Types Of Casualty Policies, Bonds And Related Terms Flashcards
What is the minimum amount of additional coverage provided by umbrella policies?
1 million dollars
When does Uninsured Motorist coverage apply?
When the other party is legally liable but has no insurance
What do numerical symbols represent in auto policies?
They define the type of vehicle insured for specific coverages.
What are the 2 parts of the Garage Liability Coverage?
Garage Operations – Covered Autos, and Other than Covered Autos
Who is considered insured under Part A: Liability of a personal auto policy?
The vehicle owner or his/her family member, or any person using the covered auto with permission
Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?
3 years
In a commercial crime policy, what does employee theft cover?
Losses resulting from theft by employees
What is a second injury fund?
A workers compensation program designed to pay for any additional benefits when an employee with a previous injury suffers a second injury
What is the limit of liability in Part D: Coverage for Damage to Your Auto?
The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle
If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident?
$30,000
What is a commercial floater?
An Inland Marine policy designed to cover movable commercial property, wherever it may be located
What type of professional liability coverage will a medical doctor need?
Medical malpractice coverage
What are the 4 categories of uninsured motor vehicles?
1) No insurance or liability bond
2) Insurance is less than what’s required by the financial responsibility laws
3) A hit-and-run accident where the driver cannot be identified
4) The insurer denies coverage or becomes insolvent.
What are the parties to a surety bond?
The principal (or obligor), the obligee (or insured), and the guarantor (or surety)
A person or business that requires coverage for all liability exposure should purchase what type of insurance?
Commercial General Liability (CGL) and Professional Liability
What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?
Uninsured Motorist
In surety bonds, who purchases the bond and promises to fulfill the obligation?
Principal or obligor
What is the exclusive remedy doctrine?
Injured employees cannot seek damages outside workers compensation.
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other Than Collision (Comprehensive)
Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
Professional Liability
What is the purpose of a claims-made form?
To pay for bodily injuries or property damage reported during the policy period
What does the term “you” refer to in a personal auto policy?
The named insured shown in the declarations, and the insured’s spouse (if resident of the same household)
Underinsured Motorist (UIM) coverage will pay the difference between which 2 limits?
The insured’s UIM limits and the at-fault driver’s insurance bodily injury limits
Professional Liability coverage protects the insured against legal liability resulting from what?
Errors and omissions
