Property and Causalty

  1. What are residual markets?
    Insurance markets designed to assume risks that are generally not insurable in the normal insurance market
  2. What is the name for nonadmitted insurers who are allowed to transact business in a state?
    Surplus lines insurers
  3. What type of coverage do umbrella policies provide?
    Excess coverage over the primary poicy
  4. Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?
    Professional Liability
  5. What are the 2 types of Utility Services endorsements available in Business owners policies?
    Utility Services- Direct Damage, and Utility Services Time Element
  6. Professional Liability coverage protects the insured against legal liability resulting from what?
    Errors and omissions
  7. A business policy is sold as a package. What does that mean?
    Coverage includes both property and liability
  8. What type of policy is a Businessowners policy?
    Prepackaged, stand-alone policy
  9. When can insurance be sold through a surplus lines insurer?
    When the insurance cannot be obtained through a authorized carrier
  10. What is a second injury fund?
    A workers compensation program designed to pay for any additional benefits when an employee with previous injury suffers a second injury.
  11. What are some of the types of businesses that are excluded from coverage under a Businessowners policy?
    Auto sales and servicing, large banks, bar and grills, places of amusement, and manufacturers
  12. In surety bonds, who purchases the bonds and promises to fulfill the obligation?
    Principal or obligor
  13. When can an insured cancel a Businessowners policy?
    At any time by mailing a written notice of cancellation
  14. What are the parties to a surety bond?
    The principal (or obligor), the obligee (or insured), and the guarantor (or surety)
  15. What type of professional liability coverage will a medical doctor need?
    Medical malpractice coverage
  16. Where can National Flood insurance be issued?
    Only in participating , flood prone areas
  17. What is the purpose of the National Flood Insurance Program (NFIP)?
    To fill the gap in flood coverage left by private insurers
  18. What are the 4 types of benefits provided by Workers Compensation insurance?
    Medical payments, disability income, rehabilitation expenses, and death benefits
  19. What is the minimum amount of additional coverage provided by umbrella policies?
    $1 million
  20. A person of business that requires coverage for all liability exposure should purchase what type of insurance?
    Commercial General Liability (CGL) and Professional Liability
  21. What is the name for the deductible in liability umbrella policies?
    Self insured retention(SIR)
  22. What is the purpose of surety bonds?
    The guarantee that specific duties and obligations of the principal will be fulfilled
  23. What is the exclusive remedy doctrine?
    Injured employees cannot seek damages outside workers compensation
  24. What is the primary purpose of Workers Compensation Insurance?
    To pay benefits to employees for injuries arising out of employment
  25. What is covered by the Utility Services -Time Element endorsement in Businessowners policies?
    Loss of business income or extra expenses
Card Set
Property and Causalty
Other Property and Liability Policies