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Property and Casualty
Section A-E key facts
120
Insurance
Professional
04/25/2013
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Term
workers' compensation
 Definition
no coverage on a PAP for a mechanic who is injured while working on your car. He would be covered by _
Term
cost of defense
 Definition
is not included in the supplementary payments section of a PAP. it is in the insuring agreement, although it is in addition to limits
Term
addition to limits
 Definition
supplementary payments on a pap have no deductible and are in_
Term
250, premiums, accrued interest, and 200
 Definition
supplementary payments on a PAP include _ for bail bonds, _ on appeal bonds, _ on judgments and _ a day loss of earnings for trial appearances.
Term
hit and run driver, one whose insurer has gone bankrupt, and one who does not carry the state minimum limits
 Definition
included in the definition of an uninsured motorist is a _ (3)
Term
Primary policy, excess policy
 Definition
in an accident, the owner's PAP is always the _ policy, the driver's PAP, if different, is always the _ policy.
Term
coverage for damage to your car, collision, other than , comprehensive coverage
 Definition
coverage D on a PAP is called _ and is optional. it is divided into _ and _. coverage D is written on an ACV basis and has a deductible. Other than collision coverage known as _.
Term
colliding with another object, rollover, and upset
 Definition
collision coverage on the PAP covers _ . everything else is covered by other than collision coverage.
Term
flood, earthquake, and theft
 Definition
examples of other than collision coverage.
Term
auto medical
 Definition
on a PAP protects the insured and passengers in the car. it is an optional coverage. it is not a supplementary payment, and it is no-fault
Term
towing and labor
 Definition
an optional coverage on the PAP and costs extra.
Term
wear and tear, freezing and mechanical breakdown.
 Definition
on the PAP, exclusions under other than collision include _
Term
taxes or livery
 Definition
the PAP does not cover autos used as _ or _ but carpools are covered.
Term
excludes, HO
 Definition
while PD liability on a PAP _ damage to your own property, damage to your own garage is covered by your _ if you run into it
Term
auto assigned risk plan
 Definition
provides a method for those who have been rejected in the normal market to obtain coverage
Term
auto assigned risk plan
 Definition
all authorized insurers selling auto insurance must participate in _
Term
attending a hearing or trial at the insurer's request
 Definition
supplementary payments under a PAP do not cover the insured's loss of earnings except when the insured is _
Term
will not cover
 Definition
your own PAP ___ you driving a non-owned auto furnished for your regular use.
Term
uninsured motorist coverage
 Definition
insureds purchase ___ because of their concern of being in an auto accident with someone who has no insurance and is at-fault
Term
underinsured motorist coverage
 Definition
an insured purchases ___ because of their concern of being in an auto accident with someone who has inadequate limits of liability an is at fault
Term
other than collision
 Definition
in the personal auto policy, hitting a deer is an example of -
Term
per event/occurence
 Definition
the optional coverage limit for towing and labor pays on a _
Term
medical payment
 Definition
the _ section of the personal automobile policy pays necessary medical and funeral expenses by an accident and sustained by an insured
Term
lost wages
 Definition
the medical payments coverage found in the PAP will not pay for __
Term
collision
 Definition
hitting a pole with an insured automobile would be an example of a _
Term
part D in the PAP
 Definition
under _ in the PAP, transportation expenses are included for renting a substitute vehicle subject to a per diem of $20 for 30 days ($600 maximum) as a result of a covered loss.
Term
parking lot attendant
 Definition
A _ is not covered on your PAP while parking your car.
Term
snowmobiles
 Definition
a covered auto on a PAP includes small pickup trucks but not _
Term
other than collision
 Definition
if a bird hits your windshield, the windshield is covered under _ on a PAP
Term
Mexico
 Definition
a PAP does not provide coverage in _
Term
third-party claim
 Definition
is presented by the claimant to your insurer when you run over someone with your car.
Term
UM
 Definition
under _, if you are hit by a hit-and-run driver, you must notify the police
Term
NO
 Definition
does a PAP cover your own property in transit?

-it does cover a garage you rent damaged by a car you were driving.
Term
pedestrians you injure
 Definition
auto medical covers you and your passengers but not-
Term
estimate or appraisal
 Definition
if an auto insurer is going to use aftermarket parts for repairs, it must be stated in the _ or _
Term
motorcycles, dump trucks, or farm implements
 Definition
a pap will cover small pick-up trucks, even if used for farming and ranching, but will not cover _,_,or_ driven on the highway
Term
property policies
 Definition
flood damage is covered under a PAP, but not on _
Term
workers' compensation
 Definition
cannot be added to a package policy, it always stands alone.
Term
employer's liability coverage
 Definition
part 2 of the workers' comp policy contains the right of subrogation, to keep the injured worker from collecting twice. this is_
Term
state law
 Definition
the coverages under part 1 of a workers' comp policy are set by-
Term
assigned risk plan
 Definition
all insurers selling workers' comp must participate in the workers comp _
Term
temporary total
 Definition
under workers comp the term _ disability means you cannot work right now, but you will fully recover and return to work
Term
permanent partial
 Definition
under workers comp, the term - disability means that you lost a limb, and you might return to work but you will not be able to perform all job functions.
Term
permanent total
 Definition
under workers comp, the term - means you will never work again .
Term
unlimited basis
 Definition
medical expenses are covered by workers comp on a -
Term
66 2/3% of average weekly wages
 Definition
loss of income is covered by workers comp up to _
Term
part 2 (employer's liability)
 Definition
if the employee sues the emplyoer, _, of the workers' comp policy applies
Term
self-employed owners, partners and corporate officers
 Definition
are usually exempt from carrying workers comp
Term
totally disabled
 Definition
an employee who cannot return to work because of a disability is classified as-
Term
experience modification factor
 Definition
workers comp premiums are adjusted by the yearly frequency of employee injury, which is known as the -, which is developed by the NCCI - national council of compensation insurers
Term
workers comp assigned risk plan
 Definition
is available for businesses that are unable to obtain workers comp insurance through the normal market place
Term
National council of compensation insurers NCCI
 Definition
analyzes workers comp loss costs to determine experience modification rating factors.
Term
set by the state
 Definition
workers comp statutory coverages are set by the -
Term
must pay the mandated coverages
 Definition
if an insurer issues a workers' compensation policy that does not comply with state requirements, they must _ in the event of a claim.
Term
listed on the declarations page of the policy
 Definition
on workers comp insurance, other states coverage, will only apply to those states that are listed on the _
Term
occupational injury and disesase
 Definition
workers comp covers both - and -
Term
1.25
 Definition
an employer with an NCCI experience modification factor of _ has had more than the average number of claims.
Term
monopolistic
 Definition
when workers comp must be purchased from a state fund it is known as-
Term
competitive
 Definition
when workers comp may be purchased from the state fund or from any other authorized insured it is known as -
Term
up to 3 years
 Definition
workers comp policies are subject to premium audit by the insurer up to_ from expiration
Term
surplus lines
 Definition
coverage is written by various unauthorized companies, not just Lloyds of London
Term
difference in conditions
 Definition
coverage is purchased to fill in gaps in the underlying property policy
Term
financial damages
 Definition
lawyers e&o does not cover BI and PD, only claims for -
Term
fidelity bond
 Definition
also known as employee dishonesty coverage, guarantees honesty of employees such as bank tellers
Term
directors and officers
 Definition
- liability policies cover the management mistakes of corporate officers and board members. They do no cover illegal activities or IRS tax penalties.
Term
bodily injury liability
 Definition
malpractice liability provides medical professionals _
Term
period of the contract only
 Definition
contract bonds are normally written for the _ only
Term
risk retention group
 Definition
an insurer group formed to insure liability risks is known as a _
Term
obligee
 Definition
on a surety bond, the - is the one who will receive the benefit of the bond if the principal defaults
Term
bid bond
 Definition
guarantees that the principal will accept the job if their bid is accepted. if the bidder defaults and does not accept the job, the surety company that wrote the _ must pay a penalty to the obligee which is based on the difference between the principal's bid and the next higher bid.
Term
free on board
 Definition
in ocean marine insurance, the term - means that the seller is considered to have delivered the goods when they are loaded onto the ship at the port of shipment.
=buyer is responsible for all costs and risks of loss of or damage to the goods from that point on.
Term
guest voluntary settlement
 Definition
in aviation insurance, under a - or admitted liability, a settlement is offered, on a pre-determined basis, to passengers who have suffered bodily injury in exchange for a release of liability
Term
contract bond
 Definition
a - bond is also known as a performance bond.
Term
d&o directors and officers
 Definition
policy will cover a lawsuit brought by a shareholder against a director who unintentionally misstated the company's financial reports.
Term
personal umbrella liability
 Definition
a - policy will pay on an excess basis, only after a primary policy has already paid.
Term
excess limits
 Definition
an - policy, such as an umbrella, is one written over and above the primary liability policy's limits of insurance.
Term
retention requirement
 Definition
umbrella policies contain a- that is like a deductible and must be paid by the insured in the event of a claim
Term
retained limit
 Definition
on a personal umbrella policy, the - is defined as the policy limits of the primary policies.
Term
48 hours
 Definition
on a business auto policy BAP or on a PAP, transportation expenses are covered starting - hours after a covered auto has been stolen.
Term
hired and non-owned auto
 Definition
on a BAP, if the employer wants coverage while his employees are driving their own cars on company business, he needs to add - coverage
Term
owned auto
 Definition
on a bap if the employer's partner drives his own car on company business , he needs to add- coverage
Term
1 year
 Definition
under medical payments coverage on a CGL, medical expenses must be incurred and reported to the insurer within - from the date of accident
Term
coverage A
 Definition
the CGL policy automatically covers premises liability, BI and PD, under -
Term
out of the control of the insured
 Definition
products liability applies only after the product is -
Term
does not cover
 Definition
products liability - the cost of a recall or resulting lost income
Term
3
 Definition
the CGl always contains - coverage sections.
Term
part a
 Definition
this section of CGl is liability BI and PD
Term
part b
 Definition
this section of CGL covers personal injury and advertising.
Term
part c
 Definition
this section of CGL covers medical payments to others; there is no deductible on these coverages.
Term
occurrence limits, aggregate limits
 Definition
on a CGL, the - apply separately for each claim, but the - applies to all claims turned in during the policy period of usually 1 year
Term
us, puerto rico and canada
 Definition
the CGL policy territory is _,_and-
Term
insured contract
 Definition
the definition of - on a CGL includes leases, sidetrack agreements and elevator-maintenance agreements.
Term
back-hoe
 Definition
the bap form may cover the insured while operating semi-trucks and trailers, but no -
Term
per-person
 Definition
on a cgl,the medical to others coverage applies on a =basis
Term
per-fire basis
 Definition
on a cgl, the fire legal coverage applies on a - basis
Term
personal and advertising liability
 Definition
on a cgl, the policy limit for- is separate from other policy limits (coverage B)
Term
2
 Definition
the cgl declarations contain - aggregate policy limits
Term
general
 Definition
a - aggregate for claims relating to BI and PD other than products and completed operations
Term
separate
 Definition
a - aggregate is for products and completed operations
Term
claims made liability
 Definition
policy requires that the claim occur after the retroactive date and be turned in during the policy period or within the extended reporting period.
Term
occurrence basis liability
 Definition
policy covers claims that occur in the policy period, even if turned in after the expiration date
Term
products liability
 Definition
is often written on a claims-made basis, as is professional liability, such as malpractice, or errors and omissions liability
Term
basic extended reporting period ERP
 Definition
all claims made cgl policies contain a - which allows someone with a pending claim 60 additional days after expiration to notify the insurer
Term
5
 Definition
if the claimant notifies the insurer within 60 days of the pending claim, he has up to - years to actually turn in the claim. The Basic ERP is free
Term
supplemental ERP's
 Definition
are also available on a cgl for an additional premium. when purchased, this allows the claimant an indefinite period in which to turn in a claim that occurred during the policy period.
Term
pollution liability
 Definition
the cgl policy excludes coverage for- , although this coverage may be added by optional endorsement for an additional premium.
Term
retroactive date
 Definition
the - on a claims-made CGL only applies to coverage a (bi and pd)
Term
motor carrier act of 1980
 Definition
is a federal law requiring that commercial policies written to cover truck and environmental restoration, and have high limits of coverage
Term
burglary
 Definition
is a crime against property, using forced exit or entry
Term
theft, disappearance and destruction
 Definition
the broadest type of crime insurance is called -,-,-
Term
60 days
 Definition
in the crime policy, the insurer will only pay for a loss if it is discovered within - days after the policy ends and the crime occurred during the policy period.
Term
on premises
 Definition
a crime insurance policy that provides - coverage will cover damage to the safe
Term
off premises
 Definition
a crime insurance policy that provides - coverage will cover theft of money from a messenger
Term
reporting forms
 Definition
on garage insurance, car dealers who have fluctuating inventories should utilize -
Term
no
 Definition
does garage liability cover the cost of a recall?
Term
comprehensive
 Definition
on a bap, damage to an insured vehicle caused by a falling object would be covered under - coverage
Term
additional insured- lessor
 Definition
on a bap, to properly insure the owner of a leased vehicle, add the optional endorsement entitled -
Term
driving a company car
 Definition
business auto coverage form does not cover an employee injured while -
Term
commercial general liability CGL
 Definition
policy will provide liability anywhere in the world as long as the product was made within the policy territory and the lawsuit is filed there
Term
buy insurance
 Definition
the most common way that truckers satisfy the motor carrier act of 1980 is to-
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