Definitions
An insurance company transfers a portion to another insurer.
What is reinsurance
Loss of property due to unknown cause; theft must be ruled out.
What is mysterious disappearance
If a friend borrows your car and causes an accident while driving it, whose insurance applies?
What is Your policy applying first and hers applies to any excess
Type of policy limit found in liability policies that limits coverage to a specified total amount for all losses occurring within the policy period.
What is aggregate limit
Coverage __: Medical payments to others; pays all necessary medical expenses for up to three years after an accident.
What is Coverage F on homeowners' policy
The party whom the principal makes the promise and for whose protection the bond is written.
What is obligee
Method of handling risk
What is
S - Sharing
T - Transfer
A - Avoidance
R - Reduction
Provides insurance to those who cannot afford it in the normal market.
What is Assigned Risk Auto Plan
________ _____ is a type of surety bond that guarantees that person of special trust will fulfill its obligations set forth by law.
What is Fiduciary bond
Coverage __ and __ are always included in Section 1 of all Homeowners policies?
What is coverage C - Personal Property
and
Coverage D - Loss of Use
Package policy designed to provide broad property and liability coverage for small businesses; eligibility requirements are stricter than the CPP.
What is BOP
A policy that covers the costs associated with sudden and accidental breakdowns of covered equipment.
What is Equipment Breakdown Protection
Under the Coverage D - Physical Damage section of the Personal Auto Policy, Transportation Expenses are provided when it's either ______ or _______.
What is Stolen and Damaged
Federal Law that allows members of ships' crews to sue their employer/ship owner at common law for injuries caused by the owner's negligence.
What is Jones Act
True or False:
Loss caused by vandalism of an unoccupied premises is excluded under All-Risk HO policy.
What is False
Legal doctrine that states that an agent has the authority specifically given to the agent, either orally or in writing, by the principal.
What is express authority
A dwelling covered by the Basic Form suffered damage due to an explosion resulting in $5,000 damage, a resulting fire causing $10,000 in damage, and the water used to put out the fire caused $1,000 in damage, the policy would pay _____?
What is $16,000
The limits for Transportation Expenses coverage under a PAP.
What is $20/day, up to $600 max.
Bond that guarantees that someone will perform faithfully whatever they agree to do or that someone will make an agreed-upon payment to another party.
What is surety bond
contents that you moved to your new residence automatically covered under your HO3 policy if you are in the process of moving out of your dwelling for __ days.
What is 30 days
In an umbrella policy, the amount the insured must pay for a loss that is not covered by an underlining policy before the umbrella will begin to cover the loss.
What is retention limit; self-insured retention limit
CGL coverage form that provides coverage for liquor liability excluded by the standard CGL policies for those who are in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.
What is liquor liability coverage
New or used vehicles acquired by the insured during the policy period in addition to or as replacement to vehicles already owned and listed on the policy.
What is newly acquired vehicles
Insurance carried
________________ X amount of loss
Insurance required
What is coinsurance clause on property
Which of the following is NOT excluded on an HO-8 policy?
Landslide
Flood
War
Theft
What is theft