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
What are the 2 coverage triggers in Commercial Crime policies?
Discovery Form and Loss Sustained Form
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 – combined total of coverage for bodily injury and property damage
What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?
Retroactive date
What is the purpose of surety bonds?
To guarantee that specific duties and obligations of the principal will be fulfilled
What is the name for the deductible in liability umbrella policies?
Self-insured retention (SIR)
What Personal Auto Coverage would pay for the insured’s travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Part A: Liability
What is the primary purpose of Workers Compensation insurance?
To pay benefits to employees for injuries arising out of employment
What type of coverage do umbrella policies provide?
Excess coverage over the primary policy
What are the 4 types of benefits provided by Workers Compensation insurance?
Medical payments, disability income, rehabilitation expenses, and death benefits
What types of expenses are covered by Coverage C – Medical Payments in Commercial General Liability policies?
Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured’s business operations
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period
A vehicle rented from a commercial rental company is known as what type of auto?
Hired auto
Who does the Garage Coverage form insure?
Auto dealers, service stations, auto repair shops
What losses are excluded from coverage in the liability section of the Personal Auto Policy?
Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission. (Please review the text for a complete list of exclusions.)
What type of perils are covered by the Advertising Injury Form?
Libel, slander, defamation, violation of privacy, infringement of copyright or titles
What is a covered auto?
A vehicle shown in the policy declarations
Rental reimbursement endorsement is available only if an auto policy has what type of coverage?
Other than Collision Coverage
What types of entities can be insured under a General Liability policy?
Sole proprietor, partnerships and corporations
What does Coverage A of the Commercial General Liability (CGL) form provide coverage for?
Injury or death suffered by a third-party, or damage to the property of others
When does the Underinsured Motorist coverage apply?
When the motorist is at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist
What is a combined limit in an auto insurance policy
The maximum amount the insurer will pay on a covered loss
What types of losses are indicated by the spirit limits in an insurance policy?
Bodily injury per person, bodily injury per accident, and property damage per accident
What is the broadest coverage in the Commercial Crime Form
Theft coverage
What is the occurrence form trigger based on?
The date of the injury or damage
What are 3 liability coverages included in the Commercial General Liability (CGL) Coverage form?
Coverage A - Bodily Injury and Property Damage
Coverage B - Personal and Advertising Injury
Coverage C - Medical Payments
