P&C Cheat Sheet (DRAFT) by srusden

HO-1
basic policy; standard insurance against perils
HO-2 Named/­named
broad form policy
HO-3 Open/named
special form policy
HO-5 OPEN/OPEN (Trees at $500)
compre­­he­nsive form
HO-8 (trees at $250)
Histor­ic/­Mod­ified market value policy; w/cash value coverage
HO-4
Renters, tenants or cooper­­ative owners policies
HO-6
condom­­inium owners policies
HO-3 is most widely used and covers all forms of loss except those specif­­ically excluded

A- Liability
B- Medical Payments
C- UM/UIM
D- Damages Collis­on+­Other than collision (animals nature)
E- Duties after loss
F- General Provisions

Max amount insurer will pay you will add Total BI+Total PD ex 25/50/25 add last 2 =75

-Insurance company cannot use negative info 7+ yrs
-Cannot look up bankruptcy 10+ years old
- If insurer wants to invest­igate must tell 3 days and show 5 days
-If insurance compan­y/agent violates FCRA can be fined $2500

25/50/15 Arizona
Insured at 200k, repair 300k, 80% with 60k loss?-­49,500
-$2.5k per year limit for electronic data under bus and personal
-Limit on pollutant clean up and removal- $10k 25% debris
-500$ standard BOP deductible
-10 days canceling nonpayment
-25k damage, billed 1k, form 500k w/ 5k ded?-$21k

Symbols: Business auto 1-9
Garage 20-31 + Garage keeper
Motor Carrie­r/T­rucker 40-50
any one of these policies you can add Business Auto Physical Damage

-Compr­ehe­nsive (anything that happens other than collision)
-Specified Cause of Loss- (fire, lighte­ning, explosion, etc)
-Collision Coverage- (hitting something)
-Towing (money to have it towed if it breaks down)
-Glass­/Bi­rd/­Mis­siles

Property I
A -Dwelling coverage
B- Other structures coverage (10% of A) (shed and garage fence)
C- Contents- personal property coverage (50% can increase 75% of A) (Firearms/ furs 2500)
D- loss of use
LIABILITY Section II
E- Personal liability coverage
F- Medical payments coverage
2,4,6,8 Named Perils (fire wind hail)
3,5 Open Perils covers everything NOT excluded
HO 5 Open/Open Mysterious Items

Agreem­ent­(offer and accept­ance) Consid­era­tio­n(both must bring value) Competent partie­s(old enough and know what doing Legal purposes (cannot break law)

Agreement: Known as Offer and Acceptance
Offer=­Cus­tomer submits and applic­ation
Accept­anc­e=i­nsurer issues policy

Consid­era­tion: Both parties bring something of value
Consid­eration on the side of the insured =Appli­cation + Premium
Consid­eration on the side of the insurer= promise to pay a claim)

Bonds are a way of making a promise to pay- Promise you will do the work
-The company sells the bond to the contractor and who will pay out if cont. fails is the 'Guara­ntor' or Surety
-The customer whos kitchen is being repaired & will be paid in bond if cont. fails is the 'Obligee' or Insured
2 TYPES of Bonds
Surety- Guarantees perfor­mance of contractor
Fidelity Bond- Guarantees person is trust-­worthy

-National Flood Ins Prog provides removal coverage for property removed 45 DAYS
-Medical paym. to others for treating an accidental injury covered 3 YRS
-Insurer owes money to the insured- 60 DAYS
-LIBEL is not an element of negligence
-Discovery period for coverage of losses under dishonesty optional coverage? 1 YR
-Insurance result of agreement or identity between subscr­ibers - RECIPROCAL
-Common law defenses for neg. liability EXCEPT- STRICT

-Contr­ibu­tory- being a fault in anyway, you cannot hold another party liable.
-Occur­rence: policy thats active during the occurrence pays
-Claims Made: the policy thats active when the claim was filed is the one that will pay

A- Dwelling
B- Other Structures (shed, gazebo 10%)
C- Contents (must be added) Flat amount
D- Fair Rental Value(­rent)
E- Additional Living Expenses (D&E 20%of A) Not on D1
-Property & Liability can be added for add.pr­emium
-NO Water damage­/Earth movement - Earthquake

DP1- BASIC 3 perils­(Trees 0) ACV
+ECP Extended Coverage Perils &(VMM- Vandal, Malicious Mischief)
DP2- BROAD - basic perils + BBB Icegol­f(Trees 500)
DP3- SPECIAL Compreh. all except excluded
ADD Theft except DP3

Extended Coverage Perils:
WHARVES Wind, Hail, Aircraft, Riot, Volcano, Explosion, Smoke
-These are additional perils that a policy­holder can opt to have coverage for beyond the basic policy, which commonly covers perils such as fire and lightning
Supple­mentary payment to liability claims:
BAILED- Bonds, Aid, Interest, Loss earnings, Expenses, Defense Cost
Policy Provisions
DICE- Declar­ations, Insuring Agree, Condit­ions, Exclusions

-DP1 insures structure of ACV
-Vandalism would not be covered on dwelling if vacant 60 days
-Oldest insurance is Ocean Marine
-Addit­ional perils covered in basic & broad is Internal Explosion
-Utmost Good Faith- obligation to act in complete honesty & disclose relevant facts
-Renewal dates are in insuring agreement
-Manual Rates are estn based on simila­rities of risk w other risk
-Duties of insure does not include notify insured of fin. difficulty

-Reins­ura­nce­-co­mpany indemn­ifies another.
-Aleatory: Unequal Exchange (insd pays small premium, insurer pays large claim)
-Cance­lla­tio­n-t­erm­inating an in-force policy
- Nonren­ewal- termin. of a policy at expiration
-Compa­rat­ive-can be at fault, but u will be respon­sible for your share of the injuries, while the other party is liable for their share