Insurance 101
Amount the customer pays for the insurance policy
Premium/rate
A driver backs into a pole and damages their own vehicle.
What is collision coverage?
A tree falls on an insured vehicle during a storm, and the vehicle carries comprehensive coverage.
What is likely covered?
A customer says, "I have full coverage, so absolutely everything is covered."
What is false because "full coverage" is not a specific coverage and every policy has limits and exclusions?
A customer calls upset about a rate increase. This should be your first response.
What is acknowledge the concern and review of the policy and renewal before offering solutions?
The amount the insured may pay before certain coverage begins paying.
What is a deductible?/deductible
Hail damages a customer's parked vehicle.
What is comprehensive coverage?
A homeowner's television stops working because it is old and worn out.
What is likely not covered?
A renter says, "My landlord's insurance covers all of my belongings."
What is false because the landlord's policy generally does not cover the tenant's personal property?
Before remarketing a policy solely to reduce the price, an agent should compare these important items.
What are coverages, limits, deductibles, exclusions, discounts, and carrier differences?
A change or addition made to an existing insurance policy.
What is an endorsement?
An insured driver causes an accident that injures someone else.
What is bodily injury liability coverage?
A pipe suddenly bursts and damages the insured's flooring and furniture.
What is likely covered, subject to the policy and circumstances?
A customer says, "The color of my car determines my insurance rate."
What is generally false?
A customer wants to remove an important coverage to save money. The representative should do this before making the change.
What is explain the risk and consequences, offer alternatives, and document the customer's decision?
The most an insurance company will pay for a covered loss under a specific coverage.
What is a policy limit?
A covered fire makes a home temporarily uninhabitable, resulting in hotel and extra meal expenses.
What is loss of use or additional living expense coverage?
Groundwater rises and enters a home, but the customer only has a standard homeowners policy.
What is likely not covered without separate flood insurance?
A homeowner says, "Home insurance covers every type of water damage."
What is false because the cause of the water damage matters and some losses are excluded?
A customer says they found a cheaper policy. These questions help determine whether it is truly comparable.
What are questions about limits, deductibles, coverages, exclusions, discounts, and the total premium?
This valuation generally accounts for depreciation when settling a covered property loss.
What is actual cash value (ACV)?
A customer causes a serious accident, and the damages exceed the limits of the underlying auto policy. This separate policy may provide additional liability protection.
What is a personal umbrella policy?
A customer reports that jewelry disappeared, but no one knows when, where, or how it happened.
What more information is needed?
A customer says, "State minimum liability limits must be enough protection because they are legally allowed."
What is false because legal minimums may not adequately protect the customer's assets or income?
A longtime customer has multiple policies and is considering leaving over price. Give the best retention approach.
What is review the entire account, confirm current needs, identify discounts or adjustments, explain value, and present clear options without pressuring the customer?