PA Insurance Laws
According to the Insurance Law, who is the Principal?
Broker
What does is mean to be uninsured vs. underinsured
Uninsured-you have no insurance, example would be a hit and run driver
Underinsured-you have the minimum requirements that the state requires
What are punitive damages
form of punishment for extreme outrageous behavior, gross negligence, or willful intent
What is worker's compensation based off of?
If the policy owner dies, what is a way that can be made sure coverage will still apply?
All premiums have to be paid on time/nothing to do with taxes! The coverage will continue for 180 days assuming these premiums are paid
Commissions can be shared between producers when?
Producers have the same line of authority
What are the PA state minimums for underinsured motorists
15/30/5
What is listed on a declarations page in an insurance policy
who, what, when, and how much
Disability payments are given after how many days of waiting period?
7 days
Why should someone be advised to get a boatowner's policy over just relying on a homeowner's policy
Someone should get a boatowners policy because standard homeowners or auto insurance typically does not provide adequate coverage for boats, there are various restrictions and rules that apply in terms of boat length and inboard and outboard motors
What is the Pennsylvania Insurance Commissioner responsible for?
Protecting the public
In Pennsylvania, what covers goods in transit over water
Cargo
Name 1-3 responsibilities of the first named insured
Pays premiums, can request policy changes, is the point of contact for the insurer, responsible for proof of loss
What is an element that worker's compensation does not pay for
Pain and suffering
An example of negligence in a car accident would be
A driver runs a red-light and hits another vehicle
Producers time to notify the insurance commissioner of change of address, administrative changes, or criminal charges
30 days
What is the purpose or purposes of coinsurance
Risk sharing, making sure person has adequate coverage, and preventing underinsurance
Someone neatly stacks newspapers by a fireplace, what is the hazard here
Physical Hazard
What are the possible consequences in PA when an employer is found to not be carrying worker's compensation?
Fines, possible imprisonment, stop-work order could be issued to the employer
How can coverage be added and modified in an insurance policy, say commercial lines policies as an example
Via endorsements
What does the PA Guaranty Association do?
Protection to insured when the admitted carriers become insolvent
What type of company would need a garagekeepers policy
Franchise auto dealer
What does the term liberalization mean
The policy is getting bigger, but the premium is not changing or increasing
What is competitive worker's compensation vs monopolistic worker's compensation in terms of policies for workers comp
In competitive states, businesses can choose from multiple insurance carriers to purchase WC insurance, allowing for price comparison and customization.
In monopolistic states, the state itself is the sole provider of WC insurance, limiting choice and potentially impacting premiums and coverage options
Which of the following could be scheduled under a miscellaneous type vehicles endorsement to the personal auto policy?
A motorcycle