto - Part B - Medical Pay
- medical expenses of insured rendered within 3 yrs of date of accident
Individuals covered for med pay
- insured, spouse, family while in a car or walking
- anyone using covered auto
Auto Part D other than collision
- breakage of glass
- loss caused by missiles
- falling objects
- fire, theft, larceny
- flood
- earthquake
- windstorm, hail
- vandalism, riot
- contact with bird or animal
- explosion
Auto - Part D - Damage
- collision : impact with another car
- other than collision : open perils (with exclusions)
Claims Adjustment Procedure for Property Insurance
- Furnish notice to insurer
- Investigate claim
- file proof of loss
- pay or deny claim
Individuals covered under auto part C
- insured, spouse, family
- anyone in covered auto
- any insured previously mentioned
Options to Insurer to Settle
- Replacement Option: may repair or replace damaged property with like kind ot quality instead of cash
- Abandonment or salvage: must surrender ownership of lost/damaged property so total loss can be claimed
- Pair or set: may repair or replace any part to restore a pair or set to its value before loss or pay difference
Auto - Part C - Uninsured
- covers medical expenses, lost wages, pain and suffering, does not include punitive or exemplary damages
Business Owners Policy (BOP)
small to medium businesses
provides real property, contents, liability
professional liability is excluded
Personal Property Floater
provide open perils for personal property
