Upgrade to remove ads
Only $35.99/year

Types of Casualty Policies, Bonds, and Related Terms

Terms in this set (47)

What Personal Auto Coverage would pay for the insured's travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?
Part A: Liability
What are the 3 liability coverages included in the Commercial General Liability (CGL) Coverage Form?
Coverage A - Bodily Injury and Property Damage, Coverage B - Personal and Advertising Injury, and Coverage C - Medical Payments
Incorrect Answers:
What are the parties to a surety bond?
The principal (or obligor), the obligee (or insured), and the guarantor (or surety)
Professional Liability coverage protects the insured against legal liability resulting from what?
Errors and omissions
What are the 4 categories of uninsured motor vehicles?
1) No insurance or liability bond; 2) Insurance is less than what's required by the financial responsibility laws; 3) A hit-and-run accident where the driver cannot be identified; and 4) The insurer denies coverage or becomes insolvent.
What is the purpose of a claims-made form?
To pay for bodily injuries or property damage reported during the policy period
When does Uninsured Motorist coverage apply?
When the other party is legally liable but has no insurance
What type of coverage do umbrella policies provide?
Excess coverage over the primary policy
A vehicle rented from a commercial rental company is known as what type of auto?
Hired auto
Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?
3 years
In Personal Auto Policy, to what geographical region does the out-of-state coverage apply?
Any U.S. state or territory, as well as Canada
In surety bonds, who purchases the bond and promises to fulfill the obligation?
Principal or obligor
If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?
$80,000 - combined total of coverage for bodily injury and property damage
What would be considered a newly acquired auto?
A vehicle acquired by the insured during the policy period
What is the broadest coverage in the Commercial Crime Form?
Theft coverage
If an auto policy has split limits of 30/50/25, how much will the policy pay for property damage in a single accident?
$25,000
What types of expenses are covered by Coverage C - Medical Payments in Commercial General Liability policies?
Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured's business operations
What is a combined limit in an auto insurance policy?
The maximum amount the insurer will pay on a covered loss
What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?
Other Than Collision (Comprehensive)
What is a second injury fund?
A workers compensation program designed to pay for any additional benefits when an employee with a previous injury suffers a second injury
What is the purpose of surety bonds?
To guarantee that specific duties and obligations of the principal will be fulfilled
What types of losses are indicated by the split limits in an auto insurance policy?
Bodily injury per person, bodily injury per accident, and property damage per accident
What are the 2 parts of the Garage Liability Coverage?
Garage Operations - Covered Autos, and Garage Operations - Other than Covered Autos
What is the limit of liability in Part D: Coverage for Damage to Your Auto?
The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle
Underinsured Motorist (UIM) coverage will pay the difference between which 2 limits?
The insured's UIM limits and the at-fault driver's insurance bodily injury limits
What is the name for the deductible in liability umbrella policies?
Self-insured retention (SIR)
What do numerical symbols represent in auto policies?
They define the type of vehicle insured for specific coverages.
What are the 2 coverage triggers in Commercial Crime policies?
Discovery Form and Loss Sustained Form
Rental reimbursement endorsement is available only if an auto policy has what type of coverage?
Other than Collision Coverage
What is a commercial floater?
An Inland Marine policy designed to cover movable commercial property, wherever it may be located
What losses are excluded from coverage in the liability section of the Personal Auto Policy?
Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission. (Please review the text for a complete list of exclusions.)
What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?
Retroactive date
What are the 4 types of benefits provided by Workers Compensation insurance?
Medical payments, disability income, rehabilitation expenses, and death benefits
What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?
Uninsured Motorist
What is the minimum amount of additional coverage provided by umbrella policies?
$1 millon
Who does the Garage Coverage form insure?
Auto dealers, service stations, auto repair shops
When does the Underinsured Motorist coverage apply?
When the motorist is at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist
What type of perils are covered by the Advertising Injury Form?
Libel, slander, defamation, violation of privacy, infringement of copyright or titles
What types of entities can be insured under a General Liability policy?
Sole proprietors, partnerships and corporations
What is the occurrence form trigger based on?
The date of the injury or damage
Who is considered insured under Part A: Liability of a personal auto policy?
...
If an insured is injured while driving his own car, what coverage in his personal auto policy will pay for the loss?
Part B: Medical Payments
Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
What is a covered auto?
A vehicle shown in the policy declarations
What is the primary purpose of workers Compensation insurance?
To pay benefits employees for injuries arising out of employment
What is the broadest coverage in the Commercial crime Form?
Theft Coverage
...
...
Students also viewed