PC

unendorsed homeowners policy, jewelry covered up to what amount

$1500 for loss by theft

unendorsed businessowners policy will pay no more than what amount for the theft of jewelry

$2500

coverage b limit of insurance

10% of coverage a limit

basic cause of loss form covers damage caused by bacteria during what period of time following policy inception

12 months

building and personal property coverage form, what percent of a partial loss would be available for debris removal

25%

under homeowners policy, medical payments coverage will apply to expenses that are incurred within how long?

3 years

under business income form, period of restoration begins

72 hours after loss

under michigan's worker's comp laws, the right to recover compensation is an employee's

EXCLUSIVE remedy against an employer

which form is designed for tenants?

HO-4

broadest coverage available for homes

HO-5 comprehensive form provides broadest coverage of any homeowners forms. the dwelling, other structures, and personal property are all covered on open perils basis.

which form is designed for the unit owner of a condo?

HO-6

building and personal property coverage - inflation guard

OPTIONAL coverage, NOT coverage extension

absolute liability

a legal liability imposed without demonstrated negligence. because of the high degree of hazard associated with some risks, no degree of care is sufficient to fulfill the responsible party's duty to the public. the responsible party is legally liable even when no negligent act is committed.

warranty

a statement that is guaranteed to be true, as opposed to a representation of something that is true to the best of your knowledge

coverage e is

additional living expenses, 20% of coverage a

a retention

an amount paid by insured before the insurer's obligation to pay takes effect. similar to deductible.

first aid expenses under homeowners policy

applies first aid to others caused by bodily injury, but doesn't pay for first aid to an insured. think neighbor who gets injured while helping insured install carpet.

commercial general liability - product liability

applies to bodily injury the product causes away from the insured's premises. a customer contracting food poisoning is a perfect example.

homeowners policy: medical payments coverage

applies to expenses incurred within 3 years following an accident

doctrine of strict liability

applies to products and their manufacturers. the manufacturer can be held responsible for an injury caused by a product, even if the product is not defective

subrogation rights

apply when negligent third party is the cause of a loss.

builder's risk policy

automatically ends 90 days after construction is complete. there is NO liability coverage.

theft coverage for broad form dwelling policy DP-2

available only through attachment of the limited theft or broad theft endorsements

businessowners liability coverage form includes coverage for

bodily injury, property damage, personal injury and advertising injury, plus liability assumed under an insured contract

comprehensive coverage under physical damage coverage of business auto form

broad open perils coverage, but collision is excluded

commercial policy - building and personal property coverage

buildings, business personal property of insured: furniture, fixtures, machinery, equipment, stock. personal property of others. NO liability coverage

two indirect loss forms to commercial property coverage

business income coverage, extra expense coverage

collision coverage part D of personal auto policy

certain causes of loss that are NOT considered collision. this includes floods.

emergency program (flood)

community in early stages of participation in NFIP, but are not yet considered participating. max a resident can receive for damages to personal property is $10k

CGL section 4

conditions

interline endorsements

coordinate commercial package policy coverages to avoid duplication

CGL section 1

coverage for bodily injury and property damage liability.

personal jewelry floater

coverage may be written on valued or actual cash value basis. contains pair and sets clause. insured must submit an appraisal. auto coverage for newly acquired items is 30 days.

government imposed clean up costs incurred from environmental damage caused by a pollution incident

covered under pollution liability coverage form, but NOT the limited pollution liability coverage form NOR pollution extension endorsement.

collision or running down clause in ocean marine insurance

covers collision damage to another vessel when the shipper is liable

national flood insurance program

covers direct loss only to the insured property from those conditions that constitute the definition of flood. does not provide any indirect financial loss coverage. coverage becomes effective after 30 day waiting period. property removed to protect from flood covered for 45 days at other locations. mudflow is covered, mudslide is not. two deductibles apply separately to the building and contents.

fine arts floater and automatic coverage

covers paintings, statuary, carvings, other art, rare manuscripts, and antiques, automatic coverage on newly acquired items for 90 days from date of acquisition

commercial policy - building and personal property ADDITIONAL coverages

debris removal, preservation of property, fire dept service charge, pollutant clean up and removal, increased cost of construction, electronic data

CGL section 5

definitions

HO-6 form

designed for the owner-occupant of a condo unit

contingent liability insurance

designed for the person who has the potential for a liability exposure caused by negligent acts of the contractor or subcontractor they hired to make repairs, construction, or alterations

CGL supplementary payments

does NOT apply to ALL section 1 coverage- only coverages A and B

residence premises

either a 1,2,3, or 4 family dwelling in which the named insured resides. also includes other structures and the grounds at that location, such as the 5 acres upon which the insured sits, including the barn, detached garage, and pool.

value reporting form

endorsement may be attached to building and personal property form and condo commercial unit owners form. insured is required to report 100% of values with each report. late reporting or under-reporting will result in a penalty in the event of a loss

Damage from power failure that takes place away from the insured premises

excluded under the dwelling forms.

FAIR plan

fair access to insurance requirements. provides basic property coverage to those who have been rejected in standard market. agents cannot bind FAIR plan coverage.

commercial policy - basic causes of loss

fire, lightning, windstorm, hail, aircraft, riot, civil commotion, vehicles, explosion, smoke, vandalism, sprinkler leakage, sinkhole collapse, volcanic action. limited coverage for fungus, wet rot, dry rot, and bacteria. limit of insurance up to $25k for all losses in 12 month period

coverage D limit

for additional living expense, fair rental value, and civil authority prohibited use is 30% of coverage A

ocean marine hull coverage and cargo coverage are written on which basis

full valued basis

section 2 of a homeowners policy

homeowners liability section. bodily injury to others caused by the insured's activities is covered in section 2.

foreign insurer

incorporated under the laws of another state

CGL medical payments coverage

incurred and reported within 1 year

time element losses

indirect losses

outdoor property extension under the building and personal coverage form

insures against fire, lightning, explosion, riot, civil commotion and aircraft

multi-peril crop insurance

is reinsured by the federal govt by FCIC

business personal property under a BOP

it is covered when located in or on the building at the described premises, or in the open within 100 ft of the premises

commercial policy - conditions

legal obligations and duties of the insured and insurer. cancellation, changes, examination of books and records, inspections and surveys, premiums, transfer of rights and duties

commercial policy - special causes of loss

losses caused by risks of direct physical loss except those perils specifically excluded. open perils coverage.

limits of liability under section 2 of BOP

medical expense limit is a per person limit; products and completed operations aggregate limit is twice the liability and medical expense limit; liability and medical expense limit applies per person or organization for personal injury claims; the damage to premises rented to the insured

bodily injury includes

medical expenses, lost wages, mental anguish, death and disfigurement

extra expense coverage form covers

necessary expenses incurred during the period of restoration.

coverage extensions under building and personal property coverage form

newly acquired/constructed property, personal effects and property of others, outdoor property

dwellings - coverage for additional living expenses

only available under DP-2 and DP-3

businessowners coverage form to the businessowners policy provides coverage on which basis

open perils

optional coverages under businessowners policy

outdoor signs, money and securities, employee dishonesty.

completed operations exposure coverage

pays for bodily injury and property damage caused by negligent or faulty workmanship by an insured, but will NOT pay for the cost to replace the work that caused the loss

Reasonable Repairs additional coverage

pays the reasonable costs by the named insured to take necessary measures to protect the property against further damage.

commercial policy - broad causes of loss

perils from basic, plus perils of falling objects, weight of ice, snow, sleet, water damage caused b y accidental discharge

workers comp insurance schedule of benefits applies to

permanent partial disabilities

what coverage is not included under boatowners policy?

personal property coverage.

mandatory provisions in fire insurance policies sold in michigan

policy must list the property not covered under the policy, required notice of cancellation is 10 days, the policy may be void on the basis of misrepresentation, fraud, or concealment, and minimum term of coverage is 5 days for removal

primary exposures covered by CGL

premises and operations liability, product liability, completed operations liability, and contingent liability

dwelling under construction endorsement of a dwelling policy

premium based on average amount of insurance during construction

towing and labor costs endorsement to personal auto policy

provides payment for towing to a garage, or for labor performed at site of mechanical disablement

yacht policy coverage

provides property and liability coverage, offers protection and indemnity coverage for insured's legal liability for bodily injury and damage to property of others, personal property coverage for property on the yacht, and coverage for fuel spills, commercial towing, and dinghies. personal injury NOT covered. a yacht is not covered if navigated outside the territory

personal effects floater

provides worldwide open peril coverage for items worn or carried by tourists

risk reduction

reducing the severity or frequency of potential loss, without eliminating the risk exposure entirely

under dwelling broad form (DP-2), losses to an unattached garage are paid on which basis

replacement cost

businessowners policy losses settled on

replacement cost basis. unless ACV coverage is selected in the declarations.

Part F of personal Auto policy, legal action against us provision

states that legal action may not be brought against the insurer until the insured has complied with all terms of the policy

when a claimant can prove that a product caused an injury, the fact that the manufacturer will be held liable regardless of whether the product was defective or not, is considered

strict liability

risk reduction

taking action to minimize severity of a potential loss

abandonment condition

the insured cannot abandon damaged property to the insurer. the company will not accept property abandoned by an insured when there is a claim dispute.

the party to whom the surety is answerable

the obligee. the party for whose benefit the bond is written

non-owned golf carts

the only vehicle designed mainly for use off public roads that is NOT excluded from liability coverage under PAP

towing coverage under BAP

the policy automatically pays for costs of towing and labor incurred each time a covered private passenger type auto is disabled. labor must be performed at place of disablement

supplemental extended reporting period

there is a one-time charge premium, may be up to 200% of CGL's annual premium. under mini tail, insurer must be notified of a claim within 60 days after end of policy period

business income coverage under BOP

there is no monthly or total limit on the amount. coverage provided for up to 12 months after the direct loss

difference in conditions (DIC) policy

there is no standard form. provides coverage for perils not insured against under standard property policy forms. is not an excess layer of insurance. there is no coinsurance clause or pro rata clause and it may be written for a different amount from the policy it complements.

CGL products and completed operations claims

they have their own aggregate limit, and these claims do not reduce the general aggregate

what is the purpose of an umbrella liability policy

to cover large and catastrophic losses.

actual cash value

today's current price, minus depreciation

when insurance company and insured can't agree on amount of loss, person selected to help the 2 appraisers is called

umpire

anyone who enters into an agreement to defraud a health care corp or insurer by filing false benefit claims faces

up to 10 years in prison, and/or fine of up to $50k

concealment

when an applicant intentionally fails to make a material fact known

lay up warranty

when insured boat is in storage and allows for return of premium due to reduced risk of boat not being used. if insured operates yacht during lay up period, or lives on it, no coverage is provided.

CGL section 2

who is the insured

commercial policy - declarations

who, what, when, where, how much of entire policy, each of the coverage parts included on policy, and declarations page for each coverage part. total premium charged for each coverage part.

trip transit forms

written for persons or firms that don't make regular shipments but wish coverage for a single shipment

scheduled articles floater

written on open perils basis with very few exclusions