BIG AFFECT
-BURGLARY,
-ICE AND SNOW WEIGHT,
-GLASS BREAKAGE,
-ACCIDENTAL DISCHARGE OF WATER,
-FALLING,
-FREEZING,
-ELECTRICAL CURRENT,
-COLLAPSE,
-TEARING APART
CANHAM
Calculable
Affordable
Non-catastrophic
Homogeneous
Accidental
Measurable
WCSHAVVER
wind
civil commotion
smoke
hail
aircraft
vehicles
volcanic eruption
explosion
riot
STARR method of handling risk
Sharing
Transfer
Avoidance
Retention
Reduction
Fraternal Insurer
provides insurance and other benefits
must be a member of the society to get the benefits
Adverse Selection
- Not wanted by insurers
- tendency for high risk individuals
- high risk = higher rate of refusal
Stock Insurer
A company owned by stockholders
-dividend is not guaranted
Mutual Insurer
An insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them.
Reciprocal Insurers
unincorporated groups of people that provide insurance for one another through individual indemnity agreements
CLOAC (elements of a legal contract)
-Consideration
-Legal Purpose
-Offer
-Acceptance
-Competent Parties
Policy Sections (DICEE)
Declarations
Insuring Agreements
Conditions
Endorsements
Exclusions
Insuring Agreement
The promise to pay and list of perils covered
Declarations
who, what, when, where, and how much
pro rata
To charge at a proportional rate
FCRA (Fair Credit Reporting Act)
-All Insurers and producers must comply
-Notice to the applicant within 3 days after report was required
-Maximum penalty - $5,000, 1 yr in prison, or both
Basic Perils (Property)
Fire, Lightning, Internal Explosions
Extended Perils: WCSHAVVER + V&MM
Broad Perils (Property)
All of basic and extended perils + BIG AFFECT
Broad Peril Exclusions
- Weight of ice, snow, or falling objects on awnings, fences, patios, swimming pools, docks, and retaining walls
- Accidental discharge over water from continuous leaking
- Flooding from river or lake
- Burglary if property vacant more than 60 consecutive
Special/Open Peril Coverage
all risks of direct physical loss, except those specifically excluded
Special/Open Exclusions
Flooding, Earthquake, Intentional Damage, Losses due to enforcement of building codes, damage caused by power interruption occurring off premises, Government Seizure
Actual Cash Value (ACV)
a claim settlement method in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation
tort
A civil wrong causing loss to someone else
Vicarious Liability
Legal doctrine under which a party can be held liable for the wrongful actions of another party.
Dwelling Policy Eligibility
- 1 to 4 unit dwelling with boarders
- Vacation dwellings
- Rental dwellings
- Dwellings under construction (endorsement)
- Mobile homes (endorsement)
- Farm dwellings NOT eligible
Dwelling Coverages
Coverage A - Dwelling,
Coverage B - Other structures,
Coverage C - Personal property,
Coverage D - Fair rental value, and
Coverage E - Additional living expenses (included in DP2 and DP3; need endorsement for DP1)
DP-1
Basic Perils - fire, lightning, internal explosion
WCSHAVVER (extra premium)
V&MM (extra premium)
DP-2
Broad form
-covers all basic + WCSHAVVER & V&MM
-+ BIG AFFECT
DP-2: Broad Exclusions
-Weight of ice, snow , or falling objects on awnings , fences, patios, swimming pools, docks, and retaining walls
-Accidental discharge over water from continuous leaking
-Flood
-Burglary if property vacant (60 consecutive days)
DP-3 Special Form
covers the dwelling and other structures on an open perils basis, except for the perils specifically excluded.
DP-3 Exclusions
- Intentional Damage
-Theft
-Freezing of plumbing
-Wear and Tear
-Foundations
General Exclusions in All Dwelling Policies
-ordinance or law
-Earthquake
-Flood
-War
-Nuclear
-Intentional losses
-Government seizure
Coverage L (Dwelling related)
Personal Liability coverage for Dwelling
Coverage M (dwelling)
Medical Payments
- 3 years
- on and off premises
Additional (Supplementary) Coverages - BAILED
Bonds
Aid (First aid)
Interest
Lost Earning
Expenses
Defense
Homeowners Coverages
HO-2 - Broad
HO-3 - Special/open
HO-4 - Tenants or renters
HO-5 - Comprehensive
HO-6 - Condo Owners
HO-8 - Modified Form
Damage Caused by Burglars is included in which Dwelling forms?
ONLY Dp-2 (broad) and Dp-3 (special)
All Homeowners forms provide identical ____________
Liability coverage
Auto Coverage Parts
Part A - Liability
Part B - Medical Payments
Part C - Uninsured Motorist
Part D - Coverage for damage to your auto (Property)
According to the out-of-state coverage provision in a personal auto policy, while temporarily driving out of state the insurer will pay ________________________
The higher the amount of the insureds policy limit or the states minimum liability requirements
How many days will newly acquired property, except fine art, be covered under a personal articles floater?
30 days
Self-Insured Retention Limits work like _____________
a deductible
The Assignment Clause
Sometimes referred to as the transfer of rights and duties; states that the insureds rights and duties cannot be transferred without written consent of the insurance company