Personal Lines Insurance PA

HO - watercraft included

$1,500

transportation expenses

$20 a day with maximum of $600 for use of a car when the insured has been in an accident

What are the penalties for violating the Fair Credit Reporting Act?

$5,000, Imprisonment for 1 year or both

HO-2

(broad form): covers the dwelling, other structures, and personal property on a named perils basis

Dwelling Policy Eligibility

- 1 to 4 unit dwelling with boarders - Vacation dwellings - Rental dwellings - Dwellings under construction (endorsement) - Mobile homes (endorsement) - Farm dwellings NOT eligible

Broad Peril Exclusions

- Weight of ice, snow, or falling objects on awnings, fences, patios, swimming pools, docks, and retaining walls - Accidental discharge over water from continuous leaking - Flooding from river or lake - Burglary if property vacant more than 60 consecutive days

DP-2 Broad Form

-DP-1 perils, EC perils, and VMM -Damage by Burglars -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 -Freezing -Sudden and accidental damage from artificially generated electrical current

PAP Part A: Liability Coverage

-Protects the insured against loss arising from legal liability when his or her automobile injures someone or damages another person's property. Usually has a single limit but can be split limit 15/30/5

PAP Part B: Medical Expenses Coverage

-covers all reasonable medical costs and funeral expenses incurred, by the insured or the insured's family members within 3 years of an accident -recommended coverage of $50,000

How long to give notice to client about credit report?

3 days after report is requested

tort

A civil wrong

Special Damages

A form of compensatory damages that awards a sum of money for specific, identifiable expenses associated with the injured person's loss, such as medical expenses or lost wages.

Compensatory Damages

A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party.

General Damages

A monetary award to compensate a victim for losses, such as pain and suffering, that do not involve specific measurable expenses.

Class 3 - Noncombustible

A noncombustible structure is one whose exterior walls, floors, and roof are constructed of and supported by noncombustible materials such as metal, asbestos, or gypsum.

Agreed Value

A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written.

Contributory Negligence

A rule in tort law, used in only a few states, that completely bars the plaintiff from recovering any damages if the damage suffered is partly the plaintiff's own fault.

Comparative Negligence

A rule in tort law, used in the majority of states, that reduces the plaintiff's recovery in proportion to the plaintiff's degree of fault, rather than barring recovery completely.

TRIPRA defines terrorism as...

A violent act or an act that is dangerous to human life, property or infrastructure that results in damage in or outside the US committed by domestic or foreign terrorists.

DP Coverage E

Additional Living Expenses for DP2 & DP3 (10% of coverage A)

DP-2 and DP-3 other coverages

All included in DP-1 Trees, Shrubs and Other Plants (5% of coverage A, max of $500 each) Collapse Glass or safety glazing material Ordinance or law (10% of coverage A)

stated value

Allows insured to determine value of property

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.

DP-3 Special Form

An all risk policy (on the structure coverage only), in which anything not excluded is covered. Contents (if covered) are still named peril, as in the DP-2. Includes all DP-1 and DP-2 coverage.

Extended Coverage Endorsement

An endorsement which extends the fire policy to cover loss by windstorm, hail, explosion, riot, attending strike, civil commotion, aircraft, vehicles and smoke.

Personal Auto Policy (PAP)

An insurance policy that covers an individual or a family against loss exposures arising out of the ownership, maintenance, or use of automobiles.

Consumer

Anyone about whom information is collected.

Broad Perils

Big Affect

Liability Policy provisions

Bonds Aid Interest Loss Earnings Expenses Defense costs

Class 5 - Modified Fire Resistive

Buildings that are modified fire resistive have exterior walls, floors and roof constructed of masonry or fire resistive material with a fire resistance rating of two hours or less.

DP-1 Basic Form

Can be written for any amount on a ACV basis. Covers basic fire, lightening and internal explosion. Other Perils must be endorsed.

PAP Part D

Coverage for Damage to Your Auto

Towing and Labor Coverage

Coverage for necessary towing and labor costs (for labor performed at the place of disablement) due to the disablement of a covered private passenger auto.

Special Perils

Covers any peril except those specifically excluded

Earthquake Endorsement

Covers direct physical loss to property covered under Section I caused by an earthquake

Personal Injury Endorsement

Covers insured for personal injury claims (hurt feelings)

DP-1 Other Coverages

Debris Removal Other Structures (10% of coverage A) Property Removed Reasonable Repairs Improvements, Alterations, Additions (10% of coverage C) Fire Department Service Charge ($500) Worldwide Coverage (10% of coverage C) Rental Value (20% of coverage A)

DP Coverage A

Dwelling

DP Coverage D

Fair Rental Value (20% of insurance on dwelling is available for this)

Basic Perils

Fire, lightning, and internal explosion

Watercraft Endorsement

Homeowner's policy endorsement that provides coverages for BI or PD arising out of the use of watercraft

Scheduled Personal Property Endorsement

Homeowner's policy endorsement that provides open peril, scheduled coverage for 9 optional classes of property

Business Pursuits Endorsement

Homeowners Policy endorsement that provides liability coverage for a business conducted away from the residence premises.

Permitted Incidental Occupancies Endorsement

Homeowners policy endorsement that covers the insured's business activities conducted on the residence premises.

Home Day Care Coverage Endorsement

Homeowners policy endorsement that provides coverage for home day care businesses.

Newly Acquired Auto

In personal auto insurance, an auto that meets a policy's eligibility requirements but is acquired after the effective date of the policy. Covered for 14 days

Scheduled Coverage

Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item.

Class 2 - Joisted Masonry

Joisted masonry structures have outside support walls made of noncombustible masonry materials (such as concrete, brick, hollow concrete block, stone, or tile) and a roof and floor made of combustible materials (such as wood)

to establish negligence

Legal Duty Owed Breach of Legal Duty Owed Proximate Cause Damages

Vicarious Liability

Legal responsibility placed on one person for the acts of another.

HO Coverage D

Loss of use

What are the reasons a policy can be cancelled by the insurer after 60 days of policy being in effect?

Material Misrepresentation (30 days notice required) Substantial change in risk insured (30 days notice required) Non-payment of Premium (10 days notice required)

HO Coverage F

Medical Payments to Others

Punitive Damages

Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future.

Blanket Coverage

One price to cover all as opposed to specific

DP Coverage B

Other Structures

HO- Coverage B

Other Structures Excluded if used for business or if rented to non-tenants

Out of State Coverage

Policy automatically provides coverage for states with higher or mandatory coverages when driving in that state

home owners insurance

Provides payment to cover liability losses as well as damage and loss of the home structure and its contents

personal property replacement cost Endorsement

Reimburses losses to personal property at replacement cost value

DP-2 and DP-3

Replacement cost value as long as 80% or more

Who is an insured in PAP?

Resident Family members Someone using the vehicle with owners permission

Class 4 - Masonry Noncombustible

Structures in this construction class have exterior walls constructed of masonry materials and a roof and floor made of metal or other non-combustible materials.

Insureds for medical Payments

The Named insured and any family members while occupying the car Any other person occupying the insureds car

Repair Cost

The cost to repair a damaged or destroyed item of property.

Functional Replacement Cost

The cost to replace damaged property with less expensive and more modern construction or equipment.

Subrogation

The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.

Class 6 - Fire Resistive

These structures are constructed of masonry or fire resistive material with a fire resistance rating of 2 hours or more

TRIPRA Regulations

Triggering event to go into effect $200 million Insurance carrier's deductible set at 20% of last years direct earned premium Federal share of compensation 80%

Pair or set condition

When part of a set is damaged or destroyed, insured will not be reimbursed for the value of the entire set, only for the part that is damaged or destroyed

extended coverage Perils

Wind, Civil Commotion, Smoke, Hail, Aircraft, Vehicles, Volcanoes, Explosion, Riot, Vandalism and Malicious Mischief (WC SHAVVER and V&MM)

Direct Loss

a financial loss that results from the physical damage, destruction, or theft of the property

Fraud and false statements penalties

a fine, imprisonment for up to 10 years or both or imprisonment for up to 15 years if false statements jeopardize insurer.

Other Insurance

a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk

Coinsurance

a provision under which both the insured and the insurer share the covered losses

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

adds coverage to property sections of policy for damage arising due to fungi, wet or dry rot, or bacteria. Only used with HO3 and HO5

Last Clear Chance Doctrine

allows the plaintiff to recover damages despite proof of contributory negligence as long as the defendant had a final clear opportunity to avoid the action that injured the plaintiff

Assigned Risk Plan

an automobile insurance plan under which a person who has been refused insurance can apply to be assigned to an insurance company that will issue to that person the minimum liability insurance required by the state

Covered Auto

any listed in the declarations section of the insurance contract, a newly acquired vehicle, a trailer owned by a named insured, or a temporary substitute vehicle, any personal vehicle leased for at least 6 months

miscellaneous-type vehicle endorsement

can be added to the PAP to insure motorcycles, mopeds, motor scooters, golf carts, motor homes, dune buggies, etc.

peril

cause of loss

HO-6

condominium owners

HO Coverage A

dwelling HO4 and HO6 not covered

Class 1 - Frame

frame structures have outside support walls, roof, and floors constructed of wood or other combustible materials. The exterior walls may be covered with stucco or brick veneer, and the interior walls are typically lath and plaster.

Absolute/Strict Liability

liability without negligence

HO-3

most commonly purchased policy // open perils policy that covers any DIRECT DAMAGE TO HOUSE OR OTHER STRUCTURES ON PROPERTY unless it is specifically excluded. INCLUDES PEOPLE INJURIES

Indirect Loss/Consequential Loss

occurs as a consequence of the direct loss; fire would be a direct loss; loss of rental dollars due to fire would be the indirect loss

HO Coverage E

personal liability

DP Coverage C

personal property

HO- Coverage c

personal property Property away from residence 10% of Coverage C or limit of $1000

HO-5

policy is also an open perils policy, but also includes direct damage or loss to PERSONAL PROPERTY.

HO-8

policy is for OLDER HOMES that have a replacement cost that is much higher than its market value

PAP Part C: Uninsured Motorist Coverage

promises to pay the amount that an injured insured could have collected from the insurer of an uninsured driver if such driver had carried auto liability insurance. Can apply yo medical expenses, lost wages, pain and suffering. But not punitive damages. ~standard limit is the minimum required under the state's financial responsibility law, but higher limits are available ~uninsured motor vehicle- doesn't have insurance, does have insurance but the company is insolvent, is in a hit and run Covers named insured, spouse, family members, and anyone occupying the covered auto.

HO-4

renters insurance

Actual Cash Value

replacement cost minus depreciation

Gramm-Leach-Bliley Act

requires financial institutions to ensure the security and confidentiality of customer data

customer

someone who has an ongoing relationship with a financial institution.

financial responsibility law

state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident

No Benefit to Bailee Condition

states that the bailee is not covered under the insured's policy while the bailee has possession of the insured's property