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Insurance > Insurance Notecards #2 > Flashcards

Insurance Notecards #2 Flashcards

(118 cards)

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1
Q

Personal Effects Floater

A

Covers items carried by tourists and travelers around the world.

Scheduled a sublimit to 10% of scheduled limits

Insurer pays up to $100

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2
Q

Tort exemption

A

With the no limitations lawsuit option a person is liable for non-economic loss
Liability may extend to person who are not required to keep PIP Cov
If no tort selection, limitations on lawsuit applies

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3
Q

Purpose of NJIUA

A

Provide needed goods, services, jobs
Attract and retain private capital in central city areas
Provide insurance to enable homeowners to purchase and improve property

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4
Q

Dwelling insured by NJIUA cost and coverage

A

600k and max PPC if coverage is 50% of building limit

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5
Q

Producers that hold a resident producer license in a state other than NJ may obtain a non resident license if:

A

The person is currently licensed in good standing in their home state

Paid required fees

Reciprocal basis

A nonresident producer must file a change of address and provide certification from the new resident state within 30 days of legal change of residencey

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6
Q

Certificate of Diligence Effort

A

Producer and surplus line agent must keep certificate at least 5 years
Applies only after declined 3 times by issuer
Submit to surplus agent within 30 days

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7
Q

General Service Fee

A

1 Per year
May not exceed $20
No fee for sale or service of insurance

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8
Q

To be negligent

A

Duty owed
Violation of duty
Proximate cause
Foreseeable consequences

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9
Q

HO 1 Section is

A

Coverages A, B, C, D
Dwelling
Other structures
Personal Property
Loss of use - Additional living, fair rental

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10
Q

HO 2 Section is

A

Coverages E and F
Personal Liability
Medical Payments

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11
Q

Only renew / cancel policy after X days

A

Not less than 30 or more than 120

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12
Q

Net Participation determines

A

Profit or loss relative to all participants

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13
Q

Personal Jewelry Floater

A

30 days auto coverage
25% of amount of insruance or less than 10k

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14
Q

Broker

A

Represent insured
Place insurance with company not an agent

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15
Q

Penalty for decpetion

A

5k and 10k if they know

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16
Q

insuranable interest

A

Lawful and substantial economic interest in safety or preservation of property from loss and destruction

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17
Q

FAIR Plan

A

Provide adequate market, a means to purchase basic property insurance when it cant be obtained by regular markets
Loss paid by insurance industry
Must be insurable risk
Every Insurer must be a member of the association

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18
Q

Fine Art Floater

A

Excluded: Breakage of window, glass wear
Covered: Fire or lightning, explosion, windstorm, earthquake, theft
90 days 25% coverage

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19
Q

Fraud act violation costs

A

1 - $5k
2 - $10k
3 - $15k

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20
Q

Unfair method of competition violation

A

$5k initial
$10k secondary

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21
Q

Essential property insurance

A

Minimum insurance provided by FAIR plan, as defined and limited in the policy with extended coverage

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22
Q

FAIR Violation

A

1 - $2k
2 - $5

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23
Q

PAIP Rates (Personal Auto Insurance Plan) Collision and comprehensive

A

Valued between 15k and 25k - Must be experience rated
25K and up must be experienced rated

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24
Q

Uninsured Definition

A

Hit and run vehicle
BI liability but was denied
BI but insurer was insolvent
Special Automobile insurance

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25
Uninsured Coverage Requirments Limit
250k per person BI 500k per accident BI 100k Per person damage - $500 deducible
26
US vs South EAsten Associations
Insurance was interstate Commerce and when conducted across state line subject to federal regulations
27
Minimum Liability Coverage for uninsured BI
15k for 1 person 30k for 2+ people 5k for property damage caused by uninsured, $500 deductible
28
Eligibility Points
Point value based on driving record
29
Auto Inspection after accident
Inspect auto before coverage Request inspection of damage before repair Can pick repair shop but might invalidate warranties No inspection for new cars
30
Denial of coverage Median
The applicant same median the application is made and why it is denied If orally, written explanation within 90 days
31
Required to insure
Must provide auto coverage if eligible except: Exceed quota of UEZ Financially unsafe May dey coverage as allowed by Law competition
32
Residence burglary and robery limits
15k
33
PAIP Service Carriers
LAD
34
UEZ Program
Underserved areas Designed to increase insurance Quarterly report within 10 days of quarter ending Violation - 1k, 2k not exceed 5, suspension of insurance certificate
35
PAIP Coverage to NJ
Qualified applicants and apportion these risks equally among insurer in order to insure competition in auto market Must be NJ resident and garaged in NJ Expect military
36
Permanent total
Injury prevents worker from being able to do any work for rest of life Schedule of benfits
37
Temporary Total
Injury employee is expected to revoer and return to work Unable to do work while recovery
38
Temporary Partial
Do some work but is unable to earn full wage until recovered
39
Permanent Partial
Employee is able to do some work but will never fully recover
40
CAIP Purpose
Provides and apportions among insurers coverage for commercial auto Every insurer must participate Applicant = owner of vehicles in NJ who is unable to obtain insurance 5+ vehicles = fleet
41
CAIP Liability Single Limit Coverage
Single limit 35k Coverage 5 mill excess is conditioned being able to get reinsurance
42
CAIP Physical Damage
Provides mandatory PIP coverage Physical Damage Cov = Private passenger, light truck, motorcycle, Policy may not provide if 25 older, trucks, 20+ persona car Comp + Collision = ACV - Deductible
43
CAIP Service Carrier
Profits credited Losses will be charged for each participant, annual audit of carrer Cant be government commitee 20 days to appeal
44
CAIP COv
Policy may not be more than 5 years Must certify inability to obtain insurance on ordinary market in 60 days Quality = NJ
45
PIP Coverage Personal Injury Protection
15k and up to 250k per person per accident 25k medically necessary for treatment of nerve or disfigurement Loss of income = $100 / 5,2k life time Essential Benefits = $12 0 4.3k life time Funeral Benefits = 1k
46
Paul vs Virgina
Each state to regulate insurance Reversed 1944
47
Basic Act Policy non renwal days
60 days but no more than 90
48
PIP Nonrenwal
15 days cancelled if no premium 20 days is cancelled
49
PIP Payments of benefits
60 days If investigate claim = 45 days 5k, 1k, 1.5k, 2k, 2.5k Deductible for accident if coverage health not in forced because covered accident = 750
50
Mccarren Ferguson 1945
Public law 15 Regulate and taxation on insurance by individual state Power = state Federal can intervene
51
PAIP Coverage bodily sublimits
250 /500/ 100 Physical damage = ACV - Deductible up to 60k
52
PAIP Split limits or combined
50 / 100 / 25
53
Producer May Not
Issue policy, binder, or cancellation. Change coverage through endorsement assign any loss
54
Notice of non payment of premium
10 days
55
Mercantile Rate
inside = $1k Outside = $1k Outside with armed guard = $5k Safe Burglary = $5k Open stock = $10k or coninsurance limits
56
Notice of Moral Hazard
10 days If insured will destroy covered property for purpose of collecting proceeds
57
Office Burglary and Robbery Limits
1k
58
Store keeps burglary and robbery
1k
59
Personal limits building and contents
900k 600k building 300k contents
60
Musical Instrument Floater
If instruments are used by any person in a paid performance, must have performance for pay coverage Named Perils 30 days, 25% coverage / 10k or less
61
Scheduled Benefits
Applies to specific permanent injuries such as a $ amount for loss of an eye or hand
62
Coastal Prep and Hurricane Risk
May increase rates by 5% max Must file within 30 days When H/O insurance policy is delivered: Explain hurricane deductible program Flood insurance program Policy summary
63
Commercial Limits
1.5mm
64
Symbol 19
Mobile equipment
65
Symbols 30
Autos left with insured for service, repair, storage
66
Symbol 31
Dealers, autos, physical damage covered
67
Workers Comp Section
Part 1 - W.C Insurance Part 2 - Employers Liability - Limits Part 3 - Other state insurance Part 4 - Duties if injuries occur Part 5 - Premium Part 6 - Conditions - Cancellation policy
68
Rate and rate making
Must have five rates with commission At least 30 days before Must consider: Past and prospective loss exp Foreseeable and catastrophic hazard Reasonable profit
69
Camera Floater
30 days 25% or 10 whichever is less TV Camera are excluded
70
Notification NJ a producer has been appointed
15 days of a contract signed or when producer sublimit first policy application
71
Commercial insurance deregulation act of 1982
Encourage price competition - to prevent monopolies
72
Exportable list
Risks for which no market insurs List created by commissioner Only coverages on list may be placed with surplus lines
73
Insurance agent
Sell, solicit, negotiate - insurance ocntract Collect premiums and countersign
74
HO-6
Unit Owners - Named Perils - A & C - Can add B through endorsement Insures real property
75
H0-8
Modified Form Named perils, Older homes ACV - if exact materials are avaiable - R.C
76
HO-5
Broadest coverage - A,B,C A B - RV C - ACV
77
HO-4
Renters and tenants Personal Prop = C
78
HO-3
Special Form A & B open peril = replcaement cost C = named p erils
79
HO-2
Braod Form Named perils - A, B, C Replacement cost - A & B (losses to the dwelling) COverage C = ACV (Personal Prop)
80
DP-3
Special form - open. Dwelling and contents - RC / Personal Property - ACTV excluded Ordinance or law. Earth movement. Water damage. Power failure. Neglect. War. Nuclear hazard. Intentional loss. Governmental action. Mold.
81
DP-2
Broad named perils Lossing to dwelling RC / Personal Property ACV Fires and lightning Hailstorms and windstorms Smoke Explosions - both internal and external Riots or civil commotions Burglary Vandalism Accidental or sudden power surges Vehicle damages Aircraft damages Accidental or sudden water damage Freezing pipes Volcanic eruptions Falling objects, like a tree Snow Structure collapse Glass breakage Accidental or sudden cracking, bulging, or tearing
82
DP-1
Basic & EC ACV Named Fire lightning, explosion Fire and lightning Internal and external explosions Windstorms Hail Riots and civil commotions Smoke Aircrafts Vehicles Volcanic explosions
83
Symbol 9
Non owned autos only insured does not own, lease, hire or rent Used for business
84
Symbol 8
Hired autos only Insured leases, hires, rents, May not owned by insured
85
Symbol 7
Described vehicles listed on declaration
86
Symbol 6
Owned autos subject to a complosorty uninsured motorist law
87
Symbol 1
Any auto if it is used in the insureds business
88
Symbol 2
Owned Auto only
89
Symbol 3
Owned private passanger auto only
90
Symbol 4
Owned auto other than private
91
Symbol 5
Owned autos subject to no fault
92
Personal articles floater
ACV / worldwide / open peril Insures individual on items on scheduled basis - personal property
93
Vicarious Liability
Assigned to one party for conduct to another, based on relationship attachment of responsibility to a person for harm or damages caused by another person in either a negligence lawsuit or criminal prosecution.
94
Uninsured Motorist
Coverage if insured is involved in accident with at fault uninsured
95
Revoke producer license is/for
Failure to pay tax Cheat on exam Convicted of a felony
96
SERP
Can't cancel premium once paid 1 time charge endorsement purchased within 60 days to end
97
Comparative negligence
Tort principle used by the court to reduce the amount of damages that a plaintiff can recover in a negligence-based claim according to the degree of negligence each party contributed to the incident.
98
Installation Floater
Property being installed Electrical / plumbing / heaitng Equipmente used by contractor for installation is seperate
99
Aggregate Limit
Applies to losses from all occurences within a specific time period
100
Prior Approval
Requires rates cannot be used until the commissioner approves the rate, or until a set time period has expired
101
How long does coverage extend for new cards
14 days
102
Personal Auto A,B,C,D
A - Liability B - Medical Payments C - Un/underinsured Motorist D - Damage to your auto
103
Part A Liability Covers
Named insured Insured spouse Other family member who resides with the named insured Any person borrowing a covered auto with permission
104
Pure no fault plan
A pure no fault plan system would abolish use of the tort system for bodily injuries from an auto accident
105
Does liability pay the owner
NEVER
106
What personal automobile are required to be purchased together
Bodily Injury and Property damage
107
Who gets paid for property damage - Personal Auto
Other guy
108
Who gets paid for phsyical damage - Personal Auto
Me
109
Liability payment
Inside car = Med pay Outside car = liability
110
Does medical pay for someone getting in / out of your car
YES MEDICAL PAY
111
DO You and your resident relatives have medical payment coverage while occupying a vehicle or as a pedestrian
YES MEDICAL PAY
112
aRE Other people covered under your medical med pay coverage while driving your vehicle or a vehicle you are driving.
YES MEDICAL PAY
113
Does medical pay cover your for injuries sustained in your own car
YES
114
Standard Mortgage Clause
Specifies the right and duties of the mortgage company under the policy.
115
The cause of loss form lists
The perils the property is insured against
116
Garage Cover Form
For Auto Dealerships
117
Form MCS-90
provides evidence of financial responsibility, on behalf of the motor carrier, to the Federal Motor Carrier Safety Administration. The endorsement must be included on all policies, and a policy must meet the financial responsibility requirements set by the Department of Transportation.
118
All of the following must be listed on Form MCS-90, excep
The policy premium amount

Insurance (3 decks)

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