Insurance Basics
This terms describes a condition that increases the chance of loss.
What is a hazard?
This is the first step in the policy life cycle.
What is submitting a new business application?
This is the part of a policy where the named insured information lives.
What are the Declarations?
The four common risk treatment methods.
What are avoid, reduce, retain, and transfer?
This optional exit removes coverage before the normal end of the cycle.
What is cancellation?
These are common endorsements seen in Commercial Auto, Property, and General Liability policies.
What is adding or deleting a vehicle? (Commercial Auto)
What is adding or deleting a location, or adding a coverage? (Property)
What is adding a form? (General Liability)
This market covers unique or hard-to-place risks with flexible, unfiled pricing.
What is the non-admitted market (surplus lines)?
A policy is cancelled for non-payment; two weeks later the insured pays the balance and asks to continue coverage - this transaction restores it.
What is reinstatement?
These are the six basic parts of a policy.
What are
Declarations
Insuring Agreements
Exclusions
Endorsements
Conditions
Definitions
The three types of producers and their functions.
What is:
Wholesale - sits between the retail agent and the carrier for harder-to-place specialty risks
Direct - the carrier sells and services the policy itself
Retail - an independent agent or broker represents the insured and places business with carriers like Arch
A customer requests an additional insured endorsement three months into the policy - this is the stage that handles it.
What are mid-term changes?
These are the four levels of forms.
What are policyholder messages, base forms, amendatory forms and state amendatory forms?
These are the five types of insurance companies.
What is
Stock - raises funds to begin business and pays dividends
Mutual - the insureds are also the owners
Reciprocal - members agree to share each other's losses
Lloyd's association - a syndicate of private insurers who voluntarily agree to insure
Fraternal - a society that offers insurance only to its members
After the cycle repeats at renewal, these two tasks may continue beyond the policy term.
What are claims and post-expiration transactions or activities?
These are the six most important categories of information to scan a policy for.
What is Policy, Identity, Protection, Schedules, Construction and Price?