Valuation
What is ACV
Daily double - calculation for this
Actual cash value
replacement cost minus depreciation
What is a deductible?
The insureds obligation of the claim before the carrier steps in with coverage.
It is who gets paid when a loss occurs. Banks will require a loss payee endorsement when they are the lien holder on the vehicle as they want their loan obligation covered before the insured would be paid.
What party coverage is PD?
First Party
If I hit a deer, does that fall under comp or collision?
Comprehensive
How do most policies determine pay outs?
The lesser of ACV, stated amount, or cost to replace. Then minus the deductible
Why do we want occurrence deductibles vs each/every?
Limits the deductible to 1 in any single accident or you might have to pay multiple deductibles for a tractor and a trailer for example.
What is a towing extension endorsement?
Additional towing coverage in the event of a total constructive loss.
What is an occurrence limit?
Max limit available in a single event.
What is symbol 7?
Specifically described autos
Why do insureds depreciate the values of their equipment they report to the carrier?
Because you don't want to pay premiums on the higher value when they will get paid out on a lower valuation.
How do physical damage loss runs read when it comes to the deductible.
Net of the deductible. (excess deductible)
What is a 50/50/50 profit share endorsement?
Daily Double - if you have a PD policy with 100K in premium but you have 20K in losses. Would you get anything from the 50/50/50 and if so what?
If you have a profitable loss ratio the carrier will issue you a refund. This is factored first on 50% of the premium. Then subtract the loss amount from that half of premium to see if you are positive. If positive then you will split that amount 50/50 with the carrier.
Daily Double - Yes, $15,000
What is the best towing limit?
Reasonable/Necessary - unlimited
What symbol do you need when you lease a vehicle?
Symbol 8
What can you do if you do not agree with the valuation the carrier is giving for the piece of equipment?
You can get an independent appraiser.
What is an in and out deductible when there is an aggregate in place?
The in deductible is for when the aggregate is still in play and is factored before the remaining claim is applied to the agg. The out is once the aggregate is exhausted, this would be the need deductible applied to each claim.
What does a driver guideline endorsement do?
It will exclude claims if a driver involved in the claim doesn't meet the specific guidelines laid out by the carrier. YOE, violation counts, type of violations, etc.
My truck has ACV value of 80K but I still owe 100K on it. What do I need in place?
Loan Gap coverage.
I am using someone else's trailer without a contract in place. I total that trailer and asking my broker if there is coverage for this loss. They are hoping their broker says they have what coverage?
Non owned trailer.
What valuation do you ask for if you want more than ACV but not replacement cost?
Agreed Value
If I have a 100K agg with a 10K in and 20K out deductible. Tell us how much the insured would have to pay in the below situation.
Insured has 2 losses. First loss is a total loss of a new truck for 180K. Second loss what also pretty bad at 80K.
First the 10K deductible is paid. 100K agg then comes in to play. So out of the 180K the insured has paid 110K. The carrier covers the 70K.
Second claim the insured has paid the 20K deductible not the agg is exhausted from the first claim. The carrier paid 60K.
In total the insured paid 130K of the 260K in losses.
What is a salvage clause?
If the carrier pays an amount for the loss they are entitled to the salvage. This clause give the assured the first right of refusal on it.
If I do not want comp and collision coverage, what other type of coverage can I get?
Specified cause of loss
What coverage form does Allianz write on if not comp/coll?
Named perils form. We must get an endorsement to be able to certificate comp/coll with them.