Insurance Basics
This term means transferring the risk of financial loss to an insurance company.
What is insurance?
This policy covers both property and liability.
What is a package policy (e.g., Homeowners policy)?
This is the most common homeowners form.
What is HO-3 (Special Form)?
The state department regulating insurance in North Carolina.
What is the North Carolina Department of Insurance (NCDOI)?
This dwelling form provides the most limited coverage
What is DP-1 (Basic Form)?
$200This is the insured’s consideration in an insurance contract.
what is premium
This type of insurance protects personal belongings and structures.
What is property insurance?
Coverage C in a homeowners policy covers this
What is personal property?
The minimum age to apply for a personal lines license in NC
What is 18?
This part of an auto policy covers injuries to others when you’re at fault.
What is bodily injury liability?
The principle stating that the insured should be restored to their original financial position.
What is indemnity?
This clause prevents an insured from profiting off a loss
What is the insurable interest clause?
A homeowners policy doesn’t cover this kind of water damage.
What is a peril?
This is required before acting as an insurance producer.
What is a license
NC requires this minimum bodily injury coverage per person/per accident.
What is $30,000/$60,000?
These are the four parts of an insurance contract.
What are Declarations, Insuring Agreement, Conditions, and Exclusions (DICE)?
The amount paid to repair or replace property minus depreciation
What is actual cash value (ACV)?
A homeowners policy doesn’t cover this kind of water damage.
What is flood damage?
Number of hours of continuing education required every two years.
What is 24 hours?
The portion of a loss the insured must pay before insurance pays.
What is the deductible?
This type of risk is insurable: speculative or pure
What is pure risk?
The maximum an insurance company will pay for a loss.
What is the limit of liability?
This section of the homeowners policy covers liability and medical payments.
What is Section II?
Failing to notify the Commissioner of a change of address within this many days may result in penalty.
What is 10 days
This endorsement allows a dwelling policy to cover theft.
What is the broad theft endorsement