Terms & Definitions
If revision in policy form broadens coverage within 60 days of inception or during the policy period, without additional premium, insured receives the broadened coverage.
What is Liberalization?
Defined Motor vehicles (PIP)
- 4 wheels or more
-designed & required to be licensed for road use
- trailers used for same
Four components of PAP
A- Liability
B- Med Pay
C- Uninsured Motorist
D- Damage to Auto
Homeowners is also known as...
Package Policies
Valuation of Flood
What is ACV?
Statistical theory stating the larger the number of similar exposure united the more predictable and accurate the estimate of expected losses. Creditability of data increases with the size of the data pool considered.
What is Law of Large Numbers?
Complete the sentence. Out of state, out of car
What is "Out of Coverage?"
Special Limit for Non-owned trailer
What is $1500
High Risk Flood Zones
What is A and V zones?
Handles administrative functions
What is Professional Employer Organization (PEO)?
Damage from direct loss.
What is Consequential Damage?
Limit for non Emergency medical conditions
What is $2500?
Golden Rules
1) The insurance of the care you are in, is always PRIMARY
2) The owner of the vehicle is never covered under the driver's policy
Roof shape that gets you the best policy offer
What is Hip Roof?
Controlled Business
Selling insurance to those that the agent has an interest in or financial influence over. Agents must have at least 51% or more of their compensation from uncontrolled business.
Components of Lenders Interest.
1) Make lender a payee in any covered loss
2) Gives the mortgagee advance notice of cancellation/nonrenewal/reduction of coverage
3) Mortgagee is covered even if insured is engaged in act or omission preventing payment
4) Mortgagee can continue policy if premium is not paid.
When can one sue for non-economic damages?
1) Significant & permanent loss of bodily function
2) Permanent injury other than scarring and disfigurement
3) Significant & permanent scarring or disfigurement
4) Death
Policy Term for Mechanical Breakdown
What is 36 months/ 36,000 miles for new cars and 12 months/ 12,000 miles for used cars?
The coverage that is in DP 2 but not in DP 1.
What is Additional Living Expense (Coverage E)?
4 Flood Coverage Forms
1) Dwelling Form (used 80% of the time)
2) Preferred Risk Form
3) General Property Form
4) Residential Condo Building Association (RCBAP) *75% has to be residential*
Gramm-Leach-Billey Act of 1999
1) Eliminates many restrictions on banks, securities firms, insurance companies, and other financial service providers that had previously barred companies in different financial sectors
2) Information Privacy
Difference between Extended and Additional PIP
Extended PIP: increase % only; Med= 80% to 100%
Additional PIP: increase Dollar Limit only; Work loss= 60% to 80%
Supplementary Payments
- Bail Bonds up to $250 cost when required because of an accident
- Release of Attachments Bond
- Interest accruing after judgement
- Earnings loss up to $200 per day of the insured
- Full cost of Defense
Personal Property special limits
1) $200 Money
2) $1500 Securities
3) $1500 Jewelry, Furs from THEFT
4) $2500 Firearms from THEFT
5) $2500 Goldware & Silverware from THEFT
6) $2500 Business Property at HOME- on premise
7) $1500 Business Property off Premises
8) $1500 Electronic Equipment 1) in auto 2)off premises business electronics
9) $1500 Trailers &Watercraft- on premises ONLY
10) $250 Tapes, Discs and Media in a motor Vehicle
11) Property usually at other residence- 10% of C
List all Unfair Methods of Competition
-Misrepresentation
-False Statements
-Twisting
-Fraudulent Signature
-Administrative Fines
-Defamation
-Boycott, Coersion & Intimidation
-Unfair Discrimination
-Unlawful Rebates
-Churning
-Advertising Gifts
-Free Insurance
-Sliding
-Referral Fees