Texas property & Casulty

Physical Hazard

A Physical condition that makes loss more likely to occur. It is something that can be seen, touched or smelled.

Actual cash Value- ACV

A loss valuation that reinforces principal of indemnity. EX Current replacement value minus depreciation.

Insurance Commissioner must give how many days' notice before holding a hearing?

30

Rebating

A practice whereby something of value is given to sell the policy that is not provided for in the policy itself. EX: " Returning a portion of premium as inducement to purchase insurance"

Umbrella Coverage

A separate and additional excess limits atop underlying auto or general liability policies that can be purchased by individuals or businesses.

Fidelity Bond

protects a business from employee dishonesty

Insuring Clause

states the obligations that are being made/ promised by both parties, Also indicates whether perils are named or open.

Premises and Operations

Coverage, insures the policyholder for liability arising out of bodily injury and/or property damage, resulting from negligence associated with owning, leasing, renting property and the daily operations necessary to conduct business. EX: a small store or business

High risk

Is usually written through a surplus lines of insurers

Subrogation

Legal recovery process which an insurer collects losses on behalf of insures party.

Limits of Liability.

Maximum amount of coverage that the insure will pay on a loss. Also shown on declarations age.

$500

Medical payments will pay what limit per person for medical & funeral expenses.

Damages

Money awarded to an injured party when a negligent party is responsible for loss.

Speculative Risk

No chance to gain when a loss occurs. EX gambling on a sporting event.

Strict Liability-

ONLY applies to a business that manufactures products.

Nonrenewed

Policy that states an insured will continue receiving coverage under the policy until renewal date.

Open Peril

Policy that will cover any specific immediate losses unless they are excluded in the policy coverage.

Installation Floater

Provide course of construction coverage for property of the insured and property of others that is being installed or awaiting installation

Occurrence

Repeated/ continuous exposure to conditions over time that may lead to injury or loss. EX: A care that is leaking brake fluid & has not been repaired in a timely manner.

Conditions

Set forth and describe the rights and duties of both parties,

Conditions

Set forth and describe the rights and duties of both parties.

Loss settlement provisions

State the amount to be paid according to coverages purchased.

Declarations

States the names of partied, the length of coverage, premium amount, description of coverage & property & list all endorsements.

Binder

Temporary coverage that are given by agents to provide immediate coverage

Subrogation

legal recovery process which an insurer collects losses on behalf of an insured party.

Actions listed under the duties of the insures provision.

- Preventing further loss, -Providing immediate notice of loss -Providing all statements and paperwork.

Stock Insurance company

Best defined as an incorporated company that's has its capital divided into shared. Is owned exclusively by its shareholders.

first party response & third party defense.

Can protect a small business for expense's associated with data breach, including court instituted cost to customers and legal fees.

Exclusions.

Causes of loss, exposures, conditions, etc. listed in the policy for which the benefits will not be paid.

The term '' transacting business'' includes?

Collecting premiums

Drive Other Car

Commercial auto endorsement that is needed when a company car is used by an employee or partner of the business.

Common defenses used by employers before workers compensation law instituted.

Contributory Negligence, Assumption of risk, Fello- servant rule.

Concealment

Failure to disclose a known fact that has been hidden.

Notice Of Claim

First step that must be taken if a loss occurs.

Surety Bond

Guarantee performance

Warranty

Guaranteed statements that are only uses in commercial policies.

30 days

How many days' notices before expiration days of the policy does an insurer have to give before non- renewing their policy

Every two years

How often must an insurance agent license be renewed.

Every two years.

How often must an insurance agent renew their license?

Claims-made coverage trigger

Type of coverage trigger that obligates an insurer to defend and/or pay a claim on an insured's behalf, if the claim is first made against the insured during the period in which the policy is in force. CANNOT be used in a GEOGRAPHICAL AREA!!

Loss

Unintended, unforeseen reduction or destruction of economic value

Personal

Unlawful entry or eviction on the premises of another

Gramm-Leach-Bliley Act of 1999

Was enacted to protect privacy of consumer information.

Fair Credit Reporting Act

What ACT states that for an insurer to use outside credit information they must give written permission?

Loss Assesment

What pays up to $1,000 charged to the insured owner of a condo or tenant when property is damages.

Inspection report

When a underwriter views an insured's history of claims and underwriting maps on the insureds property.

Absolute liability

When an insured has a hazardous condition present. EX harboring a wild animal or swimming pool.