Chapter 3
What is the purpose of the National Flood Insurance Program (NFIP)?
To fill the gap in flood coverage left by private insurers
Temporary substitute car
A temporary license issued valid for how long?
180 days
How many days does the insurer have to give notice of cancellation.
What type of coverage is included in Homeowners policies, but is not available in Dwelling policies?
Liability coverage
Deductible on an umbrella policy is called?
SIR - Self Insured Retention
Refers to a situation where an insurance agent or broker writes policies primarily for their own benefit or for the benefit of their closely related persons or entities (family, employees, etc.), instead of serving the general public
In Texas, at least 25% of your premiums as an agent must be coming from the general public.
What are the minimum liability limits required in Texas for auto bodily injury liability and property damage liability?
Remember X/X/X
30/60/25
$30,000 per person - bodily injury liability
$60,000 per accident - bodily injury liability
$25,000 per accident - property damage
A inland marine coverage form that provides coverage for the mobile equipment and contractors equipment not only while it is located on the job site but also during transportation to and from the job site, or while it is temporarily stored between jobs.
Contractors equipment floater
Bulldozers, farm machinery, forklifts and other vehicles, including attached equipment, designed for use off public roads would be an example of?
Mobile Equipment
Defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy.
Example: Agents giving special favors or services in connection with the sale of an insurance policy.
Rebating
Remember: Texas does not prohibit agents from giving or providing promotional materials, educational items, articles of merchandise, or traditional courtesy commonly extended to consumers valued at $25 or less.
If insurance coverage on risks located or performed in Texas is unavailable from admitted insurers, an insured may be permitted to obtain such coverage from an unauthorized/nonadmitted insurer. This coverage is known as
Surplus Lines Insurance
A type of endorsement that applies, or could apply to more than one coverage part. They are designed to eliminate redundancy and minimize the number of endorsements in the policy.
Interline Endorsements
Medical payments coverage of a BOP will pay medical, dental, hospital, and funeral services incurred within Xtime from the date of an accident.
1 Year
How long does an insurer have to acknowledge receipt of a claim?
15 days
Defined as the earliest of the date that, based on medical probability, further medical improvement to an injury can no longer be reasonably anticipated, or 104 weeks from the date that income benefits begin.
Date of Maximum Medical Improvement
What are extended covered perils on a basic Dwelling policy?
WHARVES
Windstorm, Hail, Aircraft/vehicles, Riot/civil commotion, Volcanic eruption, and vandalism & Malicious mischief.
Type of bond that guarantees specific duties or obligations will be fulfilled.
Surety Bond
Maximum fine for violating the Insurance Code
$25,000
Unless specified by the Insurance Code or another insurance law, the maximum penalty is $25,000
What are the minimum limits insurance companies must offer for Personal Injury Protection (PIP) in Texas?
$2500