Insurance Terms & Related Concepts.
To prevent an insured from making a profit on a loss?
Indemnity
What are the four parts of a standard commercial policy? / Name 1 of the four parts.
Declarations, Conditions, Coverage Forms, Causes of Loss Forms
What are the 3 Dwelling Forms?
DP1, DP2, DP3or Basic, Broad, Special.
What are the duties of a captive Agent? / Name 1
We are servicing policies, representing the insurer, and selling insurance policies.
When the insurer collects damages from the at-fault party?
Subrogation
Define Vacancy in a commercial property?
The building is closed for 60 days, or Less than 31% of the building’s available floor space is occupied for 60 days
The maximum number of families eligible for a Dwelling Policy
1-4 Family Dwellings
To qualify for Replacement Cost, you must be insured up to _____ of replacement value.
80%
When there are two or more policies on the same property.
Pro-Rata / Other Insurance Clause.
What coverage is Business Personal Property on a Commercial Property Policy?
Coverage B
Which coverage covers for loss of rent
Coverage D - Loss of Use / Fair Rental Value
What is a General Agent?
Works for only one insurer & Trains other agents.
Risk avoidance is a risk management technique that:
Eliminate Risk
Name two exclusions to the Owners and Contractors Protective Liability Form?
● Auto/ watercraft
● Contractual liability
● War and terrorist acts
● Liquor liability
● Workers compensation
● Property in the care, custody, and control of the insured
● Products
● Completed operations
On a DP1, how is loss settlement paid out?
ACV
F.L.I.E.(S) is the acronym for?
Fire, Lightning, Internal Explosion /
FL only (Fire, Lightning, Internal Explosion, Sinkholes)
What is the formula for Actual Cash Value?
Replacement cost minus accumulated depreciation
This endorsement allows the insurer to exclude specific types of accidents, products, work, or locations from CGL coverage.
Laser Beam Endorsement
This covers your building and outdoor equipment located on the premises
Coverage A (Dwelling)
W.C. S.H.A.V.V.ER is the acronym for?
Windstorm, Civil Commotion, Smoke, Hail, Aircraft, Vehicle, Volcanic Eruption, External Explosion, Riot