MARK 3324

Special Peril Policies

(also known as open or all-risk) everything is covered except exclusions

The four things that must apply to prove negligence

-Duty to protect the injured party. -Breach of legal duty owed to the 3rd party. -Damages -Proximate cause

What does Liability/Casualty cover?

Bodily injury, Property damage, Personal injury (damage reputation), advertising injury (injure a business)

Special Compensatory Damages

Can be itemized and proven.

Loss of use

Consequential loss, aka rental costs.

Negligence

Failure to act or not act as reasonable person would in a similar situation.

Loss Valuation (Bases of recovery)

How the insurance is going to value the stuff.

Burden of Proof

If the insurance company and the named insured disagree about whether or not a named peril is covered and the insured takes them to court, the policyholder has to proof it.

Strict liability/Absolute Liability

Liability regardless of negligence.

The Lower of the Loss or the Limit

Limit is the cap of how much the insurance will pay but they will only pay the lower amount (either the cost of damage or the limit, whatever is less)

Replacement Cost

New for old. Getting back what was bought.

Named Peril Policies

Only covers losses when the proximate cause is specifically listed.

Two ways to be obligated to pay

Settlement and Judgement

2nd Party Claim/Coverage

The insurance

3rd Party Claim/Coverage

The other people. Them /Theirs. (Liability/Casualty)

What does Property cover?

The real property, personal property, guest property, loss of use.

Real Property

The structure, the building.

Actual Cash Value (ACV)

Today's replacement cost - depreciation. (auto insurance)

1st Party Claim/Coverage

You and yours (family/stuff).

Blanket Limit

a policy that insures multiple properties. Also known as prorate distribution.

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brand ambassadors

Compensatory damages

compensated the customer.

Tort law

governs the wrongs of individuals. Civil law.

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group

Liability/Casualty

is a third-party contract. All three parties are in involved.

A Property policy

is a two-party contract. 1st and 2nd.

Punitive damage

meant to punish the for negligence.

Duty to Defend

must send all legal notices as soon as possible.

Market Value

negotiated cost.

Specific Limit

one policy written to insure one single item.

General compensatory Damages

pain and suffering, no receipts.

Stated Value

requires an appraisal. What we offer on antiques. Still take account to depreciation.

Agreed Value Policy

requires appraisal. More for houses. This is for items that appreciate.

Vicarious Liability

situation where one party is responsible for their actions.

Split Limit

splitting the costs by per driver, per occur, and property damage.

3rd Party liability without negligence

strict/absolute liability and vicarious liability.

Functional Replacement Cost/Repair Cost

the cost to repair with less costly option. They will only replace the function of it.

Proximate Cause

the first peril in an unbroken chain of events (the first domino in the domino effect.)

Combined Single Limit

the maximum bi + the maximum pd

Deductibles

the portion of the claim the policyholder must pay. (but liability does not have a deductible)

Personal Property

the stuff inside the real property/home.

3rd Party supplemental payments

where liability goes, this follows. This is because the insurance made the decision to go to court.