Unit 10 Miscellanous insurance Flashcards
ACRONYM MEANINGS.
NFIP
FIA
FEMA
NFIP - National flood insurance program and it’s something that 1968 Congress created to make flood insurance available to add eligible communities through federal subsidization
FIA - Federal insurance administration is who manages the NFIP program
FEMA - the FAA is a branch of the federal emergency management agency
In most cases, communities voluntarily apply for coverage through the NFIP. However, the government may also determine that a community is flood prone and required to comply with federal flood program standards. In most cases, communities voluntarily apply for coverage through the NFIP. However, the government may also determine that a community is flood prone and required to comply with federal flood program standards.
What are the two types of flood insurance programs available?
Emergency and regular
What are the maximum limits for flood insurance coverage?
Small amounts = emergency program while big amounts equals the regular program. It covers both commercial and residential buildings or contacts.
The standard deductible for each coverage is 1000 under the emergency program and 500 under the regular program
The standard deductible for each coverage is 1000 under the emergency program and 500 under the regular program
All of the following would be deemed a flood except watt?
Sewer, back up until dwelling is not covered
NFIP policies may be sold on what
Private insurance companies through the FAA is “write your own program”. All risks are retained 100% by federal government.
What does the earthquake insurance cover and where or how can someone get it?
Earthquake insurance generally covers damages to a structure, its contents, or both is the result of an earthquake. All earthquake shocks on a curb and a 72 hour. Constituent a single earthquake, and they can either get this as an endorsement to the dwelling policy or is a separate policy.
Read page 195
What does personal inland marine insurance mean?
it means portable or coverage that stays with the policy as it moves and because of this, it is sometimes called floaters
The three most commonly used personal Inland marine forms are what? think of an acronym APE
PERsonal Articles form (A)
Personal Property Form (P)
Personal Effects form (E)
What is the personal articles form?
Covers scheduled specifications, which means specific things
What is an important feature of the personal articles form?
The personal article form provides automatic coverage for certain classes of newly acquired property and the properties in a category of property that is already insured automatic coverage is available for all of the following except golf equipment. Just have to know golf equipment.
What is the personal property form?
There’s a form that provides open peril coverage on a blanket a basis for most kinds of personal property in the home
What is the personal effects form?
A form that is designed for individuals and families who want to ensure their personal belongings while traveling (coverage applies to this, but it Hass to be things you typically bring while being a tourist such as clothes, cameras, etc.
What is important to know about the personal effects form regarding property?
It only covers the property premises the type typically taken when people travel
What is important to know about boat owners insurance?
Under homeowners insurance you’re only covered up to $1500 when it is in relation to your boat, which is where people typically store is at their home.
Liability coverage is excluded for boats with?
motors of more than 25 hp in more than 26 feet of length
Boat owners/watercraft package policies do what?combine what?
Combine property, liability, and medical payments insurance on in OPEN PERIL BASIS
Personal yacht policies are what?
Ocean, marine forms that provide a package of property in liability coverages
When it comes to personal yacht policies, coverage is usually provided on a what?
open peril basis
Hull coverage on your policy contains a collision clause which covers what?
The insurance liability for collision to other vessels
Some insureds need more extensive liability coverage than can be provided by personal lines bosses. Theses needs can be met through what? and it has two important purposes. what are they?
Personal umbrella policy
1. it’s when you have something that’s too expensive and abnormal trillion sure
- Provide additional liability insurance over and above the basic coverage provided by underlying liability insurance
What are the coverage limits for a personal umbrella policy range from?
$1 million-$5 million
How does a personal umbrella policy work?
A persons, underlining policy goes into effect first, and once it reaches its limit them, the umbrella policy kicks in after the amount of money in the initial policy has been exhausted. If the insured allows an underlying policy to lapse or be reduced, and carvers, insured would be responsible for paying damages up to the underlying policy limit before the umbrella policy takes over.
Keep an eye on in tests coverage for excluding Lawson is at the bottom 201
What does the acronym FAIR mean?
(Fair access to insurance requirements) plans
What does a FAIR plan do?
Makes insurance available to risks that were previously considered uninsurable because of environmental hazards, which means it’s defined as conditions surrounding the property of an insure that might increase the chance of loss, but that are not within the control of the property, owner or tenant occupying the property
Essentially it is Hazard you have no control over
under a FAIR plan… no application for insurance can be rejected because of what?
Simply because of environmental hazards that are beyond the insurance control all of the property may be subject to inspection reports accepted in the plan
