Insurance Adjusting- LA
Mary's birthday is October 21 and she got her Louisiana adjuster license on November 9, 2017. Her license number is 7948. She has completed 5 hours of general CE so far. How much more CE does she need before renewing her license for the first time?
Since Mary's license number is even and her birthday is in October, her license will expire on October 31, 2018. Since the license will expire less than 1 year after being issued, she does not need to meet any CE requirement for this renewal.
Nichole's car was damaged while it was being serviced at Don's Auto Shop. Nichole's auto insurance policy covers physical damage to her vehicle, but it will not cover the damage that occurred while the vehicle was under the control of Don's Auto Shop. Which provision in her policy states this?
Since Nichole's car was in the care and control of Don's Auto Shop, Don's Auto Shop is responsible for the damages, according to the No Benefit to Bailee condition of Nichole's policy.
In a Commercial Auto Policy, which coverage symbol indicates that a car is subject to mandatory no-fault insurance?
Symbol #5
Tara filed a preliminary claim report after her home was partially damaged by fire. Her insurer responded five business days later, and asked her to send formal proof of loss forms. After Tara sent in the formal proof of loss forms, the insurer agreed to pay according to the policy provisions under Coverage D (loss of use) but they offered her an unreasonably low settlement under Coverage B, for the damage to her detached garage. They told Tara that she'll need to accept the settlement under Coverage B before they can pay her for her loss under Coverage D. Tara tells the insurer that she plans to file a lawsuit, and subsequently receives a check from the insurer for $13,000, without any indication of which coverage the payment is being made under. How many Unfair Claims Settlement Practices has Tara's insurer committed?
Tara's insurer committed six Unfair Claims Settlement Practices: (1) Delaying the claim settlement process by requiring a claimant to submit a preliminary claim report and then requiring formal proof of loss forms, both of which contain substantially the same information; (2) Failing to settle claims promptly under one portion of the policy, where liability has become reasonably clear, in order to influence settlements under other portions of the policy; (3) Making claims payments to insureds without explaining the coverage under which the payments are being made; (4) Offering unreasonably small settlement amounts so that insureds have to bring lawsuits in order to get the insurance payments they deserve; (5) Failing to try in good faith to settle a claim promptly once liability has become reasonably clear; and (6) Refusing to pay claims without conducting a reasonable investigation based upon all available information.
Kerry accidentally set his kitchen on fire while frying a turkey for the holidays. The fire results in $32,000 in damage to his home, which is valued at $175,000. However, Kerry only has a $120,000 homeowners policy limit. Assuming Kerry's policy has the 80% coinsurance requirement, approximately how much of the damage will Kerry be responsible for paying? (Round all numbers to three decimal places.)
That is incorrect. In order to be fully insured, Kerry should have a limit of at least $140,000 (since 175,000 x 0.8 = $140,000). To calculate his coinsurance penalty, take the coverage that Kerry has (120,000) and divide it by the coverage he should have ($140,000), and the answer is 0.857. This means that the insurer will pay 85.7% of partial losses. Multiply Kerry's partial losses by .857 to calculate how much the insurer will cover ($32,000 x 0.857 = $27,424). Kerry will be responsible for the rest, so we subtract the insurer's portion from the total damages ($32,000 - $27,424) and the answer is $4,576.
During a storm, Missy's grain drill was picked up and dropped by a tornado, which mangled the machine and rendered it useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000 to buy a new one today. Missy's farm policy has a replacement cost endorsement. How will Missy be indemnified for this loss?
That is incorrect. Missy will get the actual cash value of the grain drill first ($25,000), and then the remainder of the replacement cost (that is, up to another $20,000) once she replaces the machine and submits her receipt to the insurer.
Gabe owns Dream Fresh, a frozen yogurt manufacturer. One day, a refrigeration unit ruptures and sprays refrigerant throughout the Dream Fresh plant. Because of this accident, an employee blinded by refrigerant needs $1,000 in medical treatment, a $3,000 batch of frozen yogurt is contaminated and has to be destroyed, the plant loses $10,000 in revenue when it shuts down during decontamination, and the $15,000 refrigeration unit has to be replaced. How much of this loss might be covered under Gabe's Time Element insurance?
The $10,000 in lost revenue during the plant's shut-down would be covered under Gabe's Time Element insurance.
Frank owns a bakery specializing in authentic French bread. He uses two specialty ovens for his daily production of French bread. If one of these giant ovens were to break down, it would cost Frank's bakery a lot of money to repair, not to mention the loss of revenue caused by lower production. Which coverage type could help protect Frank from this possible financial disaster?
The Equipment Breakdown Protection Coverage Form is designed to indemnify a business for damages to, and damages caused by, boilers, machinery, motors, generators, ovens and a variety of other electrical devices and appliances.
Which of the following Homeowners endorsements can provide both property and liability coverage?
The Home Day Care endorsement can provide both property and liability coverage.
Which endorsement to the BAP allows the insured to include coverage for his personal car?
The Individual Named Insured endorsement would allow the insured to include coverage for his personal car.
Which Inland Marine Business Floater would cover a slab of marble that the insured business has sold if it gets dropped and destroyed while being delivered to the buyer?
The Installation floater covers items that the insured has sold while those items are being moved and installed, before the buyer has accepted them.
In a PAP, the Insurer's Right to Recover Payment basically reinforces the principle of:
The Insurer's Right to Recover Payment provision reinforces the principle of subrogation.
Which of these statements about the Signs Business Floater is FALSE?
The Signs Business Floater does cover signs that belong to other people while in the insured's care.
With the commissioner's permission, a catastrophe adjuster could potentially work legally in Louisiana for up to:
The catastrophe adjuster license is good for 180 days, but the commissioner may extend it for another 90 days, if needed. This makes a total of 270 days.
Andrew's house is struck by lightning. The power surge fries two of the family's laptop computers, and starts a fire that damages his roof, two living room walls, and a leather sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3 policy?
The computers and phones would fall under Coverage C, but there is a special limit for portable electronics: $1,500.
Which of the following is TRUE of the Right of Recovery condition of the Inland Marine policy?
The policyholder must not hamper the insurer's right to recover damages from a third party.
Which of the following does NOT constitute one of the four elements of a negligent act?
There are four elements of negligence that a plaintiff must prove in order to be indemnified for damages caused by a policyholder. First, that the defendant had a legal duty to act (or not act) in a particular manner. Second, the defendant failed to act accordingly, otherwise known as a breach of duty. Third, the plaintiff must have suffered actual loss or injury due to the defendant's action or inaction. And, fourth, the loss or injury to the plaintiff must have been a direct result of the defendant's breach of duty.
Mindy filed a claim against XYZ Consulting on March 5, 2016 for an accident that happened on September 15, 2015. XYZ Consulting was previously covered by a claims-made CGL policy, but changed to an occurrence policy in January 2016, when the policy came up for annual renewal. How will XYZ Consulting's insurer respond to Mindy's claim?
This claim won't be covered under XYZ Consulting's occurrence policy, because the occurrence took place before the policy period. And, it won't be covered under their previous claims made policy, because the claim was not filed during that policy period.
Eddie has a Personal Articles Floater with a $60,000 limit for jewelry. On a weekend trip to London, he buys a new diamond-studded flask for $20,000, but his luggage gets stolen on the way home, before he has had a chance to report the new item to his insurer. How much will Eddie's PAF pay for the lost flask?
Under Jewelry coverage in the PAF, newly acquired property is covered automatically for 30 days at 25% of the coverage limit, up to $10,000. Eddie's insurer would pay him up to $10,000 for the flask.
Leslie's property sustained damage in a recent flood. Her repair costs total $80,000 for her home and $15,000 for her detached garage. Leslie has a dwelling form flood policy with a $100,000 limit. Ignoring any deductible, how much can Leslie expect to receive in indemnification for this claim?
Under the dwelling form flood policy, Leslie has a $100,000 limit for her home, which will cover the $80,000 in damage. The policy will also pay up to 10% of the Coverage A limit for the detached garage ($10,000). So, Leslie can expect to receive $90,000 in indemnification for this claim.
franchise deductible
With a franchise deductible, the policyholder only pays for damages that are less than his deductible. If the cost of damages equals or exceeds his deductible, the insurer pays the full amount and the policyholder pays nothing.
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house is struck by lightning and the current fries her TV. The TV depreciates $400 per year, and a similar TV costs $1,800 today. Assuming Roxanne's homeowners policy pays ACV for personal property, how much can she expect to receive in indemnification for the damaged TV?
You can calculate ACV by subtracting the total depreciation from the Replacement cost. In this case, the TV is four years old and has depreciated $400 per year. This means the total depreciation = $1,600. The replacement cost is $1,800. So, subtract $1,600 from $1,800 and you get $200.
A pre-defined monetary portion of an insurance claim paid by a policyholder is a:
a deductible.
In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement:
add coverage for motorcycles and motor homes.
Which of the following is NOT one of the four types of Ocean Marine Insurance?
"Prevention & Insurance" is NOT one of the four types of Ocean Marine Insurance.
What type of commercial auto policy would best suit a taxi company?
A Motor Carrier policy would best suit a taxi company. This kind of policy is for anyone who transports goods or passengers as part of a commercial enterprise.
Angela's birthday is October 12th and she was issued a new adjuster license on March 20, 2017. Her license number is 3459. When does her license expire?
An adjuster license expires on the last day of the adjuster's birth month in odd numbered years if her license number is an odd number, regardless of when the license was issued. Angela's license will expire on October 31, 2019.
Which of the following is NOT an endorsement commonly added to a Dwelling Policy?
Annual Depreciation
Which of the following is not true about Business Income from Dependent Properties, an Additional Coverage in a Business Owners Policy?
B. It is also known as Extended Business Operations Interruption coverage.
Today, XYZ Insurance has determined that Jeff's claim is covered under his homeowners policy and they have no valid reason for delaying payment. According to Louisiana law, XYZ Insurance should:
Because XYZ Insurance has no valid reason to delay payment, it should pay Jeff's claim within 60 days of the date on which they received his proof of loss.
Mark's Louisiana adjuster license is going to expire in 3 months. He has completed 20 hours of general continuing education. What does Mark still need before he can renew his license?
Before renewing his license, Mark must have completed 24 hours of CE, 3 of which must be in Ethics. Mark still needs 3 Ethics credits and 1 general CE credit.
Which Additional Coverage of a Business Owners Policy will cover the insured's loss of income caused when a key supplier or customer cannot operate due to a covered loss?
Business Income From Dependent Properties would cover this loss.
The Hometown Paint store burns down one night, and almost everything is destroyed. Which of the following items would NOT be covered under Coverage B in the store's commercial property policy?
Coverage A includes machinery, fixtures, and equipment inside the building if they are permanently installed and affixed to the building. This means that the paint mixer that is affixed to the floor would fall under Coverage A, not Coverage B.
Orlando's house was fully insured when it was completely destroyed by a tornado. All that's left is a huge pile of debris and a $167,000 mortgage balance. Orlando files a claim against his DP-3 with a $220,000 limit. Normally, the cost of debris removal is subject to the policy limit, but Orlando's total costs exceed his limit. Once all cleanup and repairs are completed, what is the maximum indemnification the insurer could end up paying for the dwelling and debris removal?
Debris Removal coverage can pay up to an additional 5% of the coverage limit, when needed. Since Orlando's Coverage A losses exceeded his policy limit, his policy can pay up to $11,000 (since this is 5% of $220,000) over and above that limit for the cost of removing the debris of Coverage A property.
Sara's home was partially destroyed by a fire and she insists it will cost $97,000 to repair the damage. However, after completing his investigation, the adjuster determined the repairs could be done for $65,000. All attempts at negotiation have failed. Even though it's risky to go to court, why might the insurer decide to pursue that course of action?
Despite the drawbacks of litigation, the insurer may decide to go to court to avoid developing a reputation of being a pushover, which could make future claims more difficult.
Under a garagekeepers policy, which coverage would pay for a covered loss after the vehicle owner's personal insurance has paid up to its policy limits?
Direct excess coverage applies without regard to liability, in excess of the vehicle owner's coverage.
Under a garagekeepers policy, which coverage would split a covered loss with the car owner's personal insurance?
Direct primary coverage applies without regard to liability, and splits the loss with the car owner's personal insurance.
Which endorsement to the BAP would extend policy coverage to Jenny's employee Trisha, who drives her own car around the city to sell the company's hair products?
Employee as Additional Insured
Terry is renting half of a duplex. During a severe storm, lightning strikes a tree in the front yard and causes a large portion of the tree to fall on Terry's side of the duplex. Which of the following losses will be covered by Terry's Homeowners 4 policy?
HO-4 only covers a renter's personal property, not the structure, so Terry's policy will only cover the TV and entertainment system.
Frank owns a front-loader that he uses in his construction business. Which endorsement would he need to purchase in order to include this vehicle as an "auto" under his BAP?
In order to include his front-loader as an "auto" under his BAP, Frank would need a Mobile Equipment endorsement.
During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on his house and damage his roof. In this case, Norman's fallen tree is considered:
In this case, Norman's fallen tree would be considered a direct loss.
Adhesion
Insurance policies are contracts of adhesion, which means that one party (the insurer) dictates the terms, and the other party (the inured) simply accepts or rejects them. One implication of this arrangement is that any ambiguities in the contract will be interpreted in the favor of the insured; in this case, in favor of Stephen.
Ruth has just been in an accident while driving without insurance. The other driver was at fault in the accident, which caused Ruth $13,000 in bodily injury and $21,000 in property damage. The other driver carried minimum liability coverage for Louisiana. Which of the following is TRUE?
Louisiana has a law called "No Pay, No Play," which states that, if you are in an accident and don't have the minimum required liability insurance, you cannot collect the first $15,000 in bodily injury damages or $25,000 in property damage, even if the accident wasn't your fault.
Martha, the owner of UltraGreen Lawn Service, bought 12 new Super Mower lawnmowers for her employees because, in their TV commercial, the manufacturer claimed that a Super Mower is so great it will be the "last riding mower you ever buy." However, within six months, her employees started complaining that the mowers wouldn't stay running long enough to complete the job, or wouldn't even start at all. Super Mower refused to return the $19,000 that Martha had spent on the mowers, so she sued the company for failing to live up to the claims made in their advertisement. Under which of the following categories would Martha's claim fall?
Martha's claim would fall under Product Liability -- Breach of Warranty. Consumers can file this type of claim when a product doesn't live up to statements that were made in advertisements.
Shanice has a DP-1 policy insuring her house. After a storm causes damage to the roof, Shanice learns that changes to the construction code regarding roofing materials will increase the cost of repairs. Which additional coverage can help Shanice with the increased costs due to the new building codes?
Normally, Ordinance or Law coverage would be able to help Shanice with the additional costs related to bringing her property up to code. Unfortunately, this additional coverage is only available under the DP-2 & DP-3 policies. Shanice will have to pay out of pocket for the increased costs.
appraisal
opposing parties each choose an appraiser, and then the two appraisers decide on a third party, called an umpire. When at least two of these three representatives agree on a settlement, their decision is binding.
A(n) ________ is a bilateral statement that must be signed by the policyholder. It says that the insurer may continue to investigate a claim or defend the policyholder in court, but that it still keeps its right to deny coverage.
reservation of rights
Roxanne bought her 50" TV four years ago for $2,400. During a storm, her house was struck by lightning and the current fried her TV. The TV depreciates at $400 per year and a similar TV costs $1,200 today. Assuming Roxanne's homeowners policy has a replacement cost endorsement for personal property, how much can she expect to receive in indemnification for her damaged TV?
she will receive $1,200 for indemnification: the amount it would take to replace the damaged television.
All drivers in Louisiana must carry liability coverage of at least ______ and Bodily Injury UM/UIM coverage of at least ______, unless the insured rejects UM/UIM coverage in writing.
15/30/25; 15/30
A basic DP-1 dwelling policy offers ___________ coverage and ___________ valuations.
A basic dwelling policy offers named-peril coverage and actual cash value valuations.
A garage policy is almost identical to a BAP, but it covers which two additional hazards
A garage policy covers Premises & Operations, and Products & Completed Operations.
Which of these people would be required to have a Louisiana adjuster's license?
A person who adjusts automobile claims must be licensed as an adjuster.
Which of the following insurance claims can be handled by someone without an adjuster license in the state of Louisiana?
A person who handles claims arising under only vehicle mechanical breakdown insurance policies does not need an adjuster license.
In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of the following vehicles, EXCEPT:
A trailer can be "your covered auto" if the insured owns it, but not if it is borrowed.
A typical Ocean Marine Hull policy excludes coverage for damages due to:
A typical Ocean Marine Hull policy excludes coverage for damages due to employee strikes.
Usually, a mobile home policy:
A typical mobile home policy provides all of the property and liability coverages found in a standard homeowners policy.
Which of the following items is NOT one of the loss conditions of inland marine insurance
Abandonment to the insurer is not allowed. A policyholder may choose to abandon property if the cost of protecting it is more than its value, but the insurer is not under any obligation to accept the abandoned property.
Gary accidentally tripped over his own feet while shopping at Acme Hardware, breaking his arm and knocking out two teeth in the process. Which of the following statements is TRUE?
Acme Hardware's CGL will pay for Gary's medical and dental expenses under Medical Payments. Medical Payments is no-fault coverage that pays medical, dental, hospital, nursing and funeral costs arising out of bodily injury to individuals while on or next to the insured's owned or rented properties, or bodily injury resulting from ongoing business operations.
Which of the following statements applies to actual cash value?
Actual cash value generally reflects the fair market value of an item.
While Andrea was grocery shopping in BB Mart, the large Dairy sign fell off the wall and landed on her. Because of her extensive injuries, Andrea sued BB Mart and was awarded $375,000 in damages. BB Mart's Commercial General Liability policy has a general aggregate limit of $1,000,000 and a per occurrence limit of $300,000. How much will BB Mart have to pay out-of-pocket in this case?
Although BB Mart's general aggregate limit is $1 million, the per occurrence limit is $300,000, which means they will have to pay $75,000 out of pocket for this $375,000 occurrence.
Anyone who willfully misrepresents or withholds requested information on a license application:
Anyone who willfully misrepresents or withholds requested information on a license application can be fined up to $500 per violation, if the commissioner chooses.
Which of the following is NOT true of arbitration?
Arbitrators often have more expertise than juries.
All of the insurance professionals below are in danger of having their Louisiana licenses suspended or revoked, except:
Arlene is not in danger of having her license suspended or revoked for getting a traffic ticket.
Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home will cost $235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700 deductible. How much would Nick typically calculate the final settlement amount to be?
Because the cost of repairs is more than the policy limit, the final settlement amount is the full policy limit ($225,000) and the deductible is absorbed into the amount of the loss that exceeds the limit.
Jill was forced to close her convenience store and evacuate because of a strong hurricane that hit her town. Jill was not allowed to reopen her store for two weeks, so she lost two full weeks of income. Which additional coverage would indemnify Jill for this loss?
Business Interruption Insurance would idemnify Jill for this loss. Business Interruption insurance provides coverage when a covered peril results in a loss of profits or revenue for the business.
Under which circumstances may a Louisiana insurer cancel a policy after 60 days with sufficient notice?
C. If the policyholder's 17-year-old son has his license suspended during the policy period.
When the state issues a mandatory evacuation order due to a hurricane, Kimberly is forced to leave her home. The hurricane causes a lot of damage, but Kimberly's house is spared. Three weeks later, when Kimberly is finally allowed to return to her home, she files a claim against her homeowners policy for her increased living expenses. Will it be accepted?
Civil Authority coverage will pay the insured's Additional Living Expenses for up to two weeks if the insured had to leave the home because of an order by civil authority. Kimberly's policy will pay her for two of the three weeks that she was out of her home.
Joe is looking for information in his Standard Fire Policy, relating to policy cancellation, assignment, and subrogation. In which section would he find this information?
Conditions
A dryer fire scorches the interior of Bill's home, forcing him to move out while repairs are made. Bill has to find temporary housing, and he also loses the rental income he received from his roommate Frank. Which two coverages could help Bill with the lost rental income AND the repairs to the dwelling?
Coverage A will pay for the repairs to Bill's dwelling, while Coverage D can indemnify him for the loss of rental income from Frank.
Kacy's home was damaged when lightning struck the outdoor TV antenna in her backyard and fire spread to her home. The total damages came to $3,500 for the antenna, $25,000 for the structure of the home, and $13,000 in damages to her personal property inside the home. Kacy lives on a farm and her home is covered under a standard ISO farm policy. How much indemnification would Kacy receive under Coverage B of her farm policy?
Coverage B applies to private detached structures, so the only loss it will cover in this occurrence is the outdoor antenna. However, outdoor antennas are subject to a special limit of $1,000 per occurrence, so Kacy's Coverage B will pay $1,000.
Henri is a producer for Lifelong Insurance Co. In which of the following circumstances is it acceptable for him to adjust losses without a license?
Henri can adjust losses without a license as long as he only adjusts uncontested claims involving the policies he issued.
Howard lives in Texas and wants to get a non-resident Louisiana adjuster license. Which of the following requirements must Howard meet in order to qualify?
Howard must keep his Texas license in good standing in order to qualify for a non-resident Louisiana license.
If Dante's adjuster license lapses on June 30, 2016, which of the following statements is true?
If an adjuster's license lapses, he may reinstate it within 24 months by paying double the renewal fee, with the commissioner's permission.
What is the main difference between a Full Release Settlement and a No Release Settlement?
In a Full Release Settlement, the claimant signs a release form giving up the right to additional indemnification; in a No Release Settlement, the claimant does not sign a release form.
Jack's home is valued at $950,000. How much insurance does he need to carry on his home in order to be fully insured under a typical insurance policy?
Jack must carry at least $760,000 (80% of the value of his home) in insurance in order to be fully insured.
Judy has applied for an auto liability policy to cover her two cars for up to 100/300/100. Which of the following statements is TRUE?
Judy's insurer must offer her UM coverage at the same limits as her liability coverage, which are 100/300. However, she may choose to buy lower limits (as low as 15/30) or reject the coverage altogether in writing.
A standard fire policy pays on an actual cash value basis.
Lindy has a standard fire policy. When her home is destroyed by a covered peril, Lindy's personal property is:
Nathan bought an insurance policy based on advertisements that accompanied the application. When he suffers a loss, he comes to realize that the provisions of the policy are actually substantially different from what was advertised. The insurance company ought to settle the loss:
Nathan's insurer should settle the loss according to the provisions that were advertised.
Frank has been in four accidents in the past three weeks and his insurer has given him notice of cancellation according to the provisions in his Personal Auto Policy. Since Frank is essentially uninsurable when it comes to auto insurance, where can he turn to find the coverage required by law?
Residual Market programs provide coverage to those who would otherwise be uninsurable due to their overwhelmingly high risk.
Which Commercial Auto endorsement can provide coverage for a specific named individual driving a car he does not own?
The Drive Other Car endorsement can provide liability, medical payments, physical damage, and UM/UIM coverages for a specific named individual who is driving a car he does not own.
A fire in John's factory causes him to shut the doors for 45 days. While repairs take place, John spends $190,000 renting another building and equipment, to keep production going. Even though John's commercial property policy doesn't cover his lost business income, he does have Extra Expense Coverage with a $200,000 limit and Limits of Loss Payment set at 40%/80%/100%. How much indemnification can John recover from his insurer in this case?
The Limits of Loss Payment in the Extra Expense Coverage Form specify the percentage of the coverage limit that the insurer will pay. The percentages are based on how long the Period of Restoration lasts, and are broken down into 30-day increments. Because John's restoration period was more than 30 days and less than 60 days, he will receive up to 80% of the limit ($200,000 x 80% = $160,000).
Joanne sells her house to her sister, Dianne. To save Dianne the trouble of finding her own homeowners policy, Joanne calls up her insurance company and tells them that Dianne bought her house and any future claim settlements should be paid to Dianne. Joanne's insurer tells her that they can't do that because of which condition?
The assignment condition states that the policyholder cannot transfer the policy to someone else unless the insurer agrees to the change in writing.
The commissioner is NOT allowed to:
The commissioner may only fine an adjuster up to $500 per violation, not $1,000.
Company G had a claims-made CGL policy with a supplemental extended reporting period, or "supplemental tail." The policy expired on January 1, 2016. This policy will cover:
When added to a claims-made CGL, the supplemental tail covers claims for occurrences that happen within 60 days after the claims-made policy expires. This coverage extends forever and cannot be cancelled by the insurer or the insured.
