289 terms

Combo with "Property and Casualty Chapter 12" and 1 other

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The Commercial Property module of the Commercial Package Policy excludes coverage for losses due to boiler ____ or _____ breakdown.
Explosion or Mechanical
The Boiler and Machinery (B and M) module is the way to _____ these Exclusions.
Buy back
B and M policies are written on an ____ basis, not on an occurrence basis.
Accident
The Boiler coverage is best described as ____ against _____.
objects against accidents
The Machinery coverage of the B and M module is for the ____ and ____ breakdown of mechanical or electrical equipment.
sudden and accidental
______ that can be insured under a B and M policy include boilers, air conditioning units, engines, pumps, electrical panels, turbines, and compressors.
Objects
The B and M policy covers not only your own property, but also other people's property that is in your ___,____, and ____.
Care, Custody and Control.
In order to get damaged equipment repaired as soon as possible, the B and M policy pays up to $25,000 in ______.
Expediting Expenses
Under the ______ an insurance company boiler inspector may immediately suspend coverage by giving the Insured written notice of the boiler defect.
Suspension Provision
Business Income and ______ coverage's can be added to the B and M policy.
Extra Expense
Unfortunately the biggest risk that an employer has regarding Crime insurance is his/her own ___.
Employees
As an employer you can protect yourself against employee theft by purchasing _____.
Fidelity Bonds
In a Fidelity Bond it is the employee that owes the obligation to the employee, so the employee is the _____. The employer is owed the obligation, so the employer is the _____. The insurance company agrees to pay, so it is the _____.
Principal, Obligee, Surety or Guarantor.
Coverage on a bonded employee automatically terminates as soon as the employer becomes aware of a _____ act of that employee that could be the basis of a claim. No second chances!
Dishonest
A Fidelity Bond that covers multiple employees that are listed by job title and may have different amounts of coverage for different positions is called a ____.
Position Schedule Bond
The taking of property by violence or threat of violence from a person is called _____.
Robbery
The taking of property from a premises that is closed and locked tight and leaving marks of forced entry or exit is called _____.
Burglary
In Crime insurance, what you know as kidnapping is called _____.
Extortion
Any person who is authorized to have possession of insured property on the premises, but who is not a janitor or watch person, is called a _____.
Custodian
A Messenger is any person authorized to have custody of insured property ______.
Away from the premises.
Any person the Insured retains to protect insured property on the premises who has no other duties is called a _____.
Watch person
Crime coverage Form A Employee Dishonesty are actually _____ on the employees.
Fidelity Bonds
Crime coverage Form C Theft, Disappearance and Destruction is essentially All Risk coverage for ____ and ____ both on and off premises.
Cash and Securities
Crime coverage Form D Robbery and Safe Burglary covers property other than _____, such as precious metal, precious stones, furs, manuscripts or drawings.
Cash
The second major coverage of the Commercial Package Policy is the CGL or _____ Liability policy.
Commercial General
Just like a baseball team, the CGL has ___ ''players,'' including Premises coverage, Operations coverage, _____ coverage, ____ coverage, Contractual and Advertising Injury coverage.
Nine, Products, and Fire Legal
While the CGL comes with nine coverage's, some can be eliminated by _____ coverage's to save premium for the Insured.
endorsement
If a customer trips and falls in your store, you would be covered by the _____ Liability section of your CGL.
Premises
If you sold a defective product to a customer, you would be protected by the _____ section of your CGL.
Products Liability
If you hire a contractor to come into your store to do some repairs and that contractor injures one of your customers, you would be covered by the ______ section of your CGL.
Independent Contractors Liability
If you accidentally set your leased store on fire, you would be covered by the _____ section of your CGL.
Fire Legal Liability
If you are sued for unintentionally using another business's logo, you would be covered by the ______ section of your CGL.
Advertising Injury Liability
The first module of the Commercial Package Policy (CPP), which covers your building and business personal property, is called the _____.
Commercial Property Policy
The Commercial Property Policy is comprised of thirteen possible sub-parts to cover about any kind of property you could own, including ______, Business Income, _____, Glass, Builder's Risk and Tobacco Sales Warehouse.
Building and Business Personal Property, Extra Expense
The Commercial Property Policy, just like the Homeowners policy, offers three levels of peril power, which are Basic, ____ and ____.
Broad and special
The eleven Basic perils include Windstorm, ___, _____, ____, ____, _____, Volcano and Vehicles or Aircraft.
Riot, Explosion, Lightning, Fire, Smoke
Broad Form peril power adds ____ more perils for a total of ____.
Three, 14
_____ perils cover all perils not specifically excluded.
Special Form
The peril of _____ can be added to any of the three peril power forms and also covers Volcanic Eruption.
Earthquake
Earthquake coverage has a _____ deductible with a minimum of $ _____.
Percentage, $250
Earthquake tremors felt within a ____hour period ( ______ ) are treated as a single occurrence.
168, seven days
For the sake of simplicity, the information that is common to all thirteen of the property coverage sub-forms is included in two mandatory pages called the Commercial Property Declarations and the ________.
Commercial Property Conditions
The Standard Deductible on the Commercial Property Declarations page is $ ______.
$500
Settlement under the Commercial Property Policy is on an ______ basis unless upgraded to Replacement Cost basis by endorsement.
Actual Cash Value (ACV)
If there are two or more insurance companies insuring a commercial building, then losses will be settled on a_____ basis.
Pro rata
A situation in which two insurance policies insure the same property but use different levels of peril power is called _____.
non concurrency
The Commercial Property Policy coverage territory is the U.S. and its possessions, Canada and _____.
Puerto Rico.
The Building and Personal Property Coverage form defines a building to include permanently installed fixtures and equipment, outdoor fixtures, such as swimming pools and flag poles, plus personal property that is _______, such as a snow blower or lawn mower.
Used in the maintenance of the building
The contents in a commercial building, such as the desks, chairs and computers, are referred to as _______.
Business Personal Property
The personal belongings of employees, such as photos, radios and hand bags, are called ______.
Personal Effects
To be covered, Business Personal Property must be in the insured building or within ____ of the building.
Feet
The Personal Property of Others section of the Commercial Property Policy provides a Bailee-like coverage for _____ property that is in your care, custody or control.
The Other Guy's
The Additional Coverage's are ____ and do not cost extra. But Coverage Extensions must be _____ by purchasing coverage of at least __ percent of the building's replacement cost.
Automatic, earned, 80
The Additional Coverage's include Debris Removal, Fire Department Service Charges, ______ and Preservation of Property.
Pollutant Clean-up And Removal
The Coverage Extensions include Newly Acquired or Constructed Property, coverage for ____ and Property of Others.
Personal Effects
The insurance company will only pay losses up to the _____.
Policy limits
If the Insurer and the Insured disagree over the value of lost property, then either party can request an ____, which is binding on both parties.
Appraisal
After a loss, it is the First Named Insured's duty to ____ notify the Insurer.
Promptly
The Insured must also _____ from further damage.
Protect the property
If required by the company, the First Named Insured must submit written _____.
Proof of Loss
A premises which has been stripped so it can no longer be used for its declared function is considered to be _____.
Vacant
Even though property losses under the CPP are paid on an ACV basis, losses under $2500 are automatically paid on a _____ basis.
Replacement Cost
The key thing to remember about the Rights of Mortgage Holders is that _____! The Insured can be a crook, but the bank will still collect from the Insurer.
They never lose
If a business experiences significant seasonal inventory fluctuations, then it may be required to notify the company on a _____.
Reporting Form
Business Interruption Insurance is also referred to as _____ Coverage's.
Time Element
Under a Business Interruption policy Business Income is defined as net income plus ______.
Continuing operating expenses
A Period of Restoration starts on the ______ and runs until the building is or should be ____.
Day of the loss, repaired
To avoid the coinsurance requirement in a Business Income coverage you could select the ______ option in which you agree to a maximum total benefit to be paid out, but that there will also be a limit to the {$alias_2} benefit that will not exceed a fraction of the total limit, such as 1/6, 1/4 or 1/3.
Monthly Limit of Indemnity
An Agreed Value contract is also referred to as a ____ contract.
Valued
If you cannot shut down your business following a loss, such as a fire, then you need to purchase ______ coverage.
Extra Expense
The peril of Windstorm also covers the peril of ____.
Hail
The Additional Coverage called Collapse covers the collapse of an insured building as the result of any one of the ______, plus collapse due to other losses, such as Hidden Decay, Hidden Insect or Vermin Damage or the Weight of People or Personal Property.
Broad Form perils
The peril of Fire also covers losses due to _____, _____, and _____ as the result of the fire.
firefighter damage, water damage, and smoke damage
Earthquake deductibles are written as a ______of the loss.
Percentage
Most of the insurance coverages that the typical business needs, whether they are large or small, are contained in one super policy called The _____.
Commercial Package Policy (CPP)
The modules are actually _____, or coverage's, that are used to construct a CPP.
Policies
You as the Producer/Agent select the ___/____/____ that are required to fulfill the needs of each individual business.
policies/coverages/modules
The seven insurance coverage's available in the CPP are Property, ____, Crime, _____, Inland Marine, Boiler & Machinery and _____.
Casualty, Auto, Farm
To keep it simple, the information that is common to all seven modules is pulled out of each module and placed in two separate cover pages called the Common Policy Declarations and the ______, which must appear in every CPP.
Common Policy Conditions
Coverage under a CPP will begin at 12:01 ___ Standard Time.
a.m.
The Common Policy Conditions state that the key Named Insured who controls the CPP for the business is called the _____.
First Named Insured
Changes to the CPP can be requested by the First Named Insured. Such changes may be made in writing by the insurance company and are called policy _____.
Endorsements
If an Endorsement is written to cover several modules of the CPP, it is called an______.
Interline Endorsement
If your business purchases a CPP, then the insurance company has the right to examine your corporate ____ and ____.
Books and Records
Policy premiums are to be paid by ____.
The First Named Insured
If the insurance company wants to cancel the policy, it must give timely written notice to ______.
The First Named Insured
The tendency for people who have a high need for a particular type of insurance coverage to buy that insurance is called _____.
Adverse selection.
Under the National Flood Insurance Program (NFIP) private insurance companies sell the policies and collect the premiums, but ultimately, the ____ is the Insurer and takes the risk.
Federal government
All residential _____, _____, and _____ buildings in designated areas are eligible for Flood insurance. Ineligible property for NFIP includes crops, docks and structures that are not buildings.
Dwellings, Farm, and Commercial
Under the Flood program the standard deductible is $ ____ and is applied twice: once on the building and again on the ____.
$750, contents
The definition of Flood would include Mudslides/Mud flows (but not _____), Underground Water or the _____.
Landslides, Backup of Sewers or Drains
The Homeowners policy provides adequate property and liability coverage for ____, _____, and _____ watercraft (low risk and cheap).
Small, Slow, and Inexpensive
However, the Homeowners Policy does NOT provide Theft coverage for boats or motors that are located away from the _____.
Residence premises
A Homeowners policy does NOT provide Liability coverage for high risk boats, such as high performance ____, water ski tow boats, personal watercraft or {$alias_1}.
Bass boats
If a customer has an expensive high risk boat of the size that is normally trailered behind a private passenger motor vehicle, you would probably recommend a _____ policy.
Boat owners
If you own a larger boat that you can live on and cruise long distances on, you would insure it using a ____ policy.
Yacht
Suppose your Yacht policy states that the coverage's are provided only if you use your boat in the inland waters of the U.S. or Canada. These are referred as _____.
Territorial limits
Yacht policies provide Workers Comp-type coverage's for a paid captain and crew. This coverage is called _______.
Long shore and Harbor Workers Compensation.
Marine coverage's are primarily for property that is in _____.
Transit
____ Marine policies are used to insure ships and _____ that are exposed to the perils of the sea (which also includes rivers, streams and the Great Lakes).
Ocean and Cargo
____ Marine policies are used to insure: 1. ____ that is in transit where there will be no exposure to the perils of the ____, such as by railroad, air or by truck; 2. Stuff that is move able, like jewelry, fire arms or bulldozers, or 3. Things that help in transportation, like bridges, ____ or docks.
Inland, Cargo, Sea, Tunnels.
The 1976 Nationwide Marine Definition states that there are six categories of Marine. They are (1) Imports (cargo); (2) Exports (cargo); (3) _____ (cargo); (4) Bridges, Tunnels, Docks, and other Instruments of Transportation and Communication and two types of ____ policies: (5) Personal and (6) Commercial.
Domestic Shipments, Floater
The FAIR Plan is designed to provide ____ insurance to individuals living in high risk ____ areas.
Property and Urban
FAIR stands for _______.
Fair Access to Insurance Requirements
Most individuals who drive private passenger automobiles for personal use insure their automobiles using a _____.
Personal Auto Policy
Virtually ____ can buy a Personal Auto Policy. You don't even need a driver's license or own an auto. (You could own a limo complete with a driver, or you could be a city dweller with no car but occasionally drive other people's cars.)
Anyone
A private passenger automobile means a ____-wheeled vehicle including SUVs, vans, sedans, pickup trucks, sports cars, station wagons and jeeps.
Four
A Family Member (or _____) is a person related to the Named Insured by blood, marriage, or adoption and living at the same address. A student, although away at school, is still considered a ____. Even Grandpa Joe is a _____if he lives with the Named Insured.
Relative
_____ includes riding in, getting in, getting out, sitting on, riding on or loading an auto.
Occupying
A Trailer is a vehicle designed to be towed by a ______.
Private passenger automobile
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________.
Temporary Substitute Auto
A Temporary Substitute Auto is a non owned vehicle or trailer that is being used by the Insured due to the unavailability of the Covered Vehicle as the result of its ____,_____,_____,_____.
breakdown, repair, servicing, loss or destruction.
Car Pooling accidents are covered. But if you are driving your car as a ____ (Public of Livery Conveyance / Car For Hire), you have no auto coverage.
Taxi
Your Personal Auto policy will exclude coverage for your company car because it is provided for your _____.
Regular and Frequent Usage
Car Pooling accidents are covered. But if you are driving your car as a ____, you have no auto coverage.
Taxi
Coverage A Liability pays for the _____ and the ____ that you do to the Other Guy's body or to the Other Guy's stuff.
Bodily Injury (BI) , Property Damage (PD)
Coverage B Medical Payments pays for medical treatment to you or your Family if any of you are injured while occupying _____ or if you sustain bodily injury as a _____ when hit by a motor vehicle.
Any motor vehicle, Pedestrian
Coverage C Un and Under-insured Motorists coverage protects you, your Family and any ____ riding in your car.
Passenger
A hit and run driver is presumed to be an uninsured motorist only for _____ claims.
Bodily Injury
A driver who has insurance but less than the minimum limits in the state where the accident takes place is an _____.
Uninsured Motorist
If the liability limits are written on a split limit basis, the first number is the most that the Insurer will pay for _____ to any one person you injure in an accident. The second number is the most that the Insurer will pay total for __ to all the people you injure in any one accident. The third number is the maximum the Insurer will pay for ____ for all of the other guy's stuff you wreck in any one accident.
Bodily Injury, BI, Property Damage
The Single Limit version of the Split Limit 25/50/10 is $_____. Simply add the maximum ____ number to the maximum __ limit to come up with the equivalent Split Limit.
$ 60,000, BI, PD
An Insured Person is defined as the Named Insured and any ____ using any automobile, or ____ person using the Named Insured's _____ with permission.
Family Member, Any, Covered Auto
Defense Costs and all other Supplementary Payments, such as the cost of appeal bonds, bail bonds and interest on settlements, is paid ____ the limits of liability.
In addition to
Coverage A Liability Exclusions state that your auto policy will not pay for injuries you inflict on one of your own employees, nor will your policy pay for damages inflicted on a Third Party by anyone driving your car who is in the ____ business.
Garage
Coverage B Medical Payments will pay for you or your Family's medical and _____ expenses incurred within _____ years of the accident. However, pain and suffering and ____ are not covered.
Funeral, Three, Lost wages
You and your Family are covered by Med Pay as _____.
Pedestrians
Others traveling with you in your auto are also covered by your ____..
Med Pay
Coverage B Exclusions state that you don't have Med Pay coverage if you live in your vehicle, like your RV, or if you are _____.
Injured on the job
Med Pay limits are written on a_____ basis.
Per person per occurrence
To collect under Coverage C Un and Under-insured Motorists coverage, The Other Guy who caused the accident must be ______.
Legally at fault.
If you have Coverage C Un and Under limits of 100/300/100 and The Other Guy has Coverage A limits of 25/50/10, the most that you could collect from your carrier for a Coverage C claim for BI to one Insured is $ ___.(Hint: The most that you can ever collect on a Coverage C loss is your own Coverage C limit.)
$75,000
With Coverage C Underinsured Motorist coverage limits, you never ADD The Other Guy's liability limits to yours. You _____ them.
Subtract
If your company pays you an Uninsured Motorist claim, then your company will assume your legal rights to sue The Other Guy under the process called _____.
Subrogation
Coverage D Damage To Your Auto is also referred to as _____.
Physical Damage
The two key Physical Damage coverage's are____ and ____.
Collision and Comprehensive/Other than Collision
The peril of Collision includes vehicle ____ or _____.
Upset or Overturn
The perils of Fire, Flood, Hail or the Breakage of Glass are covered under _____.
Comprehensive/Other Than Collision
Contact With A Bird Or Animal is considered an _____.
Other Than Collision loss.
The Comprehensive coverage that pays you up to $20 per day to rent a car after your car has been wrecked or stolen is called ______ . It pays with a $0 deductible.
Transportation Expense
Coverage D Physical Damage Exclusions include Wear and Tear, Electronic Equipment and _____.
Government Confiscation
Coverage D losses are settled on an ____ basis.
ACV
Duties After An Accident or Loss include sending ____ to the insurance company, providing Proof of Loss if requested, and preventing _____ to your property.
Prompt Notice, Further damage
In contrast, Dwelling policies are available for homeowners who ____ their dwellings to other people to live in.
Rent
While the general rule for Homeowners is that the homeowner must own and live in (occupy) the dwelling, the exception to the rule is the ___, which is for renters/tenants.
HO-4
The ____ is for condominium owners.
HO-6
The HO-4 has no Property coverage on the building because the renter has no ____ in the building.
Insurable interest
Of the seven Homeowners forms, five are designed to cover both the building and the ____.
Contents/Personal Property.
The remaining two forms, the HO-4 (Tenants) and the HO-6 (Condominium Unit Owners) provide little or no ____ coverage.
Building or Dwelling
To qualify for a Homeowners policy the dwelling must be used principally as a residence, although certain ___ businesses are allowed, such as a small dance studio, professional office, private school or day care center.
Low risk
The Homeowners policy owner is referred to as the ____.
Named Insured
The policy owner's spouse automatically has the rights of a Named Insured if he/she lives at the ____.
Same address
The dwelling that you live in, and any other structures as well as the land that goes with it, is referred to as your _____.
Residence Premises
A much broader definition of covered locations where you have premises type liability coverage is called an____, which would include locations such as a newly acquired premises, cemetery plots and a premises that you occasionally rent for non-business purposes.
Insured Location
Homeowners Coverage A covers your ____.
Dwelling
Homeowners Coverage B covers ____ such as a detached garage, storage shed, fence or swimming pool.
Other Structures
Homeowners Coverage C covers your stuff, which is called _____.
Personal Property
Coverage C covers your stuff anywhere in the ____.
World
Homeowners Coverage D covers your ____ of your dwelling following a covered loss, which is also called _____.
Loss Of Use, Additional Living Expenses
HO-1 and HO-8 policy Coverage's A and B are written on a ____ form Cause of Loss. Coverage C is also written on a ____ form Cause of Loss.
Basic forms
HO-2 policy Coverages A and B are written on a ____ form Cause of Loss. Coverage C is also written on a ____ form Cause of Loss.
Broad forms
HO-3 policy Coverages A and B are written on a ____ form Cause of Loss. But Coverage C remains at the ___ form level.
Special and Broad
HO-5 policy Coverage's A and B are written on a ____ form Cause of Loss. Coverage C is also upgraded to ____ form Cause of Loss.
Special forms
Both the HO-4 and the HO-6 policy Coverage Cs are written on a ___ form Cause of Loss.
Broad
Loss Settlement under Coverage's A and B are paid on a ___ basis as long as the dwelling is insured for at least __ percent of its replacement cost.
Replacement Cost, 80
Loss Settlement under Coverage C is on an ___ basis unless the coverage is upgraded to _____ by endorsement for a higher premium.
ACV, Replacement Cost
Earthquake coverage can be added to an HO policy by ___ and is written with a ___ deductible. But the minimum deductible is ___.
endorsement, percentage, $250
The Inflation Guard endorsement automatically raises the Coverage A and B limits on a _____ basis during the policy year.
Pro rata
HO Section II is a _____.
Personal Liability Policy
Personal Liability coverage provides protection to you and your family for your negligence that results in the____ or _____ to a third party (The Other Guy).
Bodily injury (BI) or Property damage (PD)
HO Section II also provides _______ coverage on a No Fault basis in an attempt to avoid lawsuits.
Medical Payments to Others
Medical Payments coverage will not pay for the medical expenses of the Named Insured or any regular resident of the Insured's household, except for a _____, such as a paid nanny, valet or butler who ARE covered by Med Pay.
Residence Employee
Anyone who RENTS an apartment or a house needs _____, which provides fire protection for the property that is in their Care, Custody and Control but that they do not own. All HO policies provide this protection.
Fire Legal Liability
A Mobile Home Endorsement can be added to an ____ or an ____ policy.
HO-2 or HO-3
Again, Dwelling policies are available to homeowners who ____ their dwellings to others.
Rent
DPs are very similar to the same numbered HO's except that they do not have ____ or ____ coverage's. However, these coverage's can be added by endorsement for an ____ in premium.
Theft or Liability, Increase
There are only three DP forms: ____, ____, and ____.
DP-1, DP-2 and DP-3
The DP-1 covers only three perils, ____, _____ and ____. However, essentially Basic coverage's can be obtained by adding the Extended Coverage (EC) Endorsement and the ________ endorsement.
Fire, Lightning, and Explosion. Vandalism and Malicious Mischief (V&MM)
DP Coverage D is not Additional Living Expenses, but rather _____.
Fair Rental Value
Theft Coverage and Liability Coverage can be added to a DP by _____ for an increased premium.
Endorsement
____ policies are designed to protect your assets if you or your stuff injures someone else or destroys their property and you are legally liable to pay for the damages.
Liability
Liability policy benefits are paid by your insurance company to a _____ for damage you did to their body (__) or their property (__).
third party (The Other Guy), BI, PD
The physical destruction or injury to a human being is called ____.
Bodily Injury
The physical destruction or damage to stuff is called ____.
Property damage
Injury to a person's reputation or mental state is called ____.
Personal Injury
Injury to a business's reputation or public image is called ____.
Advertising Injury
There are two ways in which you can become legally obligated to pay: ____ and _____.
Settlement and Judgment
____ law governs wrongs between individuals.
Tort
____ law governs wrongs between individuals and society.
Criminal
____ is the failure to do or not do what the Reasonable Person would do or not do in the same or similar circumstances.
Negligence
There are four elements necessary to prove a case of negligence: Duty, _____, Proximate Cause and ____.
Breach of Duty and Damages
____ Damages are those payments made to The Other Guy designed to restore them, as much as possible, to their pre-injury status.
Compensatory
____ Damages are designed to punish the wrongdoer for their evil acts.
Punitive
Legal Defenses against a law suit filed by The Other Guy would include Comparative Fault, Assumption of Risk, and _____.
Contributory Negligence
States set time limits for injured parties to sue defendants that are called the _____.
Statute of Limitations
The fact that an employer can be held responsible for the negligent acts of his/her employees during the course of their employment is called _____.
Vicarious Liability
The Medical Payments section of a liability policy can pay medical benefits to an injured person without regard to fault.
Medical Payments
____ can pay benefits for doctors, dentists, hospitals, or even funeral homes but not for ___ or _____.
Med Pay, lost wages or pain and suffering
All liability policies have ______ that pay for expenses, such as Defense Costs (Lawyers, etc) and Appeal Bonds.
Supplemental Payments
Supplemental Payments are paid by the insurance company _____ the stated policy limits.
In addition to
in addition to _____ policies are designed to pay claims that exceed the limits of the primary liability policies.
Umbrella
An Umbrella policy can broaden coverage as well as deepen coverage. However, if there is no underlying coverage, the Insured will be required to pay what is called a _____.
Self Insured Retention Layer
If you lease or rent a building (or part of a building), you need ____ Liability insurance because you are legally responsible for any negligent damage you cause to your space.
Fire Legal
The first standardized property insurance policy was called the _____ of 1943
Standard Fire Policy
The Standard Fire Policy is the only P and C policy to start at 12:01 __ All other policies start at 12:01 (one minute after midnight).
p.m. and a.m.
In property insurance the specific event, such as fire, flood or earthquake, that causes a loss is called a ___.
Peril
In a Named Peril policy, should a loss occur, the burden of proof is on the _____.
Policy owner/insured
A situation or condition that increases or contributes to the probability that a loss will occur is referred to as a ______.
Hazard
Faulty wiring in a building is an example of a ____ hazard.
Physical
Actual Cash Value (ACV) is defined as _____ minus _____.
Replacement Cost, Depreciation
Under an _____ policy, the insurance company and the insured agree to a specific value for each piece of insured property before the contract is written.
Agreed Value
What someone else will pay you in cash for a piece of property at that moment in time is called its _____ value.
Fair market
The formula for Coinsurance is ____ divided by ____ times ____ = Amount Paid.
Did Carry, Should Carry, Loss
The purpose of the Coinsurance Clause in a property insurance policy is to encourage the policy owner to _____.
Insure their property to value
____ is a sworn statement made by a policy owner concerning a claim for a loss under their insurance policy.
A Proof of Loss
If the insured and the insurer can not agree on the amount that the company should pay on a claim, then either of the two parties can request an _____.
Appraisal.
Under the Appraisal provision, the two appraisers select an ____.
Umpire
Under the _____ clause if the insurance company pays a claim for a total loss, then the company has the option to take the destroyed property.
Right of Salvage
If a building contains no people and no stuff, a property insurance policy would refer to the building as _____.
Vacant
A ____ is a person (or company) who is responsible for the safekeeping of other people's property that is in their care, custody or control.
Bailee
As a policy owner, one of your duties in the event of a loss is to ____ if a law has been broken.
Notify the police
A simple way to remember about Mortgage Holder Rights is to remember that bankers ____.
Never lose
_____is the legal process by which your insurance company, once it reimburses you for a loss caused by The Other Guy, assumes your legal right to sue The Other Guy.
Subrogation
Damage to insured property caused by hurricanes, tornado's, thunderstorms or typhoons would be covered under the peril of ____.
Windstorm or Hail
A discharge of natural electricity that damages insured property is called ____.
Lightening
Firefighter damage, water damage and smoke damage would all be covered under the peril of ____.
Fire
Kids breaking into your building, throwing paint around and breaking everything they can, would be covered under the peril of ____.
Vandalism
A boulder tumbling down a mountainside that trashes your house would be covered under the peril of _____.
Falling Objects
Mother Nature's water is covered under the peril of _____.
Flood
The leaking and freezing of pipes may be covered under the peril of ____.
Water Damage
Smoke Damage is a ____ peril.
Basic
Falling Objects is a ____ peril.
Broad Form
Damage to a building caused by a wild animal, such as a deer, would be covered by the ___ Cause of Loss form.
Special
The Additional Coverage called ____ would pay for the loss of a building that falls down due to damage caused by hidden insects or vermin, or caused by any one of the named perils, like Fire.
Collapse
The taking of property by violence or threat of violence from a person is called _____.
Robbery
The taking of property from a premises that is closed and locked tight, and leaving marks of forced entry or exit, is called _____.
Burglary
____ is any act of stealing.
Theft
An insurance company that is owned by its stockholders (or shareholders) and is run for the benefit of the stockholders is known as a ____ company.
Stock
An insurance company that has no stockholders and therefore is run for the benefit of its policy owners is called a ____ company.
Mutual
A type of mutual insurance company that requires its customers to join the club in order to buy their insurance is called a ____.
Fraternal
Businesses that join together in order to self insure rather than purchase insurance from an insurance company (group self insurance) are called ____ groups.
Risk retention
An insurance company chartered in your home state is called a ____ insurer. A company chartered in another state of the U.S. is called a foreign insurer. A company chartered in another country is called an alien insurer.
domestic, foreign, alien
Insurance companies that have permission to do business in your state are called _____ insurers.
Admitted
The five required elements of a contract are ___, ____, ____, ____, and _____.
offer, acceptance, consideration, legal purpose and legally competent parties.
A statement on an application for insurance that is taken as the absolute truth is called a _____.
Warranty
A statement on an application that is taken to be true to the best of the applicant's knowledge and belief is called a ____.
Representation
A lie on an application or Proof of Loss statement is called a _____.
Misrepresentation
Hiding the truth or telling a partial truth is called _____.
Concealment
Intentionally cheating another person in order to financially benefit yourself is called _____.
Fraud
A ______ is an individual who is responsible for the financial affairs of another person.
Fiduciary
A _____ is the intentional and voluntary relinquishment of a legal right.
Waiver
Immediate insurance coverage may be available from an agent or producer through the use of an oral or written _____.
Binder
The term ____ refers to a type of contract in which only one party, the insurance company, makes any legally enforceable promises.
Unilateral
Insurance policies are _____ , which means that since the insurance company wrote the policy, if there are any ambiguities in the wording of the contract, then the company is stuck with it. The insured wins!
Contracts of Adhesion
The parts of an insurance policy would include the Insuring Agreement / Coverages, the Conditions, the Exclusions and the _____.
Declarations
The statistical fact that the larger the number of measurements or observations the more accurate any future predictions is called _____.
The Law of Large Numbers
The process of selecting, classifying and pricing insurance risks is called ____.
Underwriting
The federal law regulating the collection and use of consumer information is called the _____.
Fair Credit Reporting Act
The federal law regulating the collection and use of consumer information is called the _____.
Fair Credit Reporting Act
Agents / Producers legally represent ____.
Insurance companies
____ legally represent the insurance purchaser.
Brokers
The powers specifically granted to you in your Agency Agreement are called ____.
Express Authority
A chance of loss is called ___?
Risk
Gambling is an example of ____.
Speculative risk
Insurance will only cover ____ risks.
Pure
The transfer of risk from an individual or business to a professional risk taking company is called ____.
Insurance
Loss is defined as _____ hurt.
Financial
Having your car stolen is an example of a ____ loss, whereas not having the use of your stolen car would be referred to as an _____ or consequential loss.
Direct and Indirect
Insurance that covers your stuff is called ____ insurance.
Property
Insurance that protects you when your stuff gets you in trouble with The Other Guy is called ____ or _____ insurance.
liability or casualty
Property insurance policies are ____ party contracts, whereas liability policies are ____ party contracts.
Two party contracts, Third party contracts
In insurance lingo, if you have a financial interest in a piece of property, you are said to have an _____.
Insurable interest
When an insurance company pays a policy owner on a claim, the company is said to have _____ the insured.
Indemnified
The stated maximum that an insurance company will pay on a claim is called the _____.
Limit of liability
Losses that are specifically NOT covered by an insurance policy are called _____.
Exclusions
Iron rusts. Cheese turns moldy. In insurance lingo, these latent defects are called ____.
Inherent vice.
In proportion, share or ratio is called ____.
Pro rata.
The promise in your P and C policy, which states that modifications that make the contract more generous and put into effect during the policy period will be automatic enhancements to your policy, is found in the _____ clause.
Liberalization
The transfer of ownership of an insurance policy from one individual to another is called _____.
Assignment
The refusal of an insurer to continue insurance coverage beyond the end of the policy period is called ____.
Non-renewal.
The termination of an insurance policy during the policy period by either the insurance company or the insured is called _____.
Cancellation
If the insurance company cancels a policy, then the customer is entitled to a ____ refund of premium
Pro rata
If an insured cancels his/her policy, then they are only entitled to a ____ refund of premium.
Short rate
In addition to the policy, written proof of insurance coverage is provided by a _____.
Certificate of insurance
A written modification or addition to a policy of insurance is called an ______.
Endorsement
In personal lines insurance policies, the individual(s) who have the rights and duties under the policy are called the _____.
Named Insured(s)
In commercial lines the key contact person who represents the Named Insured(s) is called the ______.
First Named Insured
An ____ is a sudden, unforeseen and unintended event that happens at a known place and known time.
Accident
A broader definition of accident that also covers losses that occur over time as the result of continuous and repeated exposure to injurious conditions is called an ______.
Occurrence
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