Declarations
The section that personalizes an insurance policy
Indemnity
Provision that states that if a policy allows for greater benefits than the financial loss incurred, the insured may be compensated only for the amount lost.
Insurers obligations in property and casualty insurance
Be fair in underwriting, and pay for covered losses
Appraisal
An ___ is needed if an insured and an insurer disagree about the value of a property loss, either party can make a written demand.
Declarations
The policy period is stated on __ page in an insurance policy
Insured's duties after loss
Protect the damaged property from further damage, cooperate with the insurer in settling a loss, and submit proof of loss
Endorsement
Modifies the policy's original terms
Per Occurrence
Sublimit in a liability policy that puts a ceiling on the payment for all claims that arise from a single accident.
Indirect/Consequential
An insured's business is damaged by a fire, and temporarily shut down for repairs. As a result, the insured suffers from loss of income. This is what type of loss?
Deductible
A specified dollar amount that the insured must pay before the insurer will pay the policy benefits.
Additional Insured
Persons who are not named on the declaration page of a policy but who are protected by the policy are known as?
Split limits
Type of limits of liability that has the limits separately stated for difference coverages.
Written consent of the insurer
__ is required for an assignment to be valid
Blanket policy
Type of policy that insurers all property at multiple locations for a single amount.
Policy limits
Maximum amount an insured may collect for a loss under the terms of the policy .
Policy territory
Policy provision that defines the location where coverage is provided.
Direct
If an insured peril was the proximate cause of loss, this type of loss is __.
First named insured
In commercial property policies, __ has control of the policy and __ can cancel it.
Conditions
Information about changes to the policy or return of premium can be found in the __ section of a policy.
Indemnity
Pro Rata liability protects __ insurance principle
Subrogation
An insurer's legal right to seek damages from third parties after reimbursing insured for a loss.
Proof of loss
A sworn statement from an insured notifying the insurer about a loss.
An insured has more than one policy covering a loss
Pro rata liability applies when __
Loss payment
Insurance carried/Insurance Required * Loss amount =
Limits of liability
__ determines an insurer's responsibility for payment, as stated in an insurance policy.
Additional Coverage
A provision that adds more coverage for a specific loss at no additional premium.
Anyone covered under the policy
__ is insured in property an casualty insurance
Subrogation
Provision found in property policies that prevents an insured from collecting twice from the same loss: once from the insurer and again from a third party
Proximate cause
Defines an exact, direct, and uninterrupted cause of loss.
Arbitration
Process used to settle a casualty claim when the insured and the insurer cannot agree
Other insurance
Provision that defines how a policy will respond if there is more than one insurance policy written on the same risk
Open peril
Policy that covers all causes of loss except for those specifically excluded
Special & General
___ and ___ are two types of compensatory damages
Strict Liability
Type of liability that applies to the manufacturer if the product is unsafe
Conditions
Part of an insurance policy that sets forth the rules of conduct, duties, and obligations of the parties to the contract
Actual cash value of property calculation
Current replacement cost (-) depreciation
Actual cash value in property insurance
Replacement cost at the time of loss (-) depreciation
Exclusion section
Specifics what perils are not insured against, or what persons are not covered in a policy.
Vacancy
Refers to an insured structure in which no people have been living or working and no property has been stored for the specified period of time.
Unoccupancy
Refers to an insured structure in which no people have been living or working within the required period of time, but some property is stored.
Declarations
Part of a policy that shows the amount of insurance, premium, and policy terms
Insuring agreement
Part of an insurance policy that contains the insurer's promise to pay a claim
Replacement cost
Method of loss valuation is contrary to the principle of indemnity.
Occurrence
Describes a loss caused by continuous exposure to a condition
Binder
A temporary insurance contract that goes in effect prior to the policy issue.
Purpose of coinsurances clause
To encourage insureds to insure property close to its value.
DP-3 Special
All perils are insured unless specifically excluded
Basic Dwelling Policy
A __ provides coverage against fire, lighting, and internal explosion
Coverage C
Dwelling policy coverage that will provide protection for contents damaged by fire in an insured dwelling
If the insured is the owner-occupant of the dwelling
Conditions that broad theft coverage be added to a dwelling policy
DP-3
Dwelling form that provides open peril coverage on the building
Coverage C
Under __ Personal Property in the dwelling policy can be covered only when the property is a t the insured location
DP-2
Dwelling form that is called the Broad form
DP2 (broad) and DP3 (Special)
Dwelling coverage forms that will pay for the replacement cost of a dwelling
Coverage A (Dwelling) Coverage B (Other Structures) Coverage C (Personal property) Coverage D (Fair rental value), and Coverage E (Additional Living)
Five coverages of dwelling policies
10
When a dwelling policy is cancelled for nonpayment, the insurer must give notice within __ amount of days
Extended covered perils on a basic Dwelling policy
Windstorm or hail, explosion, smoke, aircraft and vehicles, riot or civil commotion, volcanic eruption, and vandalism and malicious mischief
Fire, Lightening, and internal explosion
A basic dwelling policy automatically provides coverage against..
Internal explosion
A gas stove in the dwelling is an example of which named peril
automatically
According to the liberalization condition, if an insurer makes a change to broaden coverage in newly issued dwelling policies, the change will affect the policies
Coverage B (Other Structures)
Dwelling policy coverage that will insure a garage not attached to the primary insured dwelling
Dwelling only, contents only, or both dwelling and contents
What do dwelling policies insure
Dp1 (Basic)
Provides the most limited coverage
60 days
Assuming the insurer and the insured agree on the amount payable for a loss covered under a dwelling policy, __ is the length of time the insurer must pay the claim.
Basic, broad, and special
Three types of coverage available in dwelling policies
All perils are insured unless specifically excluded
DP-3 (Special) is an open-peril form which means..
At least 80% of the replacement cost
Replacement cost coverage is provided in both the broad and special form dwelling policies when the amount of insurance in the dwelling is __
Up to 2 weeks
Under the Coverage E (Additional Living Expenses), if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, __ is the period the loss would be cover
The average amount of insurance during construction
In dwelling policies, the premium for the Dwelling under Construction endorsement is based on
4 units
__ is the maximum number of units in residential dwellings insurable by a dwelling policy
Exclusions found in all 3 dwelling forms
Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action.
Only if the interior damage is a direct result of exterior damage from a falling object
__ is when damage to the interior of the building will be covered under the falling objects peril in the broad form of the dwelling policy
2
In dwelling policies, an insured may bring a lawsuit against the insurer within __ years
30
If an insured is in the process of moving to a new location, his perusal property coverage under the dwelling policy will apply on a pro rata basis at both locations for __ days
To offset the effects of inflation.
In dwelling policies, the purpose of the automatic increase in insurance endorsement that increases the amount of insurance by an annual percentage is __
The purpose of a claims-made form
To pay for bodily injuries or property damage reported during the policy period.
Theft Coverage
__is the broadest coverage in the Commercial Crime Form
Accidents at a single location, at the same time, by the same cause
__ is considered a single accident in Equipment Breakdown coverage
Personal injury refers to individuals; advertising injury is incurred to a business. Both are nonphysical
__ is the difference between a personal injury and an advertising injury
Additional to the limits of liability
Supplementary payments are paid in liability insurance policies in __
Discovery Form and Loss Sustained
__ are two coverage triggers in Commercial Crime policies
First-named insured
In Commercial Package Policies, __ may cancel the policy in writing and make changes to the policy with the consent of the insurer
Libel, slander, defamation, violation of privacy, infringement of copyright or titles
Type of perils that are covered by the Advertising Injury Form
Common Carriers
__ transports the property of anyone who hires them in Commercial Inland Marine policies
Property in the insured's care, custody or control
__ is covered under the Legal Liability Coverage Form
Sole proprietors, partnerships and corporations
__ are the types of entities that can be insured under a General Liability policy
Monoline
__ is the type of policy that consist of the declarations, conditions endorsements, and other attachments applicable to a single line of insurance
__ are the policy components that make up a Commercial Policy
Policy cover; policy declarations; interlines endorsements; lines of insurance declaration pages; lines of insurance coverage forms; common policy conditions; lines of insurance conditions; causes of loss forms; and endorsements.
Aggregate limit
__ is the limits that the insurer will pay for all losses that occur during a policy period
Occurrence policy
__ is a liability policy that covers all claims arising out of incidents occurring during the policy period, regardless of whether or not the policy is still in effect at the time of the claim
Property covered under Builder's Risk Coverage
Building, temporary structures, foundations, fixtures, equipment, & materials within 100 feet.
Commercial Floater
An inland Marine policy designed to cover moveable commercial property, wherever it may be located
Injury or death suffered by a third party, or damage to the property of others
Coverage A of the Commercial General Liability form covers _
Basic, Broad, and Special
The three causes of loss forms that commercial property coverage can be written
Medical, surgical, hospital, or funder expenses for third parties injured
The types of expenses covered by Coverage C-Medical Payments in Commercial General Liability policies
Any type of property that is portable on land, as well as means of transpiration and communication
__ is the type of property that can be covered under Inland Marine insurance
Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm
The coverage parts that may be included in the Commercial Package Policy
Outside the premies
The coverage a business owner would need in a crime policy to cover money that may be stolen from a messenger
Eliminates redundancy and minimize the number of other policy endorsements
__ is the purpose of interline endorsements in Commercial Package Policies
Coverage A-bodily injury and property damage
Coverage B-Personal and Advertising Injury
Coverage C-Medical payments
__ are three liability coverages included in the Commercial General Liability Coverage Form
A share of the loss
When other insurance is written on the same basis as a Commercial Property Policy, the insurer is obligated to cover __
The date of the injury or damage
The occurrence form trigger is based on __
Interline endorsements
__ is the name for policy endorsements that may apply to more than one coverage part
Losses resulting from theft by employees
In a commercial crime policy, employee theft refers to __
Retroactive date
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