Insurance Terminology
a specific cause of loss insured against in an insurance policy
Peril
a common comprehensive policy that covers the home and other structures on an open peril basis but personal property on a named peril basis
HO-3
uses single risk modeling to determine elgibility instead of closing zip codes & counties, or restricting age at new business
Fl Peninsula Family - Ovation , Edison, Fl Peninsula
covers medical bills, lost wages, and essential services for you and your passengers after a car accident, regardless of who caused it
Personal Injury Protection
Bob's home is insured for $100,000 under a dwelling policy. Yesterday his home suffered $20,000 damage from a fire. Today the home was struck by lightning, starting another fire that completely destroyed the structure. Bob's policy will pay
$100,000
the financial interest an insured has in the property being insured; this MUST exist at the time of loss
Insurable Interest
a basic named perils policy originally designed for non-owner occupied homes that provides limited coverage, excluding water damage coverage.
DP-1
Accepts owner occupied homes with lapses exceeding 45 days on HO-3 form subject to a 10% surcharge that will remain in effect for 1-year
Universal Property & Casualty
coverage is excluded from all homeowners policies for this most common type of natural disaster worldwide
Flood
The insured purchases a car for $40000 and added $5000 in insured modifications. Four years later it was worth $24000 when it was totaled in a crash. According to the principle of indemnity, how much should the insured receive from the insurance proceeds?
$24,000
method of valuation that reinforces the principle of indemnity because it recognizes the reduction of value of property as it ages andbecomes subject to wear and tear
a superior "all-risk" policy that covers the home, other structures, and personal property on an open peril basis, generally used for high value newer homes
HO-5
this company requires a 4-point inspection reports for ALL HO-3 submissions over 50 years of age with the requirement of all systems being 15 years or newer
Slide
ALL insurers transacting property insurance in Florida must offer this coverage in the event where the ground abruptly caves in, creating a visible depression, causing major structural damage (including the foundation) & the building is ordered to be vacated by authorized government agency
Catastrophic Ground Collapse
An insured with split liability limits of 100/300/100 is at fault in an automobile accident and the other vehicle sustains $6500 in property damages as well as two occupants have bodily injury and are claiming $150000 each. What is the most insurance will pay to each occupant?
$100,000
coverage helps an insured with bodily injury damage caused by another motorist when that motorist has insufficient coverage
Underinsured Motorists
a comprehensive policy generally used for rental properties that covers the home and other structures on an open peril basis
DP-3
MercuryGo
a high-risk insurance certificate proving you have minimum liability coverage 100/300/50 required for license reinstatement after serious offenses such as DUIs
FR-44
Bob has bodily injury limits of 25/50. Bob causes a car accident in which Zoe is injured. Zoe's bodily injury damages come to $65,000. Bob's bodily injury coverage will only pay for $25,000 of Zoe's damages, leaving her with $40,000 to pay. Zoe's UIM limits are 50/100. How much would insurance cover?
$25,000
Insured's UIM limits – Driver's BI limits = Amount paid by UIM coverage
$50,000 (Zoe's UIM limit) - $25,000 (Bob's per person limit) = $25,000 (what thev UIM will pay)
a separate policy that may cover claims in excess of the underlying personal insurance policy limits
Umbrella Policy
A modified homeowners form intended for use when replacement cost coverage is not practical, due to replacement cost exceeding the market value
HO-8
this company requires a 4-point inspection performed within the last 3 years for all new business risks over 15 years of age, but will cover cost & perform the inspection post bind for risks under 40 years of age
the NFIP provides federally backed flood insurance with two main coverages;____ & ____ Coverage
Building & Contents
Bob purchased a $500,000 home in March. While speaking with his neighbor Zoe, he was influenced to purchase the maximum amount of flood insurance through the NFIP, for his home and contents on June 1st. On June 15th, Bob's home was flooded due to an overflow on inland water. How much coverage does Bob have for his home?
$0