AD Banker AL P&C

Loss Payment

how insurer will may payment for the loss and applicable time frames that must be honored when sumbitting proof of loss For Insurance Service Office personal lines is 60 days commerical is 30

Property Damage

Physical injury to, destruction of, or loss of use of tangible property.

Dwelling Under Construction Endorsement (DP 11 43)

- dwelling coverage requires insured dwelling to be occupied for residential use -dwellings under construction are not occupied and this endorsements is added insured agrees to advise when construction is complete -limit of liability for Coverage A is provisional and is based on the building's value upon completion. The limit of insurance in place at any time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. - once construction is complete named insured must notify the insurer to obtain consent to occupy dwelling and adjust policy premium - occupancy under coverage a as a dwelling is permitted for 30 days after completion

Insured (Homeowners policy)

- named insured and resident spouse if member of household - other residence of household ( relative of named insured related by blood marriage or adoption under age of 21 - Full time student living away if under 24 and were a member of the household before moving or are under 21 and in care of named insured - Section II Liability Coverages, any person or organization legally responsible for covered animals or watercraft owned by an insured, unless custody of such animals or watercraft is in the course of "business" - as defined by the policy - With respect to a "motor vehicle," to which liability coverage applies, persons using a covered vehicle on an insured location with insured's consent and persons while engaged in the employment of the named insured or a resident relative

Cause of Loss Basic Form Commerical Coverage Policy

(perils): fire, lightning, windstorm, or hail, smoke, aircraft, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. Exclusions include ordinance or law -earth movement -flood -governmental action -nuclear hazard, utility services -war and military action -water or fungus -wet or dry rot, and bacteria. A special exclusion exists for business income and extra expense coverages. Vandalism does not include coverage for theft but does cover building damage caused by the breaking or exiting of burglars Smoke does not include coverage for smoke from agricultural smudging or industrial operations. The basic causes of loss form contains a Limitation provision that specifies loss of animals is covered but only if they are killed or their destruction is made necessary. The basic form includes the Additional Coverage - Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria. The Limit of insurance is up to $15,000 for all covered losses that take place during the 12-month period that begins with the policy's inception date.

Compulsory vs. Elective

*Compulsory - Employers required to provide Workers' Compensation benefits to employees or demonstrate the ability to provide. *Elective - Employers have choice to accept or reject Workers' Compensation laws.

Monopolistic vs. Competitive States

*Monopolistic - Workers' Compensation insurance only available through state fund *Competitive - Workers' Compensation insurance available through private insurers as well as any state fund that may exist

Truckers Form

- Common Carriers transporting property belonging to customers. -only pays if the trucking company is at fault - Legal Liability form i.e. Mayflower

Landlord Furnishings (homeowner)

- Up to $2,500 coverage is provided for appliances, carpeting, and household furnishings owned by the named insured and located in each apartment on the residence premises that is rented to others coverage provided for 15 named perils ( coverage C perils mins theft) - does not increase the limit of insurance applying to the damages property

Characteristics of inland Marine Policies and Endorsements

- coverage on world wide basis - considered to be all risk -typically written with NO Deductibles - written on a Stated Value basis. Settlement following a loss is commonly based on the ACV, Replacement cost or sometimes Market Value. Except for fine arts and antiques, which are often issued as an Agreed value contract. aka: Personal Articles Floater Scheduled Personal Property Endorsement, as in a Homeowners policy

Inside the Premises - Robbery or Safe Burglary of Other Property

-Covers Damage to Property "Other than Money and Securities" that occurs from robbery or attempted robbery inside the premises. -Covers Damage to Property "Other than Money and Securities" that occurs as a result from the burglary of a locked safe inside the premises -Covers any other property taken by robbery even when the business is open -Covers any other property taken from a safe when the business is closed Example: Shoplifting is NOT covered if done without notice or force or destruction. Shoplifting is covered if in the course of the crime the thieves caused damage to the store, stole many items including cash, electronics, clothes, and threatened the store manager harm if he didn't open the safe and in the process stole some cash.Damages in the course of the crime would be covered.Cash would NOT be covered under this form (Other than Money or Securities).Electronics and clothes would be covered because they were taken in the course of the robbery while the store was open.

Exclusions Applying to Coverage E and F

-Expected or intended injury is excluded and applies even if the insured intended a different outcome - exception for the use of reasonable force to protect persons or property. -Coverage is excluded for bodily injury or property damage arising out of, or in connection with, a business conducted from an insured location OR engaged in by any insured, regardless of where the occurrence takes place. The exclusion applies if the insured owns a business or is employed by a business; no distinction is made between the two. -Coverage is excluded for bodily injury or property damage arising out of the rendering of or failure to render, professional services -No coverage is provided for bodily injury or property damage arising out of a premises owned, rented by, or rented to others by an insured if the premises isn't an "insured location" -No coverage is provided for bodily injury or property damage arising from any type of war, warlike act, or destruction, seizure, or use for a military purpose—including accidental discharge of a nuclear weapon -Bodily injury or property damage arising out of the transmission of a communicable disease by an insured is excluded -Bodily injury and property damage arising out of sexual molestation, corporal punishment, or physical or mental abuse is excluded -Bodily injury or property damage arising out of the use, sale, manufacture, delivery, transfer, or possession of a controlled substance is excluded. An exception to the exclusion exists for the legitimate use of prescription drugs by a person following the orders of a licensed physician. -Coverages E and F don't apply to bodily injury sustained while using a watercraft that is: An inboard motorboat owned by an insured, except while in storage -An inboard motorboat with more than 50 horsepower, owned by an insured -An outboard motorboat with more than 25 horsepower, rented by an insured -Sailing vessels 26 feet or more in length, owned or rented by an insured

Part A Exclusions

-Intentional Injury or Damage -Property Owned or Transported -Property rented, used, or in the insured's care -Bodily injury to an employee -Use as a public or livery conveyance -Vehicles used in the auto business -Other business vehicles -Using a vehicle without reasonable belief of permission -Nuclear energy exclusion -Vehicles with fewer than four wheels -Vehicle furnished or made available for the named insured's regular use -Non owned coverage endorsement -Vehicle owned by, furnished, or made available for the regular use of any family member -Racing vehicle -vehicles made for off road -vehicles with fewer than 4 wheels

Policy Period and Territory

-Policy period:when the policy begins and ends -Policy territory:where a loss must occur; territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, and while being transported between their ports. Mexico is NOT in the policy territory.

Definitions of Disability

-Temporary Total- employee is expected to recover and return to work, but is unable to do any work while recovering. Benefits begin after a waiting period of several days. Retroactive benefits will be paid back to the initial date of disability if the disability lasts beyond a certain period. The benefit amount is a percentage of the employee's average weekly wage, subject to minimum and maximum limits. In most states, it is 66 2/3%. Permenant Total- prevents an employee from being able to do any work for the rest of his/her life. Benefits are subject to the same weekly benefit percentage and the same minimum and maximum limits as Temporary Total. In most states, benefits are paid for life Temporary Partial- an employee is able to do some work, but is unable to earn his/her usual wage until full recovery. Benefits are usually calculated as a percentage of the difference in the wages. Permanent Partial- an employee is able to do some work, but will never fully recover. An employee can still earn a wage, but not as much as he/she would have earned if the injury had not occurred. Scheduled Benefits- benefits applies to specific permanent partial injuries, such as a dollar amount for the loss of an eye, or a hand. These benefits are usually paid in addition to other benefits

Part D Exclusions

-Use as a public or livery conveyance -Damage from wear and tear, etc. -Radioactive Contamination or war -Electronic equipment -Exception if it is permanently installed -Tapes, records, and discs -Government destruction or confiscation -Trailer, camper body, or motor home not in Declarations -Loss to a nonowned auto used without reasonable belief of permission -Radar detection equipment -Custom furnishings or equipment (van or pickup) -Endorsement available to provide $1,500 coverage -Nonowned auto used in the auto business -Racing vehicle -Rental car

Supplementary Payments part A PAP

-bail bonds up to 250 -defending suit wil pay premiums on appeal bods and bonds to release attachments - any intrest that accuulates after judgement will also be paid if insurer defends a suit - pays up to 200 a day for loss of earnings if insurer requests attendance at hearings or trials. This does not include loss of other earnings. The policy will also pay for reasonable expenses incurred at the insurer's request. This does NOT include traffic fines.

Employee definition CGL

-employee includes a leased worker. A leased worker is a full or part-time employee who has contracted with an employee leasing service (also known as a professional employer organization). -Employee does not include a temporary worker. Temporary workers are employees of the supplying company

Improvements, Alterations, and Additions (dwelling policy)

-if insured is a tennant they may use up to 10% of the Coverage C limit of insurance of covered loss to improvements, alteraions and additions made or acquired at insured expense to the descibed location only occupied by named insured DP-1 it is included in the in limit of insurance DP-2 and 3 its additional insurance

Ordinance or Law (homeowners)

-insured may use up to 10% of the Coverage A limit of insurance for increased costs the insured incurs due to the enforcement of any ordinance or law that requires or regulates: -Construction, demolition, remodeling, renovation, or repair of that part of a covered building damaged by an insured peril -The demolition or reconstruction of the undamaged part of a covered building, when that building must be totally demolished because of damage by an insured peril to another part of that covered building -The remodeling, removal, or replacement of the portion of the undamaged part of a covered building to complete the remodeling, repair, or replacement to that part of the covered building damaged by an insured peril -This coverage is additional insurance.

Exclusions Applying ONLY to Coverage E

-loss assessment, except as provided under the Additional Coverage, Loss Assessment Under any contract entered into by an insured. Exceptions exist if the contract is a written contract that relates directly to the ownership, maintenance, or use of an insured location or the liability of others is assumed by the named insured prior to an occurrence -Property damage to property owned by an insured -Property damage to property rented to, occupied by, used by, or in the care of an insured. This is the care, custody, or control exclusion and an exception exists for property damage caused by the perils of fire, smoke, or explosion. Keep in mind that the Additional Coverage, Damage to Property of Others, provides $1,000 of coverage, on a replacement cost basis, to minimize this exclusion. -Bodily injury to anyone eligible to receive benefits from any Workers' Compensation, occupational disease law, or non-occupational disability law -Bodily injury or property damage for which an insured is covered under any nuclear energy liability policy Bodily injury to the named insured or any insured

Debris removal coverage (dwelling policy)

-policy pays insured reasonable expense for removal of debris of covered property if it was damaged from an insured peril. - this is included in the limit of insurance that applies to the damaged property - 5% of coverage A or 500 per shrub

Debris removal additional coverage (homeowner)

-policy will pay the named insured's reasonable expenses for the removal of debris of covered property if a covered loss occurs -payment is included in limit of insurance if it exceeds this coverage will provide additional insurance equal to 5% of limit available for such expense - limit of 1,000 applies for reasonable expenses to remove from the residence premises debris of the insured's trees felled by windstorm, hail, or the weight of ice, snow, or sleet.

Newly Acquired Auto

-private passenger auto -A pickup or van, for which no other insurance policy provides coverage, if the auto:Has a gross vehicle weight of less than 10,000 poundsIs not used for delivery or transportation of goods and materials, unless such use is incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment. For example, if the insured is a plumber; he may use his pickup or van for the transportation of his tools.

Coverage B: Other Structures

-protects other, unattached, dwellings on the property. -covers landscaping as well as buildings, but not the land. -does not cover other structures used for business purposes. -limit of 10% of coverage A limit and is automatically provided under each dwelling form - InDP-1 the limit does not increase the amount of insurance provided by coverage A the DP-2 and 3 forms provide additional insurance

Coverage A: Dwelling

-protects the dwelling and any attachments -includes materials and supplies on or next to described location used to construct alter and repair the dwelling or other strcutures at location -does not cover any damage to the land paid RC except DP-1 it is paid ACV

Coverage A- Dwelling (homeowner policy)

-protects the dwelling and any attachments -includes materials and supplies on or next to described location used to construct alter and repair the dwelling or other structures at location -does not cover - any damage to the land - theft in or from a dwelling under construction including materials used in construction -VMM ensuing loss if dwelling was vacant for more than 60 consecutive days limit of liability is chosen for Coverage A - Dwelling, the other three property coverages (B, C, and D) are automatically issued at limits equaling a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. requires insured to purchase insurance in an amount that is no less than 80% of the dwelling's replacement value. If, at the time of a loss, the amount of insurance on the dwelling is less than 80% of the dwelling's replacement value, a penalty will be applied to partial losses. If 80% Replacement cost is not carried, ACV will apply

Insured Location (homeowners policy)

-residence premises -The part of any other premises, structures, or grounds used by the insured as a residence if it is shown in the Declarations or acquired by the named insured during the policy period for use as a residence -Any premises described above used by the named insured, such as a boat slip -Any premises not owned by an insured and where the insured is temporarily residing, such as hotel rooms and summer vacation rentals -Vacant land, other than farm land, owned by or rented to an insured -Land owned by or rented by an insured on which a 1, 2, 3, or 4-family dwelling is being built as a residence for an insured -Individual and family cemetery plots or burial vaults of an insured -Any part of a premises occasionally rented to an insured for other than business purposes, such as a banquet hall where a wedding reception is hosted

parts of BOP

1. Declarations Page 2. Coverage form and had 3 sections Section 1: Propertyu Section 2: Liability Section 3: Common Policy Conditions (apply yo both Section I and II 3.) Any applicable endorsements

Part B Exclusions PAP

1. Motor vehicle with less than 4 wheels or used for business reasons 2. Vehicle used as home 3. Injury incurred during course of employment 4. Vehicle used without reasonable belief of permission 5. Nuclear weapon/radiation/war 6. Racing vehicle

Duties in the Event of Loss

1. Notify police 2. Prompt notice of loss 3. Provide details of the loss 4. Protect the property from further loss 5. Inventories and inspection 6. Examination under oath 7. Cooperation 8. Proof of Loss

Commercial inland Marine coverage Parts

1.Common Policy Declarations 2.Common Policy Conditions 3.Commercial Inland Marine Declarations 4.Commercial Inland Marine Conditions that apply in addition to the Common Policy Conditions: Loss Conditions: Abandonment Assignment Duties in the Event of Loss Insurance Under Two or More Coverages Loss Payment Other Insurance Pair, Sets, or Parts - -A loss settlement condition found in property insurance contracts stating that when part of a set is damaged or destroyed, the insured will not be reimbursed for the value of the entire set. Various methods are used to determine the amount of reimbursement Example Set of 4 Value is $1,000. 1 item individually is worth $200. The Value of the set is worth more than the sum of all 4 individual parts, which would equal $800. Therefore, they would consider the set value of $1,000 /4 = $250. The loss settlement would be for $250, not $200. If the set is irreplaceable the valuation would then be $1,000—the value of the one item lost (1000-250) = $750. In either case; under the Pair, Sets, or Parts Clause, in no case would the amount of the loss equal the value of the entire set. -Privilege to Adjust with Owner -Recoveries - The insurer is entitled to salvage when paying for a loss. -Reinstatements After a Loss -Transfer of Rights of Recovery Against Others to the - Insurer General Conditions: -Concealment -Legal Action Against the Insurer -No Benefit to Bailee -Policy Period -Valuation -One or more Commercial Inland Marine Coverage Forms -Endorsements as needed

Inside the Premises - Theft of Money and Securities

3 specific types of loss: theft, disaperance or destruction of money and securities inside the insured premises or inside banking premises when committed by a person the premises also covers damage to the insured premises or its exterior when causes by an attempted or actual theft as well as damage to vault, locked safe, cash register, cash box or cash drawer that results from actual or attempted entry into such property. Vandalism if not related to a theft is not covered accounting errors are excluded Does not cover: Vending Machines Arithmetic Errors Deception Voluntary relinquishment Fire Loss **Resulting fire loss from vandalism, theft, burglary, or robbery isn't covered by the crime forms; such coverage is found under the standard property forms

Coverage D: Loss of Use

3 types of coverage and all for indirect loss. Limit appearing on decleratins is the total limit payable 1.) Additional living expense property loss covered by Section I of the policy makes the residence premises unfit to live in, the policy pays for any necessary increase in living expenses incurred by the named insured to maintain the household's normal standard of living. Payment made for the shortest time necessary to repair or replace the damage. If the insured must relocate permanently, payment will be made for the shortest time it takes the insured to settle at the new location. 2.) Fair Rental Value If a property loss covered by Section I of the policy makes that part of the residence premises rented to others unfit to live in, the policy pays for the fair rental value of such premises - less any continuing expenses - while it's unfit to live in. Payment is for the shortest time required to repair or replace the rented portion of the premises. 3.) Civil Authority Prohbits Use If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against under the homeowners policy, the policy pays losses under Additional Living Expense and/or Fair Rental Value for no more than two weeks. Limit of coverage: 30% of Coverage A for forms HO-2, HO-3, and HO-5 30% of Coverage C for form HO-4 50% of Coverage C for form HO-6 10% of Coverage A for form HO-8

Workers Compensation Par

6 parts: Information (Declaration Page) General Section Part One - Workers' Compensation Insurance Part Two - Employers Liability Insurance Part Three - Other States Insurance Part Four - Your Duties if Injury Occurs Part Five - Premium Part Six - Conditions

Boatowners Policy

A Policy covering Property and Casualty losses associated with owning or using a boat that is typically towed by a car. Most limit coverage to open-cockpit vessiles

Short Rate Cancellation

A cancellation of insurance that incurs a financial penalty. Sometimes when the insured cancels the policy before its expiration date, a short-rate cancellation is issued. The insurer retains a portion of the unearned premium to cover costs.

Flat Cancellation

A cancellation of insurance that is retroactive to the effective date of the policy. No coverage is provided and the insurer must refund the policy premium paid by the insured.

Certificate of Insurance

A document that shows evidence that specific types of insurance were purchased by the insured, at certain limits, and that they were in place on the date the certificate of insurance was issued. A certificate of insurance is not proof of insurance, as a binder is.

Self-insured retention (SIR)

A dollar amount specified in an insurance policy that the insured must pay before the insurer will make any payment for a claim.

Crop Hail Insurance

A form of Crop Yield Insurance that is usually provided by private insurers without government subsidy. It offers named-peril protection on an acreage basis. named perils: against loss by fire, hail, lightning, or other perils policy is typically written with deductibles (normally a 5% yield reduction). Policies can be written to cover a percentage of expected yield, such as 50% or 100%. If a crop is expected to yield 10,000 bushels but yields only 5,000, the policy will cover the unrealized 5,000 bushels. The coverage ceases when the crop is harvested (1 growing season). includes a replanting feature to reduce both insured and insurers losses. Insurer may reimburse 20% of the amount of insurance exclusions: hese may vary by company but common exclusions include: Until normal visible (crop must be above ground) Failure to harvest a mature crop Non-owned property (share crop) Loss from injury to buds, blossoms or blooms, unless the crop is affected Injury to leaves, vines, etc unless crops are also damaged or affected Injury to trees, bushes, fruit or nut crops

Hangarkeepers Liability

A form of aviation bailee insurance that covers the insured's liability for damage to aircraft stored for safekeeping. operates very similar to garagekeepers coverage

Builders Risk Coverage Form

A form that covers buildings in the course of construction, including additions or alterations to existing buildings or within 100 feet of premises if they are on the dec page ie foundations of buildings or structures fixtures and machinery that will be come part of covered building equpiment used to service covered building insured build materials and supplies for construction not included: laws, land, trees, shrubs plants outside antennas and signs not attached to building coverage begins on effecitive date of policy or when insured becomes legally responsible if that date occurs after policy effective date coverage ends automatically at earliest of folllwoing events: The policy expires or is canceled The covered property is accepted by a purchaser The insured's interest in the property ends The insured abandons the property and doesn't intend to complete construction 90 days after construction is complete 60 days after any covered building is partially or fully occupied OR is put to its intended use form does not liability coverage and is written on a completed value form. limit of coverage is often chosen and reflects the anticipated replacement value of covered buildings when construction is complete If an insured is working on several projects at a time, the builders risk reporting form will be added to the policy by endorsement. It allows the limit of insurance to be adjusted based on reports filed per the reporting period on the policy; reporting periods can be daily, weekly, monthly, or quarterly. The amount of coverage increases at intervals to correspond with the increasing value of the building. Failure to submit reports as required results in penalties that range from 25% of the amount the insurer would otherwise have paid or the amount contained on the most recently filed report before the loss. The form is written equivalent to 100% coinsurance. The causes of loss on the builders risk form appearing on the Declarations are the same as those used with the Building and Personal Property Coverage Form.

Proof of Loss

A formal statement made by the insured and provided to the insurer that provides necessary details for the insurer to determine its liability under a policy.

Concurrent Causation

A situation where there are 2 causes resulting in a loss and 1 of the causes is excluded while the other cause is not excluded. Unless the policy specifies otherwise, the loss is covered. Example: a policy that excludes earth movement will still pay a loss due to for or explosion that ensues directly from the earth movement.

Death and Survivor Benefits (Funeral Expense Benefit)

A statutory maximum amount, varying from state to state, is provided as a burial allowance (usually $3,000). Survivor income benefits are a percentage of the deceased worker's wages and are also provided to the surviving spouse (and usually end at remarriage); and/or children (until age 18, and sometimes longer if a full-time student).

Advertisement defintion CGL

A notice broadcast or published to the general public or specific market segments about the insured's goods, products, or services to attract customers or supporters.

Business Owner Policy (BOP)

A package of insurance policies specific to the needs of a particular kind of small firm

Businessowners Policy (BOP)

A package policy that combines most of the property and liability coverages needed by small and medium-size businesses. BOP mirrors to a great extent the CPP. Much of the BOP coverages follow the same guidelines and have the same limits of coverage. The main differences between a CPP and BOP are the pre-packaged limits imposed on a BOP. The CPP can be custom built with fewer restrictions on limits and coverages. With a CPP you can pick and choose the coverage parts that you want in the plan. The BOP you cannot because the BOP is pre-packaged. The BOP is a pre-packaged policy that has additional coverages automatically built in whether you need them or not. The method of valuation on the building and business personal property is replacement cost, provided that at the time of the loss the limit of insurance on the lost or damaged property is 80% or more of the full replacement cost of the property. The 80% coinsurance is not required to be maintained, however the additional coverages and replacement cost valuation will not be activated unless 80% coinsurance is purchased and maintained throughout the life of the policy. The limit of insurance for the building automatically increases by an annual percentage shown in the Declarations. The increase is the building limit times the percentage of annual increase shown in the Declarations, divided by 365 (the amount of insurance applicable on any given day). Business Income and Extra Expense coverages are automatically included, and the policy pays the actual loss sustained for up to 12 consecutive months during the "period of restoration" following a covered direct loss. The "period of restoration" begins 72 hours after the time of direct physical loss, and ends when repairs are completed or when business resumes at a new permanent location. The BOP has fewer options than the CPP but provides excellent coverage with less underwriting and is generally less expensive than a CPP.

Employee

A person in the insured's service, whom the insured compensates and has the right to direct. A person remains an employee for a period of 30 days after termination.

Additional Insured

A person or organization not ordinarily protected by a policy but which, through the addition of an endorsement to the policy, is granted status as an insured. under a liability policy an additional insured is often a party to an indemnification or hold harmless agreement

family members

A person related to the named insured by blood, marriage, or adoption who is a resident of the named insured's household. A family member includes a ward or foster child.

Volunteer Worker Definition CGL

A person who is not an employee of the insured but who donates his/her work and acts at the direction of the insured. A volunteer worker is not paid a fee, salary, or other compensation by the insured for work performed for the insured.

Adujster AL def

A person who, for compensation, investigates and negotiates claim settlements on the insurer's behalf. This term does not include an insurer's salaried employee or an attorney licensed in Alabama. At least 19 years of age An Alabama resident, or a resident of a state that allows Alabama resident adjusters to act as adjusters in that state An attorney, a licensed adjuster's full-time salaried employee, or an individual with claims handling experience, education, or training Trustworthy and of good character License exemption for non resident adjusters: adjuster sent to Alabama to investigate or adjust a particular, unique, and unusual loss is exempt from license requirements. A producer may occasionally act as an adjuster without being duly licensed. A producer's compensation may not be retrospectively reduced or increased because of losses under insurance he/she sold or serviced as long as renewal is requested and the renewal fee is paid on or before December 31st annually. An adjuster license may be reinstated if renewal is requested and the renewal fee is paid by the February 15th after the license expires. The Commissioner may suspend an adjuster license for up to 12 months, or may revoke or refuse to renew such license: For any reason for which the license would not have been issued For attempting to obtain the license through misrepresentation or fraud For violating any applicable insurance law or any rule, regulation, or order of the Commissioner For misappropriating or illegally withholding money or property belonging to another and received in the process of conducting business For being convicted of a felony involving moral turpitude For using fraudulent or dishonest practices or demonstrating incompetence or untrustworthiness must maintain all records of transactions for 1 year and must notify of any changes in address

Named Insured

A person, corporation, partnership, or other entity identified as an insured party in an insurance policy's declarations page. receives the broadest coverage of all person or organziations protected by a policy

Personal Umbrella Policy

A policy covering (BI &PD) and Personal Injury Liability in excess of the insured's underlying policy limits. It provides an additional layer of liability insurance after the limits of underlying primary policies are exhausted due to paid claims It provides coverage on a broader basis than the primary policies It drops down to provide first-dollar coverage when the underlying primary policies don't provide coverage usually written in increments of 1Million with a single limit per occurnce covering claims for BI &PD ingle Limits per Occurrence Coverage of 100/300/100 = Bodily Injury/Property Damage/Personal Injury. A personal umbrella policy (with the above limits) is attached to a homeowners policy to cover liability regarding a home-based business, since the insured may be exposed to more liability than a regular homeowner. Scenario 1 If there is a claim for bodily injury that exceeds the homeowners policy limits for bodily injury, the umbrella would act as excess coverage on a $100,000 per occurrence basis for bodily injury for the amount of liability that the insured is responsible for above what the homeowners policy will cover. Scenario 2 If there is a claim for personal injury, the homeowners policy does not provide any coverage for personal injury. However, the Personal Umbrella does. The umbrella would then drop down and act as primary, but first the insured must satisfy the Self Insured Retention (SIR), which is the same as a deductible. TEST TIP 1 Know how to apply the Self Insured Retention (SIR) and the Single Limits of Coverage. TEST TIP 2 Know that the SIR is the deductible or a retention limit is in an umbrella policy.

Valued Policy

A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss.

Unoccupancy

A property that contains personal property but has no occupants.

Pro Rata Cancellation

A proportionate cancellation of insurance that refunds premium to the insured based on the precise number of days coverage was in effect.

vacancy

A provision in a property policy that eliminates or limits coverage for buildings that don't contain sufficient personal property to support intended occupancy or use.

Inherent Vice

A quality of or condition within a particular type of property that tends to make the property destroy itself. Example rust rot and fading of paint

business (homeowner policy)

A trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis -Any other activity engaged in for money or other compensation, EXCEPT:Volunteer activities for which no compensation is received other than expense reimbursement -Home day care services for which no compensation is received other than the mutual exchange of day care servicesRendering home day care services to a relative of an insured -Any other activity not described above for which no insured receives more than $2,000 in compensation during the 12 months before the current policy term

Named perils

A type of insurance that covers a specific set of named perils. If a peril isn't specifically named, it isn't covered.

Medical Malpractice Insurance

A type of liability insurance, which covers physicians and other health care professionals for liability as to claims arising from patient treatment.

stated value

A valuation method that states the value of a particular property on the declarations page, but provides for the insurer to pay the lesser of the stated value or ACV of the property following a loss.

Libel

A written defamation of a person's character, reputation, business, or property rights.

Contents Broad Form (HO-4)

AKA renters or tenant homeowner policy and doesn't provide any coverage for dwelling or other structures because it is for tenants - insured personal property under Coverage C agains loss of 16 named broad perils found in HO-2 and HO-3. Personal property losses are valued on ACV as in HO-2 and HO-3

Section V- Definitions

Accident - Includes continuous or repeated exposure to the same conditions that results in "bodily injury" or " property damage." Auto - A land motor vehicle, trailer, or semitrailer, designed for travel on public roads or any other vehicle subject to a compulsory or financial responsibility law or motor vehicle insurance law in the jurisdiction where the vehicle is licensed or principally garaged. Mobile equipment is not an "auto." Insured - Any person or organization qualifying as an insured in the Who is an Insured provision of the applicable coverage. Except with respect to the Limit of Insurance, the coverage afforded applies separately to each insured who seeks coverage or against whom a claim or "suit" is brought. Loss - Direct and accidental loss or damage. Mobile Equipment - Any of the following types of land vehicles, including any attached machinery or equipment: Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads Vehicles maintained for use solely on or next to premises owned or rented by the named insured Vehicles that travel on crawler treads Vehicles, whether self-propelled or not, that are maintained primarily to provide mobility to permanently mounted power cranes, shovels, loaders, diggers, drills, and road construction or resurfacing equipment (i.e., graders, scrapers, or rollers) Pollutants - Any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed. Suit - A civil proceeding in which damages are alleged because of "bodily injury," " property damage," or "covered pollution cost or expense" and to which the policy applies. A "suit" includes an arbitration proceeding and any other alternative dispute resolution proceeding. Trailer - A semi-trailer.

appraisal

Addresses disputes about the amount of a loss. If the insurance company and insured cannot agree on the amount of a loss, either party may request an appraisal. Each party selects its own appraiser and the appraisers select an umpire. Agreement by any two parties settles the loss. Each party pays the cost of its own appraiser and shares the costs of the umpire and the appraisal. Appraisal is a dispute resolution method and is not used to determine whether the policy provides coverage for a loss.

Nonrenewal

Addresses the requirements of the insurer if it elects not to renew a policy.

AL Bail Bonds General Provisions

Admission to Bail - A competent court's or magistrate's order that a defendant be discharged on bail. Taking of Bail - A competent court's or magistrate's acceptance of enough bail to ensure the defendant's appearance in court or to pay Alabama for the defendant's failure to appear. Appearance Bond - An undertaking to pay Alabama or any Alabama municipality for a released person's failure to comply with its conditions. Judicial Officer - Any supreme, appellate, circuit, district, or municipal court judge, or any Alabama court magistrate. Professional Bail Company - A person or an entity, other than a professional surety company, that, for valuable consideration, furnishes bail or becomes surety for a person on an appearance bond. Professional Surety Company - An insurer, domestic or foreign corporation, association, or surety authorized by Alabama's Department of Insurance to execute appearance bonds or bail bonds in criminal cases. Professional Bondsman - A person or producer employed by a professional surety or bail company to solicit and execute appearance bonds or bail bond business on the company's behalf. Persons Charged with Capital Offense A defendant is charged with an offense that would be considered an offense punishable by death if found guilty. The defendant would be denied bail for due to the increased risk of the defendant fleeing and escaping bail. Bail All judges or magistrates must ensure that every prisoner has an opportunity to give bail when he/she is so entitled. For a misdemeanor: -Any judge or magistrate may approve a bail bond for a prisoner charged with a misdemeanor. The prisoner must be released on his/her own recognizance. -Any sheriff or deputy must release a prisoner giving enough bail, which must be at least $50. When a defendant indicted with a felony fails to pay bail, the judge must endorse, on the indictment, the required bail amount. A judge receiving a bail application (a request for bail) may set the bail amount, and the sheriff may release the defendant when he/she pays that bail. Writ of Arrest A clerk issuing a writ of arrest upon an indictment must endorse an order for the sheriff to accept the defendant's bail in the amount fixed by the judge. Limitations When any circuit judge refuses a bail application, only the Court of Criminal Appeals may accept a subsequent bail application. When the Court of Criminal Appeals allows a defendant to pay bail, the court's order must state the required bail amount and require the circuit judge's court to do the same. When the Court of Criminal Appeals orders that any bail be paid to a judge, the sheriff must facilitate the payment by taking the defendant before the judge to pay the bail.

Part E: Duties After an Accident or Loss

After an accident, the insured is required to perform certain duties, such as: Promptly notify the insurance company or agent Cooperate with the insurer in the investigation Send the insurer copies of any legal notices received in connection with an accident Take a physical exam, if required Authorize the insurer to obtain copies of medical reports submit proof of loss when required by insurer With UM- must notify the police insured making a claim under Part D must protect the property from further damage, notify the police promptly if the vehicle is stolen, and allow the insurer to inspect and appraise the damaged vehicle before its repair or disposal.

Optional Coverage BPP

Agreed Value The coinsurance clause is suspended when this optional coverage applies The insured and insurer agree on value specified on the Declarations page This optional coverage only applies to loss or damage that occurs after the effective date of the optional coverage and before the agreed value expiration date shown in the Declarations This coverage does not automatically renew; the insured must choose it Inflation Guard The limit of insurance for property subject to this additional coverage automatically increases by the annual percentage shown in the Declarations This percentage of increase is applied to the policy at the rate of 1/365 of each day Replacement Cost - Business Personal Property Only The insured may purchase coverage for replacement cost loss valuation instead of the actual cash value method of valuation contained in the form This optional coverage does not apply to:Personal property of othersContents of a residenceWorks of art, antiques, rare articles, etc.Stock, unless the stock option is shown in the DeclarationsTenants' improvements and betterments are NOT considered personal property of others under this coverage Extension of Replacement Cost to Personal Property of Others This optional coverage allows replacement cost loss settlement, instead of actual cash value loss settlement, to apply for loss to personal property of others.

exempt workers

Agricultural workers, such as farm and ranch laborers Domestic employees Casual laborers - Those whose work is non-recurring or irregular. Anyone covered by a Workers' Compensation plan. Police and fire department workers are examples. This does not include part time employees. Independent Contractors - Plumbers, electricians, and landscapers who work under contract for more than one employer. The definition of independent contractor varies by state, as do requirements for Workers' Compensation and exempt status. Sole - Owners, Partners, and Corporate Officers

BOP not covered

Aircraft, automobiles, motor trucks, and other vehicles subject to motor vehicle registration Money or securities, except as provided in the Money and Securities Optional Coverage or Employee Dishonesty Optional Coverage Land, including land on which the property is located, water, growing crops, or lawns Outdoor fences, radio or television antennas, satellite dishes, and their lead-in wiring, masts or towers, signs (other than signs attached to the building), trees, shrubs, or plants Watercraft and associated equipment, while afloat Accounts, bills, food stamps, other evidence of debt, accounts receivable or valuable papers and records, except as otherwise provided in the policy Computers that are permanently installed or designed to be permanently installed in any aircraft, watercraft, motor truck, or other vehicle subject to motor vehicle registration, except while held as stock Electronic data other than as provided under additional coverages Animals, unless held for sale or being boarded for others by the insured, or, if owned by the insured as stock while inside the building Property transferred per unauthorized instructions is not covered Contraband, or property in the course of illegal transportation or trade

Strengthen Alabama Homes - Windstorm Damage Mitigation Information

Alabama requires all property insurers to include in their rates and rating plans a premium discount or insurance rate reduction when the property is built in compliance with the 2006 International Residential Code, including all hurricane mitigation construction requirements, or the Fortified For Safe Living Standards. These discounts are mandatory for property located in Baldwin and Mobile counties. Fortified designation can only be achieved by enlisting the help of a Fortified evaluator must be a single family home This accredited, or certified Fortified Evaluator will verify that the resilience upgrades of the home adhere to the stringent program standards and also ensure that the homeowner gets what they are expecting when they make this investment. Depending on the level of resilience upgrades, a home can be awarded one of the following Fortified Home Hurricane designations: Bronze now known as Fortified Roof Silver Gold Roof and Silver designations are generally more appropriate for older homes. Meeting those requirements will harden the building systems most frequently damaged in a windstorm. \Gold designation requires documentation of engineering design and installation of a continuous load path, thus will most likely be achieved with new construction or an existing home undergoing substantial renovations. Before any homeowner begins to upgrade their home they must first engage a certified Fortified Evaluator to conduct a Fortified Home Hurricane Evaluation and issue a Current Condition Report (CCR). The CCR will identify: Assemblies and systems in the home that already meet the requirements Recommended retrofits required for a Fortified designation Any conditions that must also be addressed before proceeding with retrofits

Joint Ownership Coverage

Allows the policy to be issued to two or more persons who live in the same household or are related in another way besides husband and wife. Non residential relatives- 2 or more persons related by blood, marriage, or adoption who reside in separate households. This includes a ward or foster child.

Endorsements of casualty

An addition to the policy made by the insurer to broaden coverage, restrict coverage, or further define certain policy provisions.

Punitive Damages

An award to an injured party, in addition to compensatory damages, to punish and discourage a wrongdoer from repeating negligent acts or omissions. Most liability policies do not provide coverage for punitive damages.

Interline Endorsement CPP

An endorsement that modifies two or more lines of insurance and prevent duplication f only 1 coverage part is affected by a change, it is called a Monoline Endorsement.

Bailee's

An individual entrusted with servicing, storing or repairing property

Industrial Fire Policies Def Method of Payment Idemnity Limits

An industrial fire policy must charge either a weekly or a monthly premium. An insurer may not issue a weekly and a monthly industrial fire policy on the same risk. The face amount of an industrial fire policy: With weekly premiums that covers buildings and other structures or contents may not exceed $7,500 With monthly premiums must be $40,000 for the building or dwelling and $20,000 for contents may not use the caption "The Standard Fire Policy." The words "industrial," "monthly," "weekly premium," or "home service" must be incorporated as a part of the policy caption subject to approval by the Insurance Department. All industrial fire policies must be marketed by a producer licensed for industrial (debit) fire or property and casualty. ndustrial fire and allied lines rates and subsequent changes must be filed with the Insurance Department for approval Every insurer must annually, by or on July 1st, file a statistical report showing a classification schedule for premiums and losses for the previous year's industrial fire business in Alabama. The report must show separate statistics for fire and lightning, extended, and all additional coverages.

Mobile Home Insurance

An owner occupied mobile home may be covered under an HO-2 or HO-3 by endorsement or a separate Mobile Homeowners Policy. writing a separate Mobile Homeowners Policy, the policy includes Section I - Property and Section II - Liability, which are similar to the corresponding sections in a Homeowners Policy. Coverage A (Mobile Home), insures the mobile home itself; property installed on a permanent basis, (such as appliances, floor coverings, dressers and cabinets, attached structures, and utility tanks). Coverages B, C, and D are nearly identical to the same coverages under the Homeowners Policy, except that Coverage C - Personal Property is generally written at 40% of Coverage A, instead of at 50% Property Removed, is generally expanded to include up to $500 for reasonable expenses incurred while moving the mobile home when threatened by a covered peril. eparate Mobile Homeowners Policy may be written on an open perils basis with losses to the mobile home valued on a replacement cost basis, with other items of property being valued on an actual cash value basis.

Changes

Any changes to the policy must be made in writing by the insurer.

Your product Definition CGL

Any goods or products (other than real property) that are manufactured, sold, handled, distributed, or disposed of by the named insured, others trading under the named insured's name, or a person or organization whose business the named insured has acquired.

Nuclear Hazard Exclusion (dwelling policy and homeowner)

Any nuclear reaction, radiation, or radioactive contamination—whether controlled or uncontrolled—except that fire resulting from the nuclear hazard is covered.

Part C Exclusions

Any underinsured motorist An insured or family member is injured when occupying, or struck by, a vehicle owned by the named insured or a family member and the vehicle is not insured by this policy An insured or a legal representative settles an Uninsured Motorists Bodily Injury Liability claim and that settlement impairs the insurance company's ability to recover payments made to any insured An insured is occupying a "your covered auto" while it is being used as a public or livery conveyance An insured is using a vehicle without a reasonable belief that he or she is entitled to drive it. Family members always have a reasonable belief of entitlement to drive a "your covered auto" under this coverage. While insured by Workers' Compensation or disability insurance. No payment will be made under this coverage for injuries that might benefit any insurer, or self-insurer, under any Workers' Compensation or disability benefits law. This means that if Workers' Compensation or disability insurance is in place, that coverage must pay before this coverage applies. If the insured is legally responsible for punitive or exemplary damages, this coverage does not apply.

Your Covered Auto

Any vehicle in the declarations A newly acquired auto Trailer owned by the named insured Temporary substitute vehicle

Eligible Businesses in BOP

Apartment Buildings- of any size, including residential condominium associations. Office Buildings- that are occupied primarily for office purposes that do not exceed 6 stories in height or contain more than 100,000 square feet in total area. This includes office condo associations. Service or Processing- such as bakeries, florist, jewelry repair, shoe repair, laundromats, dry cleaners, funeral homes, and print shops. Wholesalers- Buildings and business personal property for businesses operating as wholesalers provided that no more than 25% of annual gross sales are derived from retail operations, and no more than 25% of the total floor area is open to the public. Contractors- (subcontractors) include, among others, the following as long as the total annual payroll does not exceed $300,000, and no more than 10% of total annual gross sales comes from subcontracted work. (General contractors are too large to qualify) Restaurants- Limited-cooking restaurants are those in which foods are prepared cold or cooked using appliances that do not emit smoke or grease-laden vapors requiring an exhaust system, that are under 7,500 square feet in total floor area, seat 75 persons or less, with alcoholic beverage sales limited to beer or wine not exceeding 25% of gross sales, and no seasonal operations. Fast-food restaurants, with an exhaust system, are allowed only the following cooking processes capable of producing grease-laden vapors: grilling, enclosed broiling, deep-fat frying, roasting, or barbecuing. Fast food restaurants may not: exceed 7,500 square feet in total floor area; have table service; seat more than 150 persons; sell alcoholic beverages other than beer or wine, and limit those sales to 25% of total sales; be a seasonal operation; or operate without the installation and maintenance of an automatic extinguishing system for cooking equivalent to NFPA (National Fire Prevention Association) standards. Motels- Buildings are limited to 3 stories in height; the motel may not be seasonal in its operation, and may not contain a bar or cocktail lounge. Convenience Food/Gasoline Stores- The total annual gross receipts from the sale of gasoline must not exceed 75% of the total annual gross receipts. Auto service repair, car wash operations, and propane or kerosene tank filling operations are not allowed. Self-Storage Facilities- Buildings are limited to 2 stories in height. Cold storage or storage of industrial materials, chemicals, pollutants, and waste do not qualify. Condominium Commercial Unit-Owners Mercantile, wholesale, service or processing, and contracting occupancies.

Premises and Operations Exposure CGL

Applies to an insured business that conducts its operations both at its own premises and elsewhere ex: accountant conducts operations at his or her office and also away from the office when visiting clients, the bank, the post office, networking events, etc. if business or anyone acting on its behalf causes boildy injury or property damage the business may be considered legally liable for such injury or damage. CGL coverage is provided for the insured's legal liability for bodily injury or property damage arising out of the insured's premises or the insured's operations. Covered occurrences must take place during the policy period and within the coverage territory.

Completed Operations Exposure

Applies to occurrences that occur after the insured's operations have been completed and result from improper or defective workmanship, installation, construction, or repair. will pay for BI/PD caused by neglegent or faulty work but will not pay for the cost of replacing the work caused the loss ex: A walk ramp the insured has built and completed at a customer's business later collapses, causing injury. If the walk ramp had collapsed while being built, Operations (discussed earlier) would apply, but since it collapsed after completion, Completed Operations applies. Note:Products and Completed Operations may be combined together, and simply be called "Products and Completed Operations." Products and Completed Operations have their own separate aggregate limit that does not affect the policies general aggregate limit of insurance at all. It is as if it is its own separate policy.

Attractive Nuisance

Artificial conditions on land for which an owner is liable for physical injury to child trespassers if

Self-Insured Retention

As with personal umbrella policies, a commercial umbrella policy has a self-insured retention, which is a form of cost-sharing that applies when the policy drops down to act as primary coverage because the underlying primary policy doesn't cover a loss.

Prior to workers comp law, what were the three major defense used by employers to avoid comping workers for on-the-job injuries?

Assumption of Risk - This defense placed all the risk on the employee as being responsible for knowing the work conditions prior to employment. Fellow Servant Rule - Removed the employer's negligence if a fellow employee contributed in any way to the loss. Contributory Negligence - Used to argue that the employee was partially at fault and therefore was not eligible to recover benefits from the employer

Split-Limit Coverage

Auto insurance liability coverage that allows for 3 separate coverage limits for bodily injury - limit per person bodily injury - limit per accident property damage- per accident ex:If Part A of a policy is written with limits of 100/300/50, the policy will provide coverage of $100,000 per person for BI with a maximum BI aggregate limit of $300,000 per accident. Additionally the policy will provide a $50,000 limit for PD per accident.

Garage Coverage Form

Auto liability/physical damage coverage, plus general liability protection for businesses that are engaged in the sale, service or storage of autos ( ie. dealerships sales agencies, repair shops, service stations, storage garages public parking places Eliminated he gap coverage and overlaps when other Commerical line polcies are written by writting the following: Premises liability products liability atuo liability auto physical damage coverage garage keepers covererage combo of BAC and CGL Section I - Covered Autos Section II - Liability Coverage Section III - Garagekeepers Coverage Section IV - Physical Damage Coverage Section V - Garage Conditions Sections VI - Definitions

inEligible Risks in BOP

Automobile repair and service stations; automobile, mobile home, and motorcycle dealers; and parking lots or garages, unless these operations are incidental to an otherwise eligible risk -Restaurants, bars, and grills (unless fast-food restaurant or others with limited cooking) Places of amusement (Putt Putt golf courses, movie theaters, bowling alleys, etc.) Manufacturers and general contractors Banks, credit unions, savings and loan associations, stockbrokers, or similar institutions

Compensatory Damages

Awarded to the injured party for the actual loss sustained. Damages are Special or General. Special damages are an award to an injured party for actual and known expenses such as bills, loss of earnings, and the costs of repairing or replacing damaged property. Special damages are paid for tangible loss or damage. General Damages are an award to an injured party for pain, suffering, mental anguish, disfigurement, and similar types of losses. General damages are paid for losses that cannot be calculated objectively and assigned a specific dollar value.

BOP Pre-Set Liability Limits and Choices

BOP Min Per Occurance limit is 300,000 but can be increased to 1M BOP General Aggregate and Product and Completed Operations Aggregates are twice the occurrence limit. (If a BOP has an Occurrence limit of $1,000,000, it then has a General Aggregate limit of $2,000,000.) BOP Product and Completed Operations limit of $2,000,000 is separate from the General Aggregate and does not affect the General Aggregate Medical Payments limits are $5,000 per person and come out of the overall BI limits. BOP Fire Legal Liability limit is $50,000 Per Occurrence (Per Fire Limit) and also does not affect the General Aggregate Limits of the policy.

Liability and Medical Expenses General Conditions BOP

Bankruptcy - Bankruptcy or insolvency of the insured does not relieve the insurer of its responsibilities under the policy. Duties in the Event of Occurrence, Offense, Claim, or Suit - The insurer must be notified, as soon as practical, of an occurrence or an offense that may result in a claim. Financial Responsibility Laws - When the policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy will comply with that law. Legal Action Against the Insurer - No person or organization has a right under the policy to sue the insurer unless all terms of the policy have been fully complied with. Separation of Insureds - Insurance applies as if each named insured were the only named insured, and separately to each insured against whom claim is made or suit is brought.

Personal liability supplement

Because the dwelling forms only provide property coverage, if personal liability coverage is desired, coverage must be secured under another policy or an endorsement must be attached to the dwelling policy. The Personal Liability endorsement contains its own Definitions section and provides Coverage L - Personal Liability and Coverage M - Medical Payments to Others. Personal liability coverage applies to claims made or suits brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which the policy applies. Payment will be made up to the limit of liability appearing on the declarations for which an insured is legally liable. Coverage is also provided for defense in addition to the limits of liability. Medical payments to others coverage applies to claims for the necessary medical expenses incurred or medically ascertained within 3 years from the date of an accident causing bodily injury to which the policy applies. Medical expenses are reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral services Coverage does NOT apply to expenses incurred by the named insured or regular residents of the named insured's household except residence employees Coverage applying to others must arise out of injury to a person on an insured location with the insured's permission, or to persons off an insured location if the injury is caused by the activities of an insured or residence employee while in the course of employment by the insured. Also covered are injuries to persons caused by an animal owned by or in the care of an insured or that arise out of conditions on an insured location or ways immediately adjoining it. The endorsement also provides additional coverages for claim expenses, first aid expenses, and damage to the property of others. Exclusions include: Expected or intended injury Business Professional services War Communicable disease Sexual molestation Corporal punishment Physical or mental abuse Controlled substance

Bankruptcy of insured

Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy

Bodily Injury

Bodily harm, sickness, or disease, including death that results.

Implied Warranties- Ocean Marine Coverage

Breach of an implied warranty will void the contract. These warranties include: Legality - All voyages must be made legally and for a legal purpose. Any loss that occurs as the result of an illegal purpose will not be covered. Seaworthiness - The vessel must be seaworthy at the time insurance goes into effect and upon the insurer's subsequent inspections. The vessel must always be in the command of a qualified and experienced captain and crew. The vessel must comply with safety and operational requirements. No Deviation in Voyage - The ship must sail the course that was filed with the insurer at the time the policy was underwritten. Exceptions that don't void coverage in the event a loss include a deviation in voyage to avoid bad weather, make necessary repairs, save a human life, or obtain medical care. Cargo must be packed properly.

AL Workers Comp Burial Expenses, Medical Expenses, Examination, Vocational Rehabilitation, Notice of Accident

Burial Expenses; employee dies from a compensable accident or occupational disease, the employer must pay up to $6,500 for burial expenses, in addition to paying any medical and hospital expenses. Medical Expenses, Examination, Vocational Rehabilitation liable employer must pay compensation and pay for any necessary medical and surgical treatment and supplies, physical rehabilitation, medicine, and prosthetics, including any repair, refitting, or replacement of artificial members damaged in a compensable accident. An injured employee must be examined by the employer's physician at the employer's request. The employee has the right to have his/her physician present. An employee must undergo vocational rehabilitation, at the employer's request and expense. Notice of Accident injured employee must notify his/her employee of an accident within 5 days. An employee who fails to do so, except for proven physical or mental incapacity, is not entitled to any compensation. To receive compensation, written notice must be given within 90 days after the accident or death.

Farm Insurance Definitions

Business Property - Property pertaining to any trade, profession, or occupation other than farming Dwelling - A building used for family residential purposes; includes mobile homes, modular homes, and prefabricated homes Farm Personal Property - Equipment, supplies, and products used in farming Insured - The named insured and resident relatives, along with any other person under age 21 and in the care of the insured Insured Location - Any location described in the Declarations Livestock - Cattle, sheep, swine, goats, horses, mules, and donkeys Money - Currency, coins, and bank notes in current use and having a face value Pollutants - Any solid, liquid, gaseous, or thermal irritant or contaminant Poultry - Fowl kept by the insured for use or sale Securities - Negotiable and non-negotiable instruments or contracts presenting either money or other property

Home Business Endorsement

Business located on the residence premises and included premises operations adversiting injury and personal injury -no coverage for professional services

Pollution Liability Coverage Form

CGL coverage form that provides certain pollution coverage that are excluded under the standard CGL. includes coverage for pollution clean up costs. excludes BI/PD arising out of the actual, alleged or threatened discharge dispersal, seepage, migration, release or escape of pollutants Insurer must have 3 options available that they may use at their discretion on an individual account basis to provide "buy back" coverage -Pollution Liability Coverage Form (Designated Sites) - This form provides coverage on a claims-made basis with its own limit of liability. Coverage includes a leak from a waste disposal facility located on the premises. The form provides coverage for clean up imposed by governmental direction if the cost is incurred because of environmental damage caused by a pollution incident. -Limited Pollution Liability Coverage Form (Designated Sites) - This form is identical to the Pollution Liability Coverage Form; except that it does not include clean up -Pollution Extension Endorsement - This endorsement deletes the Pollution Exclusion for bodily injury and property damage liability, but continues to exclude clean up costs

CGL Coverage Forms

CGL of the CPP is avaiable in 2 forms Occurrence Form Claims-Made Form identical in all respects except for the way coverage is triggered/ activated Occurrence form- triggered once an occurrence takes place during policy period and within coverage territory. Doesn't matter when loss is reported it matters when loss occurred. Basically single step process Step 1. Did the loss occur during the policy period? If the answer is yes, coverage is triggered. ex: An insured owns an Occurrence Form that runs 9/1/13 through 9/1/14, but does not renew the policy. A customer slips and falls on the insured's wet floor on 7/4/14, and sues the insured for injuries sustained from the fall on 1/1/15. Presuming the insured was negligent, the policy will pay damages since it was in force when the loss occurred on 7/4/14 even though the policy expired on 9/1/14. Claims Made Form coverage is trigged if an occurrence takes place AFTER the retroactive date AND IS REPORTED within policy period but is the preferred form of coverage for insurers issuing coverage on risks that have the potential to generate claims long after an occurrence that caused injury or damage. 2 step process Step 1. Did the loss occur AFTER the retroactive date? Step 2. Was the loss REPORTED during the policy period? the coverage trigger distinguished difference between occurrence and claims made ex:In the previous example, under a Claims-Made Form, the loss would not be covered even though it occurred during the policy period as the claim was not also made during the policy period.

Discovery Form

Commercial crime form that covers losses that are sustained not necessarily during the policy period and discovered either during the policy period or up to 60 days after the policy expires.

Extortion (CR 04 03)

Can be added by endorsement to Commerical Crime Form or Policy If a loss of money, securities, or property occurs because a threat was made to the insured to do either of the following: Cause bodily harm to any of the following persons who were kidnapped, or allegedly kidnapped:Director, trustee, partner, member, managerEmployee or a relative or guest of any of these Cause damage to the insured premises or property inside the insured premises An exclusion applies if the loss occurs after the insured failed to report the extortionist's demands to an associate, local law enforcement, or the Federal Bureau of Investigation

Crop Insurance Definitions

Coarse Grains - Corn, grain sorghum and soybeans Small Grains - Wheat, barley, oats, rye, and flax Harvest - Combining or threshing an insured crop, or cutting for hay, silage, or fodder Silage - A product that results from severing the plant from the land and chopping it for the purpose of livestock feed

Loss of Consortium

Compensation to a husband/wife for the loss of companionship of a spouse.

Buildings Covered in BPP

Completed additions; outdoor fixtures; and permanently installed fixtures, machinery, and equipment. For example, a print shop that owns four commercial printers that are affixed to the cement floor would insure the printers as building items rather than items of business personal property. Personal property owned by the named insured and used to service and maintain the insured buildings, structures, and premises. Lawn mowing and snow removal equipment not otherwise excluded fall into this category of business personal property. Also included are materials and supplies of the business that are on the premises or within 100 feet of the premises. If the named insured is making an addition to an insured building or structure, or conducting alterations or repairs on an insured building or structure, the materials, equipment, supplies, and temporary structures used in connection with these activities are insured as building items if they are located on the described location or within 100 feet

Fidelity Bonds (Honesty Bonds)

Cover employers from direct loss due to fraudulent or dishonest acts (theft) by their employees. Individual Bond is used when an employer wishes to bond a single employee A Name Schedule Bond is used when an employer wishes to bond several employees who are all named in the bond A Position Schedule Bond is available to employers that desire to bond a specific position, regardless of who fills the position, or how often the person filling the position is replaced A Blanket Bond is for an employer that desires to cover all existing employees of a firm without exception, as well as any new employees. Includes the following 2 types: -Commercial Blanket Bond - Covers all employees and is written with a Per Occurrence Limit Blanket Position Bond - Covers all employees in the named position and is written with a Per Employee Limit

Farm Liability Coverage Form

Coverage H - Bodily Injury and Property Damage Liability fire damage is included exclusions: BI/PD caused by or resulting from any substance discharged from any aircraft BI/PD arising from an uninsured location Liability arising out of the ownership, maintenance, or use of any aircraft, motor vehicle, or motorized bicycle owned or operated by the insured Crop Dusters Coverage I - Personal and Advertising Injury Liability example: the insured unknowingly libels a neighbor's farm products. Coverage J - Medical Payments hird-party payments for reasonable medical expenses arising out of an accident, if the expenses are incurred and reported within 3 years of the accident date The Medical Payments limit applies per person, and payment is made regardless of fault

medical payments coverage

Coverage for the bodily injury of third parties sustained on an insured location or as a result of the insured's activities. Coverage is provided for the payment of necessary medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral expenses. Payments are made regardless of the insured's negligence. This coverage is provided to discourage liability claims and lawsuits and, when payments are made, are not an admission of liability.

Time Element (business income) Coverage

Coverage for the loss of business income over a period of restoration due to the results from direct physical loss caused by a covered cause of loss . Business is pretax net profit or loss that would have been earned plus normal contination operating expenses including payroll, rent, taxes, insurance, debt payments Period of Restoration beings 72 hours after time of loss and ends on the earlier date when property should be repaired or rebuilt with resonable speed or date when business is resumed at new permeant location 3 forms of business income coverage exist: Business Income including Rental Value Business Income other than Rental Value Rental Value Optional coverage may be made with entry to dec include: Maximum Period of Indemnity Monthly Limit of Indemnity Business Income Agreed Value

Section II - Liability Coverage BAC

Coverage is provided for bodily injury or property damage caused by an accident for which the insured is legally responsible. The accident must occur within the policy territory, during the policy period, and result from the ownership, maintenance, or use of a covered auto. Including bodily injury from loading or unloading a covered auto. who is insured: named insured for any covered vehicle anyone else using covered vehcle with permission insured anyone liable for conduct of an insured but only to extent of that liability Supplementary Payments: in addition to limit of liability supplementary payments include claims expenses incurred by the insurer, up to $2,000 for the cost of bail bonds required because of an accident, reasonable expenses incurred by the insured at insurer's request, including up to $250 per day for an insured's actual loss of earnings, costs taxed against an insured in a lawsuit defended by the insurer, and post-judgment interest. Out of State Coverage Extension: If the financial responsibility of other states and jurisdictions require an insured vehicle to possess certain coverages and limits of liability when driving within their boundaries, the liability coverages provided by the business auto coverage form automatically conforms to the types of coverages and limits of liability required by any jurisdiction within the policy's coverage territory when being used in that jurisdiction. EXCLUSIONS def on page 157 Expected or Intended Injury Contractual Workers' Compensation Employee Indemnification and Employer's Liability Fellow Employee Care, Custody, or Control Handling of Property Movement of Property by Mechanical Device Operations Completed Operations Pollution War Racing Limit of liability: most the insurer will pay for the total of all damages and covered pollution cost or expense combined, resulting from any one accident, is the limit of liability shown in the Declarations. The limit of liability is paid regardless of the number of: Covered autos Insureds Premiums paid Claims made Vehicles involved in an accident

Primary/excess rule

Coverage on the vehicle is primary while coverage on the driver is excess

Credit Cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money

Coverage up to $500 is provided for the insured's legal responsibility because of theft or unauthorized use of credit cards, electronic fund transfer cards or access devices issued to an insured. This coverage also includes defense - Forgery, alteration of a check or negotiable instrument, or counterfeit money is also covered. - exclusions -use of a covered card or device by a resident of the named insured's household, by a person entrusted with a card or access device, the insured's failure to comply with credit card requirements, business use of a card, or the insured's dishonesty

Additional Coverage Farm Insurance

Coverages A, B, C, E, F, and G: Debris Removal Reasonable Repairs Damage to Property Removed for Safekeeping Fire Department Service Charge Coverages A, B, C, and D only removal of Fallen Trees - The policy will pay up to $500 for any 1 loss, regardless of the number of fallen trees Credit Cards and Fund Transfer Cards; Forgery; Counterfeit Currency - The policy will pay up to $500 for any 1 loss Coverages E and F only- Cost of Restoring Farm Operations Records Coverages E, F, or G - Extra Expense Collapse - Applies only when Broad or Special Covered Causes of Loss are specified in the Declarations Pollutant Clean Up and Removal - From land or water at the insured location if caused by or resulting from a covered cause of loss

Crime Coverage Insuring Agreements

Crime coverage forms offer 8 types of coverage, or Insuring agreements. The insured may choose one, several, or all of the coverages. None of them are mandatory 1 Employee Theft or Dishonesty 2.)Forgery or Alteration 3. Inside premises: Theft of Money and Securities 4.) Inside Premises: Robbery or Safe Burglary- of other property 5.) Outside Premises (money and securities) 6.)Computer Fraud 7.) Fund Transfer Fraud 8.) Money Orders or Counterfeit Money

BOP Section I- Property Covered

Covered properties: Buildings and structures at the premises described in the Declarations, including:Completed additions Fixtures, including outdoor fixtures Permanently installed machinery and equipment The insured's personal property in apartments, rooms, or common areas furnished by the insured as landlord Personal property owned by the insured that is used to maintain or service the buildings or structures, or the premises, including: firefighting equipment; outdoor furniture; floor coverings; and appliances used for refrigerating, ventilating, cooking, dish washing, or laundering Outdoor furniture If not covered by other insurance: additions under construction, alterations and repairs to the buildings or structures; materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises Business Personal Property located in or on the buildings at the described premises or in the open (or in a vehicle) within 100 feet of the premises, including: Property the insured owns that is used in the insured's business Property of others that is in the insured's care, custody, or control Tenant's improvements and betterments, which are fixtures, alterations, installations, or additions made a part of the building or structure that the tenant occupies but does not own; including structures that the tenant acquired or made at their expense, but cannot legally remove Leased personal property for which the insured has a legal responsibility to insure

Annual Transit Coverage Form

Covered property is the insured's personal property or the property of others in the insured's care, custody, or control. Property must be in transit when shipped by any type of carrier or vehicle, or in any land vehicle owned or operated by the insured. Coverage applies while covered property is in the custody of the carrier for hire until it's either delivered to its destination or returned to the insured

Coverage A-G Farm Insurance

Coverge A-D is identical to Homeowners A-D Coverage A Dwellings provides insurance for the residential dwellings owned and occupied by the insured. It includes attached structures. Coverage B Other Private Structures provides insurance for detached private garages and other private structures. These structures must be used personally - and not for farm purposes. Coverage C Household Personal Property provides insurance for household personal property owned by the insured and family members while on the premises. Coverage D Loss of Use provides insurance for additional living expense and fair rental value. Coverage E Scheduled Farm Personal Property provides insurance for specific types of property if a designation appears on the Declarations for that type of property. This is an itemized list: hay, grain, vehicles, equipment, supplies, machinery, farm products, poultry, livestock, and in some instances will include: portable structures and/or buildings. Coverage F Unscheduled Farm Personal Property provides insurance for all items of farm personal property on the insured location except for those specifically excluded. Coverage is not provided for household or personal property usual to a dwelling (that type of property is insured under Coverage C). Off-premises coverage includes farm machinery, equipment and implements, tools, supplies, feed and livestock EXCEPT while in transport by a contract or common carrier or if located at a public stockyard or sale barn to present stock for sale. Note Coverage F covers farm machinery both on and away from the described premises. It also includes mules, swine, and sheep; but does not include racehorses, poultry, licensed motor vehicles, aircraft, watercraft, birds, or growing crops. A single blanket limit on all Unscheduled Farm Personal Property applies. Coverage G Other Farm Structures provides insurance for described farm buildings and structures and their attached sheds and permanent fixtures including silos, portable buildings and structures; all fences, corrals, and pens (except field or pasture fences); outdoor radio and television equipment, antennas, masts, and towers.

Inchmaree Clause

Covers direct damage caused by the bursting of boilers, breaking of propeller shafts, or loss due to faults or errors in navigation by the crew.

Cargo Insurance

Covers physical damage losses to merchandise while in transit can be written on open perils basis shipping considerations affect coverage FOB (Free On Board) Point of Shipment - The seller is responsible for damages until the property is placed safely on a vessel (to be shipped) or when a bill of lading has been issued. The buyer is responsible for damages from that point on. FOB Point of Destination - The seller is responsible for damages until the property reaches its final destination (which includes the shipping) and is delivered based on the terms of the contract. who is legally responsible for the cargo at the time of the loss. If cargo is shipped FOB Point of Shipment, the shipper is responsible for insuring cargo during shipment. If cargo is shipped FOB Destination, the seller is responsible for insuring cargo during shipment.

Causes of Loss - Broad Form CPP

Covers the basic 11 perils + 3 more: Falling objects but not object itself weight of snow/ice/sleet not included personal property outside of building and water damage caused by accidental discharge

Money Orders and Counterfeit Money

Covers the insured's acceptance in good faith of money orders and counterfeit money received in exchange for merchandise or services during the course of conducting regular business activities.

Crime Coverage Forms

Crime insurance is written on two different types of coverage forms. Although crime insurance is property insurance, its coverage forms are similar to liability coverage forms. The Loss-Sustained Form is similar to the Occurrence Form and the Discovery Form is similar to the Claims-made Form. Coverage will automatically apply both to new employees and to any additional premises acquired by the insured as a result of a merger or consolidation, if the insured notifies the insurer within 90 days and pays any additional premium. In the event of loss, the insured must notify the insurer as soon as possible, and provide proof of such loss within 120 days. The insured must maintain records to substantiate any type of loss. A crime report must be made to the proper authorities regarding any loss. Settlement is made based on the ACV of the stolen property. The insurance company retains the right to repair or replace with like kind and quality. Cash losses are settled on the basis of the face value of the claim. Securities are valued at their market value on the day the loss is discovered.

Crop, Hail, and Windstorm Insurance

Crop insurance is a specialized policy that protects the insured against reduced yield because of a covered loss to crops before they are harvested

Parts of Property Policy

DICE D- eclartaions who, what, where, when How much I-nsuring agreement states an insurance companies promise to pay the insured this is usually broad and other sections restricts or limit the scope of coverage Conditions Exclustions

Auto Policies AL regulations

DMV Director will determine, within 20 days after receiving an accident report, the security amount necessary to satisfy any judgment for damages recoverable against each operator or owner, if both of the following apply: The accident results in bodily injury, death, or property damages exceeding $500 The Director does not have enough evidence that the operator or owner has been released from liability, or has a written agreement or conditional release for paying an agreed amount in installments for all resulting claims If security is not deposited within 60 days the Director shall suspend persons license and vehicle registration Exception to this: deposit is not required if operator or owner has an auto liability policy or bond in effect at the time of accident every auto owner must cover his autp with a libaility policy, bond, or cash deposit and carry such evidence and display to law enforcement min liability limits are: $25,000 for bodily injury or death per person per accident $50,000 for bodily injury or death to 2 or more persons per accident $25,000 for property damage per accident calculate the 25/50/25 mandatory limits to a Combined Single limit. The maximum $50,000 BI per accident and the $25,000 PD per accident indicates that the maximum paid out for any one claim is $75,000. This is known as a Combined Single Limit. Registration Suspension: Department must suspend an auto's registration 45 days after notifying the owner of suspension for violating the security requirement, unless the owner provides proof of insurance within 30 days. providing proof of insurance and paying the $100 fee to the Department of Revenue the suspension will be terminated. Upon the second violation within a 4-year period, the registration will be suspended for 4 months. A $200 fee is required prior to the 4-month suspension period ending and if paid within the 4 months, the suspension will be terminated after exhausting the suspension period. False Proof: Director determines that an auto's owner has submitted a false proof of insurance, the Department shall suspend the auto's registration they can reapply in 6 months and pay a reinstatment fee Class C offenses: Felony to, with fraudulent intent, alter, forge, or counterfeit an insurance card to make it appear valid or to sell or make available an invalid or counterfeit evidence of insurance Misdemeanor to: Operate an auto with a suspended registration or without liability coverage Fail to display, or knowingly display an invalid evidence of insurance to a law enforcement officer upon request Attempt to register an auto subject to a notice of registration suspension

Section II - Who is an Insured CGL

Declarations indicates who is an insured certain other parties are also an insured based on that designation following persons are an insured based on the designation on the Declarations—but only with respect to the conduct of the insured business: -individual is designated, the individual and his or her spouse are insureds -If a partnership or joint venture is designated, the partnership, joint venture, and members, partners, and their spouses are insureds -If a limited liability company (LLC) is designated, the LLC, its members, and its managers are insureds -If a trust is designated, the trust and its trustees are insureds -If any other type of organization is designated, the organization, its executive officers, its directors, and its stockholders are insureds if not designated on the Declarations, the following parties are also insureds when performing duties related to the conduct of the insured's busin The insured's volunteer workers and employees who are not executive officers, directors, or managers -Any other person while acting as the insured's real estate manager -Any person or organization having temporary custody of the insured's property if the insured dies -The insured's legal representative if the insured dies, but only with respect to duties as legal representatives Newly acquired or formed organizations are also insured EXCEPT: partnerships, joint ventures or LLC's named insured must maintain ownership or majority intrest in organization and is only provided for 90 days after acquisition or est. or until expiration on policy which ever occurs first no person or organization is an insured with respect to the conduct on any current or past partnership, joint venture, or limited liability company that is not shown as a Named Insured in the Declaration

Direct vs Indirect (consequential) loss

Direct- loss that causes direct damage to property without interviening cause ( fire damage to an insurered property) Indirect loss- loss that is not a direct result of peril ex addtional living expense that resulted from a resisdence being uninhabitiable as a result of a fire

Fudiciary Responsibility

Directors and officers of corporations have many and varied fiduciary responsibilities The most common forms of liability for insuring these fiduciary responsibilities are Directors & Officers (D&O) Liability and Fiduciary Liability.

Uninsured Motorist

Doesn't have insurance or a bond in place at the time of the accident Has insurance in place at the time of the accident. However, the bodily injury liability limits are less than those required by the financial responsibility or compulsory insurance laws in place in the state where the insured's "your covered auto" is principally garaged. Is a hit-and-run vehicle. The owner or operator of the vehicle can't be identified AND must hit:The named insured or a family memberA vehicle occupied by the named insured or a family member; or"Your covered auto" Has insurance, but the insurer either denies the claim or becomes insolvent

Earthquake and Volcanic Eruption Endorsement

Earthquake and Volcanic Eruption Endorsement must be added to one of the causes of loss forms (basic, broad, or special) and cannot be purchased alone. The only causes of loss provided by this endorsement are earthquake and volcanic eruption. All earthquake shocks and volcanic eruptions that occur within any 168-hour period are considered a single earthquake or volcanic eruption. Separate deductibles apply to each building, and personal property located at each building, and personal property in the open. The deductibles are chosen by the insured as a percentage of the limit of liability applying to each class of property. The deductible does NOT apply to business income and/or extra expense coverage.

Earth Movement Exclusion (dwelling policy and homeowner)

Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting. Coverage is excluded whether the earth movement is caused by human, animal, or natural forces. If a direct loss by fire or explosion ensues from earth movement, it is covered.

AL Bail Bonds

Entry in Minutes - When bail is taken in open court, it must be entered in the minutes. Bail Not Taken in Open Court - When bail is not taken in open court, it must be taken in writing, signed by the defendant and at least 2 sufficient sureties. Qualifications for bail: when signing as surety must be al resident worth bail amount every bail bondsman must give a bond with corporate surety for 25,000 (10,000) in cullman county he bond must be payable to Alabama and must be delivered to the probate judge in each county where the person acts as a bail bondsman. A court or magistrate may require a bail bondsman to affirm his/her qualifications under oath if the court or magistrate reasonably doubts that the bail is enough. Lunatics and Infants - Any person may post bail for an insane person or a minor. Judicial and Ministerial Officers - A judicial or ministerial officer may not: -Accept bail as surety for any person tried before him/her -Oblige himself/herself to release, or compel to appear, any person tried before him/her Return of Undertakings - All bail must be returned to the court clerk in the same time and manner as the return of writs of arrest. Deposit Authorized in lieu of Bail - A defendant may deposit the sum mentioned in the order with the court clerk instead of giving bail. The defendant must be released when he/she delivers a certificate of the deposit to the officer having custody over him/her. Deposit after Bail - A defendant who has given bail may deposit the sum mentioned in the order with the court clerk at any time before bail is forfeited, if he/she may be released on his/her own recognizance. Upon making the deposit, the bail is no longer required. Deposit to Satisfy a Fine - When a fine is deposited, the court clerk receiving the deposit must apply the money to satisfy the fine and must refund any surplus. Deposit of Federal or State Bonds - Negotiable U.S. or Alabama bonds deposited instead of cash must be treated in the same manner as a cash deposit. If a defendant fails to appear, the parties may be released from liability under the bail by surrendering the defendant before a judgment is entered against them. Any party may, with a certified copy of the undertaking, arrest the defendant if in Alabama. A party against whom a judgment has been entered is still liable even if he/she arrests the defendant, unless the court finds that the defendant failed to appear for good and sufficient cause. bail ensures a defendant shows up to court. if they fail to do so a undertaking (bail or any other consideration given in lieu of bail) is forfieted if it is a cash deposit instad of bail and it is not discharged or remitted a clerk must at 30 days pay the deposit to the officer, offiscal or employee authroized by law to recieve finds leived by the court After the deposit is paid, the court must, without notifying the defendant, enter judgment for the entire deposit, and the deposit must become public money of the State General Fund. Conditional Judgment A conditional judgment must be set aside, and costs may not be imposed on a defendant, if he/she appears and shows enough cause for defaulting bail. If the defendant does not show enough cause, the judgment must be made absolute.

Objects Covered

Equipment built to operate under internal pressure or vacuum; electrical or mechanical equipment that is used in the generation, transmission or utilization of energy; communication equipment, and computer equipment; and equipment for any of the preceding that is owned by a public or private utility and used solely to supply utility services to the insured's premises

BOP exclusions applicable to business liability coverage

Expected or Intentional Injury Contractual Liability Liquor Liability Workers' Compensation and Similar Laws Employer's Liability Pollution Aircraft, Auto, or Watercraft Mobile Equipment - Transportation of mobile equipment War Professional Services Damage to Insured's Property Damage to Insured's Product Damage to Insured's Work Damage to Impaired Property or Property Not Physically Injured Recall of Products, Work, or Impaired Property Personal and Advertising Injury - Caused by or at the direction of the insured with the knowledge that the act would violate the rights of others and inflict personal and advertising injury; knowledge of oral or written publication of material known to be false; offenses that took place before the beginning of the policy period; losses arising out of breach of contract, failure to conform to advertised quality, or the wrong price. Also excluded are injuries committed by an insured whose business is advertising, broadcasting, publishing, or telecasting.

Products Exposure/ Product Liability CGL

Exposure leave a business vulnerable to legal liability for defects in product design or manufacture. Also leaves a business exposed to liability for the failure to warn or explain with respect to its products. Legal liability may arise based on negligence, breach of warranty, or strict liability associated with the product Example A distributor may include a restaurant, which upon creating a recipe and serving it, is now considered to have distributed the product. By endorsement, food becomes a product liability once it has been served. Thus, the restaurant has a products exposure. Therefore, Products Exposure includes meals served that cause an illness. A specific example would be a restaurant serving a bowl of clam chowder causing a customer to later become ill. Medical Expense coverage is not included in products coverage because coverage does not commence until care, custody and control of products has been relinquished to the purchaser coverage applies to BI/PD the product casues but not loss to the product it self and injury and damage must occur away from premises the insured owns or rents An aircraft manufacturer builds an aircraft altimeter that fails and causes an aircraft to crash.

Types of Authority

Express - Authority that is written into the producer's agency contract. An example would be the producers binding authority if written in the contract. Implied - Authority the public assumes the producer has. An example would be the business activities of providing quotes,completing applications and accepting premiums on behalf of the insurer. Apparent - Authority created when the producer exceeds the authority expressed in the agency contract. This occurs when the insurer does nothing to counter the public impression that such authority exists. An example would be the producer's acceptance of premiums on a lapsed policy.

Homeowner Basic Coverage (HO-1)

FLI WHARV VEST Fire or Lightning Internal explosion Windstorm or Hail Aircraft Riot or Civil Commotion Vehicles Vandalism Volcanic Action Explosion Smoke Theft (automatic without an endorsement

Breakdown definition

Failure of pressure or vacuum equipment; mechanical failure including rupture or bursting caused by centrifugal force; or electrical failure including arcing that causes damage to covered equipment and necessitates its repair or replacement. Does not include: Malfunction, including but not limited to, adjustment, alignment, calibration, cleaning, or modification Defects, erasures, errors, limitations, or viruses in computer equipment and programs Leakage at any valve, fitting, shaft seal, gland packing, joint, or connection Damage to any vacuum tube, gas tube, or brush Damage to any structure or foundation supporting the covered equipment or any of its parts The functioning of any safety or protection device The cracking of any part on an internal combustion gas turbine exposed to the products of combustion

transportation expenses

Has No Deductible Pays $20 per day, up to $600 Collision or Comprehensive losses only are covered 48 Hour Theft Waiting Period required

Livestock coverage form

Farm coverage form used to provide separate coverage for livestock Limits can be shown on the Declarations with a limit per animal within a class OR with a limit per class with a sublimit for individual animals. Livestock is defined as cattle, sheep, swine, goats, horses, mules, and donkeys; POULTRY is NOT livestock. NO coverage is provided for livestock that is: In the custody of a common or contract carrier In public stockyards, sales barns or yards, etc. In packing plants or slaughterhouses

Federal Workers Compensation Laws

Federal Employers Liability Act - interstate railroad workers U.S. Longshorement and Harbor - those who load, unload, build, or repair ships (not crew) Jones Act - crews on ocean vessels Federal Employees Compensation Act - U.S. civilian government employees Defense Base Act applies to workers on military bases outside the United States Outer Continental Shelf Lands Act applies to offshore oil rig workers

Exclusions deductibles and coninsurance under TRIA

Federal and private crop and livestock Private mortgage Financial guaranty Medical malpractice Federal flood Reinsurance Insurer must meet an insurer deductible. Once it is met, the Federal government will pay 90% of claims Insurer's losses are capped at $100 billion

Causes of loss- Basic Farm Insurance

Fire or Lightning Windstorm or Hail Explosion Riot or Civil Commotion Aircraft Vehicles Smoke Vandalism Theft Sinkhole Collapse Volcanic Action Collision (Coverages E & F only) Earthquake Loss to Livestock Flood Loss to Livestock

Commercial Auto Coverage fleet rate

Fleet rates are available for any of the 3 main coverage types for an insured needing to cover 5 or more vehicles. The 3 main coverages are -Business Auto Coverage Form -Truckers Coverage Form -Motor Carrier Coverage Form.

Section IV - Business Auto Conditions

Following apply in addition to common policy conditions 1.) Loss Conditions - Appraisal, duties in the event of an accident, legal action against the insurer, loss payment, and transfer of rights of recovery General Conditions - Bankruptcy; concealment, misrepresentation, or fraud; liberalization; other insurance; premium audit; policy period, coverage territory; no benefit to bailee for physical damage

Truckers Coverage Form

For those firms or persons that are in the business of transporting goods or commodities for another Divided into 6 Sections Section I- Covered Autos similar to BAC Sec I but also provides symbol for trailers in insured possesion and insured trailer when someone else has possession both with written agreement Section II - Liability Coverage- SEE BAC COVERAGE FOR DEF Section III- Trailer Interchange Coverage - covers trailer that insured does not own but has in his possession along with a written Trailer Interchange Agreement where he assumes liability for loss to the trailer Section IV - Physical Damage Coverage Section V- Truckers Conditions Section VI- Definitions Trailer - Includes a semitrailer or dolly (attachment) used to convert a semitrailer into a trailer Trucker - Any person or organization engaged in the business of transporting property by auto for hire Notes: no coverage for damage to propertyu being transported- this would be covered under inland marine policy called a motor truck cargo policy distinguish the Truckers Coverage Form part of the Commercial Auto policy (automobile coverage) from the Truckers Form a part of the Motor Truck Cargo Policy (cargo coverage)

causes of loss special form

Form that covers "risks of direct physical loss," subject to the form's exclusions and limitations open perils basis contains language not found in the basic or broad forms: No coverage is provided for most damage to steam boilers and equipment due to events inside the boilers and equipment No coverage is provided for damage to the interior of a building caused by rain, snow, sleet, ice, sand, or dust unless the exterior of the building or structure first sustains damage No coverage is provided for inventory shortage No coverage is provided for the following, unless specifically endorsed: fragile articles and builders machinery, tools, and equipment Special limits of insurance apply to the following classes of personal property: $2,500 for furs and fur garments; $2,500 for jewelry, watches, jewels, precious and semi-precious stones, gold, silver, etc.; $2,500 for patterns, dies, molds, and forms; and $250 for stamps, tickets, and letters of credit

Classifications of Construction

Frame - A building that has a roof, floor, and supports of combustible material, usually wood, and combustible interior walls. Joisted Masonry - Buildings with exterior walls of masonry or fire-resistive construction rated for not less than one hour and with combustible floors and roofs. Noncombustible - The buildings and its walls, floors, and structural framework are constructed of noncombustible materials. Masonry Noncombustible - Buildings with exterior walls of masonry (not less than 4 inches thick) or made of fire-resistive construction with a rating of not less than one hour and noncombustible floors and roofs. Fire Resistive - The entire building and roof are constructed of reinforced concrete and steel. Must have at least a 2-hour fire resistive rating. Modified Fire Resistive - The materials used in the walls, floors, and roof of a structure must have a fire resistive rating of at least 1 hour, but less than 2 hours.

Scheduled Personal Property Endorsement

Homeowner's policy endorsement that provides open peril, scheduled coverage for 9 optional classes of property ( fine arts postage stampes, coins, art glass windows, glassware, statury, marble, bric-a-brac, procelins, and simialr fragile articles) AKA Personal Articles Floater insurer must be notified withini 30 days (90 days for fine arts) if new property is acquired it is insured world wide and section 1 deductibles does not appy to this endorsement

Parts of a Personal Auto Policy

Part A-Liability Coverage Part B-Medical Payments Part C-Uninsured Motorist Part D-Coverage for Damage to Your Auto Part E-Duties After an Accident or Loss Part F-General Provisions + Selected Endorsements For private passenger vehichles with gross weight of 10,000 or less

Strict Liability applies to products

If a claimant can prove that a product caused the injury, the manufacturer will be held liable whether or not the product was defective.

Extended Reporting Period (Tail Coverage)

If a claims-made policy isn't renewed or replaced, the claims-made form contains a provision for the extension of time during which claims must be reported. provides two options: Basic Extended Reporting Period (BERP) - This extended reporting period is a provision in a claims-made form and allows claims to be reported after the policy term for a specific period of time, such as 60 days after the policy's expiration or cancellation date. This period is provided automatically, without charge, and consists of the following 2 parts: Mini Tail - This tail provides a 60-day period for the reporting of claims that result from occurrences that took place after the retroactive date and before the end of the policy period, but that have not been reported to the insurer Midi Tail - This tail provides a 5-year period for a claim arising from an occurrence that took place after the retroactive date and before the end of the policy period, provided the insurer was notified of that occurrence either during the policy period or within 60 days after the policy ended. Any unknown or unreported occurrence, not reported to the insurer during the policy period or during the 60-day mini tail, would not be covered. Supplemental Extended Reporting Period (SERP)- Optional reporting period of unlimited duration may be purchased by endorsement if requested within 60 days of end of policy term and it NOT available after 60 days beyond policy expiration -SERP covers claims arising from occurrences that took place after retroactive date and before policy end regardless of when claim was made The S.E.R.P. extends the midi tail to provide a full tail of unlimited duration. Cost may be up to 200% of CGL annual premium premiums for this optional coverage is one time charge and fully earned at issuance SERP can not be cancelled and no refunds are made

Other Insurance Part A PAP

If other auto liability insurance is in place at the time of the loss, the personal auto policy will only pay its share of the loss. That share is the proportion the policy's limit bears to all insurance in place. For example, if the policy provides $100,000 of property damage liability insurance and another policy also provides $100,000 of property damage liability insurance, the insured's policy will only pay ½ of the liability loss. Because the total insurance in place is $200,000 and the limit of liability provided by the insured's policy is $100,000, the insured's policy pays ½ of the total insurance in place. This policy pays liability losses on an excess basis for non-owned vehicles. For example, the covered loss involves a car the insured borrowed from his neighbor. The insurance in place on the neighbor's car must pay first (it's primary insurance) and then this policy will pay (it's excess insurance).

Other Sources of Recovery

If other insurance is in place, or if another party is available to make payment for a covered loss, this policy only pays its proportionate share of the loss (as we've seen in the other coverage parts). If a loss occurs and the covered auto is a non-owned auto, this policy will pay on an excess basis. Primary coverage is considered insurance provided by the vehicle's owner, any other property coverage that may be in place, and any other source of recovery, such as the insurance purchased by the driver of the vehicle.

Liability, Med Pay and Uninsured motorist

If the newly acquired auto replaces one listed in the Declarations, the new auto automatically has the broadest coverage provided for any vehicle already listed in the Declarations. If the auto does not replace one that is already insured, coverage must be requested within 14 days after acquiring the auto.

Ordinance or Law Exclusion (dwelling policy and homeowner)

Increased costs due to the enforcement of any ordinance or law regulating the use, construction, demolition, remodeling, renovation, or repair of property - including removal of debris. Under the DP-3 form, this exclusion doesn't apply to the Other Coverage, Ordinance or Law.

Claim Expenses (Supplementary Payments)

Includes the insurer's expenses for defending a claim, along with reasonable expenses incurred by an insured at the insurer's request overed as claim expenses are premiums on bonds required in a suit defended by the insurer, the insured's actual loss of earnings up to $250 a day for assistance in the investigation or defense of a claim or suit, and post-judgment interest.

Loss Conditions

In addition to the Common Policy Conditions and the Commercial Property Conditions, the following conditions, most of which were discussed previously, apply: Abandonment Appraisal Duties in the Event of Loss or Damage Loss Payment - insurer has the option of making payment for the value of the lost or damaged property or the cost to repair or replace. If it chooses, it may also take the property at an agreed or appraised value or actually arrange for the repair, rebuilding, or replacement of damaged property. Recovered Property - The insured, not the insurance company, has the option of keeping any recovered property and reimbursing the insurer for the amount of the loss settlement already received. Regardless of who retains the recovered property, the insurer pays the costs of recovery and any expenses required to repair the recovered property, subject to the limit of insurance. Vacancy- if vancant for more than 60 days when loss occurs no coverage for loss from: vandalism, sprinkler leakage, building glass breakage, water damage, theft or attemepted theft for all other the loss payment will be reduced by 15% considered vacant unless 31% of total square footage is used to conduct customary operations building under sconstruction not considered vacant Valuation- in event of loss value of covered property will be determine by: ACV- at time of loss except if: -cons insurance requirement is met and loss is 2,500 or less but awnings floor coverings appliances and outdoor equipment will continue to be valued at ACV -stock the named insured has sold but not delivered at selling price less discounts and expenses the insured otherwise would have had - Glass at cost of Replacement with safety glazing material if required by law - tenant's Improvements and Betterments at ACV if repairs are made promptly, at a proportion of the insured's original cost if repairs are not made promptly, and no payment is made if repairs or replacement are paid for by others R/C (replacement Cost) may be purchased as optional coverage like an endorsement

Section II Additional Coverages

Include Claim expenses first aid expenses, damage to property of others and loss assessment and payments are made in addition to the limit of liability appearing on the die

Causes of Loss- Broad Farm Insurance

Includes the Basic Causes of Loss, plus the following: Electrocution of Covered Livestock Attacks on Covered Livestock by Dogs or Wild Animals Accidental Shooting of Covered Livestock Drowning of Covered Livestock From External Causes Loading/Unloading Accidents Breakage of Glass or Safety Glazing Material Falling Objects Weight of Ice, Snow, or Sleet Sudden and Accidental Damage to Heating or Air Conditioning Systems Accidental Discharge or Leakage of Water or Steam From a System or Appliance Containing Water Freezing of Plumbing, Heating, Air Conditioning, Fire Protective Systems, or Appliances Sudden and Accidental Damage From Artificially Generated Electricity

Accounts Receivable Coverage Form

Inland Marine coverage form which insures against loss the insured suffers because of an inability to collect from customers when accounts receivable records are damaged

Part 6- Condtions Worker Comp

Inspection - The insurer has the right, but not the obligation, to inspect the insured's workplace. Inspections are for purposes of underwriting and determining premium and not as a guarantee of safety or compliance with state or other laws. Transfer of the Insured's Rights and Duties - The insured is not allowed to transfer any rights and duties under the policy without the insurer's written consent. Cancellation -If the policy is cancelled by the insurer, the insurer must provide written notice to the insured, stating when the cancellation will take effect -Generally, the insurer must give the insured at least 10 days' written notice -The policy will end on the day and time stated in the cancellation notice -This policy will automatically comply with any changes in the law regarding cancellation Sole Representative - The First Named Insured will act on behalf of all insureds, receive any cancellation notice, and unearned premium

Severability of Insurance

Insurance applies separately to each insured does not increase the limit of liability per one occurance

Other Insurance

Insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy.

Excess Liability Insurance

Insurance purchased for the purpose of extending the limits of liability on another policy.

Hull Insurance

Insurance that covers physical damage to vessels, including their machinery and fuel but not their cargo. named or open peril one of two types of policies: Voyage policy overs the vessel for a specific voyage Time Policy overs the vessel for a specific period of time (usually 12 months). Named perils include perils of the sea, jettison, piracy, fire and explosion, and lightning

Employment Practices Liability Insurance (EPLI)

Insurance that provides employers with protection against claims of discrimination, wrongful termination, sexual harassment, or other employment-related issues. Coverage includes defense and typically excludes punitive damages and civil/criminal fines assessed against the insured. Workers' Compensation and Employer's Liability are also excluded.

Aviation Insurance

Insurance, which provides both liability and physical damage coverage for aircraft. Liability coverage is available separately for hangar keepers and airport owners or operators 2 types Aircraft Hull insurance and aircraft liability

Insured Contract Definition CGL

Insured individuals and organizations often enter into legal contracts and, many times, the insured assumes liability in those contracts. An insured contract is such a contract that is insured by the policy. In other words, if the insured assumes liability under an insured contract, that liability is transferred to the insurance company according to the terms of the insurance policy.

Notice of Loss

Insured must notify the insurer in writing as soon as possible in the event of any Loss or occurrence. The written notice should include the named insured, policy number, and details about the time, place, circumstances of the occurrence, and names and addresses of any claimants and witnesses.

Part Five - Premium Workers Comp

Insurer's Manuals - All premiums are determined by the insurer's manuals of rules, rates, rating plans, and classifications as authorized by state law. Classifications - The classifications shown in the Information Page are assigned based on an estimate of the exposures the insured would have during the policy period. Remuneration - The premium for each work classification is determined by multiplying a rate and a premium basis. The premium basis is employee remuneration. Premium Payments - The insured will pay the entire premium when due. Final Premium - The final premium will be determined, after this policy ends, by using the actual, not the estimated, premium basis and the proper classification that applies by law. If cancelled: -By the Insurer - The final premium will be calculated pro rata for the time the policy was in force -By the Insured - The final premium will be based on the time the policy was in force and increased by the insurer's short rate cancellation table Note Deposit premium is the advanced premium charged when coverage is issued. Deposit premium is based upon estimated payroll. Records - The insured will keep records of information needed to calculate the premium. Audit - The insurer may audit records pertaining to the policy at any time and for up to 3 years after the policy period ends.

Duty to Defend

Insurer's obligation to provide an insured with defense to claims made under a liability insurance policy.

Trip Transit Coverage Form

Insures a single shipment described in the Declarations, Coverage applies while the covered property is in the custody of the carrier for hire or in any vehicle owned or operated by the insured while in transit.

Section I - Coverage A BI/PD CGL

Insuring agreement insurer will pay sums the insured becomes legally obligated to pay as damages b/c of BI/PD to which coverage applies provided occurance took place during policy period and with in coverage territory -territory includes the United States of America including its territories and possessions, Puerto Rico, and Canada -If the insured's products are made or sold in the coverage territory and a suit is brought in the coverage territory, the policy would then respond to a product-related claim worldwide -The insurer has the right and duty to defend the insured against any suit seeking damages. There is no duty to defend any claim or suit to which insurance does not apply. Exclusions: Coverage A does not cover BI/PD arising from: Expected or Intended Injury Contractual Liability Liquor Liability Workers' Compensation Employer's Liability Pollution Aircraft, Auto, and Watercraft Transportation of Mobile Equipment War Exclusion Damage to Property Damage to Insured's Product Damage to Insured's Work Damage to Impaired Property or Property Not Physically Injured Product Recall Personal and Advertising Injury Electronic Data **defs for these can be found on pages 143-145**

Common Personal Auto Policy (pap) Eclusions

Intentional Loss War Auto's used for hire "Public Livery" vehicles (Taxi, Limousine,) (except: car pool) Nuclear Hazard Vehicle used without permission Road Damage to tires Wear and Tear Freezing, mechanical or electrical breakdown Racing

Crime Coverage General Exclusions

Intentional Loss by the Named Insured (Losses committed by the named insured or any partner) Governmental Action (Losses resulting from property seizure or destruction by order of a governmental authority) Nuclear Hazard War Legal Expenses relating to legal action Indirect loss (unless endorsed otherwise) Extortion (unless added back in by endorsement.) Fire damage to premises or vandalism is always excluded because these are covered by property insurance.

Physical Damage Coverage

It doesn't matter if the new auto is a replacement or an additional auto. If the insured already has at least one vehicle insured for Physical Damage coverage under the policy, coverage begins on the date the auto is acquired as long as the insured requests coverage within 14 days after acquiring the auto. The new auto will automatically have the broadest coverage provided for any vehicle already listed in the Declarations.

Tort Elements

LBPD Legal Duty Owed Breah of Legal Duty Owed Promixate Cause Damages if any one of these is missing or the failure to act it is not considered negligent

property damage liability

Legal liability arising from physical damage to tangible property of others caused by the negligence of an insured.

bodily injury liability

Legal liability arising from physical injury, including sickness, disease, and death caused by the acts or omissions of an insured

Part D Limit of Liability

Lesser of actual cash value of loss or amount necessary to replace property to like kind or quality f a repair or replacement results in better than like kind or quality, the insurer will not pay for the amount of the betterment. There is a maximum limit of $1,500 for a non-owned trailer and $1,000 for certain electronic equipment.

Liability and Medical Expenses Limits of Insurance BOP

Liability (BI/PD) and Medical Expenses (MED PAY) limit shown in the Declarations applies per occurrence for bodily injury, property damage, and medical expenses, and per person or organization for personal injury and advertising injury. Medical Expenses limit shown in the Declarations is the most the insurer will pay for all medical expenses sustained by any one person. Pays on a Per Person limit. Fire Legal Liability (Damages to Premises Rented to You) - Always pay on a per occurrence (per fire) basis. The limit shown in the Declarations applies to damage arising out of property damage caused by fire or explosion to premises rented to the insured Damage to Premises Rented to You limit shown in the Declarations applies to damage arising out of any one fire or explosion for property damage caused to premises rented to the insured or temporarily occupied by the insured with the permission of the owner. Two aggregate limits apply: Products-completed operations aggregate - All claims for bodily injury, and property damage that occur during the policy period and fall within the products completed operations hazard; aggregate limit is twice the Liability and Medical Expenses limit shown in the Declaration General aggregate - All losses, except those that fall within the products-completed operations hazard, including medical expenses personal injury and advertising injury offenses committed; aggregate limit is twice the Liability and Medical Expenses limit shown in the Declarations The aggregate limits do not apply to losses that involve Damages to Premises Rented to You

Homeowner Section II

Liability Coverages -provides same coverages in a standalone comprehensive personal liability - not subject to deductibles -protection provided for legal claims against insured and family from occurrences in and around the premises, personal activities, and pets both on an away from premies -intended to protect against non-business, non-atuo exposures of family or family unit -largest single exposure a homeowner has is potential liability claims

Damages (Casualty)

Liability claims are assessed in specified dollar amounts. Generally, damages paid are referred to as Compensatory Damages, which are broken into two categories: Special (Economic) Damages (Specific Damages) General (Non-economic) Damages Punitive Damages are not Compensatory Damages and they do not follow the rules of indemnification. They are are assessed and paid in addition to special and general. Designed to punish the individual and persuade others from committing the same offense

Coverage Triggers (casulty)

Liability policies pay claims on behalf of the insured only if the insured is legally obligated to pay. The two methods used to determine whether an insured is legally liable for an incident are Settlement and Judgment. Settlement - This occurs when a claimant agrees with the insured's insurance company to settle the claimant's compensatory damages known as "special" (specific) damages and general damages and indemnifies (financially restores) the claimant back to pre-injury status. Judgment - If a settlement is not agreed upon, both parties must go to court and the court will issue a Judgment.

Farm Insurance Conditions

Loss Conditions Abandonment Appraisal Duties in the Event of Loss or Damage Insurance Under Two or More Coverages Legal Action Against the Insurer Loss Payment Pairs, Sets, or Parts Other Insurance Recovered Property Transfer of Rights of Recovery Against Others to the Insurer Unoccupancy and Vacancy

Intentional Loss Exclusion (dwelling policy and homeowner)

Loss arising out of any act committed by or at the direction of the named insured or any additional insured, with the intent to cause a loss. Coverage is excluded for any insured committing the intentional loss, even those who did not commit or conspire to commit the act that causes the loss.

Optional Limits - Loss of Use Expenses CAC endorsement

Loss of Use Expenses endorsement may be added to all five of the business auto coverage forms to increase the daily and maximum limits of liability paid for loss of use expenses under Hired Physical Damage coverage

Equipment Breakdown Protection Coverage Form

Losses are always paid at Replacement Cost unless the ACV endorsement is attached. The following coverages are provided if either a limit or the word INCLUDED is shown for that coverage on the Declarations Page, and the loss or damage is a direct result of a Covered Cause of Loss (they must be named in the Declarations for coverage to apply) Property Damage ( A Direct Loss of Coverage) team boilers Pressure vessels Turbines and engines Air conditioning and refrigeration systems Pumps and generators Electrically powered office equipment, i.e. Computers, copiers, fax machines, telephone systems, etc. Electrical generating and transmitting equipment Equipment owned by a utility that supplies services to the insured Expediting Expenses - The form pays for the necessary extra costs the insured incurs to make temporary repairs, and to expedite the permanent repairs or replacement Business Income and Extra Expense - The form pays the actual loss of business income during the period of restoration, and the necessary extra expense the insured incurs, to operate the business during the period of restoration Spoilage Damage - The form will pay for spoilage damage to raw materials, property in process, or finished products (provided the spoilage damage is due to lack or excess of power, light, heat, steam or refrigeration, and certain other stipulated conditions are met) Utility Interruption - If the insured purchases Business Income and Extra Expense and/or Spoilage Damage coverage, Newly Acquired Premises extends that coverage to include loss resulting from the interruption of utility services, provided the interruption lasts at least the consecutive period of time shown in the Declarations, and certain other stipulated conditions are met Newly Acquired Premises - This form provides automatic coverage to newly acquired premises Ordinance or Law Coverage - Provides coverage for loss in value of undamaged property due to enforcement of ordinances or laws concerning repair or replacement of damaged equipment Errors and Omissions - Coverage pays for loss or damage not otherwise payable due to an unintentional error or omission Brands and Labels - Provides coverage to allow the named insured to either stamp a brand of "salvage" or remove the label from damaged goods and re-label at the insurer's expense

Personal Umbrella Policy Exclusions

Losses arising from bodily injury and property damage if the insured fails to maintain the required underlying insurance Intentional injury Damage to property in the care, custody, or control of an insured Aircraft Business pursuits Professional Liability Directors and Officers Liability Discrimination

Premium Computation

Manual Rating (Job Classification)- Workers' Compensation are based upon job (work) classifications. Each job classification has a corresponding manual rate. Rates are higher for higher-risk occupations determined by multiplying the manual rate for each job classification by each $100 of payroll for that job classification Experiance Rating: used to encourage employers to decrease the frequency and severity of accidents, by basing premium on the prior loss experience of the employer. Two factors are primarily used when determining premium rates using the experience rating method—frequency and severity. Frequency of claims is the MOST significant factor of the two factors. This is the one that MOST commonly affects Workers' Compensation rates. Severity of claims is a factor but does not impact the premium rate as much as frequency of claims Example: A ratio of losses to premiums are figured over the most recent 3 year period and anything under a 1.0 experience rating factor will trigger a premium reduction/discount. A ratio higher than 1.0 experience rating factor will cause a premium increase. A ratio lower than 1.0 experience rating factor will cause a premium decrease. A ratio that is maintaining a 1.0 experience factor will cause the premium to remain the same.

Equipment Breakdown Coverage

Most business need this insurance to cover mechanical or electrical breakdowns or boiler explosions. OTherwise, these machinery would only be covered by a covered caused of loss. Inspections and risk control services provided by equipment breakdown coverage insurers are important adjuncts to the insurance they provide.

Valuation Personal Watercraft Insurance

Most current policies provide coverage on a Replacement Cost basis. Older policies were written on a Actual Cash Value basis boatowners policy is normally written on an Open Peril Basis covering the boat (Hull), motors, trailers, equipment and accessories related to the boat and trailer as indicated on the Declarations page

Aircraft Hull Insurance

Physical damage insurance to aircraft and is offered in 3 levels and premium increases as number of perils increases Ground only provides coverage when the hull is on the ground and not in motion; covered losses would include fire, theft, vandalism, etc. Ground including taxi provides coverage when the hull is on the ground and not in motion PLUS losses that occur during taxi; for example, a collision with another plane when taxiing on a runway All risk provides coverage when on the ground, during taxi, and in flight

Exclusions applying to Section II in its Entirety

Motor Vehicle Liability - - applies to all coverages in Section II. -No coverage is provided for "motor vehicle" if involved in the loss was registered for use on public roads or wasn't registered but was required to be registered. -no coverage is provided for vehicles that are being operated in or practicing for racing, rented to others, used to carry people or cargo for a fee, or used for any business purpose. Exceptions to the exclusion, meaning coverage is given back, exist for the following: -Vehicles in dead storage on an insured location -Vehicles used solely to service an insured's residence -Vehicles designed to assist the handicapped, so long as the vehicle is being used to assist a handicapped person, or it is parked on an insured location -A motorized golf cart used on a golfing facility for purposes approved by the facility or within a private residential community and used as approved by the community -Vehicles designed for recreational use off public roads IF they are not owned by an insured OR are owned by an insured and used on an insured location Aircraft Liability - No coverage is provided for "aircraft liability" as defined in the policy. Hovercraft Liability - No coverage is provided for "hovercraft liability" as defined in the policy.

Binders

Must include all usual policy terms and any applicable endorsements May be oral or written Is valid for up to 90 days until the policy is issued and may, with the Commissioner's written approval, be extended or renewed Is commonly known as a Temporary Insuring Agreement or a Temporary Insurance Policy Does not guarantee that the policy will be issued and the binder may be cancelled at anytime by the insurance company if the insured is found to be an excessive risk

Umbrella and Excess Liability Insurance

NO excess or commercial umbrella policy is "standard." Each policy contains its own insuring agreement, definitions, exclusions, conditions, and requirements for underlying primary insurance and limits Coverages Included in BI/PD Insured must be legally liable Required underlying primary insurance must pay first Sometimes personal injury is covered Defense is provided, either inside or outside the limits of liability Additional coverages are included Standard limits range from $1 to $10 million; higher limits are available, usually up to $25 million or $50 million. In most cases, if the umbrella insurer requires $1 million of underlying coverage to be in place and, at the time of a loss no underlying coverage was in place, the umbrella insurer will pay damages in excess of the first $1 million. In other words, if a judgment were rendered against the insured for $2 million, the umbrella carrier would only pay $1 million of the loss and the insured would be responsible for the first $1 million - even if no primary underlying policy were in effect at the time of the loss. Common Exlcusions Professional Services (i.e., exposures that are covered by E&O, D&O, Medical Malpractice) Employment Practices Liability Product Recall Workers' Compensation and Employer's Liability War and Terrorism Expected or Intentional Injury Contractual Liability Written per occurance is and is worldwide

Securities

Negotiable and non-negotiable instruments or contracts representing money or other property, including tokens, tickets, revenue stamps, and other stamps in current use, and evidences of debt in connection with charge or credit cards.

Business Income

Net income (net profit or loss before income taxes) that would have been earned or incurred, and continuing normal operating expenses incurred, including payroll

fraud Part F

No coverage is provided for any insured who commits fraud, makes fraudulent statements, or engages in fraudulent activity with respect to a claim for any accident or loss.

Musical Instrument Floater

No coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. The insured must report newly acquired items within 30 days

musical instrument floater

No coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. The insured must report newly acquired items within 30 days

Legal Action Against Insurer part F

No legal action may be taken against the insurance company by anyone unless he/she has complied fully with the policy. In addition, no one may sue the insurance company until it agrees in writing that the insured has a legal obligation to pay for damages.

Commercial Inland Marine Insurance

Ocean Marine insurers provided practically all of the transportation insurance needed in this country because most major cities were located on coasts or major rivers; and most goods were shipped either by ocean or inland waterways. The advent of first the railroad, followed by motor trucks and airplanes, created a new system of transportation and, with it, a demand for insurance to protect goods in transit over land. policy designed to address the mobile nature of property and the unique hazards to which it is exposed. Since the property to be insured is of a mobile nature, the commercial inland marine policy covers the property regardless of its location, provided that it is within the policy territory.

Yacht Policy

Ocean marine form, designed for larger vessels. Coverage: Property and liability Bodily injury and damage to property of others Coverage for fuel spills, commercial towing, and dinghies Lay up warranty applies when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. If the insured operates the yacht during the lay-up period (or lives on it), no coverage is provided.

Exclusions of Equipment Breakdown

Ordinance or Law - Earth Movement - Water Nuclear Hazard War or Military Action An explosion, except direct loss caused by an explosion of a steam boiler, electric steam generator, steam piping, steam turbine, steam engine, gas turbine, or moving or rotating machinery when such explosion is caused by centrifugal force or mechanical breakdown Fire or combustion explosion, including those that result in a "breakdown"; occur at the same time as a "breakdown"; or ensue from a "breakdown" Explosion within the furnace of a chemical recovery type boiler or within the passage from the furnace to the atmosphere Damage to covered equipment while undergoing a pressure or electrical test Water or other means used to extinguish a fire, even when the attempt is unsuccessful. This includes a fire extinguisher Depletion, deterioration, erosion, or wear and tear. However, if a "breakdown" occurs, the insurer will pay the resulting loss or damage. A "breakdown" caused by any of the following causes of loss, if coverage is provided for the causes of loss by another policy of insurance, whether collectible or not: aircraft or vehicles; freezing caused by cold weather; lightning; sinkhole collapse; smoke; riot, civil commotion or vandalism; or weight of snow, ice, or sleet A "breakdown" caused by windstorm or hail A delay in, or an interruption of, any business, manufacturing, or processing activity, except as provided by the Business Income and Extra Expense, Extra Expense Only, and Utility Interruption coverages With respect to Business Income and Extra Expense, Extra Expense Only, and Utility Interruption coverages, the following additional exclusions shall apply: the business that would not or could not have been continued if the "breakdown" had not occurred; the insured's failure to use due diligence and dispatch all reasonable means to operate their business as nearly normal as practicable at the premises shown in the Declarations; or the suspension, lapse, or cancellation of a contract following a "breakdown" extending beyond the time the business could have resumed if the contract had not lapsed, been suspended, or cancelled Lack or excess of power, light, heat, steam, or refrigeration, except as provided by the Business Income and Extra Expense, Extra Expense Only, Spoilage Damage, and Utility Interruption coverages With respect to Utility Interruption Coverage, any loss resulting from the following additional causes of loss, whether or not coverage for that cause of loss is provided in another policy the insured may have: acts of sabotage; collapse; deliberate acts of load shedding by the supplying utility; freezing caused by cold weather; impact of aircraft, missile, or vehicle; impact of objects falling from an aircraft or missile; lightning; riot, civil commotion, or vandalism; sinkhole collapse; smoke; or weight of snow, ice, or sleet Any indirect result of a "breakdown" to covered equipment, except as provided by the Business Income and Extra Expense, Extra Expense Only, Spoilage Damage, and Utility Interruption coverages Neglect by the insured to use all reasonable means to save and preserve covered property from further damage at and after the time of the loss

BOP Exclusions

Ordinance or law Earth movement Governmental action Nuclear hazard Utility failure that occurs off-premises War and military action Water Certain computer-related losses relating to failure, malfunction, or inadequacy of computer hardware, software, operating systems, and networks Fungi, wet or dry rot Pollution Neglect Collapse Wear and tear Equipment breakdown Electrical apparatus Virus or bacteria Smoke, vapor or gas from agricultural smudging or industrial operations Artificially generated electrical current Loss of use, loss of market or delay Steam apparatus Dishonesty of an insured False pretenses Exposed property Errors or omissions Installation, testing, or repair Electrical disturbance Negligent work Loss or damage to products resulting from errors and omissions during production

Part 1- Workers Compensation cont

Other Insurance - The insurer will not pay more than its share of the benefits and costs covered by the policy. Payment the Insured Must Make (This is the exclusion section of the policy) - The insured is responsible for paying benefits in excess of those provided by the Workers' Compensation law, including those required because of the: Insured's serious or willful misconduct Insured knowingly employing an employee in violation of law Insured failing to comply with health or safety laws Insured firing, coercing, or otherwise discriminating against any employee Note If the insurer makes any excess payments, the insured must promptly reimburse the insurer. Recovery From Others (Subrogation) - The insurer reserves the right to recover its payments from anyone liable for causing injury. Statutory Provisions - The following apply as required by law: Notice of an injury must be given promptly Bankruptcy of the insured does not relieve the insurer of its duties under the policy The insurer is liable to any person entitled to benefits under the policy Under the Workers' Compensation law of the applicable state(s), jurisdiction over the insurer is jurisdiction over the insured The policy will conform to Workers' Compensation laws that apply to benefits and assessments payable under the policy, such as taxes, special funds, etc. Terms of this policy that conflict with state law are automatically changed to conform

BOP Optional Coverages

Outdoor Signs - This coverage provides insurance for direct physical loss (open perils) of, or damage to, all outdoor signs at the described premises. Money and Securities - This coverage provides insurance for money and securities used in the insured's business against theft, disappearance, or destruction while: at a bank or savings institution; within the living quarters of the insured, or the living quarters of partners, managers, or employees of the insured; at the described premises; or in transit between any of these places. Employee Dishonesty - This coverage provides insurance for Business Personal Property, including money and securities, resulting from dishonest acts committed by any of the insured's employees acting alone or in collusion with other persons. Mechanical Breakdown - This coverage provides insurance for equipment breakdown to pressure, mechanical, or electrical machinery and equipment owned by the insured or in the insured's care, custody, or control, and at the described premises.

The Basic Dwelling form DP-1 is

Paid on a named perils basis does not cover theft, or loss to trees, shrubs, and plants. perils insured against are fire, lightning, and internal explosion. If an additional premium is paid for Extended Coverage (EC), the following perils are also included: Windstorm or hail Explosion Riot or civil commotion Aircraft, vehicles Smoke Volcanic eruption The peril of vandalism or malicious mischief (VMM) may also be included with the payment of an additional premium. EC and VMM coverages, if purchased, must appear on the declarations. If VMM is purchased, it excludes loss for vandalism in vacant buildings. Losses to the dwelling, other structures, and contents are paid on an actual cash value basis.

National Flood Insurance Program (NFIP)

Part of Federal Emergency Management Agency (FEMA) Encourages and allows communities to adopt and enforce floodplain management ordinances to reduce future flood damage. Makes Federally backed flood insurance available to homeowners, renters, and business owners in these communities. Also identifies and maps floodplains to increase awareness and improve plans Flood policies provide protection for direct loss to insured property such as a dwelling and its contents. Flood is defined as a general and temporary condition of partial or complete inundation of land. The land MUST be normally dry land and the flood must involve: 2 or more acres of the insured's land, OR the insured's entire piece of property AND an adjacent piece of property The inundation of land may be the result of:Overflow of inland or tidal waters, such as a tidal wave generated by a hurricaneUnusual and rapid accumulation or runoff of surface watersMudflow caused by accumulation of waterCollapse or destabilization of land along a shoreline resulting from erosion or the effect of waves or water currents exceeding normal, cyclical levels

Particular Average

Partial loss that is borne by only one party to a voyage (such as a cargo owner).

The Alabama Insurance Guaranty Association:

Pays covered claims under property and casualty policies, except ocean marine policies Helps detect and prevent insurer insolvency Proportionately assesses member insurers for the cost of such protection bligated to pay covered claims existing before an insurer's insolvency: In full under Workers' Compensation That exceed $100 and are less than $150,000 for all other coverage they also may Investigate, adjust, pay, and deny claims Reimburse its servicing facilities (usually member insurers) for claims paid and expenses incurred on the Association's behalf Employ persons and borrow funds as necessary Sue or be sued Negotiate and enter contracts Proportionately refund excess assessments

Damage to property of others

Pays up to $1,000 per occurrence for property damage caused by an insured regardless of negligence does not apply to property damage: -covered under section 1 - Caused intentionally by and insured who is 13+ - property owned by insured - owned by or rented to a tenant of an insured or a resident of the named insured's household -Arising out of a business engaged in by an insured; acts or omissions in connection with premises owned, rented, or controlled by an insured that is not the insured location; the ownership, maintenance, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft, or motor vehicles

Personal Inland Marine Insurance

Personal Inland Marine coverage can be attached by endorsement to a Homeowners or Dwelling Policy; it may also be written as a separate policy. Personal Inland Marine Insurance is a form of coverage used to insure moveable property against direct loss. Since moveable property is known as floating property, the word floater is often used. 3 Common ones: Personal Articles Form Personal Property Form Personal Effects Form

Rehabilitation Benefits

Physical therapy and vocational training are utilized with the objective of returning the injured employee to work as soon as possible. usually paid by the insurer but some states have special state funds to pay for rehab costs that are funded by taxes levied against insurers and self-insureds.

AL Workers Comp Preexisiting conditions death benefits and dependatns

Preexisting Conditions- employer is not liable for any increase, caused by any preexisting injury or infirmity, in the degree or duration of a disability caused by an accident. Death Benefits: Death benefits to a lone dependent are half the deceased employee's average weekly wage and ends when dependant remarries or dies and will never pay out more than 500 weeks. DB to 2 or more depedants are 66 2/3% of deceased employee's average weekly wages and must be paid to widower if any The proportion of benefits for any partial dependent to benefits for all dependents must equal the proportion of wages the deceased employee gave the partial dependent to the partial dependent's total income. Compensation to a dependent ceases when the dependent marries. If an employee dies and the employer is liable, the employer must pay a lump sum of $7,500 to the deceased employee's estate within 60 days. Dependants: following are presumed wholly dependants upon an employee whose death is compensible: employee's children who are under 18 years of age, handicapped, or both The employee's spouse, unless they were voluntarily separated, and the spouse did not support the employee for over 12 months before the employee's death, or both A child over 18 who is mentally or physically unable to support themselves is also considered a dependent respectively, to the employee's total dependents (i.e. wife, child, husband, mother, father, grandmother, grandfather, sister, brother, mother-in-law, and father-in-law). Any total dependent regularly supported by the deceased employee is considered a partial dependent. This does not affect the order in which compensation is paid.

Loss Assessment

Provides up to $1,000 of coverage for the insured's share of loss assessments charged by a corporation or association of property owners, during the policy period. The loss assessment must be the result of bodily injury or property damage not otherwise excluded by the policy or liability for an elected director, officer, or trustee who serves on the board of the association or corporation without being compensated.

Installation Floater

Primary property insured is moveable property, such as electrical, plumbing or heating equipment to be installed in a building Insurance is provided during installation, and sometimes after installation, until construction has been completed and the property has been accepted by the owner OR when the interest of the insured ends, whichever occurs earliest.

Write Your Own Program

Private insurers sell federal flood insurance under their own names, collect the premiums, and receive an expense allowance estimated that over 90% of the flood insurance policies in force are maintained by WYO companies. The remaining policies are written and maintained directly by FEMA.

Covered Property

Property the insured owns, or property that is in the insured's care, custody, or control and for which the insured is legally liable

Part 4- The insured's Duty if injury Occurs Workers Comp

Provide for immediate medical services required by law Give the insurer the names and addresses of the injured persons and any witnesses Promptly forward all notices, demands, and legal papers related to the injury to the insurer Cooperate with the insurer's investigation Do not interfere with the insurer's subrogation rights Do not voluntarily make any payments, assume obligations, or incur expenses

Additional Coverages BOP

Provided automatically if 80% coinsurance is purchased and maintained throughout the policy period Debris Removal- will pay up to an additional $10,000 for debris removal expense, for each location Preservation of Property cover on an open perils basis, for up to 30 days, property while being moved or temporarily stored at another location to save and protect it from damage by a covered peril. Fire Department Service Charge- will pay up to $2,500 for the insured's liability for fire department service charges assumed by Collapse Water Damage,Other Liquids, Powder, or Molten Material Damage pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escaped. Business Income will pay for the actual loss sustained for a period of 12 consecutive months after the date of direct physical loss or damage. However, ordinary payroll expenses are paid only for 60 days following the direct physical loss or damage, unless a greater number of days is shown in the Declarations. This additional coverage is not subject to the limits of insurance in Section I Extra Expense will pay for the necessary extra expenses the insured incurs for up to 12 consecutive months after the date of direct physical loss or damage. Pollution Cleanup and Removal will pay up to $10,000 per location for pollution cleanup and removal due to a covered loss occurring during each separate 12 month period. Civil Authority The coverage applies when civil authorities prohibit access to the described premises due to a covered loss that occurs within 1 mile of the insured's property. The coverage begins 72 hours after the action occurs and ends 4 consecutive weeks after the coverage begins. Money Ordersand CounterfeitPaper Currency will pay up to $1,000 for any one loss resulting from the insured having accepted, in good faith, money orders issued by the post office, bank, or counterfeit paper currency during the regular course of business. Forgery or Alteration will pay up to $2,500 for any one loss resulting directly from forgery or alteration of any check or similar instrument that the insured, or someone impersonating the insured, has issued. Increased Costof Construction will pay up to $10,000, for each building, for the increased costs incurred to comply with enforcement of an ordinance or law that regulates the repair, rebuilding, or replacement of damaged parts of a covered building following a covered loss. Business Income from Dependent Properties will pay the actual loss of business income (up to $5,000) sustained by the insured due to physical loss or damage at the premises of a dependent property caused by or resulting from a covered cause of loss. Glass Expenses will pay for the expenses incurred to install temporary plates, board up openings, and to remove or replace obstructions when repairing or replacing glass that is part of a building. Electronic Data- Up to $10,000 Interruption ofComputer Operations caused by the specified causes of loss and certain computer viruses - Up to $10,000. Limited Fungi,Wet Rot, and Dry Rot- Up to $15,000

part 2 workers comp

Provides BI and other damages for which the insured becomes liable outside of Workers' Compensation statute and occupational disease laws. If someone is permitted by law to sue the insured for negligence or other tort damages, this part of the policy applies. How insurance applies: applies to BI or disease or resulting in death - arise out of and in the course of employement - take place during policy period - be caused by conditions of employment employment must be necessary to the work described in information page it also protects the insured against damages under the Doctrine of Dual Capacity, which applies when an employee is injured by a product the employer manufactures employees can not purchase supplemental benefits

The Running Down Clause

Provides coverage for legal liability of the shipper or carrier for claims arising out of collisions caused by the shipper or carrier. Clause covers the negligence of the shipper or carrier that results in damage to the property of others.

Fire Legal Liability

Provides coverage if the insured leases the building in which it operates its business If the insured causes fire damage, smoke or explosion damage to a leased building, the landlords' insurance company could subrogate against the tenant of the building and this provides coverage for such an event Without Fire Legal Liability, CGL would not cover the claim because liability insurance excludes coverage for property in the care, custody and control of the insured. A building that the insured leases is in the insured's control.

Signs Floater

Provides coverage insurance for neon, automatic, or mechanical signs, and street clocks, as well as billboards, ordinary fixed or plastic-faced signs.

Fiduciary liability insurance

Provides errors and omissions insurance for businesses with respect to their administration of employee benefit plans, such as pensions, profit-sharing, and medical insurance. The Employee Retirement Income Security Act of 1974 (ERISA) increased the legal liabilities of fiduciaries that, in turn, increased many business' exposures to fiduciary liability claims.

Coverage B - Personal and Advertising Injury CGL

Provides protection for liability arising from personal and advertising injury offense committed in the coverage territory and during the policy period Personal and advertising injury offenses include: -False arrest, detention, or imprisonment -Malicious prosecution -Wrongful eviction from wrongful entry into, or invasion of privacy of the right of private occupancy -Libel or slander -Violation of privacy -Use of another's idea in the insured's "advertisement" -Infringement of copyright, trade dress, or slogan in the insured's "advertisement policy will pay those sums the insured becomes legally obligated to pay as damages because of personal and advertising injury to which the insurance applies Neither coverage nor defense applies to the following types of offenses that cause damage: -The insured's knowledge that an act will violate another's rights and would inflict personal and advertising injury -The oral or written publication of material by the insured, or at the insured's direction, when knowing the material is false -Criminal acts committed by, or at the direction of, the insured -Contractual liability unless the insured would be liable for the act in the absence of the contract -Breach of contract -The failure of the insured's goods, products, or services to conform to advertising statements -Damage that arises out of the wrong description of goods, products, or services This coverage is not automatically included in CGL for companies that are in the business of broadcasting, advertising, publishing etc. The coverage would need to be purchased separately

Retroactive Date (start date)

Provision on Claims made Form -date specified on dec page after which an occurrence must take place to be covered if occurrence happens before not covered even if claim is made during policy period Any claim arising from an occurrence taking place before such specified date will not be covered by the current policy If an incident occurs before the retroactive date, there is no coverage under the policy. The Retroactive Date (start date) is usually the date of the first Claims-Made policy. This date is set and would not change as the policy renews annually. If the insurer does not agree to a retroactive date, coverage begins on the effective date shown in the Declarations Example An insured owns a Claims-Made Form with a policy period of 7/1/14 through 7/1/15. The policy has a retroactive date of 4/1/14. If a claim is made on 1/1/15 for an injury that occurred after 4/1/14, the insurer is responsible. If the claim would have occurred prior to 4/1/14, the insurer is not responsible. If replacement is involved, the retroactive date should always be set on the new policy the same as the retroactive date on the existing policy to eliminate any lapse in claim coverage. This insures that all previous claims would still be covered. TEST TIP Know that the Retroactive Date should always be the same as the existing policy when replacement or renewal is involved

Court Bonds (Judicial)

Required by the court to enforce certain behavior. There are two types of court bonds. The 2 basic forms are Fiduciary Bond - required when an individual, such as an executor, administrator, or a guardian, is entrusted by the court to handle the property of others Example An Executors Bond. Litigation Bond - required when the individual bringing suit wishes to freeze the assets of another party, or restrain the other party from doing something Example Appeal, Injunction, or Attachment Bond.

Ordinance or Law Coverage Endorsement (CP 04 05)

Responds if the enforcement of any building, zoning, or land use law, results in: The loss in value of the undamaged portion of a building because of enforcement of an ordinance or law that requires demolition of the undamaged parts of a building Demolition site and clearance of the undamaged parts of a building Increased cost of repairing or reconstructing damaged parts of a building

AL Fortified Home Roof, Silver and Gold

Roof is the foundation of every level of the Fortified Home program, with the focus of strengthening the roof system and keeping water out of the house. The roof system must be addressed before any other levels are achieved and sealing the roof is critical. This can be applied to either new or existing homes, when a homeowner is reroofing or when a home has an existing roof in good condition. Although not as effective as re-roofing, it is possible to obtain a Fortified Bronze designation for an existing roof. Typically this is appropriate when the home has a relatively new roof or has an expensive roof covering with a long life expectancy under normal conditions. This is accomplished by improving the roof sheathing attachment and providing a barrier from the inside to help resist water intrusion. When a new roof is installed, the roof deck is attached using mechanical fasteners and a qualified system seals the roof deck on the exterior surface Silver and Gold levels (Fortified Home Hurricane and High Wind standards) The Fortified Home Silver designation requires completion of all Fortified Bronze upgrades, plus all of the following: Gable end walls on gables greater than 48 inches must be braced Porches and carports must have adequate connections for uplift pressures based on site design wind speed and exposure category Connections must be provided from the roof framing to the beam/wall, from beam to column and column to structure below Garage doors must be pressure rated for pressures associated with site design wind speed and exposure category All window, exterior door and skylight openings must be protected with qualified opening protection systems Qualified openings protection systems must have passed an ASTM E 1996 and E 18866 impact test for large missile D The Fortified Home Gold designation requires completion of all Fortified Bronze upgrades and Fortified Silver improvements, plus all of the following: Chimneys must be adequately connected to the roof structure to resist loads based on site design wind speed and exposure category Windows, skylights and glass doors must be rated for the design pressures appropriate for the exposure category, wind speed, window size, and window location on the building A continuous load path must be designed and installed providing connection from roof to wall, wall to floor, and floor to foundation Walls must have a minimum of 7/16 inch structural sheathing (OSB or plywood)

Watercraft Package policy structure

Section I - Property Coverage A - Insured Property Section I of the policy provides open peril coverage for the hull, motor, trailer, equipment, and accessories manufactured for marine use Section II-Liability Coverage B - Watercraft Liability (BI/PD) Coverage C - Medical Expense (Med Pay) Coverage D - Uninsured Boaters

Liability and Medical Expenses Definitions BOP

Section II -Liability of the Businessowners Coverage Form The definitions in this section are similar to those found in the CGL and CPP. It's important to remember that the definition of "your product" includes: Warranties and representations relating to the fitness of the product Warnings and instructions for safe use of the product Containers for the product

Private Passenger Autos

Shall be deemed to be owned by a person if the auto is owned or leased under contract for a continuous period of at least 6 months.

Earthquake Endorsement

The peril of earthquake, or earth movement, is excluded on virtually all property policies. Included in the peril of earthquake are earth movement, land shock waves or tremors, landslide, mudslide, mudflow, sinkhole, and the rising, sinking, or shifting of the earth. 1 single earth is defined as 1 or more earthquakes that occur in a 72 hour period does not cover loss resulting from flood of any nature or the cost of filling lad eductible that is a percentage of Coverage A (Dwelling) or Coverage C (Personal Property), whichever is greater, is included. The total deductible will not be less than $250.

Limited Mexico Coverage

This endorsement provides coverage on an excess basis and only for losses and accidents that occur in Mexico and within 25 miles of the U.S. border. In addition, coverage only applies if the insured's visit to Mexico is of 10 or fewer days duration. Coverage only applies if existing liability insurance is in place, and was issued by a licensed Mexican insurance company. No coverage is provided for anyone who is a citizen or resident of Mexico.

Identity Theft Expense

This endorsement will pay up to $15,000 for expenses resulting from an instance of identity fraud discovered during the policy period. The endorsement does not cover losses arising out of business activity. It carries a $500 deductible and the insured must notify the insurer within 60 days of the loss.

Specialty or Professional Liability Insurance

Specialty liability insurance is available for those businesses and professionals that have a higher than average exposure for being legally liable for causing economic or indirect loss. forms of professional liability insurance are Errors & Omissions (E&O) and Medical Malpractice

Methods of Writting Property Insurance Limits

Specific- insures single item of property for a single limit of insurance (fire for one dwelling for 1,000) Scheduled Limit- insures one or more items of property for 1 single policy (one farm policy insures a home for 100,000 and barn 200,00 Blanket- insures property located at more than one location OR more than one type of property at the same location OR both. For example, the $1 million blanket limit applies to two separate buildings at two separate locations, as well as the business personal property contained in each building.

Loss Payable Clause

Specifies how the policy protects the interests of a loss payee. A loss payee has insurable interest in personal property.

Policy Period

Specifies that coverage only applies to losses occurring when the policy is in force.

Concealment or Fraud

Specifies that coverage will not apply if an insured makes a material concealment, misrepresentation, or fraud in the application pertaining to the claim.

Liberalization Clause

Specifies that if the insurer broadens coverage with no increase in premium, that broadening of coverage will apply to existing policies without the need for an endorsement.

No Benefit to Bailee

Specifies that no coverage applies if loss payment benefits a bailee.

Legal Action Against Us

Specifies that the insured may not bring suit against the insurer until the insured has complied with all the terms of the policy.

assignment

Specifies that the insured may not transfer rights of ownership without the insurer's prior written consent.

Abandonment of Property

Specifies that the insurer is not obligated to accept any property abandoned by an insured. Under ISO ( Personal Lines Formsis 60 days Commercial Lines Forms, this time frame is 30 days.

Conditions of a casualty

Specifies the general rules (obligations) that the insured and insurer have agreed to follow throughout the policy period, such as the insured's responsibilities in the event of a loss.

Additional or Supplementary Coverage

Specifies the insurer's claim-related expenses, including the expenses at the insurer's request, premium on appeal, or bail bonds. These payments are paid in addition to the policy limits.

Recovered Property

Specifies the procedure to be followed when lost or stolen property is recovered after the insurer has made payment under the policy. Each party shall notify the other of any recovery and, under most property policies, the insured has the right of keeping the claim payment or returning the claim payment and retaining right to the property after adjustments have been made for any damage.

Restoration/Non-reduction of Limits

Specifies the sum and circumstances under which an insurer charges the insured, usually a business firm, to restore a policy to its initial face value or not reduce limits of coverage after the insurer has paid a claim either to the insured business or a third party on behalf of the business.

Cancellation

Specifies the terms under which the policy can be cancelled by the insurer and the named insured. The named insured may cancel the policy at any time by giving written notice to the insurer. If the policy has been in effect for less than 60 days, and it is not a renewal, the insurer may cancel the policy for nonpayment of premium by giving 10 days written notice, and 30 days written notice for any other reason. If the policy has been in effect for 60 or more days, and it is not a renewal, the insurer may cancel the policy for nonpayment of premium by giving 10 days written notice, and 30 days written notice for the following specific reasons: material misrepresentation by the insured and substantial changes in risk.

Loss Settlement

Specifies which loss valuation method will apply to the property insured under the policy.

NFIP Eligibility, Limits and Conditions

Standard Flood Insurance Policy (SFIP) Dwelling Form provides coverage for building and/or contents and is issued to a homeowner, residential renter, or an owner of a residential building with 1-4 units. The SFIP General Property Form provides coverage for building and/or contents and is issued to an owner of a residential building with 5 or more units, an owner or lessee of a non-residential business of building. The Residential Condominium Building Association Form (RCBAP) is the standard form that is provided for buildings owned by a residential condominium association. ecomes effective on the 30th calendar day after the applicant completes the application and pays the premium. Property removed to protect it from flood is covered for 45 days at other locations. Each type of property loss is subject to a deductible. The NFIP Deductible is $1,000 each for both building and contents if the building coverage is less than or equal to $100,000. If the building coverage is over $100,000, the deductible is $1,250. A contents-only policy will have a $1,000 deductible.

Fair Access to Insurance Requirements (FAIR) plans

States created these plans to make essential property insurance available to consumers in areas where coverage had become unavailable or hard to obtain due to conditions that are beyond the control of property owners Farm is not eligible for coverage Agents don't have binding authority, and coverage is usually bound only after the receipt of the application and first premium payment by the insured. may not be rejected because of environmental hazards that are beyond the insured's control

Subrogation

States the insured must transfer to the insurance company its right of recovery against any party causing a loss after it accepts payment from the insurer for a loss. Subrogation allows the insurer to recover from the party that caused a loss any amounts paid to an insured. It also: Prevents the insured from collecting twice for the same loss Helps the insurer control expenses and premiums Ultimately holds the responsible third party accountable for the loss

Covered Autos in BAC

Symbol 1 Any Auto, if it is used in the insured business, regardless of ownership Symbol 2 Owned Autos Only, whether or not specifically listed on the policy Symbol 3 Owned Private Passenger Autos Only; a business may wish to provide insurance differently for its cars than for its dump trucks or vehicles used for delivery Symbol 4 Owned Autos Other Than Private Passenger Autos Only Symbol 5 Owned Autos Subject to No Fault Laws Symbol 6 Owned Autos Subject to a Compulsory Uninsured Motorist Law Symbol 7 Specifically described vehicles listed on the declarations page Symbol 8 Hired Autos Only, which are those the insured leases, hires, rents or borrows, except any auto the insured leases, hires, rents, or borrows from an employee. These vehicles may not be owned by the insured. Symbol 9 Non-owned Autos Only, which are those the insured does not own, lease, hire, rent or borrow, and are used in connection with the insured's business. This includes autos owned by an employee of the insured or a member of the employee's household. Can be written as Employees as Additional Insureds Endorsement. Note: The main distinction between a hired and a nonowned auto is whether an employee owns the auto. Symbol 10 Write Your Own (by endorsement). Commonly used to describe the autos needing damage coverage, as opposed to those needing liability only. Symbol 19 Mobile Equipment Subject to Compulsory or Financial Responsibility or Other Vehicle Insurance Law, which triggers protection for autos that are otherwise described as "mobile equipment" but are required to be licensed and registered to be operated on public roadways. This symbol is necessary since mobile equipment is excluded from the definition of "auto" under the business auto policy.

Impaired Property

Tangible property, other than an insured's product or work, which cannot be used because it is thought or known to be defective, inadequate, deficient, or dangerous.

Residence Premises (homeowner policy)

The 1-family dwelling where the named insured resides The 2-, 3-, or 4-family dwelling in which the named insured resides in at least one of the family units That part of any other building where the insured resides The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured resides, including the barn, detached garage, and swimming pool

BOP Section III- Common Policy Conditions

The First Named Insured shown in the Declarations may cancel this policy by mailing or delivering to the insurer advance written notice of cancellation. The insurer may cancel the policy by mailing or delivering to the first Named Insured written notice of cancellation at least: -5 days before the effective date of cancellation if any of the following conditions exists: -The building has been vacant or unoccupied 60 or more consecutive days -After damage by a covered cause of loss, if permanent repairs to the building: -Have not started; and Have not been contracted for within 30 days of initial payment of loss -10 days before the date of cancellation if the insurer cancels for non-payment of premium -30 days before the date of cancellation if the insurer cancels for any other reason Notice must be mailed to the last known mailing address All requirements of notice as contained in the policy may be superseded by state law Changes Concealment, Misrepresentation, and Fraud Examination of Your Books and Records Inspection and Surveys Insurance under Two or More Coverages Liberalization - If the insurer adopts any revision that would broaden coverage under the policy without additional premium within 45 days prior to, or during, the policy period, the broadened coverage will immediately apply to the policy. Other Insurance- Business Liability Coverage is excess over any other insurance that insures for direct physical loss or damage Premiums - The first Named Insured shown in the Declarations: Is responsible for the payment of all premiums; and Will be the payee for any return premiums insurer pays Premium Audit If a premium designated as an advance premium is shown in the Declarations, the policy is subject to audit Premium shown as an advance premium is a deposit premium only. At the close of each audit period the insurer will compute the earned premium for that period and send a notice to the first Named Insured. This is referred to as the "Actual Earned Premium" and is considered the final premium. However, if the risk has reduced over the year, perhaps due to the company having a reduction in force, there would be a "Premium Refund". Transfer of Rights of Recovery Against Others to Us - If any person or organization for whom the insurer makes payment under the policy has rights to recover damages from another, those rights are transferred to insurer to the extent of insurer's payment. Transfer of Your Rights and Duties Under this Policy - Insured's rights and duties under this policy may not be transferred without insurer's written consent except in the case of death of an individual Named Insured.

General Section of Workers Compensation

The Policy - Establishes that the policy is a contract between the employer and the insurer. The terms of the policy may not be changed or waived, except by endorsement. Who is Insured - Establishes that the employer is the insured. Workers' Compensation Law - The law of each state or territory named in the Information Page. State - Any state in the United States, including the District of Columbia. An injured employee is entitled to benefits provided by the state where the injury occurs. Locations - All workplaces, locations, and states listed in the Information Page

Extra Expense

The additional cost the insured incurs to operate their business, during the period of restoration, over and above the cost the insured would have incurred during the same period, had no "breakdown" occurred

Period of Restoration

The period of time that begins at the time of the "breakdown" or 24 hours after the insurer receives notice of the "breakdown," whichever is later, and ends 5 consecutive days after the date when the damaged property is repaired or replaced with reasonable speed and similar quality

Exclusions and Limitations, Limits of Insurance and Dedcutible in CPP

The applicable Causes of Loss Form shown in the Declarations contains the applicable coverage exclusions and limitations. Limits of Insurance most a policy will pay for loss or damage in any one occurrence is the limit of insurance shown in the Dec page The most the policy will pay for loss or damage to outdoor signs attached to the building is $1,000 per sign in any one occurrence The limits applicable to the Fire Department Service Charge and Pollutant Clean Up and Removal Additional Coverages are in addition to the limits of insurance Deductible The policy will not pay for a loss until the amount of loss exceeds the deductible amount shown in the Declarations. The standard deductible is $500.

Insured

The person or organization that is protected by insurance; the party to be indemnified.

Glass or Safety Glazing Material (homeowners)

The breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window, including loss caused by earth movement -Direct physical loss to covered property caused solely by the pieces, fragments, or splinters of broken glass or safety glazing material -NO coverage is provided for loss occurring on the residence premises if the dwelling was vacant for more than 60 consecutive days before the loss, except coverage is provided for loss caused by earthquake. --This coverage does not increase the limit of insurance that applies to the damaged property.

theft

The broadest of the crime coverages, theft includes any act of stealing.

Mysterious Disappearance

The loss of property when the cause of loss is not known. This is NOT theft, burglary, or robbery.

Functional Replacement Value

The cost to replace property with other property that performs the same function with similar efficiency, although the replacement property is not identical to the property being replaced. This valuation method is typically used with older property (such as a Victorian home) for which the replacement value exceeds the insured's ability or willingness to purchase coverage.

Multi-Peril Crop Insurance (MPCI)

The coverage is written by private insurers and is reinsured by the Federal Crop Insurance Corporation (FCIC). Coverage may be provided for approximately 200 different types of crops, but 5 major crops account for 90% of the liability assumed (corn and maize, cereal grains, soybeans, tobacco, and cotton). Covered causes of loss include: adverse weather conditions, fire, insects, plant disease, wildlife, earthquake, and volcanic eruption.

Governmental action Exclusion

The destruction, confiscation, or seizure of covered property by order of any governmental or public authority is excluded. The exclusion doesn't apply to such acts taken at the time of a fire to prevent its spread, if the fire loss would be covered under the policy.

Watercraft Liability Endorsement

The endorsement amends the liability exclusion pertaining to certain types of watercraft liability. The exclusion is deleted and replaced with a revised exclusion, which states that Coverage E and F don't apply to "watercraft liability" if the involved watercraft is being: Operated in or practicing for any prearranged or organized race, speed contest, or competition. Sailing vessels and predicted log cruises are not excluded. Rented to others. Used to carry people or cargo for a charge. Used for any "business" purpose. If the watercraft is a sailing vessel or one powered by an inboard or inboard-outdrive engine or motor, Coverages E and F don't apply to bodily injury sustained by any employee in the course of employment. Such exclusion applies if the employee's principal duties are in connection with the maintenance, operation, or use of a watercraft designated in the endorsement.

Concurrency/Concurrent Policies

The existence of two or more policies covering the same exposures, having the same policy periods, and the same coverage triggers. For example, if an auto policy and an umbrella policy are written with the same policy dates, they are considered to be concurrent.

Agreed Value

The insurance company and insured agree to a specific value of a particular property before the policy is issued. If a total loss occurs, the insurer will pay the Agreed Value.

Cameras Floater

The insured items are scheduled, with the exception that blanket coverage is provided on items such as shades, filters, etc. Automatic coverage is provided on newly acquired items for 30 days at a limit of insurance up to 25% of the limit designated on the schedule.

Messengers off Premises

The insured, or any of the insured's partners or employees, while having care and custody of covered property while outside the premises.

Coverage C: Medical Payments CGL

The insurer will cover the medical expenses of persons who are injured in an accident on the premises or on ways next to the premises, or as a result of the insured's operations Expenses must be incurred within one year of the accident Payments are made without regard to legal liability no payment is made under C for following: Any insured (other than a volunteer worker) Any person hired by the insured or the insured's tenant A person who normally occupies any portion of the insured premises Injuries that should be covered by Workers' Compensation and similar laws Athletic activities Injuries within the products-completed operations hazard Coverage A exclusions

Insurable Interest and Limit of Liability

The insurer will not be responsible for payment of loss in an amount greater than the financial interest of an insured.

Premises

The interior of that portion of a building occupied by the insured. The burglar does not have the owner's permission to be on the premises. Visible signs of forced entry or exit must also exist. Most burglaries occur when a premises is unoccupied.

Vicarious Liability

The liability assigned to one party for the conduct of another, based solely on a relationship between the two. Examples include employer/employee relationships and parent/child relationships.

Aggregate Limit

The maximum amount an insurer will pay for all covered losses during the covered policy period. Each loss payment made under per occurrence or per person reduces the aggregate limit of liability

Per Occurrence Limit

The most the policy will pay for all losses arising out of any one occurrence, regardless of other policy limits

Combined Single Limit

The most the policy will pay for all losses of all types resulting from any one occurrence, regardless of other limits.

Per Person Limit

The most the policy will pay for loss to any one person injured in any one loss, regardless of other policy limits.

Coverage F: Medical Payments to Others

The policy will pay necessary medical expenses that are incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Legal liability, negligence, and fault do not trigger this coverage. Medical payments to others is a goodwill coverage and designed to discourage the submission of liability claims. Medical expenses are the reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. Coverage does not apply to the insured or regular residents of the insured's household (except residence employees). However, coverage does apply to: A person on the insured location with the permission of an insured. A person off the insured location if the bodily injury: Arises out of a condition on the insured location or the immediate surroundings. Is caused by the activities of an insured. Is caused by a residence employee in the course of employment by the insured. Is caused by an animal owned by or in the care of an insured. - basic is 1,000 per injured person

Limit of Liability/Limits of Insurance

The restriction a liability policy places on the dollar amount of coverage.

Right of Salvage

The right of the insurer to take possession of damaged property after the loss to the property has been paid. The salvage belongs to the insurer.

extortion

The surrender of property away from the premises because of a threat communicated to the insured to do bodily harm to an insured or an employee, or to a relative or invitee of either, who is or allegedly is being held captive.

burglary

The taking of property from inside the premises or a locked safe or vault by a person who commits forcible entry into, or exit from, the property of another while trespassing.

Terrorism Risk Insurance Act (TRIA)

The terrorism Risk Insurance Act (TRIA) was first passed in 2002 and has been extended through 2014. The Act created a Federal Terrorism Insurance Program to administer a system of shared public/private compensation for insured losses resulting from acts of terrorism in order to protect consumers and create a transitional period for private insurance markets to stabilize. The Secretary of the Treasury oversees the program and has the authority to establish regulations and procedures to implement the program. Commercial policies must cover the peril of terrorism. The Act does not apply to personal lines policies.

Fund Transfer Fraud

This covers loss of funds resulting from a fraudulent instruction that directs a financial institution to transfer, pay, or deliver funds from the insured's transfer account. Funds are money and securities and a transfer account is an account maintained by the insured at a lending institution from which electronic, cable, or written instructions can be initiated by the insured to transfer, pay, or deliver funds.

Water Back Up and Sump Discharge or Overflow

This endorsement allows the insured to buy back some coverage that is excluded under the Water Damage exclusion. It provides up to $5,000 of coverage for direct physical loss to property insured under Section I (Coverages A, B, and C) caused by water or waterborne material that: Backs up through sewers or drains, or Overflows from a sump, sump pump, or related equipment. Coverage is provided even if the sump overflow is caused by equipment breakdown. A special deductible of $250 applies and replaces any other deductible that may otherwise apply. Coverage doesn't apply if damage is caused by the negligence of an insured.

Perils on the Sea

These perils are those that occur on land or on the sea. They can apply to either portion of the policy: Land based portion The at sea portion Examples Fire, Lightning, Explosion, Wind, Hail, Volcanic Eruption, Smoke, Falling Objects, Earthquake

Condominium Commercial Unit-Owners Coverage Form

This form is used for commercial unit-owners instead of the HO-6 (which is used for residential unit-owners) only business personal property of unit owner is insured in the event of duplicate coverage issued by this policy and the policy issued to the condominium association or cooperative corporation, the Unit-Owners Form acts as excess insurance. Covered property includes fixtures, improvements and alterations, and appliances owned by the insured and making up part of the building.

personal property floater (open peril coverage on a blanket basis)

This form provides coverage for most kinds of personal property found in a home Coverage is not scheduled or listed, it is written open peril and on a blanket basis, unlike the personal articles floater or homeowners scheduled personal property endorsement It is similar to the coverage provided for personal property under Coverage C in a Homeowners policy endorsed to provide open peril coverage for personal property The personal property floater is commonly issued for condominium or apartment dwellers who cannot obtain this open peril coverage for personal property under the HO-4 or HO-6

BOP Exclusions Applicable to Medical Expenses Coverage

To any insured, except volunteer workers To a person hired to do work for, or on behalf of, any insured or tenant of any insured To any person, if benefits for the bodily injury are payable, or if benefits must be provided under Workers' Compensation To a person injured on that part of the premises the insured owns or rents and that the person normally occupies To a person injured while taking part in athletics To bodily injury incurred within the products/completed operations hazard To bodily injury excluded under Business Liability Coverage Due to war, including civil war, insurrection, rebellion, or revolution

Professional Surety Authorization AL

To become the surety to a bail transaction, a professional surety company must have an order granting authorization to act as surety on any bail. An order granting surety authorization is reissued annually, before January 1st, by the presiding circuit judge of the county with jurisdiction. before the judge issues the original order, and by December 1st, a professional surety company must submit, to the judge: -A copy of the company's Certificate of Authority for bail line insurance -A certificate that the company is in good standing with the Department An original qualifying power of attorney it has issued, specifying any limitations and appointed producers' names -A copy of each appointed producer's license, or other documentation showing that the appointed producers hold a temporary license for bail insurance -An affidavit or certification by one of its licensed producers stating: That all bonds shall be executed in the company's name by the producers appointed in the qualifying power of attorney That all such appointed producers shall be licensed before appointment That no person owning or having any financial interest in any entity representing the company has been convicted of a crime of moral turpitude That the company does not know of any forfeitures final for more than 30 days that have not been paid That none of the company's producers is an attorney, attorney's agent, judicial official, or bail bondsman -The names and addresses of all persons, officers, employees, and producers having a financial interest in an entity representing the company, and that interest's nature and extent -That, of the persons mentioned, none have violated bail law or any rules adopted by the state Supreme Court in the previous 2 years Filing of Documents: professional surety or bail company must file originals of its documents ( corporate surety bonds, escrow agreements) with circuit judge of county it intends to transact business documents must be approved as sufficient by presiding circuit judge after approval the circuit clerk must take custody of and file originals. These are public records

AL Workers Comp Benefits

Total Disability - Compensation is 66 2/3% of the employee's average weekly wage, subject to a maximum and a minimum. For a temporary disability, if this amount is less than the minimum, the employee receives his/her average weekly wage. Temporary Partial Disability - Compensation is 66 2/3% of the difference between the employee's average weekly wage before and after the injury, payable for up to 300 weeks. if employee leaves compensation ceases until employee finds other employment and provides written affidavit verifying new compensation amount payable Permanent Partial Disability - Compensation is 66 2/3% of the employee's average weekly wage, payable for up to a certain number of weeks based upon the disability's extent. Multiple Disabilities - If an employee suffers a temporary total disability before or while suffering a permanent partial disability caused by a different injury, the benefit period for temporary total disability may not be deducted from the benefit period for permanent partial disability. if disabilities are caused by same injury compensation may not be paid for more than 300 weeks employee sustaining another injury resulting in permanent disability, after already being permanently and totally disabled from an injury sustained in the same employment, is entitled to receive compensation for permanent total disability only An employee receiving a compensable injury, while still being compensated for a previous injury in the same employment, is entitled to compensation for both injuries only if the latter injury results in permanent disability. Employee Employer Rights: An employee who loses his/her employment while compensation is payable may, within 2 years, petition a court for reconsideration of his/her disability status, unless the loss of employment is any of the following: Due to an active labor dispute Voluntary and without good cause For a dishonest or criminal act concerning the work (e.g. sabotage, endangering others) For misconduct at work, after receiving a warning Because a license, certificate, permit, bond, or surety necessary for employment has been lost for a cause An employer is not obligated to continue paying compensation to an employee with a permanent total disability if he/she obtains gainful employment

Glass or Safety Glazing Material

Under the DP-2 and DP-3 forms, coverage is provided for the breakage of glass or safety glazing material if it is part of a covered building, storm door, or storm window. Coverage is provided for direct loss caused by earth movement and the pieces, fragments, or splinters of broken glass from the glass or safety glazing material. No coverage applies if the dwelling was vacant for 60 consecutive days immediately before the loss. The vacancy provision doesn't apply to losses caused by earthquake. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law. Coverage doesn't increase the limit of liability and is NOT provided by the DP-1 form.

Trees, Shrubs, and Other Plants (Dwelling policy)

Under the DP-2 and DP-3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for included perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP-1 form. limit:5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant. Exclusions: wind; hail; weight of snow, ice or sleet; and loss by theft. This is additional coverage.

Medical Benefits Workers Comp

Unlimited coverage for all necessary medical (including hospital) expenses related to the covered injury that occurred during the policy period. Disability Income Benefits - Benefits are generally limited to the period of disability

Permitted Incidental Occupancies Endorsement

With respect to Section I, Coverage B (Other Structures), this endorsement covers a structure of the residence premises, specifically described, for direct physical loss by an insured peril for a specified limit of insurance when used to conduct a business. The endorsement also allows the Coverage C (Personal Property) special limit of $2,500 to apply to the described business.

NFIP Emergency Program

Used when a community first adopts the requirements of the NFIP regarding land use, building permits, and safety measures. This is done because the land has not yet been surveyed and mapped with flood zones not being established yet. (lower limit of coverage and might be more expensive) limited amounts of coverage are available. Available coverage for a single-family dwelling or a residential building with 1-4 units is $35,000 on the building and $10,000 on contents. The amount of coverage available on residential buildings with 5 or more units and non-residential buildings is $100,000 on the building and $100,000 on contents. ex ingle-family and Residential up to 4 units for building/contents: $35,000/$10,000 Other Residential and Nonresidential for building/contents: $100,000/$100,000

Modified Form (HO-8)

Used when insuring older homes where replacement value and market value are disproportionate or when a moral hazard would be created if insurance were written in an amount equal to 100% of a dwelling's replacement value. named perils basis limit of insurance chosen should represent the functional replacement value of the dwelling, which is the cost to replace damaged property with property that will perform the same function and efficiency even if it isn't of like kind and quality. Exclusions: Falling objects Weight of ice, sleet, or snow Accidental discharge of water or steam Accidental tearing apart, cracking, burning, or bulging of heating or air conditioning systems Freezing Sudden and accidental damage from artificially generated electrical current

Motor Carrier Coverage Form

Variation of the Truckers Coverage Form: Trucker - engaged in the business of transporting property for hire Motor Carrier - engaged in transporting property or passengers The Motor Carrier Coverage Form is similar to the Truckers Coverage Form. It typically provides better coverage in most instances. The primary difference is that the Motor Carrier form covers owned private passenger autos and the Truckers form does not. All 6 sections are similar, including Section III Trailer Interchange Coverage.

Payment of Loss Part D

When paying for losses covered under Part D, the insurer may make payment in cash or by repairing or replacing the stolen or damaged property. If making payment in the form of cash, the insurer will include any sales tax that applies to the stolen or damaged property. If stolen property is recovered, the insurer has the option of keeping the stolen property (at agreed or appraised value) or returning it to the named insured. If the insurer returns the stolen property, it must pay for any damage that resulted from the theft.

Windstorm Insurance Coverage

Windstorm damage is covered under the peril of wind in standard property insurance policies. In some states, exclusionary endorsements may be added to property policies to exclude coverage for the peril of wind or windstorm. These states are Alabama, Delaware, Florida, Georgia, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, South Carolina, and Texas. Because these states are at high risk for wind loss caused by hurricane, they have established wind and/or wind and hail associations that provide a marketplace of last resort for those who are unable to purchase insurance for the peril of wind on their primary property policies. In these and other states, some insurers require mandatory wind deductibles of a certain dollar amount, such as $2,500 or higher, based on the geographic location of property (such as within a certain distance of the sea coast) or prior wind losses.

financial responsibility Part A PAP

When the policy is certified as future proof of financial responsibility, the policy shall comply with the law to the extent required

Farm Property Coverage Form

Will pay for direct physical loss or damage to covered property at the insured location or elsewhere, caused by, or resulting from a covered cause of loss for coverage to apply there must be a limit shown in dec page

Your Work Definition CGL

Work or operations performed by the named insured or on the named insured's behalf. Your work includes materials, parts, or equipment furnished in connection with such work or operations. Your work also includes warranties or representations made at any time with respect to the fitness, quality, durability, performance, or use of "your product" and also includes the providing of, or failure to provide, warnings or instructions.

Statutory Law Defenses

Written law enacted by legislatures. Comparative Negligence - Damages are reduced in proportion to the degree of the claimant's negligence. For example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant may only recover 95% of damages. Statute of Limitations - The length of time during which legal proceedings may be initiated. This time period is established by federal or state law and usually begins on the day an event occurs.

Directors and Officers Liability (D&O)

Written to protect the directors and officers of a corporation or other legal entity for wrongful acts committed while acting in their capacity as directors and officers for the organization.

Trailer

a vehicle designed to be pulled by a private passenger auto, a pickup, or a van includes farm wagon or farm implement while it is being towed by private passenger van or pick up

Resumption of operations

a condition exists that allows the insurer to reduce the amount of the loss if the insured does not resume operations as quickly as possible vancancy provision is the same as the commercial building and personal property coverage form

AL Auto Policy Cancellation and Nonrenewal

a liability policy in effect for at least 60 days may be cancelled for the following: Nonpayment of premium Material misrepresentation The insured's violation of any policy terms and conditions The named insured's failure to disclose: -In an application, upon request, his/her auto accidents and moving traffic violations for the past 36 months -Necessary eligibility or rating information Any insured's false or fraudulent claim Failing to maintain a membership, if a prerequisite to the policy's purchase, in any group or organization Any customary driver's: -License suspension or revocation, or drug addiction, within 36 months before the cancellation notice -Epilepsy or heart attacks, if he/she fails to provide a physician's certification that he/she can safely operate an auto without special qualification -Accident or conviction record or condition that makes operating an auto dangerous to the public -Excessive alcohol consumption -Conviction or bail forfeiture, within 36 months before the cancellation notice, for: Any felony -Criminal negligence resulting in death, homicide, or assault while driving an auto -Operating an auto while intoxicated or under the influence of drugs -Being intoxicated while in, about, or having custody of, an auto -Leaving the scene of an accidentStealing an auto -Making false statements in a driver's license application3 or more speeding violations in any state The insured auto's: -Mechanical defect endangering public safety -Use in carrying passengers for hire or compensation (except for carpooling) -Use in transporting flammables or explosives -Use as an authorized emergency vehicle -Change in shape or condition that increases the risk insured -Failure to be inspected or to qualify under an inspection law Cancellation Notice and Proof of Delivery insurer must notify insurerd at least 20 days before cancelling atip at least 10 days stating reason for cancellation if insured written request is made within 15 days before cancellation. Proof that notice or explanation has been mailed constitutes proof that the notice or explanation was give Nonrenewable notice has to be given 20 days if insurer decided to not renew a policy upon its expiration

non-owned auto

a private passenger auto, pickup, van, or trailer not owned by or furnished or made available for regular use of the named insured or family member, while it is in the custody of or being operated by the named insured or family member

Extra Expense Coverage Form

a separate form that can be used to cover the extra expenses incurred by the firm in continuing operations during a period of restoration extra expense example: relocation expense. Can be purchased without business income coverage by clients that will not suffer a consequential loss of business income after a property loss but that would incur additional expenses. This form permits business continuation without interruption. It allows the business to maintain operation while undergoing repairs in hopes of keeping customers serviced and not losing them to a competitor during the down time. A monthly limit of indemnity option may be added, which limits the policy amount that the insured may receive such as 40% / 80% / 100%. If the period of restoration is 30 days or less, the first percentage applies. If the period of restoration exceeds 30 days, but is less than 60 days, the second percentage applies. If the period of restoration exceeds 60 days, the third percentage applies. example: If a risk insured under a $100,000 Extra Expense Coverage Form, with a 40/80/100 percentage suffers a $90,000 loss with a 50 day restoration, the policy will pay $80,000. If asked which one is best to provide Operational Expense, the answer is: Extra Expense Coverage.

Difference in Conditions (DIC) Insurance

a separate insurance policy that provides open-perils coverage to fill in the gaps left by the insured's other commercial property insurance policies does not contain a Coinsurance or Pro Rata Clause, and the form may be written for an amount of insurance different from the limit of insurance provided by the policy it complements. When written to supplement an underlying policy, DIC coverage normally carries a high deductible, such as $10,000 or more. The form is often written to provide coverage in the event of earthquake, flood, collapse, and subsidence.

Accident

a sudden event (such as a crash) that is not planned or intended and that causes damage or injury

occurance

an event that results in a loss.

Collapse (homeowners)

abrupt falling down or caving in of a building, or a portion of a building, if the building cannot be occupied for its intended purpose after the collapse. -Direct physical loss from collapse must be caused by a Coverage C named peril, hidden decay, hidden insect or vermin damage, weight of contents, equipment, animals, people, the weight of rain collecting on a roof, or the use of defective materials or construction methods -The policy does not cover collapse of awnings, fences, patios, swimming pools, underground pipes, cesspools, etc., unless damage is the direct result of the collapse -This coverage does not increase the limit of insurance that applies to the damaged property

Property Not Covered under BPP

accounts, bills currency food stamps or other evidence of debt money notes and securities -Animals, unless they are owned by others and boarded by the named insured OR owned by the insured when they are "stock" and inside buildings Autos held for sale, including cars, trucks, motorcycles, motor homes, etc. Bridges, roadways, sidewalks, patios, and other paved surfaces Contraband, stolen property, or property used in the course of illegal transportation or trade The cost of excavations, grading, backfilling, or filling The foundations of buildings, structures, machinery, or boilers if the foundations are below the lowest basement floor or the surface of the ground if there is no basement Land, including land on which covered buildings and structures are located, water, growing crops, and lawns Personal property while it is being transported in the air or on water Bulkheads, pilings, piers, wharves, or docks Property insured by this policy under another coverage part, or property specifically insured on another policy Retaining walls that are not part of a building and underground pipes, flues, and drains Electronic data, including information, facts, and computer programs and the cost to replace or restore such information Vehicles and self-propelled machines, including aircraft and watercraft, if they're licensed for use on public roads OR are operated principally away from the described premises Property manufactured, processed, or warehoused by the insured Rowboats and canoes out of water at the described location Motorized vehicles that are not autos and are held for sale by the insured When outside of buildings: grain, hay, straw, other crops; fences, radio and TV antennas and their wiring, masts or towers; trees, shrubs, or plants that are not "stock"

Insured Contracts CGL

acronym LEASE to remember the 5 items automatically covered under insured contracts. Lease of Premises - A tenant of a building that is leased is automatically covered for the space the business occupies under any lease agreement. Easement Agreement - Business Liability exposure begins where the city, county, or state easement ends. Agreement to Indemnify the Municipality - If a business wants to display a sign on city property to advertise a special event, the city municipality may require a Hold Harmless Agreement from the business to indemnify the city municipality from any liability that may arise in the event the sign fell and caused any damage or injury to anyone. Sidetrack Agreement (Hold Harmless Agreement) - A contractual agreement where one party assumes the liability of a situation and relieves the other part of responsibility. Elevator Maintenance Agreement - A contract agreement where the elevator maintenance company assumes the liability pertaining to the operation of the elevator from the business or building owner where the elevator operates. In addition to these five contracts, any other contract or agreement pertaining to the insured's business under which one assumes the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization.

stealth

act of theft with hopes of being undetected EX:A shoplifter stealing items by slipping things into a pocket while no one is watching.

Earthquake Endorsement (BP 10 03)

added to extend coverage to include earthquake and volcanic eruption losses. The coverage continues for up to 168 hours after policy expiration if an earthquake or volcanic eruption began before the policy expired.

Hired Auto and Non-Owned Auto Liability Endorsement (BP 04 04)

added to the BOP to provide business auto coverage when the insured business doesn't own autos. This endorsement extends the BOP's business liability coverage for bodily injury and property damage for: The maintenance or use of a hired auto by the insured, or its employees, in the insured's business, and the use of any non-owned auto in the insured's business by any person The endorsement amends certain exclusions in the BOP with respect to liability. Specifically, it removes some exclusions and replaces them with others. Essentially, this endorsement adds business auto coverage to the BOP, but only for vehicles the insured hires, leases, rents, borrows, and doesn't own. Hired auto liability coverage applies to autos leased, hired, or borrowed by the named insured, such as the rental of a vehicle while traveling on company business. Non-owned auto liability coverage applies only to those non-owned autos used by persons other than the named insured in the course of the named insured's business. For example, an employee using his/her own vehicle in the course of the insured's business would have to rely on his/ her own auto insurance for liability coverage.

Legal Action Against Insurer

all parties must comply with policy provisions before any suit can be brought against insurer. No one has the right to enjoin the insurance company as a party to any action against the insurer

BOP Who is an insured

all that are designated on dec page A sole proprietorship or Individual A partnership or joint venture A limited liability company An organization other than a partnership, joint venture, or limited liability company. The named insured, executive officers and directors, and stockholders. A trust - Named insured and its trustees with respect to trustee duties as well as volunteer workers real estate manager anyone having temporary custody of insured property insured legal representative if named insured dies anyone driving the insured vehicle

Self-Insurance Plans and Employer Groups

allow employers to self insure upon satisfying certain statutory requirements that are a guarantee of their ability to meet their obligations. Large employers are sometimes attracted to self-insurance plans because losses can be predictable and benefits are capped by statute. must obtain a Self-Insurance Certificate and may also purchase excess insurance or reinsurance. Some states also require the employer to purchase a surety bond.

The Motor Carrier Act of 1980

allowed tDepartment of Transportation (DOT) to enforce financial requirements for motor carriers -Motor carrier must carry an insurance policy of certain minimum limits, or -Post a surety bond representing certain financial stability criteria when transporting passengers or cargo. - requires trucking companies legally liable for BI PD occuring from their operations. Liability limits are as follows: 750,000 for interstate transport of nonhazardous property $1,000,000 for intra or interstate transport of oil or other hazardous material $5,000,000 for intra or interstate transport of very large quantities of certain hazardous materials, such as compressed gas, radioactive, or explosive materials

Auto Medical Payments Coverage Endorsement CAC

allows insured to purchase Medical Payment Coverage it written with a limit per person per accident and pays up the the limit necessary medical and funeral expenses resulting fromBI incurred within 3 years of accident CAC do not automatically include this coverage

Ordinance or Law Coverage

allows payment of up to 10% of the coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other structure to conform with applicable building and land use codes DP-2 and DP-3 only is additional insurance and NO coverage is provided for any loss in value of building or structure due to the enforcement of any ordiance or law or costs incurred by ordinances that require pollution clean up,, removal treatment etc

Coverage D - Fair Rental Value

applies if property under Coverage A, B, or C becomes damaged or destroyed and unfit for normal use due to damage or destruction to the rental property payment is made in the shortest time to repair damages of dwelling that's normally held for rental cancellation of lease is not covere its limit of insurance is up to 20% of the coverage limit of A and is automatically provided under each of the dwelling forms. In DP-1 this limit does not increase the amount of insurance provided in coverage A. In DP-2 and DP-3 provide additional insurance

Homeowner Policy Deductible

applies to all losses unless otherwise noted in the policy. With respect to any one loss, the policy will only pay that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the declarations - subject to the policy limits. usually $250.00 but insured can choose higher or lower as deductible increases premium payment decreases

Duties of an injured person under Coverage F

applies to third party claimants who are pursuing coverage under the policy they must: -Give the insurer written proof of the claim as soon as practical - and under oath, if required -Authorize the insurer to obtain copies of medical records and reports -Submit to a physical exam by a doctor of the insurer's choice when and as often as the insurer reasonably requires

Supplementary Payments- Coverages A and b CGL

apply only to Coverages A and B, are paid in addition to any applicable limit of liability include: All claim-related expenses incurred by the insurance company The cost of bail bonds, up to $250 The cost of bonds to release attachments All reasonable expenses incurred by the insured, at the insurer's request, including actual loss of earnings up to $250 per day to the insured for time off from work All court costs taxed against the insured in a suit Payments for prejudgment interest, which is the amount of interest that accrues on a judgment from the time of the accident or loss until the insurer makes payment or offers to make payment Payments for post-judgment interest, which is the amount of interest that accrues on a judgment after it's entered and before the insurer has paid or offered to pay Supplementary payments do NOT reduce the limits of insurance provided by the policy. Supplementary payments do NOT add to the limits of liability and do NOT affect the aggregate limits of the policy at all

Section 1 - Covered Autos Garage Coverage

auto designation symbols in a similar fashion to the Business Auto Coverage Form, ymbols 1-9 on the Business Auto Policy are the same as symbols 21-29 in the Garage Coverage Form Symbol 30 - "Autos" left with the insured for service, repair, storage, or safekeeping Symbol 31 - Dealers "autos" physical damage coverages written using a blanket limit of insurance since an auto business is a bailee and is legally responsible for the vehicles left in its care, custody, or control, special insurance coverage is required limit of liability for customer vehicles is expressed as blanket limit such as 100,000 for total of all customer vehicles in insured care, custody or control

Personal Articles Floater

basic form used to insure "individual" items of personal property on an itemized or scheduled basis Claims are normally settled on an "actual cash value basis" with some exceptions Coverage is provided worldwide, with some exceptions Coverage is provided on an open perils basis with very few exclusions. Typical exclusions are wear and tear, insects or vermin, intentional loss, and war. Specific classes of property have additional exclusions. For example, a collection of glassware may have specific exclusions for breakage caused by certain perils. Coverage may be provided for classes of property consisting principally of the following: Jewelry, Furs, Cameras, Musical Instruments, Silverware and Goldware, Golfer's Equipment, Fine Arts, Stamp Collections, Coin Collections, China and crystal

AL Uninsured/ Underinsured Motorist Coverage

auto liability policy must provide or offer Uninsured Motorists Coverage unless the named insured rejects it in writing term uninsured auto includes autos for which: Neither the owner nor driver carries bodily injury liability insurance Any bodily injury coverage is below the required minimum limits The insurer becomes insolvent after the policy is issued The sum of all bodily injury liability coverage is less than the damages that the injured person is legally entitled to recover It is not illegal to be underinsured - an underinsured motor vehicle is any vehicle that has coverage that meets Alabama required limits of 25/50 25, but has coverage in an amount less than the actual damage sustained. Example An insured may have 50/100/50 in coverage and be at fault in an accident that sustains 150,000 BI and 100,000 PD. The insured is underinsured. However, the insured is legal because they have met the legal requirements of 25/50/25.

Rate Reductions for Older Persons AL

auto liability rates filed with commissioner must reduce premiums for a primary drivers age 55 or older who successfully completes an approved accident prevention course. to qualify age 55 or older must complete 8 classroom hours in an approved auto accident prevention course. The reduction must be effective for 3 years, unless the insured is involved in an at-fault accident or is found guilty of a moving violation.

Automatic Increase in Insurance Endorsement (DP04 11)

automatic pro rata increase in the Coverage A and B limits of insurance is applied by the percentage shown on the endorsement. This endorsement is used to help offset inflation and may also be referred to as the Inflation Guard Endorsement. The increases are calculated per day, and will increase the dwelling coverage, as well as the premium, annually when the policy renews. If a loss occurs throughout the year, coverage is based on a pro-rated basis.

Additional Coverages

automatically included in property policies without an additional premium. The type of additional coverages depends upon the type of policy. Additional coverages are paid in addition to those stated in the insuring agreement and include debris removal, collapse, and fire department service charges.

No Benefit to Bailee Part D

bailment relationship exists with respect to the covered vehicle, the policy will not make payment for the benefit of anyone who had care, custody, or control of the covered auto. For example, if the insured's vehicle was in the repair shop for servicing and the mechanic damaged the vehicle, this policy wouldn't make payment; the repair shop's insurance would have to pay because of its legal liability as a bailee.

Fire Legal Liability (tenants coverage)

gap policy - provides negligent fire coverage caused by an insured tenant -common in homeowners liability and can be purchased as part of a commercial liability policy

Types of Contract Bonds

bid bonds- guarantee that the contractor making the bid will, upon acceptance of the bid by the contractor's customer (the Obligee), proceed with the contract and replace the Bid Bond with a Performance Bond performance bonds- uarantee that the contractor will perform, as agreed in the contract payment bonds- uarantee that bills for labor and materials called for in a construction contract will be paid when due Completion Bond (Lender's Bond- bond guaranteeing that borrowed money will be used toward completion of a project. Supply Bond- bond whereby a supplier (Principal) guarantees to perform under a contract to supply goods or materials to the contractor (Obligee) in accordance with the terms of the contract

Commerical general liability Insurance (GCL)

business liability exposure arises out of business conduct

miscellaneous-type vehicle endorsement

can be added to the PAP to insure motorcycles, mopeds, motor scooters, golf carts, motor homes, dune buggies, etc. addition, to the definitions section of the policy, the endorsement amends "your covered auto" and "newly acquired auto" to include any "miscellaneous type vehicle" shown on the endorsement. The definition generally does not include snowmobiles. In some jurisdictions it will cover snow mobiles. Various exclusions under Parts A, B, and D are also amended to remove exclusions for damage to, and injuries arising out of, vehicles having fewer than 4 wheels and vehicles designed mainly for off-road use. The endorsement excludes coverage for any non-owned vehicles, other than a temporary substitute vehicle.

No-fault benefits

claimant must prove the defendant (insured) is legally liable for the cause of injury or damage. If proven, the insurer pays the claim to the claimant. The insurer can also pay a claim to avoid a lawsuit or to reduce the financial impact of the legal action, even if the insured (defendant) was not liable for the incident. Medical Payments - Pays regardless of fault. Medical payments are sometimes referred to as Goodwill Insurance. However, they only pay the medical costs related to the injury. Limits are typically low, but will pay the doctor, the hospital, the dentist and the funeral home. Supplementary Payments - Pays a variety of costs, such as investigative costs, appeal or attachments bonds, pre-judgment interest awarded to the claimant, and reimburses defense costs to the insured (defendant). TEST TIP Know that these benefits are paid regardless of fault.

Mobile equipment endorsement CAC

commercial auto endorsement that makes mobile equipment considered a covered auto for coverage purposes such as bulldozers forklifts road construction equipment-- these are not normally covered except for liability arising while being carried or towed by a covered auto self propelled snow plows are not covered

Individual Named Insured Endorsement CAC

commercial auto endorsement that provides coverage similar to that provided under the personal auto policy to family members of the named insured while using any auto also eliminates the fellow employee exclusion to BI to employees of the named insured or any family member if insured ones one private passengar auto and insures it on the business auto plan for PD coverage personal auto coverage will extend to non-owned autos as covered autos. When purchased endorsement applies to all family members who are residents

Loss Sustained Form ( 1 year discovery)

commercial crime form that covers losses that are sustained during the policy period and discovered either during the policy period or up to one year after the policy expires

Bonds

contact involving 3 peopls: Principal (Obligor)- party owing the duty, performance, or honesty and is usually the party purchasing the bond Surety (Guarantor)- party guaranteeing the duty, performance, or honesty of the Principal usually insurance company Obligee-party paid by the Surety if the Principal fails to perform (because this is the party harmed by the principal's dereliction of duty) Suretyship- the assumption of liability for the obligations of another; in other words, a guarantee. The Surety has a legal right of action against the Principal in the event of default until the amount of the loss is recovered. The defaulting Principal MUST repay the Surety.

Replacement value approach

cost to replace or repair damaged property with like kind and quality at current pricing without a deduction for depreciation. Usually requires covered property to be insured to a certain percentage of its replacement value such as 80%-90%

Commercial Umbrella Insurance

coverage against catastrophic losses, extends liability limits, drops down to provide coverage not included in underlying primary insurance, and provides more comprehensive coverage than that contained in underlying primary insurance.

Trees Shrubs and Plants Additional Expense (homeowner)

coverage following perils: fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident of the residence premises, vandalism or malicious mischief, and theft. Coverage is NOT provided for any other peril, including windstorm or hail. -limit of insurance is up to 5% of the Coverage A limit of liability in the HO-2, HO-3, HO-5, and HO-8 forms and applies to all trees, shrubs, plants, or lawns. Coverage is provided up to 10% of the Coverage C limit in the HO-4 and HO-6 to pay for loss to trees, shrubs, and plants damaged by the listed covered perils. The most paid for loss to any one tree, shrub, or plant is $500. This limit is additional insurance. - no coverage for property "grown" for business

Spoilage (CP 04 40)

coverage provided on perishable property in care, custody or control of insured included losses due to breakdown, contamination and power outage Breakdown or contamination includes changes in temperature or humidity as the result of mechanical failure of refrigeration, cooling, or humidity-control equipment at the insured location Power outage includes changes in temperature or humidity as the result of interruption of electrical power either on or off the insured premises examples: eggs that have spoiled that are on the loading dock for a prolonged period of time would NOT be covered Perishable goods that have spoiled due to breakdown or power outage for a prolonged period of time would be covered.

Special Form (HO-3)

covered on an open perils basis and all losses to dwelling and other structers are valued on a replacement value basis just like HO-2 specifically excludes the following causes of loss under Coverage A and B: Collapse, except as provided by Other Coverages Freezing of household appliances or a plumbing, heating, air conditioning, or automatic fire protective system unless the insured has taken reasonable care to maintain heat in the building or shut off the water supply and drained the appliances and systems of water Freezing, thawing, pressure or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls Theft in or to a dwelling under construction, including construction-related materials and supplies Vandalism and malicious mischief, including ensuing loss, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss Mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam that is hidden from view Wear and tear, marring, deterioration, mechanical breakdown, latent defect, inherent vice, smog, rust, corrosion, dry rot Smoke from agricultural smudging or industrial operations Pollution including discharge, dispersal, seepage, migration, or release of smoke, vapor, fumes, acids, or other chemicals unless such discharge is caused by a Coverage C Peril Insured Against Settling, cracking, bulging, or expansion of foundation, walls, floors, pavements, patios Birds, vermin, rodents or insects Animals owned or kept by an insured Personal property is insured on named perils basis that includes the same 16 named as broad form 2 Coverage C losses are valued on ACV and includes losses to fences, driveway or walk caused by vehicle owned by insured burden of proof for losses to the dwelling and other structures falls to the insurer because coverage is provided on an open perils basis. On the other hand, the burden of proof for losses to personal property falls to the insured to show which of the 16 named perils caused the loss.

Reasonable Repairs additional coverage (homeowners)

covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. does not increase the limit of insurance that applies to the covered property

Reasonable Repairs (dwelling policy)

covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. not additional insurance and coverage does not increase the limit of insurance that applies to the covered property

Broad Form Dwelling Policy (dp-2)

covers DP-1 perils, EC perils, VMM and damage by burglurs falling objects- outside building damage must be present weight of ice or snow- except for awing patios pavements and pools accidental discharge or overflow of water or stream- from HVAC sprinkler system or household appliance and not vacant more than 60 consecuvtive days Sudden and accidental tearing apart, cracking, burning, or bulging - Must occur to a steam or hot water heating system, air conditioning system, or automatic fire protective system, or household appliance Freezing - Must occur to a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance. Applies only if the insured used reasonable care to maintain heat in the building OR shut off the water supply and drained all systems of water Sudden and accidental damage from artificially generated electrical current - This peril is caused by man-made electricity or power surge and does NOT apply to damage to tubes, transistors, electronic components, or circuitry contained in appliances, fixtures, computers, etc.

Business Auto Coverage Form

covers a business's owned, leased, hired, rented, or borrowed private passenger auto, trucks, trailers, and semitrailer that are owner or used by insured liability and physical damage losses also covers non owned vehicles including auto owned by employees that are used being used in the business and may be insured in a separate category have to be registered to drive on public roads vehicles sold, stored or repaired for other are NOT insured on business auto coverage

Business personal property coverage BPP

covers business personal property that is located in, or within 100ft of the building, including improvements and bettermets and leased personal property that the insured has a contractual obligation to insure. ie furniture and fixtures, machinery and equpidmet frdges and telephone systems) stock- inventory purchased

Aircraft Liability Insurance

covers claims arising from the ownership, maintenance, or use of an aircraft combined single limit is purchased and applies per occurrence may purchase sublimit coverage that limits loss payments to a single person or passenger. For example, an aircraft liability policy may have a $1 million per occurrence limit with a sublimit of $100,000. This means that if a loss occurs, the most the policy will pay is $1 million for all claims arising from the loss, and the most it will pay per person or passenger is $100,000.

DP-4 Contents Basic Form (Renters and Tenants form)

covers contents only. Provides basic perils coverage on personal property and allows the insured to increase perils covered by extended coverage endorsement

Coverage E: Personal Liability (Bodily Injury/Property Damage Coverage)

covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage caused by an occurrence to which coverage applies. - pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured -provides a defense, at the insurer's expense, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit it decides is appropriate. The duty to defend ends when the policy limits have been exhausted by payment of a judgment or settlement. Payments for defense costs are made in addition to the limit of liability appearing on the declarations. - basic limit if 100,000 per occurance with no aggregate limit and can be increased as needed

Employee Theft or Dishonesty

covers loss of, or damage to, money, securities, and other property committed by an employee, whether acting alone or in collusion with others, that results directly from theft. written blanket or scheduled basis, if blanket new employees are automatically covered same coverage as commercial Blanket Fideliy Bond. Written on a per occurrence limit

Coverage B: Other Structures Homeowners Policy

covers other structures on residnce premises that are set apart by clear space ex: sheds, detached garages built in pools - exludes 4 types: - Land, including land on which the other structures are located -Other structures rented or held for rental to anyone who isn't a tenant of the dwelling, unless the other structure is used solely as a private garage -Other structures from which any "business" is conducted -Other structures used to store business property that is owned by someone other than an insured or a tenant of the dwelling insurance limit is 10% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Guests' Property endorsement

covers property of guests while it is in a safe deposit box on the premises of the insured, such as a hotel, motel, or lodging facility. This coverage is added by endorsement

Fine Arts Floater

covers such items as paintings, rare manuscripts, and antiques; provides automatic coverage for 90 days for newly acquired items; written on valued basis

Coverage C: Personal Property

covers the insured's personal property that is at the described location and is usual to the dwelling occupancy. coverage is only when it is on the described location at the insured request coverage is also apply to guest personal property while on location - auto applies when insurer moves for 30 days or until policy expiration -doesnt include notes, accounts, coins and currency, birds, animals fish, aircraft watercraft motovhechiles other than those used to service described location - drawings -paper records -computers credit cards The insured may use up to 10% of coverage C of insurance for loss caused by an insureed peril to cover property anywhere in the world

collapse (dwelling policy)

definition:he abrupt falling down or caving in of a building, or any portion of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in - or if it's standing, it is NOT in a state of collapse. Under Dp-2 and 3 coverage is provided for direct physical loss to covered property involving collapse of a building, or any part of a building, but only if the cause of loss is: any of the Coverage C named perils; hidden decay; hidden insect or vermin damage; weight of contents, equipment, animals or people; weight of rain which collects on the roof; and use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation. collapse does not include: cracking settling shrinking bulging or expansion it does not increase the limit of insurance and is NOT provided by DP-1

Duty to Defend Professional Liability Insurance

depending on the type of coverage the insurer may not have the duty to defend, as it has in most other insurance policies. Certain professional liability policies require the insurer to pay for defenses costs but do not require the insurer to actually handle defense. Because some professionals, such as doctors and attorneys, wish to have control over whether to settle a loss, it's very important to understand fully how the defense provision works in a professional liability policy.

Part Three - Other States Insurance

designed to provide coverage for as many states as the law permits. If have operations in monopostic states must purchase coverage directly from the state entity that sells this coverage. Otherwise, agents can adapt this policy for their customers to include very broad national coverage as long as the Information Page shows the states in which they have active operations and may have potential exposures This insurance applies only if more than one state is listed, and must be within the policy territory (Monopolistic states may not be listed here.) If the insured begins work in a state listed on the Information Page after the effective date of the policy, the insurance will apply if other insurance does not exist The insurer will reimburse the insured for any payments made where insurance applies, and the insurer is not allowed to pay directly The insured must notify the insurer within 30 days when an employee works in a state not listed in the Information Page

rating factors for auto insurance

determined by individual insurance companies using following factos: - for liability coveage: age, sex, martial status, driving record, vehicle use, annual mileage, territory of garage, liability limits selected and some states may use number of years driving experiance before age for physical damage coverage: all of the above + the year make model and deductibles selected

BOP Covered Causes of loss and Limitations

direct physical loss ( open peril), unless the loss is excluded will not pay for loss or damage that is missing for loss by theft covered up to 2,500 for the follownig: Furs, fur garments, and garments trimmed with fur Jewelry, watches, pearls, precious and semi-precious stones, bullion, gold, silver, platinum, and other precious alloys or metals Patterns, dies, molds, and forms does not cover loss to steam or hot water boilers, pipe, engines, or turbines if caused by an equip breakdown other than explosion loss to interior building is not covered unless exterior also suffered loss Animals and fragile articles are only covered if loss is caused by the "specified causes of loss" or glass breakage.

Commercial Inland Marine Classes

divided into 2 lines controlled and uncontrolled Controlled lines of coverage, or filed lines, are those that use policy forms, endorsements, and rates that are filed by insurers with the departments of insurance in each of the states where they write insurance. Tgoverned by the rules contained in the commercial lines manual, or any other approved manual. The most common forms of coverage in the controlled lines are: Accounts receivable Commercial articles floater Jewelers block coverage Sign coverage Valuable papers Records coverage, and equipment dealers coverage Uncontrolled lines of coverage, or unfiled lines, are those that use policy forms, endorsements, and rates that are not filed with or through any rating bureau or state department of insurance. They are developed by individual insurers for individual risks and, consequently, the forms and coverage differ from insurer to insurer. A majority of commercial inland marine insurance is uncontrolled, such as: Builders risk coverage Contractors equipment floaters Electronic data processing (EDP) coverage Installation floaters Transportation floaters

Exclusions Only Applying to Coverage F - Medical Payments to Others

does not apply to bodily injury: -To a residence employee if the bodily injury occurs off an insured location AND NOT in the course of the residence employee's employment by the insured -To any person who is eligible to receive benefits voluntarily provided or required by law under any Workers' Compensation, occupational disease law, or non-occupational disability law -From any nuclear reaction, nuclear radiation, or radioactive contamination - regardless of how caused -To any person other than a residence employee of an insured who regularly resides on any part of the insured location. This includes roommates and tenants as well as any insured.

AL Workers Comp Def and exceptions

employee (a.k.a. Worker) - Every person serving another under any contract of hire, including aliens and minors legally working, and including employees of Tannehill Furnace and Foundry Commission. Exceptions: does not include demonstors and does not include licensed real estate agents operating under a licensed broker. Injury (aka personal injury)- injusy by accidnet arising out of and in the course of employement term includes occupational diseases (e.g. carpal tunnel; occupational pneumoconiosis, which is a lung disease caused by breathing small dust particles; occupational exposure to radiation

Workers' Compensation and Employers Liability Insurance Policy

employers liability section of the policy doesn't pay for medical expenses incurred by the injured employee. In order for the policy to pay, the insured MUST be legally liable for injuries and damages sustained by an employee that are not addressed by Workers' Compensation statute Employer Liability pays all sums for which insured is legally obligated to pay: For injuries to employees that arise out of employment but claimed against the insured in a capacity other than as employer For care and loss of services For consequential injury to dependents of an injured worker For damages claimed by a third party as a result of a worker's injuries

Personal Property Replacement cost loss settlement

endorsement changes the valuation method for most property insured under Coverage C from actual cash value (ACV) to replacement cost. It also applies to awnings, outdoor antennas and equipment, carpeting, and household appliances. following classes of property are separately described and specifically insured in this policy and NOT subject to agreed value loss settlement, the endorsement also applies to jewelry, furs and fur garments, cameras and related equipment, musical instruments and related equipment, silverware, goldware, pewterware, and golfer's equipment. Other classes of property separately described and specifically insured are NOT subject to this endorsement. Property NOT eligible for coverage under this endorsement - and that is subject to actual cash value loss settlement includes antiques, fine arts, paintings and similar articles of rarity or antiquity that cannot be replaced, memorabilia, souvenirs, collectors' items, articles whose ages and histories contribute to their value, articles not maintained in good or workable condition, and articles that are outdated or obsolete and are stored or not being used. This endorsement only changes loss valuation - it doesn't change other policy provisions, including perils insured against or exclusions.

Business Pursuits Endorsement

endorsement extends liability coverage for the insured's involvement in a business that the insured does not own, have financial control over, or have a partnership interest in. The pursuit must be named in the endorsement, and is commonly added for those in the teaching, sales, and clerical professions.

Voluntary Compensation Endorsement

endorsement is used when an employer wishes to provide Workers' Compensation benefits to employees, although the law does not require the employer to provide coverage. info must be provided in the endorsement The class of employees to be covered The state of employment Employees waive thier right to sue and accept coverage under this endorsement

Rental Reimbursement Coverage CAC

endorsement that can be added to all 5 BAC and pays for rental reimbursements expenses insured as a result of a covered loss to a vehicle named in endorsement schedule B/C the BAC only provide temporary transportation expenses coverage for the total theft of private passenger type vehicles, this is a valuable endorsement for businesses that own other types of vehicles and/or who want rental reimbursement coverage in the event of losses other than total thefts.

Employees as additional insureds endorsement CAC

endorsements used with the business auto coverage form that covers employees while they are using an auto not owned, hired, or borrowed by the business in the business or personal affairs of the named insured operates like symbol 9 which is sometimes refered to as ""Employers Non-Ownership Liability"

Part F: General Provisions

establishes conditions for the coverage and describes the duties and obligations of the insured and insurer

Water Damage Exclusion (dwelling policy and homeowner)

excludes any damage from tidal waves, flood, sewage backup flood surface water waves if direct loss by fire or explosion results form water damage it is covered

Exclusion of Certified Acts of Terrorism Endorsement (BP 05 25)

excludes coverage for loss or damage caused directly or indirectly by a Certified Act of Terrorism, as outlined in the Terrorism Insurance Act (TRIA) of 2005.

salvage value

expected selling price of an asset at the end of its useful life

First Aid Expenses

expenses incurred by insured for rendering first aid to others who sustain bodily injury covered under the policy. No coverage is provided for first aid to an insured.

BOP Medical Expense to Others (Med Pay)

expenses must be incurred within 1 year of the date of the accident and payments are made regardless of fault medical expenses for bodily injury, caused by an accident, occurring on the premises the insured owns or rents, or due to the insured's operations. Pays on a per person basis covers: First aid administered at the time of an accident Necessary medical, surgical, x-ray, and dental services, including prosthetic devices Necessary ambulance, hospital, professional nursing, and funeral services

Vacancy Permit (CP 04 50)

extends coverage on a building that has been vacant or unoccupied beyond the limitation period specified in a policy (usually 30 or 60 days). Usually, the permit is granted free of charge when the structure is in an area with satisfactory fire protection. The perils of vandalism and sprinkler leakage are excluded under this endorsement.

gross negligence

failure to exhibit any sort of care through recklessness, deliberate indifference to well-being of others ex driving under the influence

Negligence

failure to use ordinary or reasonable care ex running a red light

Section II (E and F) Exclusions

falls into 4 distinct categories -Exclusions that apply to Section II - E, F and Additional Coverages -Exclusions that only apply to E& F -Exclusions that only apply to E - Personal Liability Exclusions that apply only to F - Medical Payments to Others

Jewelers block coverage form

filed commercial inland marine form for jewelers that covers the insureds stock in trade and the property of others while it is on or off the premises open perils basis. with the usual exclusions: war; wear and tear; delay and loss of market; flood; and earthquake. Specific block or dealers policies have exclusions designed to meet the needs of that particular business and its exposures. 2 optional are available and, if not purchased, no coverage applies for Show Windows - Provides theft coverage for articles in a show window if the window is broken or smashed. Different limits apply when the business is open or closed and whether the window is protected by a security system. Money - Provides coverage for theft of money from locked safes or vaults on the insured's premises.

Additional Conditions BPP

following apply to Common Policy Conditions and Commercial property Conditions: Coinsurance: insured is required to insure all covered property to a percentage of its replacement value; failure to do so results in a penalty in the event of partial losses. Coninsurance % is shown on the Dec page and is usually 80% any loss penalty is determined and based on the % of insurance to value Formula: Amount of Insured Carried ÷ Amount of Insurance Required x Amount of Loss = The amount the insurer pays Mortgage Holder: policy will pay to each mortgage holder shown in the Declarations its share of a covered loss or damage, in order of precedence, as its interests may appear. mortgage holder will be paid even if coverage is denied. Payment will be made only if mortgage holder: pays any premiums due if insured has not done so submit sigend swprn proof of loos within 60 days if insured failed to do so and notify the insurer of any change in ownership, occupancy or substantial risk about which was unaware - if insurer pays mortgage holder it must assing rights of recovery and reight under terms of the mortgage to insurer. If insurer cancelled it must give all mortgage holder advance written notice same 10 day and 30 day notice of cancellations is requried 10 day for non payment of premiums 30 day for all other reasons

Equipment Breakdown Protection conditions

following conditions apply in addition to the Common Policy Conditions in chapter 4 Loss Conditions: Abandonment Appraisal Defense Duties in the Event of Loss or Damage Insurance Under Two or More Coverages Legal Action Against the Insurer Loss Payable Clause Other Insurance Privilege to Adjust with Owner Reducing the Insured's Loss Transfer of Rights of Recovery Against Others to Insurer Valuation The following additional conditions apply to the Business Income and Extra Expense Coverage: Annual Reports, Adjustment of Premium, and Coinsurance General Conditions: Additional Insured Bankruptcy Concealment, Misrepresentation, or Fraud Liberalization Mortgageholder No Benefit to Bailee Policy Period, Coverage Territory Premium and Adjustments Suspension - The insurance company has the right to inspect covered boiler, mechanical and electrical equipment that is covered in the policy. If any covered equipment is found to be unsafe, the insurance company can suspend coverage effective immediately on the unsafe equipment. The notice must be in writing and may be provided on site while being inspected by the inspector. Coverage may be reinstated upon making the necessary corrections to the problem, being re-inspected by the insurance company and issuing an endorsement. Joint or Disputed Loss Agreement- intended to facilitate payment of insurance proceeds when both a Commercial Property Policy issued by 1 insurer, and a Boiler and Machinery Policy issued by another insurer are in force on the same risk, and upon a loss occurring there is disagreement between the insurers as to whether there is coverage, or as to the amount of the loss to be paid, if any, by each insurer under its own policy.

Non- concurrent Exclusions

following exclusions apply, however, if an ensuing loss is otherwise covered by the policy, it will not be excluded: weather decisions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; faulty, inadequate, or defective planning, zoning, development, surveying, sighting, design, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials used in repair, and maintenance.

Common Carrier Cargo Liability - Motor Truck Cargo Coverage

for loss or damage to property arising from the legal liability of the carrier. It covers the interest of the trucker—not the shipper, owner, or consignee—when loss or damage to the cargo occurs. Coverage is written on one of two forms: Bill of lading form, which is written on an open perils basis Named perils form, which varies by insurer when common carrieraccepts property to be transported, it issues a Bill of Lading, which serves as both a contract and a receipt for goods accepted into the carrier's care. The type of Bill of Lading determines what party is liable for damage that might occur during the transportation of the property. The two types of Bill of Lading are: Straight - A straight bill of lading doesn't contain a value limitation for the cargo being shipped, meaning the carrier is legally responsible for the full value of transported goods while it is in the carrier's care. Released - A released bill of lading is issued when the carrier and shipper agree that the carrier's responsibility is limited to the value stated on the bill of lading. The cost for transporting a shipment via a released bill of lading is less expensive than shipping via a straight bill of lading.

Builders Risk Coverage Form on Commercial Inland Marine Policy

foundations of buildings or structures fixtures and machinery that will be come part of covered building equpiment used to service covered building insured build materials and supplies for construction can be commercial, residential, or farm similar to the Building and Personal Property Coverage Form and provides insurance on an open perils basis. The perils of theft and vandalism often contain limits and/or specific conditions, such as for accidental loss, damage, or destruction of property in which the insured has an insurable interest.

Contract Bonds

guarantee that contractors perform according to a construction contract and if a contractor fails to perform according to the contract, the Surety is responsible to the principal for the bond limit, which usually equals the value of the completed contract.

Surety Bonds (Performance Bonds)

guarantee that specific obligations will be fulfilled if the principal defaults and the surety must perform the contract, duty, or obligation of the principal, or indemnify the obligee for actual loss.

License and Permit Bonds

guarantees that the party seeking the license or permit will comply with applicable laws or regulations. Examples include: Contractor's license bonds guarantee that a contractor complies with laws pertaining to his or her trade Tax bonds guarantee a business complies with laws pertaining to payment of taxes Broker's bonds, such as insurance, mortgage, or title agency bonds guarantee that the broker performs according to law Motor vehicle dealer bonds guarantee that the dealer performs according to law

Nationwide Marine Definition

guideline that was established in 1953 by the National Association of Insurance Commissioners (NAIC) purpose of classifying inland marine, marine, and transportation exposures into categories of insurance. All property must contain an element of transportation to be eligible under inland marine coverage forms. Specifically, it must be in transit, be moveable, bear a relationship to transportation or communication, or be held in the possession of a bailee, who is someone other than the property owner 6 Broad classes of property mports, which may be insured at any location and must remain segregated from other property so it can be easily identified. Exports, which may be insured at any location and acquires its character when being prepared for export and must retain that character unless diverted for domestic trade. Domestic Shipments and Property in Transit, which involves shipments on consignment, for sale or distribution, for approval or auction, while in transit, while in the custody of others, and while being returned and DOESN'T include coverage while on premises owned, leased, or operated by the consignor. Instrumentalities of Transportation or Communication, which DO cover items that are often at a fixed location because they play an important role in the transportation and communication industries. These items are NOT easily insured on traditional commercial property policies. They include the following types of property: bridges, tunnels, transmission towers, including radio and television transmitting equipment, piers, wharves, slips, docks, dry-docks, marine railways, pipe lines, outdoor cranes, loading bridges, and similar equipment. Personal Property Floaters typically insure personal property on an open perils basis and, when covered on a floater, this type of property is excluded from coverage on the Homeowners and/or Dwelling policies. It involves property that is usually NOT located at the insured's residence. Commercial Property Floater Risks insure property pertaining to a business, profession, or occupation. Examples include:Physicians' and Surgeons' Equipment FloatersPattern, Tool, and Die FloatersTheatrical FloatersFilm FloatersSalesman's Sample FloatersTools and Equipment FloatersBuilders' Risk & Installation Floaters

Split Limits

he most the policy will pay for loss of different types that occur as a result of any one loss, regardless of other limits. For example, the limits of liability on an auto policy for bodily injury might be represented as 100/300/100 ($100,000 is the per person limit for bodily injury liability, $300,000 is the per occurrence limit for bodily injury, and $100,000 is the per occurrence limit for property damage liability).

Part F: Cancellation

he named insured may cancel the policy for any reason by either returning it to the insurer or giving the insurer advance written notice of the date the cancellation is to take effect During the first 60 days of a new policy, an insurer may cancel the policy for any reason by mailing notice to the named insured shown on the Declarations. Notice of at least 10 days is required for cancellation due to non-payment of premium, and at least 20 days advance written notice for all other reasons. After the policy has been in effect for 60 days, the insurer may cancel only for the following reasons:Non-payment of premiumThe policy was obtained through fraud or material misrepresentation, meaning the application contained false information and, had the insurer been provided with accurate information, would not have issued the policySuspension or revocation of the driver's license of the named insured, any driver who is a household resident of the named insured, any driver who regularly uses a Your Covered Auto State law will supersede this provision

Protection and Indemnity Insurance (P & I Insurance)

iability insurance purchased by ship owners for virtually all types of maritime liability includes: Cargo lost or damaged through the insured's negligence Damage to other property, including fixed objects, such as wharves, docks, and other vessels, when not caused by collision Damage to property on board the insured vessel when caused by collision Injuries to seamen resulting from the vessel's lack of seaworthiness, for other job-related injuries, and general damages subject to the Jones Act caused by negligence

Coverage Extensions BPP

if 80% coinsurance is shown on declaration the insured may extend the insurance provided by CPP as follows: Newly Acquired or Constructed Property: can extend to cover new buildings to be constructed or newly acquired at other locations limit is up to 250,000 at each building c can be extended to cover newly acquired personal property up to 100,000 at each building coverage ends at the earliest of one of 3 following policy expires end of 30 days values of newly acquired are reported to the insurance company Personal Effects and Property of Others under the insured care custody covered up to 2,500 at each described premises does not include loss of theft Valuable papers and Records- Cost of Research loss or damage by covered peril that requires the replacement or restoriation of lost info or valuable paper or records max amount paid is 2,500 at each described location unless higher limit is show in dec page Property of Premises: - limit 10,000 for covered property except stocks while at a temporary location the insured does not own, lease or operate included property located at fair trade show, exhibition or in a vehicle Outdoor Property: maximum amount of $1,000 to cover loss to outdoor fences, detached signs, antennas, trees, shrubs, and plants. A sublimit of $250 applies to any one tree, shrub, or plant. The perils covered by this extension are fire, lightning, explosion, riot or civil commotion, and aircraft Non-Owned Detached Trailers extends to trailers the named insurer does not won provided it is used in the insured business and has the contractual responsibility to pay for loss or damage to trailer most will pay is 5,000 unless higher is shown on dec page Loss or damage is not covered while the trailer is attached to any motor vehicle or during hitching or unhitching operations

Property Removed (dwelling policy)

if property is removed from described location to protect it because it is endangered by covered peril coverage is provided for direct loss by any peril while removed - DP-1 coverage is provided for 5 days while removed dp-2 AND 3 coverage is provided for 30 days while removed This does not increase the limit of insurance that applies to property being removed same for Homeowner except it is all 30 days

Other Structures on the Residence Premises- Increased limits

if the Coverage B limit of insurance is inadequate to insure all other structures on the residence premises (10% of Coverage A), this endorsement allows the insured to purchase increased limits for other structures listed in the endorsement. The increased limits generate an additional premium charge.

Two or More Auto Policies

if two or more policies issuesd by same insurer apply to same accident max limit will be paid and will not exceed the policy with the highest limits

commercial enterprises

in addition to being written on two types of policy forms crime coverage is also written for 2 types of commercial enterprises The Commercial Crime Coverage Forms (both Loss-Sustained and Discovery) are designed for private businesses. The insuring agreements of these policies and forms contain one limit of insurance for all types of employee theft. Written on a per loss basis only. The Government Crime Coverage Forms (both Loss-Sustained and Discovery) are designed for government entities. They contain two different employee theft insuring agreements. One contains a separate loss limit that applies to each employee theft loss and the other contains its own loss limit for all losses occurring due to one employee. Written on a per loss or per employee basis **Know that Government Crime may be written on a per loss or per employee basis.

Transportation/ Permission to move Endorsement

in addition to covered perils this will also protect from impeding danger in harms way -500 that is used to provide coverage would apply provides coverage for the following 2 reasons: Damage during transport To escape harms way provides covearge for up to 30 days while mobile home is being moved to a new location for the following reasons: Collision Upset Stranding Sinking

Transportation/Permissions to Move Endorsement

in addition to the covered perils listed, this endorsement will also provide coverage to protect it from impending danger or harms way. The same $500 that is used to provide coverage under the Additional Coverage "Property Removed" would apply. provides coverage for the following 2 reasons: Damage during transport; and To escape harms way provides coverage for up to 30 days while the mobile home is being moved to a new location for the following reasons: Collision Upset Stranding Sinking

Occupying

in, upon, getting in, on, out, or off

Farm Insurance Exclusions

include losses caused directly or indirectly by ordinance or law, earth movement other than sinkhole collapse, government action, intentional loss, nuclear hazard off premises services, war and military action, or flood or surface water. ***Test Tip:*** look for questions: All are excluded from a Farm Policy, Except: Accidental Shooting of covered live stock. Other choices: Crop dusting, and riding animals at fairs.

Farm Insurance

includes Farm Property Coverage, and Farm Liability Coverage. Additional specialized forms include the Mobile Agricultural Machinery and Equipment Form and the Livestock Coverage Form

Commercial Coverage Policy components

includes a Common Policy Declarations and Common Policy Conditions form, Although each client will have different and specific coverage forms, their policies will contain the same common policy declarations and common policy conditions form. There are 4 Key components: Declarations Page- Who, What, When, Where, How much Common Policy Conditions Cancellation changes, examination of your books - insurer can look up to 3 years after policy end and records inspections and surveys Premiums Transfer of Your Rights and duties under this policy- may not transfer unless written consent Endorsements and Coverage Parts

Section III - Physical Damage Coverage

includes comprehensive, specified causes of loss, and collision coverages, towing, glass breakage, and coverage extensions including transportation expenses and loss of use expenses. Comprehensive- physical damage to a covered auto or its equipment on an open perils basis. The single peril excluded is collision, which is a vehicle's impact with another object or its overturn. Theft would be included. This is the same as OTC (Other Than Collision). specified causes of loss- includes fire, lightning, or explosion; theft; windstorm, hail, or earthquake; flood; mischief or vandalism; and the sinking, burning, collision or derailment of a conveyance transporting the covered vehicle. If coverage for other perils is desired, Comprehensive should be purchased. Collison Coverage-provided for the covered auto's impact with another object or its overturn. Towing:pays up to the limit in the Declarations for the costs of towing and labor incurred each time a covered private passenger type auto is disabled. Labor must be performed at the place of disablement. Glass breakage- Hitting a Bird or Animal - Falling Objects or Missiles - If the insured carries Comprehensive coverage, the insurer will pay for glass breakage, loss caused by hitting a bird or animal, and loss caused by falling objects or missiles. If glass breakage is caused by a collision, the insured may elect to have the loss considered a collision loss. Transportation policy pays up to $20 per day and up to a maximum of $600, for temporary transportation expenses of the insured for the total theft of a private passenger auto. Transportation expenses begin 48 hours after the theft of the vehicle and end when the covered auto is returned to use or the insurer pays for its loss. Loss of Use Expenses - If the insured hires a vehicle per a written rental contract or agreement, and without a driver, this coverage extension pays for loss of use expenses to the hired auto if loss is caused by a covered loss. The most paid for loss of use is $20 per day and up to a maximum $600. Exclusions: will not pay for loss caused by, or resulting from any of the following perils: Nuclear hazard, war, or military action Professional or organized racing, demolition contest, or stunt activity Wear and tear, freezing, mechanical or electrical breakdown, or blowouts, punctures, or road damage to tires Loss to any tapes, records, discs, electronic equipment, radar, or laser detectors, this exclusion does not apply to equipment designed SOLELY for the reproduction of sound that is permanently installed in the covered vehicle. Limit of Insurance in any one accident, is the lesser of the actual cash value of the damaged or stolen property, or the cost of repairing or replacing the damaged or stolen property with property of like kind and quality. Deductible The Declarations page of the commercial auto policy shows a deductible next to each of the physical damage coverages purchased by the insured. The standard deductible for collision, comprehensive, and specified causes of loss is $500; higher and lower deductibles are available. The deductible shown on the Declarations page applies per covered auto, per loss. The Comprehensive deductible does not apply to fire or lightning losses.

business

includes trade, profession, or occupation The courts have determined that business activities have two components: they are continuous in nature and offer the opportunity for profit.

Non-concurrency

indicates the existence of two or more policies covering the same exposures that don't have the same policy periods.

Outboard Motorboat Policy

inland Marine form which is designed to cover outboard motors and boats against a direct loss. normally written on an open peril basis, but may be written on named perils written on an ACV It might be desirable to adjust the coverage limits downward as the boat ages Liability coverage is normally picked up in Section II of a Homeowners Policy

Right To Recover Payment (Subrogation) Part F

insurance company makes a claim payment, the person on behalf of whom payment was made must assign its rights to recover damages from another party to the insurance company. If a claimant recovers from another party after the insurer has made payment, that claimant must reimburse the insurance company

Liquor Liability Insurance

insurance covering the liability arising out of serving or selling of alcoholic beverages to others Dram Shop Liability laws, a business selling or serving alcohol to an intoxicated person , or contributing to the intoxication of an individual, may be held liable for bodily injury caused to or by the actions of that individual

Section III - Garagekeepers Coverage

insurance for amounts the insured is legally obligated to pay for loss or damage to a customer's vehicle and/or equipment while it's in the insured's care for servicing, repair, parking, or storing may select from one of the follwing coverage options Comprehensive Coverage Specified Causes of Loss - This coverage covers fire, lightning, explosion, theft, mischief, or vandalism. Collision Coverage TEST TIP Know the difference between Garage Coverage and Garagekeepers Coverage. Garagekeepers is used to provide coverage for damages that occurs to a customer's car in the insureds care Car dealerships use Garage Coverage to provide coverage for risks inherent to an auto dealership Garage Coverage includes Garagekeepers Coverage. It is the whole package Garagekeepers coverage is specific to the auto dealers need for coverage for customer's autos in their care. It is the part of the Garage Coverage form that provides Bailees coverage.

Professional Liability Insurance Exposures and who is insured

insure against a wide range of perils, many of which are specifically excluded under other forms of liability coverage: Fraud or breach of contract Conflict of interest Malpractice or neglect Government investigation Errors and omissions Cyber risks, such as:Business-to-Business (B2B) exposuresBusiness-to-Consumer (B2C) exposuresInternet Service Providers (ISP), mobile, cellular exposuresInternal technology infrastructure exposuresCorporate "brochure" web site exposures As with commercial general liability policies, the insureds are those named in the declarations and can include: Executive officers and directors Stockholders and trustees Volunteer workers and employees

appraisals Part D

insured and the insurance company are unable to agree about the amount of a loss, either party may demand an appraisal. Each party selects, and pays for, its own appraiser. The appraisers prepare separate appraisals of the actual cash value and amount of loss. If they fail to agree, they select an umpire to whom they submit their differences. If any two of the three parties agree, that decision is binding. The insured and insurer share the expenses of the umpire and appraisal.

Value Reporting Form (Full Value Form) (CP 13 10) or Builders Risk Reporting Form

insured that owns business personal property that fluctuates in value is protected for the values actually at risk. The insured pays an advance premium at the beginning of the policy period. Reports are filled either daily, weekly, monthly or quarterly. Final premium is based upon the average values reported and determined at end of policy year may be attached to BPP and Condo Commerical Unit Owners Form Insured is required to report 100% values with each report. Late reporting or under reporting will result in penalty in event of loss

Optional limits transportation expenses coverage endorsement

insured wishes to increase the limits of liability for transportation expenses that are provided in the personal auto policy ($20 per day, $600 maximum). The vehicle is described on the schedule along with the increased daily limit and the increased maximum limit. The endorsement does NOT change or broaden the insurance that is provided for Transportation Expenses in Part D - Coverage for Damage to your Auto

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement Homeowner Policy

insured's liability exposure in the event that a third party claims illness as a result of exposure to mold and the insured is deemed liable for the illness. The basic liability limit is currently $50,000 on an annual aggregate basis an also offer a higher optional liability coverage limit of $100,000.

Neglect Exclusion (dwelling policy and homeowner)

insured's neglect to use all reasonable means to save and preserve property at and after the time of a loss

Arbitration Part C PAP

insurer and the insured do not agree on the recovery of damages or the amount recoverable by the insured, each party may select an arbitrator (at each party's expense) who then jointly select a third arbitrator (with the expense split equally by each party). A decision agreed upon by the arbitrators will be binding as to the insured's entitlement to, and the amount of, damage

Automobile Assigned Risk Plan AL

insurer cancelling an auto policy, other than for nonpayment of premium, must notify the named insured that he/she might be eligible for insurance through the Automobile Assigned Risk Plan. This is generally available to drivers who are unable to obtain it through normal channels A person aggrieved by the Superintendent's order or act may appeal within 10 days to the appropriate court.

Part F (non-renewal)

insurer may elect to non-renew a policy; if non-renewing the policy, the insurer must give the insured written notice before the end of the policy period. At least 20 days advance written notice must be provided (some states require 30, 45 or 60 days notice). In most cases, state law requires the insurer to list the reason for non-renewal on the notice. State law prevails

AL Workers Comp Policy Provisions, employer Liability, and Right to Compensation

insurer must be authorized by the Commissioner to transact Workers' Compensation insurance and business plan and policies have to approved Self insurance: must annually file evidence of compliance with liability requirements. The Commissioner may, after 60 days' notice and a hearing, revoke a self-employer's Certificate of Compliance for financial reasons, the employer's failure to pay obligations, or violation of any rule or regulation. A new certificate may be granted upon application. If employer fails may be fined 100-1,000 for a misdemnor and be liable for twice the compensation payable for employee injury Prohibited Defenses uninsured employer may not claim that an employee was negligent (unless the employee was guilty of willful negligence or misconduct), that a fellow employee caused the injury, or that the employee assumed the incidental risk. Exempt persons: Domestic employees or farm laborers An employee whose employment is casual and not in the employer's usual trade, business, profession, or occupation Employees of an employer regularly employing fewer than 5 employees in any one business A municipality with a population of less than 2,000 A corporation's officer, if he/she elects to be exempt from coverage by filing written certification with the Department and the employer's insurer Any school board that does not have enough funds to comply Certified volunteer fire departments Any legally organized rescue squads that meet minimum personnel and equipment standards An independent contractor regularly employing fewer than 5 employees in any one business, if he/she helps construct single-family, detached residential dwellings and files an Affidavit of Exemption with the Workers' Compensation Division Limits of immunity under exclusive remedy: employer, insurer, person, firm, association, trust, fund, or corporation is immune from civil, but not criminal, liability for Workers' Compensation claims

Part 2 Workers Comp what will insurer pay and exclusions

insurer will pay- pay the sum up to policy limit and the insured is found to be legally obligted for liable damages becuase of BI to employee damages paid include: Those for which the insured is liable to a third party because of a claim Care and loss of service Consequential bodily injury to an injured worker's spouse, or immediate family member Actions brought against the insured in a capacity other than as an employer Exclusions: Liability assumed under a contract Punitive damages awarded because an employee was employed in violation of law Bodily injury to an employee while employed in violation of law Any obligation imposed by any Workers' Compensation, Occupational Disease, Unemployment Compensation, or Disability Benefits law Bodily injury intentionally caused by the insured Bodily injury caused outside of the United States, its territories and possessions, or Canada. (Injury to a resident temporarily outside of these areas would be covered) Damages arising out of coercion, criticism, defamation, evaluation, reassignment, discipline, harassment, humiliation, termination of, or discrimination against any employee, as well as arising from any personnel practices, policies, acts, or omissions Insurer will defend any claim for benefits payable by this insurance. Isurere reserves the right to investigate and settle claims Will also pay for: Expenses incurred by the insured, at the request of the insurer, but not loss of earnings Premiums for appeal bonds Litigation costs taxed against the insured Interest on a judgment against the insured Other insurance: insurer will not pay for more than its share of benefits and costs covered by other policy Limits of Liabaility: Limits of Liability shown on the Information Page are the most the policy will pay for all damages covered by the policy for bodily injury by accident or disease. The minimum limits are: $100,000 per accident $100,000 per occupational disease $500,000 aggregate limit Higher limits are available Recovery From Others (Subrogation) - The insurer reserves the right to recover its payments from anyone liable for injury. Actions Against the Insurer - There will be no right to actions against the insurer unless: The insured has complied with all terms of the policy The amount owed by the insured has been determined with the insurer's consent or by trial and final judgment

Electronic Data Processing Coverage (Computer Systems Coverage Form)

insures computers, component parts, associated peripheral equipment including printers and faxes, and systems used exclusively in the insured's computer operations, such as air conditioning, fire suppression, and electrical equipment data stored on software, tapes, discs, drums, or cells. Do not cover: Property leased to others and located off-premises Accounts, records, documents, etc. Laptops and notebooks Contraband Stock in trade Extra Expense Coverage is available as an optional coverage

Outside the Premises (Money and Securities)

insures money and securities in the hands of a messenger or armored car service for loss resulting directly from theft, disappearance, or destruction. Other types of property are only covered for direct loss or damage from actual or attempted robbery motor vehicles, VMM deception trickery, property transfered without authorization or under threat Does not cover: Vending Machines Arithmetic Errors Deception Voluntary Relinquishment

Ocean Marine Coverage

insures the transportation of property (goods and merchandise) by vessels crossing domestic and foreign waters not part of the Commercial Package Policy (CPP) and is written as a stand-alone policy. There are no standard Ocean Marine policies and coverage is generally unregulated with respect to both forms and rates no formal coinsurance provision in an ocean marine policy, however, a penalty is assessed at the time of loss if property is underinsured For example, if the insured purchases coverage in an amount equaling 50% of the full value of the property insured, the loss payment for partial loss will be 50% of the loss There are 2 types of warranties: Express warranties are written into the policy contract, such as the exclusion of coverage for war, strike, riot, and civil commotion. Implied warranties aren't always written into the contract but are generally understood by all parties and binding upon them. Examples of implied warranties include the ship's soundness for sailing, the professional qualifications of the captain and crew, and the legal purpose of the voyage.

Residence Employee (homeowner policy)

is an employee of an insured, or an employee leased under agreement to the insured, and whose duties are related to the maintenance or use of the residence premises. - person who performs similar duties elsewhere that are not related to any business of insured such as a person hired to paint the insured house as long as the insured doesnt own a business that paints houses

One Breakdown

is an initial breakdown causes other breakdowns, it will be considered a single breakdown

NFIP Regular Program

is the final phase of a community participation and requires an approved flood control program. Maximum limits of insurance apply to property insured under both programs. maximum amount of coverage for a single-family dwelling or residential building with 1-4 units of $250,000 on the building and $100,000 on contents. Coverage for residential buildings with 5 or more units is $500,000 on the building and $100,000 on contents. Coverage for nonresidential business or other buildings is $500,000 on the building and $500,000 for contents ingle-family and Residential up to 4 units for building/contents $250k/$100k Residential buildings with 5 or more units for building/contents $500k/$100k Nonresidential buildings for building/contents $500k/$500k

Part 1- Workers Compensation

is the part of the workers comp section that promises to pay all compensation and other benefits required of the insured Medical Disability Death/Survivor Rehabilitation How This Insurance Applies - This insurance applies to bodily injury by accident, bodily injury by disease, or bodily injury resulting in death. -The accident must occur during the policy period -The bodily injury must be caused or aggravated by the conditions of employment The Insurer Will Pay - The insurer will promptly pay the benefits due. The Insurer Will Defend - The insurer will defend any claim for benefits payable by this insurance. The insurer reserves the right to investigate and settle claims. The Insurer Will Also Pay - The following amounts, in addition to other amounts payable: -Expenses incurred by the insured, at the request of the insurer, but not loss of earnings -Premiums for appeal bonds -Litigation costs taxed against the insured -Interest on a judgment against the insured -Expenses incurred by the insurer

Coninsurance

is used to encourage the insured to purchase and maintain insurance to value, and to establish the basis of payment in the event the insured fails to maintain a specified percentage of that value. The higher the coinsurance percentage the insured agrees to purchase, the lower the rate that the insured pays for the insurance. Amount of Insurance Carried ÷ Amount of Insurance Required x Amount of Loss = The amount the insurer pays

BOP organization

it a complete contract and consists of the following components: 1.Businessowners Policy Declaration Page 2.Businessowners Coverage Form, which contains 3 sections: Section I - Property Section II - Liability Section III - Common Policy Conditions 3.Any applicable endorsements

Employment covered in Workers Comp

it only provides coverage if an employment relationship exists between the employer and the injured person. An employer-employee relationship exists if the employer: Retains the right to direct the way work shall be completed Supplies the necessary equipment and tools to complete the work Determines the work hours Determines the end results of the work to be completed Controls the frequency and timing of compensation for work independant contractors in most cases employer is not required to cover independant contractors over whom the employer does not retain the rights to control them, is not required to withhold taxes from any compensation, and who commonly work for multiple employers

Mobile Home Actual Cash Value Settlement Endorsement

may be used when the insured does not desire to insure the mobile home to 80% of replacement cost.

Common Law Defenses

law practiced as the result of judicial or court decisions (i.e., case law and precedents). Contributory Negligence - Prevents recovery for damages caused by a negligent party if the claimant was negligent to any extent. For example, if the claimant is 5% negligent and the wrongdoer is 95% negligent, the claimant is not permitted to collect damages. Assumption of Risk - Prevents recovery if the claimant knowingly assumed the risk. Intervening Cause - Prevents or limits recovery from the wrongdoer when a second, distinctly separate negligent act occurs after the original negligent act, but before damage occurs, and interferes with the chain of events that brings about the loss. The intervening cause must be unexpected and unforeseen.

Personal Injury Liability

legal liability arising from specific offenses committed by an insured that results in injury other than bodily injury or property damage

Contingent Liability exposure

liability of others arises when a business is held legally liable for the actions, or failures to act, of other parties, such as sub-contractors or independent contractors. Owners and Contractors Protective (OCP) liability, arises out of the work an independent contractor or sub-contractor performs for, or on behalf of, the insured. example, ABC Building hires Paul's Plumbing to replace the sink in Harry Homeowner's kitchen. If Paul damages the cherry cabinets in Harry's kitchen while doing his work, ABC Building may be considered legally liable for Paul's actions may also be held legally liable for the actions of, or failures to act, of parties per the language of a contract or legal agreement. This is called Contractual Liability. Examples of such contracts and agreements include: Lease of Premises - A tenant of a building that is leased is automatically covered for the space the business occupies under any lease agreement Easement Agreement - Business Liability exposure begins where the city, county, or state easement ends Agreement to Indemnify the Municipality - If a business wants to display a sign on city property to advertise a special event, the city municipality may require a Hold Harmless Agreement from the business to indemnify the city municipality from any liability that the may arise in the event the sign fell and caused any damage or injury to anyone Sidetrack Agreement (Hold Harmless Agreement) - A contractual agreement where one party assumes the liability of a situation and relieves the other part of responsibility Elevator Maintenance Agreement - A contract agreement where the elevator maintenance company assumes the liability pertaining to the operation of the elevator from the business or building owner where LEASE to memorize the 5 auto covered under insured contracts any other insured contracts would normally be excluded

Combined Single Limit Part A PAP

limit of the policy may be applied to bodily injury (BI) and/or property damage (PD). A combined single limit policy has a maximum aggregate per accident, regardless of the type of loss (BI or PD) Ex:5/50/25 The Combined Single Limit (CSL) would be the middle and right number combined 50 + 25 = 75 is the CSL.

Part B - Limits of Liability

limit shown in declarations is the most will pay for each person in one accident regardless of number of insured claims made vehicles on premises if loss is covered under more than on Part of the policy it will not be duplicated

Mobile home actual cash value settlement endorsement

may be used when the insured does not desire to insure the mobile home to 80% of replacement cost.

Farm Insurance Limits and Deductible

limits of insurance in the farm coverage forms are shown on the Declarations page for each class of property insured. If no designation appears on the Declarations, coverage is NOT provided standard deductible is 250

The Utility Services - Time Element Endorsement (BP 04 57)

limits of liability shown on the endorsement for loss of Business Income or Extra Expenses if the interruption of water supply services, communication, or power causes a direct loss to covered property. Of course, damage must be caused by a covered peril. No coverage is provided under this endorsement for loss to electronic data.

The Utility Services - Direct Damage Endorsement (BP 04 56)

limits of liability shown on the endorsement if the interruption of water, communication, or power supply services causes a direct loss to covered property. Of course, damage must be caused by a covered peril. No coverage is provided under this endorsement for loss to electronic data.

computer fraud

losses when a computer is used to transfer money, securities, and other property from the insured premises, or banking premises, fraudulently OR to a person or place outside the insured premises. This is not computer insurance; it provides fraud insurance for acts committed when using a computer

Auto Loan/Lease Gap Coverage CAC

may be added to all 5 BAC pays any unpaid amount due on a lease loan for a covered auto less other expenses, including the amount paid under physical damage coverage, overdue loan or lease payments, financial penalties, etc. This is beneficial to an insured if the actual cash value of an insured vehicle is less than its outstanding loan

Designated Insured CAC

may be added to all 5 bac Contains a schedule that lists a person or organization that is considered an insured under the liability coverage provided by the policy but does NOT change any of the provisions of the policy

Surplus Line Insurance

may be procured from unauthorized insurers. One of the following requirements must be met: The insurance must be procured through a licensed surplus line broker, who first makes a diligent effort to get the insurance from authorized insurers. The insurance may not be procured solely to secure a lower premium. Insurance must be for an industrial insured—an insured having at least 25 employees, one of whom is a full-time insurance consultant, manager, or buyer, and annually paying premiums on all risks, except Workers' Compensation and group insurance, of at least $25,000 Brokers Affidavit must file with commissioner within 30 days after the effective date of any surplus lines of insurance and commissioner may require the report be in the form of a affadavit surplus line contract must: Be initialed by, or bear the name and license number of, the procuring broker Bear a stamp stating, "This contract is registered and delivered as a surplus line coverage under the Alabama Surplus Line Insurance Law." The following are the key points regarding what is required of a Surplus Lines Broker: Must maintain a bond in the amount of $50,000 Must file a report with the Commissioner within 30 days of the effective date of surplus lines insurance A contract must be initialed by, or have the producer's name and license number A contract must bear a stamp stating, the contract is a Surplus Line Coverage under Alabama Law

Part F: Termination

may be terminated by either the named insured or the insurance company.

World-Wide Coverage (dwelling policy)

may use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it's located anywhere in the world. -coverage does NOT apply to rowboats, canoes, or property owned by guests or servants -It is included in the Coverage C limit of liability.

Mobile Agricultural Machinery and Equipment Coverage Form

mobile devices used in the everyday operation of a farm, including accessories, tools and spare parts specifically designed and intended for such mobile devices. The insured chooses the specific causes of loss form to apply. excluded: aircraft, watercraft, automobiles, motorcycles, mobile homes, snowmobiles, trucks, vehicles licensed for use primarily on public roads, irrigation equipment, contraband, etc

Absolute Liability

most often associated with dangerous animal ownership, abnormally dangerous activities, and employers liability for injuries sustained by their employees. Owners of dangerous animals including lions, bears, and certain dog breeds such as pit bulls and rottweilers are absolutely liable for injuries caused by those animals. Absolute liability applies to the storage of explosives, highly flammable material and weapons or firearms. Contractors are liable for injuries caused from blasting operations.

Limit of Liability Equipment Breakdown

most the insurer will pay for any and all coverages for loss or damage from any "one breakdown" is the applicable limit of insurance shown in the Declaration unless other wise stated in dec page an insurer will pay pay for direct damage as a direct result of a "breakdown" to covered equipment is $25,000 for each of the following, and the amount paid is not in addition to the limit of insurance for Property Damage or limit per "breakdown": Ammonia Contamination - Consequential Loss Data and Media Hazardous Substance Water Damage Expediting Expenses Deductible- pay the amount of a covered loss or damage, in excess of the deductible, up to the applicable limit of insurance as shown in the Declarations for each applicable coverage apply separately to each coverage except if more than 1 "covered" equip is involved then only 1 deductible standard deductible is $250

BOP limits of Insurance and deductibles

most the policy will pay for damage to outdoor signs attached to the building is $1,000 per sign per occurrence. The limit of insurance for Buildings will automatically increase by 8% unless a different percentage is shown in the Declarations. auto seasonal increase applies to limit if no percentage show auto provides 25% and only applies if the limit shown for business personal property is at least 100% of insured average monthly values duing 12 month period deductible- generally has a base deductible, which may range from $500 to $2,500, applicable to property losses, and may have a second deductible that applies in place of the base deductible to Optional Coverages, if any are chosen No deductible applies: Additional Coverages: Fire Department Service Charge, Business Income, Extra Expense, and Fire Extinguisher Recharge Systems

you and yours

named insured listed in the declarations, and the spouse if a resident of the same household. The named insured should always be the person or persons to whom the vehicle is titled and registered, unless it's a leased vehicle.

Transfer of Your Interest in This Policy Part F

named insured may not transfer or assign his/her interest in the policy without the insurer's written consent. if the named insured dies, the resident spouse will automatically become the named insured. By the same token, if the named insured dies, his/her legal representative will automatically become the named insured but only with respect to legal responsibility for maintenance or use of any Your Covered Auto. This automatic coverage is provided until the end of the policy period.

Duties After Occurrence

named insured or another insured is responsible for performing the following duties and insurance companie ahs no duty to provide coverage if failure to comply to duties Give the following information in written notice to the insurer or its agent as soon as is practical: -The policy numberT -he identity of the named insured -Reasonably available information about the time, place, and circumstances of the occurrence -Names and addresses of any claimants and witnesses Cooperate with the insurer in the investigation, settlement, or defense of any claims Promptly forward any notice, demand, summons, or other process to the insurer At the insurer's request, aid the insurer in making a settlement, pursuing subrogation attempts, taking the case to court, and procuring evidence With respect to Damage to Property of Others, submit to the insurer, within 60 days after a loss, a sworn statement of loss and show the damaged property No insured shall, except at his/her own expense, voluntarily make payment, assume obligation, or incur expense other than for first aid at the time of bodily injury

Named Perils Endorsement (BP 10 09)

named perils coverage in lieu of the open perils coverage that is provided automatically by the Businessowners Coverage Form. The endorsement limits coverage to 12 listed causes of loss.

Unit-Owners Form (HO-6)

named perils coverage to the owner of a condominium or cooperative unit under Coverage A - Dwelling and Coverage C - Personal Property. Coverage B does not appear in this form; however, if the owners of condominiums or cooperative units wish to insure other structures, the value of other structures may be included in the Coverage A limit of insurance. The form insures real property (building and building items) for which the insured is responsible under the bylaws of the condominium association or cooperative corporation. It also insures personal property of the insured while anywhere in the world.

Changes- Part F PAP

no changes can be made unless written endorsement issued but insurance company - insurer may adjust policy premium if changes occur that affect info regarding premiums rate -if insurer makes a change that broadens coverage under the current edition of the insured's policy, and the change doesn't generate a premium charge, the change automatically applies to the insured's policy.

Business Income - Report of Values (BM 15 31)

no longer widely used but when used: completed and signed by the named insured or its authorized representative and sent to the insurer in order to establish "actual" total net profits, fixed charges, and expenses for the immediate 12-month policy period that is expiring and to also "estimate" what the same values are expected to be for the upcoming 12-month policy period. The endorsement is used to determine the amount of the insurer's payment to the insured in the event of a loss of income

Broad Theft Coverage Endorsement (DP04 72)

none of the dwelling forms of coverage includes insurance, one of two endorsements must be used if the named insured wishes to have coverage for the peril of theft. This covers theft of personal property and contents of owner-occupied dwellings, co-op, or condo units. The Broad Theft Coverage endorsement may be added to any of the dwelling forms IF the described location is owner occupied. If the dwelling is tenant occupied, the Limited Theft Coverage endorsement must be used. Broad Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss On-premises coverage is provided for covered property located at the described location occupied by an insured Off-premises coverage is provided when covered property is away from the described location; however, the property must be owned or used by an insured or residence employee Limited Theft Coverage - Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss On-premises coverage applies when covered property is owned or used by the named insured or a residence employee and is at the described location

Exclusions on Property

not covered, other perils exluded in provision stated elsewhere the policy common exlusions are: Ordinance or Law Earth movement War Water Perils that are NOT covered by the policy are listed in the exclusions section. Other perils may be excluded in provisions stated elsewhere in the policy (i.e., water damage, flood, sewer backup, etc.). Utility failure that originates off-premises Neglect of the insured to protect covered property from further loss Intentional loss Nuclear hazard, war, and military action Governmental action Fungus, wet rot, dry rot, and bacteria (e.g., mold)

occupational disease

occupational disease must arise out of the course of employment and be caused by conditions that are particular to that employment. Example An employee who contracts a cold in the winter may not be eligible for benefits because the cold could have been contracted while the employee was not working. However, a coal miner who develops respiratory problems will likely be eligible for benefits.

Cause of Loss Earthquake Form

only used with another cause of loss form provided for losses caused by earthquake or volcanic eruption that occur during the policy period, including damage caused by earthquake occurring within a 168-hour period after the expiration of the policy, providing loss began prior to the expiration of the policy. A deductible that is a percentage of the limit of insurance applies.

Special Form Dwelling Policy DP-3

open peril basis doesnt cover any of th general exculsions as well as the following: Collapse, except for coverage provided by Other Coverages Freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance Freezing, thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls, etc. Theft of property not part of a covered building or structure Theft in or to a dwelling or structure under construction Wind, hail, ice, snow, or sleet to outdoor radio and TV antennas & aerials, trees, shrubs, plants, and lawns Vandalism and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss Constant or repeated seepage or leakage of water or steam over a period of time from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or household appliance - these systems and appliances do NOT include sumps, sump pumps, mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam and is hidden from view Any of the following: wear and tear; deterioration; mechanical breakdown; smog, rust, or corrosion; smoke from agricultural smudging or industrial operations; pollution; settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; and birds, vermin, rodents, insects, or domestic animals

Bailee's Customers Policy

open perils basis coverage for covered personal property of others while it's in the care, custody, or control of the insured NOT include certain types of property that are uninsurable or that must be insured on another policy or form of inland marine coverage, such as: Accounts, bills, records, documents, deeds Animals, birds, or fish Autos, trucks, trailers, aircraft, watercraft Furs, jewelry, watches, precious or semi-precious stones Property accepted by the insured for storage Property shipped by mail Contraband or property in the course of illegal transportation or trade Property owned by the insured

Contractors Equipment Floater

open perils coverage on the insured's equipment, such as mobile tools, equipment, and machinery, including forklifts, compressors, generators, and small hand tools. Coverage is also provided for similar property of others in the insured's care, custody, or control No coverage is provided for: Autos, trucks, aircraft, boats Plans, blueprints, designs Property loaned, leased, or rented to others Contraband and personal property of employees actual cash value unless replacement cost is indicated on the schedule of coverage. Newly acquired equipment must be reported by the insured to the insurer within 60 days and within territorial limits

Drive Other Car Coverage (Hired Auto, Leased/Rented Auto, Symbol 8) CAC

operates the same as the Symbol 8 Hired Auto which provides coverage if the business leases or rents autos or trucks in its business used whenever all the named insured's vehicles are covered under the Business Auto Coverage Form, and therefore they carry no personal auto coverage. This endorsement extends coverage to the persons named thereon if they rent or borrow a nonowned auto for personal purposes. The endorsement is commonly used when a company executive is furnished a company car and does not carry a Personal Auto Policy because he/she does not own a personal vehicle.

Other Insurance Part B PAP

other applicable auto Medical Payments insurance, the insurer will pay only the proportion that its limit of liability bears to the total of all applicable limits. However, coverage for non-owned vehicles shall be excess over any other collectible auto insurance providing payment for medical or funeral expense.

Personal Property of Others bPP

overage to apply, the property must be in the care, custody, or control of the named insured AND be located in or on a building shown on the Declarations, in the open (or in a vehicle) within 100 feet of the described premises. Any claim payment will be made only to the owner of the insured property.

Loss assessment coverage

overage up to $1,000 is provided for the named insured's share of loss assessment charged during the policy period by a corporation or association of property owners must be made because of direct loss to property owned collectively by all members AND was caused by a Peril insured Against under this policy - this coverage is additional insurance

Coverage C: Personal Property (homeowners policy)

overs personal property owned or used by an insured while it's anywhere in the world. After a loss, and at the named insured's request, it covers property owned by others while it's on the residence premises occupied by an insured or property owned by a guest or residence employee while located in any residence occupied by an insured. property at another residence is limited. If personal property is usually located at an insured's residence other than the residence premises, coverage is limited to 10% of Coverage C or $1,000, whichever is greater. Special limits of liability apply to certain categories of personal property Excluded property: -Property specifically described and insured elsewhere, such as on another policy or by endorsement to the homeowners policy -Animals, birds, or fish -Motor vehicles, including equipment, parts, and electronic equipment and accessories that can only be operated by the motor vehicle. An exception exists (meaning coverage is provided) for motor vehicles not required to be registered for use on public roads, used solely to service an insured's residence, or designed to assist the handicapped. -Aircraft, including its parts, except model or hobby aircraft is covered if it's not used or designed to carry people or cargo -Hovercraft, including its parts -Property of roomers, boarders, and other tenants—except those related to an insured -Property in an apartment regularly rented, or held for rental, to others by an insured—except for property covered under the additional coverage, Landlord's Furnishings -Property rented or held for rental to others off the residence premises -Business data, credit cards, and electronic fund transfer cards—including data stored in books of account, on paper records, or on computers -Water or steam insurance limit is 50% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Mortgage Clause

ow the policy protects the mortgagee's financial interest. (A mortgagee has insurable interest in real property.) Payment is made to mortgagees only up to its insurable interest in covered property and in order of precedence. The mortgagee must comply with requirements if the insured's claim is denied and the mortgagee wishes to collect under the policy

Mobile Home Insurance Endorsement

owner occupied mobile home may be covered under an HO-2 or HO-3 by endorsement. The endorsement amends the definition of Coverage A (Dwelling) to include a mobile home. Tenants of a mobile home may insure their personal property under an HO-4 if the insurer's underwriting guidelines permit. -When mobile homes are insured by writing a separate Mobile Homeowners Policy, the policy is inclusive of a Section I - Property, very similar to the Homeowners Section I, and Section II - Liability, very similar to the Homeowners Section II. The separate Mobile Homeowners Policy, under Coverage A (Mobile Home), is inclusive of the mobile home itself; property installed on a permanent basis, such as appliances, floor coverings, dressers and cabinets; attached structures; and utility tanks. Coverages B, C, and D are nearly identical to the same coverages under the Homeowners Policy, except that Coverage C (Personal Property) is generally written at 40% of Coverage A, instead of 50% under the Homeowners Policy. The Additional Coverage (Property Removed) is expanded to include up to $500 for reasonable expenses incurred in moving the mobile home when threatened by a covered peril. The separate Mobile Homeowners Policy may be written on an open peril basis with losses settled on a replacement cost basis on the mobile home property, with additional items of property attached to the mobile home on an actual cash value basis. Typically, the endorsements available to a Homeowners Policy are also available to the Mobile Homeowners Policy. A couple of endorsements that are unique to the Mobile Homeowners Policy are the Transportation/Permission to Move Endorsement, and the Mobile Home Actual Cash Value Settlement Endorsement may be used when the insured does not desire to insure the mobile home to 80% of replacement cost.

Information Page of Workers Comp

page serves as the policy's Declarations Page, and contains the following information: Name, Address, and Type of Business of the Insured Policy Period Policy Territory - Lists the states in which the insured currently does business, and also lists other states in which the insured may have a future exposure, excluding monopolistic fund states Policy Limits for Employers Liability Coverage Estimated Premiums

General Average

partial loss sustained voluntarily, but done so to save a vessel or cargo from a total loss the owners of the vessel and all cargo share proportionally in the loss.

Coverage for Audio, Visual, and Data Electronic Equipment and Tapes, Records, Discs and Other Media Endorsement

pay for direct and accidental loss to any electronic equipment that receives or transmits audio, visual, or data signals and is not designed solely for the reproduction of sound. Coverage applies only if the equipment is permanently installed in the auto, or removable from a housing unit which is permanently installed in the auto, and designed to be operated solely by the auto's electrical system also pays for direct or accidental loss to any accessories used

Second Injury Fund

pays compensation on behalf of an employer to an employee who has already suffered a prior disabling injury, and now sustains a subsequent injury, and the combination of the two injuries creates a greater disability than the second injury would have created by itself. employer is responsible only for compensation that would have been paid had the second injury occurred without the existence of the prior injury, and the fund pays the difference. fund is designed to encourage employers to hire people with disabilities by limiting their liability for subsequent injuries

Building and Personal Property Coverage Form

pays direct physical loss of or damage to covered property in declaration describes how coverage applies to classes of property- buildings business personal property and personal property of others. No liabliltiy coverage provided in this form

Forgery or Alteration Coverage

pays for loss resulting from forgery or alteration of checks, drafts, promissory notes, or similar instruments made or drawn by or on the named insured or the insured's agent Forgery is the igning of the name of another person or organization with intent to deceive; it does not mean a signature that consists in whole or in part of one's own name signed with or without authority, in any capacity, for any purpose Does not cover an employee who forges paycheck that would be covered under Employee theft coverage Does not cover: Incoming checks that have been forged Losses caused by dishonest or criminal acts of any of the insured's employees, directors, or trustees

Part C: Uninsured Motorists Coverage

pays for the bodily injury caused by an uninsured motorist, by a hit-and-run driver, or by a negligent driver whose insurance company is insolvent

uninsured motorist coverage Endorsement CAC

pays if the insured is struck by someone who does not have insurance and is legally responsible. Is not automatically included in a CAC

Fire Department Service Charge

pays up to $500 for service call to fire dept coverage does not apply when property is located within limits of city, municipality or protection district furnishing fire dept. coverage is provided for services provided by an assisting fire department this is additional insurance and policy deductible does not apply - same for dwelling and homeowner

Exclusions of casualty

pecifies the exposures (perils) that are not covered under the policy. The policy may deny coverage for certain persons, locations, or circumstances.

Other insurance (appointment or Pro Rata Liabality)

pecifies the process to be followed when more than one policy covers the same loss. Each policy pays no more than its share of the loss.

Section II Conditions: Limit of Liability

per occurance limit applies to Coverage E Per person limit apples to Coverage F

Earthquake Endorsement Personal Lines of Coverage

peril of earthquake, or earth movement, is excluded on virtually all property policies may be added to most homeowner policies by endorsement ncluded in the peril of earthquake are earth movement, volcanic eruption, land shock waves or tremors; before, during or after a volcanic eruption, landslide, mudslide, mudflow, sinkhole, and the rising, sinking, or shifting of the earth. All earth movements occurring within a 72-hour period are considered a single occurrence of earth movement.

Perils of the Sea

perils occur on the ocean only and are specific to the hazards that exist when shipping of cargo across the ocean. Examples Heavy Weather, Stranding, Piracy, Collision, Jettison (cargo thrown overboard to save the ship or cargo) Barratry (willful sinking of a ship or cargo, which is illegal).

Part F - Automatic Termination

policy automatically terminates if the insured, or a legal representative, fails to accept or pay for a renewal or continuation of the policy coverage automatically terminates if the named insured secures other auto insurance on an auto shown on the Declarations Other termination provisions: Proof of mailing of any notice constitutes sufficient proof of notice If the policy is cancelled, the insured may be entitled to a premium refund. If so, the insurer will send the refund The effective date of cancellation stated in the notice will become the end of the policy period

endorsement

policy form that broadens or restricts or alters or adds provisions of a property and casualty insurance contract

Policy Period Section II Conditions

policy only applies to bodily injury or property damage that occurs during the policy period

Grave Markers Additional Coverage (homeowners)

policy will pay up to $5,000 for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C. This coverage does not increase the limits of insurance that apply to the damaged, covered property.

Power Failure Exclusion (dwelling policy and homeowner)

power failure that occurs off the described location is NOT covered if power failure occurs on the described location it is covered

Market Value

price a willing buyer would pay for property purchased from a willing seller

Inland Marine Policies

property that is only covered on land designed to protect against losses to property that is mobile in nature, primarily while the property is away from the owner's premises and is in transit, moveable property, property particular to transportation and communication risks, and property in the possession of bailees written on open perils basis not used to cover furniture and fixtures at fixed locations Typical exclusions on an inland marine policy include: Governmental action War and nuclear hazard Consequential loss Dishonest and criminal acts of an insured Weather conditions Acts and decisions The exclusions of earthquake and water are usually found only in inland marine policies that insure buildings.

Shippers Form

protecting the owner of goods that have been shipped by a trucker operating as a common or contract carrier, for loss of those goods.

Underinsured Motorist Coverage

protects the insured against drivers who do have auto liability insurance, but whose coverage limits are inadequate or insufficient to respond to claims. The coverage pays only up to the amount that exceeds the limit of liability of the at-fault party.

Freight Insurance (An Indirect Loss Coverage)

protects the shipper, who is required to prepay freight charges and/or import duties, in the event that the voyage is not completed or that the goods have sustained partial damage and the shipper is not able to secure a refund of the duty on the damaged goods.

Truckers and Motor Carrier Coverage Forms

provide insurance for the unique exposures of common carriers and contract carriers Common carriers may use either of the coverage forms contract carriers may ONLY use the Motor Carrier Coverage Common Carriers: business, individual, or organization that carries persons or property for a fee, from one place to another. The persons or property being transported are, or belong to, the general public. A trucker is a common carrier and may transport goods belonging to several customers at the same time. Contract Carriers:business individual or organization that carries persons or property for a fee, from one place to another. The persons or property being transported are only those of certain customers and NOT the general public. Unlike a common carrier, a contract carrier may refuse to carry persons or property for a fee.

Owners Form

provide transportation coverage for a business firm that owns trucks with which it transports its own goods. Owned trucks are scheduled on the form, as is a limit of for each truck. The form excludes losses arising out of dishonesty of the insured's employees

BOP Coverage Extensions

provided automatically if 80% coinsurance is purchased and maintained throughout the policy period Newly Acquired or Constructed Property - Each building is insured for up to $250,000 for up to 30 days. Business personal property at each building is covered for up to $100,000 for up to 30 days. Personal Property Off Premises - The insured may extend up to $10,000 of the insurance that applies to Business Personal Property to property while it is in the course of transit or at premises the insured does not own, lease, or operate. This extension does NOT cover money, securities, valuable papers and records, or accounts receivables. Outdoor Property - The insured may extend the insurance provided by the policy to apply to their outdoor fences, radio and television antennas, signs (other than signs attached to buildings), trees, shrubs, and plants. The most the policy will pay is $2,500, but not more than $1000 for any one tree, shrub, or plant. Personal Effects - The insured may extend the insurance that applies to Business Personal Property to apply to personal effects owned by the insured, the insured's officers, partners, managers, or employees up to $2,500 at each described premises. Valuable Papers and Records - The insured may extend the insurance that applies to Business Personal Property to apply to direct physical loss of valuable papers and records it owns or that are in its care, custody, or control up to $10,000 at the described premises, and up to $5,000 away from the described premises. Accounts Receivable - The insured may extend the insurance that applies to Business Personal Property to apply to the direct physical loss of records of accounts receivable up to $10,000 at the described premises, and up to $5,000 away from the described premises

Section II - Liability Coverage Garage Coverage Form

provides 2 types of liablility coverage: Garage Operations - Other than Autos, and is similar to commercial general liability insurance Garage Operations - Covered Autos, and is similar to business auto insurance provied BI/PD for losses resulting from garage operations and also includes coverage for Premises and Operations Liability nd Completed Operations Liability. It does not cover property in the care and custody of the insured, injuries covered by Workers' Compensation, and liability arising from pollution or product recall 100.00 deductible applies to all losses resulting fro PD to an auto as a result of work performed on that auto by the insured

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement

provides a basic property limit option of $10,000 on an annual aggregate basis during the policy period for: Loss caused by fungi, wet or dry rot, or bacteria The cost of: Testing the air or property to confirm the existence of fungi, wet or dry rot, or bacteria Removal of fungi, wet or dry rot, or bacteria Tearing out and replacing any part of the building or other covered property to gain access to fungi, wet or dry rot, or bacteria Insurers also can offer higher optional coverage limits of $25,000 and $50,000.

Extended Non-Owned Coverage for a Named Individual (PP 03 06)

provides coverage by removing or altering some of the Personal Auto Policy's exclusions or limitation provides excess liability coverage, for the individual named on the endorsement and for the business use of a commercial type vehicle that the named insured does not own. It can be used to provide excess liability coverage for the use of a vehicle as a public or livery conveyance. An extra premium charge applies for liability and medical payments purchased by this endorsement.

Coverage E - Additional Living Expenses

provides coverage for indirect loss that occurs to direct loss of property insured under coverage A-C E is automatically included in DP-2 and DP-3 but not in DP-1 pays any necessary increases in living expenses incurred by named insured when covered loss makes the unit in which named insureed lives unihabitable and is only made to the extent the insured household can maintain a normal standard of living payment is made in the shortest time neseccary to repair damaged portion of dwelling. A deduction for conintuing expenses (things that conitne regardless of if the unit can be occupied or not i.e. electric bills or mortgage payment) -E limit of insurance is 20% of coverage A limit and is additional coverage. Examples of things paid under E is hotel room cost, boarding room and dining out

Valuable Papers and Records Floater

provides coverage for the destruction of valuable papers and records, excluding money and securities, by a covered cause of loss

Legal Liability Coverage Form (Bailee's Coverage)

provides coverage for the insured's legal liability for loss or damage to real or personal property owned by others when it is in the insured's care, custody, or control and is damaged by a covered peril. It is most commonly written for the tenant of a commercial building when the tenant, under the terms of a lease, is legally responsible for damage to the building. The form also covers for loss of use of the property, and provides defense coverage.

Other than collision (OTC) Comprehensive

provides coverage on open peril basis Missiles or falling objects Fire Theft or larceny Explosion or earthquake Hail, water or flood Malicious mischief or vandalism Riot or civil commotion Contact with a bird or animal Glass breakage

BOP Section II - Liability Coverage

provides coverages in much the same matter as the CGL in that all claims are considered to be "Occurrence Triggered." BI/PD - Always Pays Per Occurrence. Damage caused by an occurrence that takes place in the coverage territory during the policy period Personal injury and advertising injury - Always Pays on a Per Person or Organization Sublimit. Injury caused by an offense arising out of the insured's business, but only if the offense takes place in the coverage territory during the policy period Medical Expenses (Med Pay) - Always Pays Per Person All 3 of these share in the General Aggregate Limit Product and Completed Operations have their own Separate Aggregate Limit that Do Not Reduce or Affect the General Aggregate in any way Fire Legal Liability has its own Per Occurrence Limit (Aka: Per Fire Limit) that also Do Not Reduce or Affect the General Aggregate Limit in any way Coverage Extension - Supplementary Payments In addition to the limit of insurance for Section II - Liability, the insurer will pay:All expenses incurred by the insurerUp to $250 for the cost of bail bonds, required because of accidents or traffic violations arising out of the use of any vehicle to which coverage for bodily injury appliesThe cost of bonds to release attachments, but only for bond amounts within the limit of insuranceAll reasonable expenses incurred by the insured, at the request of the insurer, including actual loss of earnings for up to $250 per day for time off workAll costs taxed against the insured in a suitPrejudgment interest awarded against the insured on the part of any judgmentAll interest on the full amount of any judgment that accrues before the judgment is paid

Endorsement for Motor Carrier Policies of Insurance for Public Liability

provides evidence of financial responsibility, on behalf of the motor carrier, to the Interstate Commerce Commission (ICC) must be included on all policies and must meet finacial responsibility requirements of DOT form must be carried in the cabin of vehicle and show: The names of the motor carrier and the insurance company The policy number and policy dates Whether the insurance providing coverage is primary or excess The limits of liability provided by the policy

Open Peril

provides insurance for all causes of loss that are not specifically excluded under the policy. Typical exclusions are flood and earthquake

Commercial Articles Coverage Form

provides insurance for fine arts, cameras, musical instruments, and their related equipment when used for business or commercial purposes.

Equipment Dealers Floater

provides insurance for property consisting primarily of mobile agricultural and construction equipment, including property of others in the dealer's care, custody, or control, such as binders, reapers, harvesters, tractors, bulldozers, and road scrapers excluded: Aircraft, watercraft, motor vehicles Accounts, bills, currency, deeds Property leased, rented, or sold. Coverage includes property owned by others in the dealer's care, custody, or control.

The Internet Liability and Network Protection Policy

provides liability coverage on a claims-made basis for risks that are specific to business use of the internet, such as network security, electronic publishing liability, and loss of data There are 5 insuring agreements: Insuring Agreement A (Website Publishing Liability) provides liability coverage for wrongful acts committed in the course of internet publishing. Insuring Agreement B (Network Security) pays for the insured's liability for a network-related security breach. Insuring Agreement C (Replacement Or Restoration Of Electronic Data) pays for loss or recovery of data resulting from a virus or other malware. Insuring Agreement D (Cyber Extortion) pays for losses resulting from threats such as virus or denial of service attacks. Insuring Agreement E (Business Income And Extra Expense) pays for indirect loss due to business interruption resulting from an attack or extortion attempt.

Named Non-owner coverage for a named individual

provides liability, medical payments, and uninsured motorists coverage for individuals who do not own vehicles, but often borrow or rent autos. also designed for individuals who need to prove financial responsibility. Definitions are amended by this endorsement, which also amends certain exclusions. Part D - Coverage for Damage to your Auto is NOT provided by this endorsement. The endorsement covers only the person named in the endorsement; a spouse and family members may be included if that option is selected on the endorsement. The endorsement provides only Liability, Medical Payments, and Uninsured Motorists Coverages.

Broad Form (HO-2)

provides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C). The 16 named perils are: Fire or lightning Windstorm or hail Explosion Riot or civil commotion Aircraft Vehicles Smoke Volcanic eruption; losses under Coverages A and B are valued on a replacement cost basis Vandalism or malicious mischief Theft - Automatic without an endorsement Falling objects Weight of ice, snow, or sleet Accidental discharge or overflow of water or steam Sudden and accidental tearing apart, cracking, burning, or bulging of heating or air conditioning system (HVAC) Freezing Sudden and accidental damage from artificially generated electrical current Although coverage for personal property (Coverage C) is provided on the same named perils basis as the dwelling and other structures are, losses are valued on an actual cash value (ACV) basis. does not cover loss to a fence, driveway or walk caused by a vehicle owned or operated by the insured.

Personal Effects Floater

provides open peril coverage for items worn or carried by tourists and travelers. The coverage applies worldwide, but not at the insured's home.

Towing and Labor Cost Coverage Endorsement (PP 03 03)

provides payment, at the designated amount, for towing to a garage or for labor performed at the site of disablement Applied per occurrence either a Your Covered Auto or the insured's use of a non-owned auto basic coverage limit is 25-50 for combined towing and labor cost per occurrence higher limits are available

Section IV - Physical Damage Coverage

provides physical damage coverage for covered autos insured owns, hires, rents, leases or borrows and is the same as physical damage coverage under the Business Auto Coverage Form. When a car dealer has an auto inventory that fluctuates from month to month, he/she should cover the inventory on a Value Reporting Form basis.

Comprehensive Form (HO-5)

provides the broadest coverage of any of the homeowners forms. Coverages A - Dwelling, Coverage B - Other Structures, and Coverage C - Personal Property provide insurance on an open perils basis. Losses to the dwelling and other structures are valued on a RCV losses to personal property are valued on an actual cash value basis. **Deluxe package and is most costly and provides the most coverage

Available Coverage Parts

purchasing only one coverage part (or module), it is considered a standalone policy and not a package policy. Two or more coverage parts must be included to be considered a package policy or CPP available parts include: Commercial Property: -Building and Personal Property Coverage Form -Commercial Builders Risk Coverage Form -Condominium Association FormCondominium Unit-Owners Coverage Form -Business Income Coverage FormExtra Expense Coverage Form -Legal Liability Coverage Form -Commercial Inland Marine Coverage Part -Equipment Breakdown (formerly called Boiler & Machinery) -Farm Property and Liability Coverage Part -Commercial General Liability Coverage Part -Commercial Crime Coverage Part -Commercial Automobile Coverage Pa

Actual Cash Value

replacement cost minus depreciation

Primary insurance

responds to a loss before all other insurance that might be in place to coverage a particular loss. An example of primary insurance is a commercial auto policy

Cause of Loss Special Form - Farm Insurance

rovides open perils coverage for insured property other than livestock, poultry, other animals, bees, fish, worms, hay, and plants, trees or shrubs. The special form will not pay for dishonest or criminal acts committed by the insured or employee, and release or escape of pollutants or contaminants unless caused by a specified cause of loss ** there is NO crop insurance included on farm policy. Must be purchased seperately as standalone policy**

Underwriting responsabiliies

s responsible for risk selection, classification, and rating.

Arbitration

settling a dispute by agreeing to accept the decision of an impartial outsider

Section III - Limits of Insurance CGL

shown in the Declarations are the most the insurer will pay regardless of the number of insureds, claims made, suits brought, or persons or organizations making claims or bringing suits. General aggregate limit acts as policy bank and is shared in main parts of CGL limit is normally restored at each policy anniversary but is the most a policy will pay out total during any policy period for the following: Coverage A - BI/PD (Pays Per Occurrence) Coverage B - Personal Injury / Advertising Injury (Pays on a Per Person or Organization Limit) Coverage C - Medical Payments (Pays Per Person) Fire and legal Liability has own separate limits similar to Product and Completed Operations limits. It is subject to a Per Occurrence Limit sometimes referred as a Per Fire Limit. It also has its own separate Aggregate Limit that does not reduce the general aggregate limit at all. It operates as a stand-alone policy. Product and Completed Operations is not part of aggregate limit at all. It has its own separate aggregate limit

Limit of Liability Part A PAP

shows in policy declarations and is the most the insurer will pay in one accident regardless of number of - insured -claims made - vehicles or premiums shown on decs page -vehicles involved in the accident applies per accident for BI/PD arising from that one accident If loss is covered under more than one part of the policy payment will not be duplicated

eligible for BOP

small to medium Apartment buildings of any size, including residential condominium associations. Office buildings that are occupied primarily for office purposes that do not exceed 6 stories in height or contain more than 100,000 square feet in total area. This includes office condo associations. Service and processing businesses such as bakeries, florist, jewelry repair, shoe repair, laundromats, dry cleaners, funeral homes, and print shops. Buildings and business personal property for businesses operating as wholesalers provided that no more than 25% of annual gross sales are derived from retail operations, and no more than 25% of the total floor area is open to the public. Eligible contractors (subcontractors) include, among others, the following as long as the total annual payroll does not exceed $300,000, and no more than 10% of total annual gross sales comes from subcontracted work. (General contractors are too large to qualify)

Underlying insurance

specific insurance that insures the same risk insured by excess or umbrella policy AND that will respond before the excess or umbrella insurance responds. underlying primary coverage MUST be in place on the following business risks before an insurer will issue a commercial umbrella or excess liability policy Commercial General Liability - Provides liability insurance for the business' premises, operations, products, and completed operations—along with a few other exposures Employer's Liability - Provides liability insurance for the business in the event an employee sues the business for injuries that fall outside Workers' Compensation statute Commercial Auto Liability - For exposures pertaining to vehicles owned, used, leased, or hired by the business Liquor Liability - For businesses that have this exposure

Deductible

specified dollar amount of each covered property loss that an insured must bear. In addition, deductibles can help reduce the number of frivolous claims that an insured might otherwise consider submitting, and can also be a cost control factor. Essentially, the higher the deductible that an insured chooses, the lower the premium will be

Peak Season Limit of Insurance (CP 12 30)

specified increase in the business personal property limit of insurance during a designated period of time, such as the Christmas shopping season. The insured chooses the property for which the value will be increased, the amount of the insurance, and the applicable time period

Protective Safeguards Endorsement (BP 04 03)

specifies that the insured is required to maintain the protective safeguards listed in this endorsement (i.e. automatic sprinkler systems, automatic fire alarms, and/or security services policy will not pay for loss caused by by fire if insured had prior knowedge that safegaurds were suspended or impaired and failed to wok. Insured must notify insurer if automatic sprinkler system is off for more than 48 hours

slander

spoken untruths that are harmful to someone's reputation

Assigned Risk Plan (Residual Market Plan)

states offer employers unable to purchase coverage in the voluntary market the opportunity to obtain coverage in a Workers' Compensation Assigned Risk Plan. Typically, insurers who write Workers' Compensation insurance in the voluntary market in the state must participate in the state's assigned risk plan Employers may purchase coverage directly from the Fund, and licensed brokers may also place business with the Fund.

Payment of Claim - Coverage F - Medical Payments to Others

states that payment under Coverage F is not an admission of liability

death

surer will extend coverage to the legal representative of the deceased with respect to the premises and property covered under the policy at the time of the named insured's death.

Owned Autos Acquired After Policy Begins BAC

symbols 1, 2, 3, 4, 5, or 6 are entered next to a coverage for autos in Item 2 (Schedule of Coverages and Covered Autos) of the Declarations, then newly acquired autos are covered for the remainder of the policy period. symbol 7- entered next to a coverage and then newly acquired autos are covered only if autos are replacing previously owned autos and insurer is notified within 30 days of acquastion

Bankruptcy

the bankruptcy or insolvency of insured does not relieve the insurer of any duties under the policy

Additonal Coverages under BPP

the coverages extend the insurance provieded and are automatically included at no extra cost debris removal- pays for removal of debis after covered loss and subject to max 25% of coverage of applying to direct loss.if limit is exhausted on building will bay additional 10,000 for removal preservation of property- open peril for max period of 30 days on property that is being moved becuase of endangerment of cover peril Fire department service charge- additional amount of insurance, up to $1,000 for the payment of fire department service charges when the department is called to protect insured property. No deductible applies to this coverage Pollutant Clean up and Removal - Pays the insured's expense, up to $10,000 aggregate limit, for each described location in a policy period, to extract pollutants from land or water at the described premises if the discharge or escape of the pollutants is caused by or results from a covered cause of loss Increased Cost of Construction- if event of damage covered building for loss which Replacement Cost Optional Coverage applies insurer will pay increased cost up to10,000 aggregate limit incurred to comply with enforcement and ordinance of law regulating the repair rebuilding or replacement of damaged parts Electronic Data- pays up 2,500 aggregate limit in any one policy year, regardless of # of locations for cost to replace or restore electronic data that has been damaged by covered loss

Section IV - CGL Conditions

the following apply to Common Policy Conditions- **defs can be found on page: 149-150** -Bankruptcy - Duties in the Event of Occurrence, Claim, or Suit -Legal Action Against the Insurer -Other insurance - Premium Audit - Representations - Seperations of Insured (severability) - Transfer of Rights of Recovery Against Others to the Insurer (Subrogation) - When the Insurer Does Not Renew -The Insured's Right to Claim Information (Claims-Made Form only)

Covered Causes of Loss BPP

the insured to select one or more of the cause of loss forms to be attached. These forms vary and allow the insured to select the appropriate form for a particular class or type of property. For example, the insured may want building items to be insured under a special causes of loss form and business personal property to be insured under a broad causes of loss form.

Part D: Coverage for Damage to Your Auto

the insurer agrees to pay for any direct and accidental loss to a covered auto or any nonowned auto eductible applies and will be the amounts shown on the Declarations for Collision coverage and Other Than Collision coverage, which is also known as comprehensive coverage. The deductibles for Collision and Other Than Collision coverages need not be the same. If this coverage pays for damage to a non-owned auto, the broadest coverage appearing on the Declarations will apply

Restoration of Limits

the limit of the policy is fully reinstated following a covered loss or on a policy anniversary

Bailor

the party who temporarily gives up possession of the property (the customer)

First Named Insured

the person or organization whose name appears first on the declarations page ; granted rights and responsiblities by the policy that are bot granted to the other insured usually responsible for paying premiums and has the right to receive any return premiums, to cancel the policy, and to receive the notice of cancellation or nonrenewal

robbery

the taking of property from a person's possession by using force or threats

collision insurance

the upset of your covered auto or non owned auto or its impact with another vehicle or object. This is the single named peril in the policy

Home Day Care Coverage Endorsement

this endorsement extends the homeowners coverage to this type of business. The premium for this endorsement is based on the number of children in the insured's care. does not cover injury to employees arising out of the business

Permitted Incidental Occupancies Endorsement homeowner policy

this endorsement overrides the exclusions under the homeowners forms that apply to the insured's business activities conducted on the residence premises. commonly used for studio, office, private school type of occupancy this endorsement allows the business to continue

Covered Injuries under Workers Compenstation

those that arise out of, and in the course of, employment. This means: The injury must occur while the employee is at work or working The employee is working the hours he/she is designated, or expected, to work The employee is performing the duties that he/she was employed to do The injury must arise from a risk that is reasonably related to employment employer can deny benefits to employee who intentionally injures himself or if it ariese out of intoxication

Other insurance Part C

total amount the insured may collect cannot exceed the highest limit applying to any one vehicle. Ex:if the insured's limits are 100/300 and the limits on the other policy are 50/100, the most the insured may collect is 100/300. f the loss occurs while the insured is occupying a non-owned vehicle, the policy covering the non-owned vehicle is primary, and the insured's coverage is excess. If more than one policy applies, the insurer pays only its share of the loss, which is the proportion that its limit of liability bears to the total amount of all applicable coverage.

Certain Trailers, Mobile Equipment, and Temporary Substitute Autos BAC

trailers with 2,000 LB or less load capacity if designated for travel on public road and mobile equipment while being carried or towed by covered vehicle are included street sweepers self propelled vehicles that have permanent installed equipment such air compressor, cherry pickers, generators, pumps or welding equipment are auto included without the need for endorsement however power cranes would not be included

Unauthorized Insurers Process Act

unauthorized foreign or alien insurer that transacts any insurance business with an Alabama resident or with an authorized corporation is deemed to have appointed the Commissioner to receive service of legal process on its behalf. This makes the insurer subject to the jurisdiction of Alabama's courts in actions initiated under such contracts by insureds or beneficiaries

War Exclusion (dwelling policy and homeowner)

undeclared war, civil war, insurrection, rebellion. revolution or any warlike act by military force is charge of a nuclear weapon will be deemed a warlike act, even if accidental. War also includes any consequence of the preceding.

Condominium Association Coverage Form

used in place of Building and Personal Coverage Form Form that covers buildings and business personal property of condominium associations. inclds buildings and fixtures such as fridges, air conditions as well as common buildings (clubhouses, pools) if unit owner has insurance covering same property the association coverage will be primary

Personal Injury Endorsement

used to extend liability coverage to legal liability arising out of personal injury, e.g., false arrest, slander items that do not apply: - when it is caused when the insured had prior knowledge of article or publication

Lessor - Additional Insured and Loss Payee CAC

used when the insured leases a vehicle and the owner/lessor requires that it be designated on the auto policy as additional insured and loss payee

Business Auto Physical Damage Coverage Form

virtually same language as Section III of BAC and only provides physical damage coverage. Can be included as part of a commercial package policy Symbols are limited to 5 instead of 9 and includes Owned autos only Owned private passenger autos only Owned autos other than private passenger autos only Specifically described autos Hired autos only

Actual Cash Value (BM 99 59) Endorsement

when added to the Equipment Breakdown Protection Coverage Form, changes the property damage method of valuation to state that the insurer will pay the lesser of: the cost to repair or replace damaged property with same kind or capacity size or quality on the sam esite or another site which ever is less costly -ACV of the damaged product

Part A - Liability Coverage (Insuring Agreement)

will pay for BI PD for which insured becomes legally liable settle or defend cl,ains or suit asking for such damages pay all defense costs it incures Will not defend or settle any suit or claim that it not covered under this policy. It definds insured in part a as: The named insured or any family member for the ownership, maintenance, or use of any auto (even if not licensed) Any person using the covered auto with permission A person or organization, for "your covered auto," if legally responsible for an insured

BOP Loss and General Conditions

will pay in following way: Payment for the value of the lost or damaged property Payment for the cost to repair or replace the lost or damaged property Take all or part of the property at an agreed or appraised value Repair, rebuild, or replace damaged property with property of like kind and quality loss settlement includes property valuation at replacement value for most types of covered property unless the declarations page shows loss settlement is on an actual cash value basis. Although a true coinsurance provision is NOT included in the BOP, an insurance-to-value provision is included. This means that in the event of a partial loss, if property is insured for less than 80% of its replacement value, a penalty will be applied to the loss payment.

Part B: Medical Payments Coverage insuring agreement

will pay or reimburse reasonable expenses incurred for necessary medical and funeral services caused by an accident, sustained by an insured, and incurred within 3 years of the accident -doesnt require insured to be legally responsible Part b defines insured as: amed insured or any family member occupying any auto or as a pedestrian when struck by a motor vehicle designed for use mainly on public roads. These vehicles do NOT have to be owned by the insured and include any type of trailer. Any other person, such as a passenger, while occupying the insured auto

Errors and Omissions (E&O) Insurance

written for professionals who provide services whose negligent acts or omissions may result in financial harm to a third party. Ie insurance agents accountants

Personal Jewelry Floater

written on ACV contain "Pair and Set Clause" Newly acquired items auto insured but only for 30 days

Policy Triggers for Professional Liability Insurance

written on claims-made forms of coverage - either pure claims made or claims-made and reported. The pure claims-made form requires claims to be made during the policy period. Claims-made and reported forms require claims to be both made AND reported during the policy term.

Out of State Coverage

your covered auto" is being driven outside the state in which it is principally garaged (and also within the coverage territory), Part A - Liability Coverage extends to provide coverage as required by the financial responsibility or compulsory insurance laws of that state or Canadian province. For example, if the insured's policy doesn't provide Personal Injury Protection (PIP) coverage and the state in which the vehicle is being driven requires it, the insured's personal auto policy will provide PIP coverage at required limits while the insured is in that state.