other coverages and options

what is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

every insurer must file all rates, rating plans, and modifications to its plans with the commissioner at least how many days prior to the effective date of use?

15 days

for how long must producers maintain complete records of all complaints?

2 years

within how many days of requesting an investigative consumer report will be obtained?

3 days

residual markets.

FAIR plans, assigned risk plans, and a joint underwriting association are all considered residual markets.

WYO (Write your own)

Insurers write the coverage on their own "paper" but the NFIP reinsures 100% of the coverage

NFIP

National Flood Insurance Program

Write your own "wyo" vs Direct

National Flood Insurance is sold and serviced directly through the NFIP or through a write your own WYO insurance program.

Partial Loss- Particular versus- General Average

Partial loss could be either a particular average, in which only those involved in the loss are affected, or general average, in which all those involved in the voyage share in the loss.

an insurance producer license will remain in effect unless revoked or suspended, as long as the licensing fee prescribed is paid and

continuing education requirements for resident individual producers are met by the due date

actual loss

damage to the entire property

Duration of Risk

duration of risk on hull policies could be for a specified period of time for a voyage. One place to another and usually for an additional 24 hours after moored at anchor safely at port of destination. or mixed. (voyage plus a specified period of time in port after arrival) most AIHC policies are written with a coverage term of 1 year.

professional liability coverage protects the insured against legal liability resulting from

errors and omissions

loss payee

party to be paid by the insurer following a loss. the loss payee could be a mortgagee or lien holder.

all of the following are considered unfair trade practices in the business of insurance EXCEPT

sharing commisssion

An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events except

the agency loses commission from policies that were not issued by the insurer

Cargo policies

written to cover loss or damage to the cargo. the amount of premium will be partly determined by the packing method used and partly by the type of ship providing the transportation.

FEMA

Federal Emergency Management Agency

FIMA

Federal Insurance and Mitigation Administration

a yacht policy would provide a pleasure boat owner with all of the following coverages except

freight coverage

Aviation Insurance

hull refers to fuselage, wings, tail, rudders, and other major structural features of an aircraft. The hull policy covers the airplane and its parts.

Salvage Charges and Awards

if the cargo is damaged short of the destination port, an agent of the insurer at an immediate port may agree to sell it at the best price. Settlement will be based on the difference between insured value and the net proceeds of the sale. (Salvage Loss)

an insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

illegal

Sue and Labor Expenses

in the event of a loss, the master and crew are required to sue and labor to protect the property from further expenses. The policy will pay the cost of doing so. If the crew does not sue and labor to keep losses as small as possible, the insurer could refuse to pay for the loss.

Constructive Total Loss

is when the cost to repair or recover exceeds the policy limit and the insurer pay's the policy's agreed value.

Hull Insurance

may be written "all risk on ground and flight" or "limited in flight". Limited in flight excludes coverage for the major perils or crash or collision.

Watercraft Coverage

only $1,500 of coverage is provided in the homeowners policy for damage to watercraft, accessories, equipment and trailers, and liability for watercraft is limited by the size of the boat.

Vessel

the ship itself that is covered for physical damage and loss by the hull policy. Equipment owned by others and installed on the ship will be covered. No coverage exists for cargo containers, barges, or lighters (fat bottom ship used to unload cargo ships)

All Risk On Ground & Limited In Flight

this form provides all-risk coverage on the aircraft while on the ground, but coverage while in-flight is limited to perils of fire, lightning, and explosion, but not fire or explosion following a crash or collision.

All-risk on ground and in flight

this is the broadest form of hull coverage and provides all-risk coverage on the aircraft both while it is on the ground and while it is in flight. Deductibles may be purchased applying either the same amount or different amounts while on the ground or while in flight or taxiing.

what is the purpose of increased value and excess liability (IVEL) clauses?

to provide extra coverage for the same losses covered by an underlying policy.

Roll-On/Roll-Off Ship

used to carry motor vehicles which roll on and off the ship via a stern ramp.