Final Quiz Flashcards by Kirsten Humes

How many CE credits are needed in 2 years to renew license

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4 elements of legal contract

Offer and Acceptance, Competent Parties, Legal Purpose, Consideration (exchange)

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How many days is a temporary license good for?

180 days

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Who is a non-resident producer?

Does not live or have an office in PA

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How long do you have to report a misconduct action against you in another jurisdiction?

30 days

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Making an incomplete comparison

Twisting

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Claims-made Policy expired 1/1/2019. Claim was made 1/15/2019. The Occurrence happened prior to the retro active date. Is there coverage

No, occurrence must be after the retro date

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How long after your claims-made policy expires does the insurer have to give you to purchase the SERP

60 days

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Main difference in Occurrence vs. Claims-made policies

Coverage trigger

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Provides Seamen with a tort remedy when a work related injury occurs

Jones Act

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Endorsement that prevents a $10,000 per day penalty for not complying with the Motor Carrier Act of 1980

MCS-90

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Endorsement that prevents a $10,000 per day penalty for not complying with the Motor Carrier Act of 1980

ID Card

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Special Causes of Loss (All-Risk) covers

All unless excluded

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Endorsement needed to cover loss of income from a power outage that is due to a fire at the power company’s switch station

Utility Service – Time Element

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Four Common Law Defenses

Assumption of Risk, Act of God, Intervening Cause, Contributory Negligence

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Cause of Loss

Peril

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Condition that increases the probability or extent of loss

Hazard

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Hazard Type – Reporting a theft when no theft occurred

Moral Hazard

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How often must the Do Not Call list be consulted to remain current

31 days

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Act that requires an annual privacy notice be given to all customers

Gramm-Leach-Bliley Act

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Circumstances leading to the possibility of a loss

Exposure

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Group of insureds have a greater than average number of losses is a condition known as

Adverse Selection

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Policy written to Supplement other coverage to fill in gaps – usually for flood, earthquake or weather conditions.

Difference in Conditions

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Similar organizations create a group to cover liability losses. Must be licensed as an insurance company

Risk Retention Group

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Bonded person that is responsible to fulfill the contractual obligation

Principal

Difference between bond and insurance

Insurance = transfer Bond = guarantee and is paid back

Indemnify

Contract where each party relies on the other to be honest

Utmost Good Faith

Contract drafted by one party of power and the weaker party can take it or leave it

Contract of Adhesion

The larger the number of exposures, the closer to the results will be to the expected outcome

Law of Large Numbers

Purpose of Underwriting

Avoid Adverse Selection

Most favorable construction type for fire rates

Fire Resistive

Replacement Cost – Depreciation =

ACV

Unendorsed Homeowners Policy – what basis do we settle personal property claims

ACV

Non-economic damages including pain and suffering

General Damages

Coverage E of the Homeowners Policy

Personal Liability

Coverage D of the Farm Policy

Loss of use

Coverage B of Commercial General Liability Policy

Personal & Advertising Injury

Taking of Property by violence or threat of violence

Robbery

Purpose of an Umbrella Policy

Higher Limits/ Broader Coverage

Purchases Liability Insurance on a group basis for its members liability exposure

Risk Purchasing Group

Injured employee can no longer do a portion of the job they did before and will lose income potential because of it – Which type of Disability

Permanent Partial

Measures employers WC loss experience against the average loss experience of its job classification

Experience Modification (Mod)

New Fur coat burns up in fire – how much coverage in HO5

up to COV C limit

State minimum limits for Personal Auto Policy

15,000 per person 30,000 per accident 5,000 property damage

HO-3 provides how much coverage for Coverage B

10% of COV A

Resident Producer License fee

$55

Has sole authority as producer for geographical area for an insurer

Exclusive General Agent

Rate in which insureds with similar characteristics are charged the same rate

Manual or Class Rate

Auto Symbol – Specifically Described “Autos” Only

Motor Carrier Act of 1980 – Limit required for hauling radioactive material

$5,000,000

Hitting a deer is what type of auto property damage claim

Comprehensive

Which is not Inland Marine type for coverage – Land, Water, Air or Rail

Water *Ocean Marine

What is covered by Part B of Commercial General Liability

Personal & Advertising Injury

Broadest Coverage For Crime

Theft

Maximum amount that can be charged for a Supplemental Extended Reporting Period

200% of Expiring premium

Unlawful taking with evidence of forcible entry

Burglary

Lapse license fee to get it reinstated

$165

Producer acting honestly and faithfully with premiums is

Fiduciary Responsibility

Monetary Fine for going without Work Comp

$2,500 per day

In Work Comp – a short-term total disability

Temporary Total

Two Aggregate limits of the CGL

General Aggregate and Products/Completed Ops Agg

Personal Auto Endorsement used to change covered vehicle definition to include motorcycles or ATV’s

Miscellaneous Type Vehicle Endorsement

Commercial Auto Endorsement that gives Liability, UM/UIM, and Physical Damage Coverage to a named individual while using a non-owned auto for personal use

Drive Other Car Coverage

Must purchase Work Comp from the state fund

Monopolistic State

If the umbrella coverage is broader and drops down to cover because the underlying policy excluded coverage, what has to be paid by the insured

Self-Insured Retention

Will the unendorsed General Liability policy cover liquor liability for a restaurant that serves alcohol?

No, not if in the business of selling alcohol

Burial Allowance under the Workers’ Compensation Policy

$3,000

The BOP Protective Safeguard Endorsement can restrict what peril?

Fire

In crime policy, an employee is considered an employee for up to how long after termination

30 days

A resident producer must live and work in PA

False

Method of Handling risk where you assume the risk and pay if there is a loss

Retention

Method to promote insurance to Value in property insurance

Coinsurance

Dwelling Policy – household furniture falls under Coverage

COV C

Homeowners – what form has open perils for Dwelling and Named Perils for personal property

HO-3

Personal Auto Liability is covered for how long for a replacement vehicle

Remainder of Policy Period

Overturn of a vehicle is what type of property damage coverage

Collision

Commercial package that is in force for more 60 days can be cancelled for non-payment of premium with how many days notice

15 days

Coverage A of the CGL policy

Bodily Injury and Property Damage

Travelers Checks are considered what in the Crime Policy

Money

Work comp survivor benefit is paid to the spouse for how long

For life or remarriage, then 2 year lump sum

Covers for an employee alleging a hostile work environment

Employment Practices Liab

Who does the insurance department turn issues over to in order to prosecute

Attorney General

An agency contract gives what type of authority

Express Authority

Determines how a claim will be paid when more than one insurance policy covers the same claim

Other Insurance Clause

A fence would be covered under what Dwelling Policy coverage

COV B

Homeowners Coverage F – Medical Payments provides what basic limit of coverage

$1,000

Max gross vehicle weight for pickups or vans to be eligible for personal auto policy

9,000lb GVW

Garagekeepers covers

Customer Autos in your Care, Custody, Control

What endorsement would be appropriate for a business with predictable fluctuation of inventory certain times of year

Peak Season Limit of Insurance

A slip and fall on a wet floor is which exposure under the CGL

Premises and Operations

Employee Theft Coverage covers what types of property

Money, Securities and Other Property

Three limits under Employers Liability part of Work Comp

BI by Accident - each accident BI by Disease – Policy Limit BI by Disease – Each Employee

Three parties to a surety bond

Principal, Obligee and Surety

Wheat, barley, oats are small grains. Corn is a

Coarse Grain

Who certifies an Act of Terrorism

Secretary of Treasury in Consultation with Sec of Homeland Security

TCPA no calls before when and no calls after when

Before 8AM and After 9PM

Insurance company owned by its policyholders. Policyholders receive profits as dividends

Mutual Company

Limit that is the most that will be paid for all claims in one policy period

Aggregate Limit

Organization that will pay claims for policyholders who’s insurance company went insolvent

Pennsylvania Insurance Guaranty Association