Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
CPCU 551 Chapter 1
Chapter 1
| Question | Answer |
|---|---|
| The four categories of loss exposures. | Property,liability, personnel, net income |
| Six step process risk management process. | 1) Identify loss exposures, 2) Analyze loss exposures 3) Examine feasibility 4) Select techniques 4) Implement techniques 5) Monitor results |
| Risk Management can be classified 2 ways. | Risk Control or Risk Financing |
| Risk Control Techniques | Avoidance, Loss prevention, loss reduction, separation, duplication, diversification |
| Risk Financing Techniques | Retention or Transfer |
| Risk Control takes 2 approaches | Engineering Approach or the Human Behavior Approach. |
| Fires 4 elements | heat, oxygen, fuel, and uninterrupted chain reaction. |
| Heat sources for fire | electrical,chemical, mechanical, nuclear |
| Two types of commercial insurance policies. | Multiline and mononline |
| 3 common formats commercial insurance policies take. | commercial package policy, business owners policy, output policy. |
| Commercial package policy (definition) | Multiline policy composed of two or more coverage parts more can be added. |
| The two mandatory parts of a commercial package policy are? | Buildings and Personal Property and General Liability |
| Each coverage part of a policy consist of? | Declarations, Coverage Forms, Applicable Endorsements, Common Policy Conditions Form |
| Business Owners Policy (Definition) | Designed for small business, relatively uncomplicated, multiline. Highly automated and streamlined. |
| Parts of a Common Policy Conditions Form (6) | Cancellation, Changes, Examination of Books and Records, Inspections and Surveys, Premiums, Transfer of Rights and Duties Under This Policy. |
| The four categories of loss exposures. | Property,liability, personnel, net income |
| Six step process risk management process. | 1) Identify loss exposures, 2) Analyze loss exposures 3) Examine feasibility 4) Select techniques 4) Implement techniques 5) Monitor results |
| Risk Management can be classified 2 ways. | Risk Control or Risk Financing |
| Risk Control Techniques | Avoidance, Loss prevention, loss reduction, separation, duplication, diversification |
| Risk Financing Techniques | Retention or Transfer |
| Risk Control takes 2 approaches | Engineering Approach or the Human Behavior Approach. |
| Fires 4 elements | heat, oxygen, fuel, and uninterrupted chain reaction. |
| Heat sources for fire | electrical,chemical, mechanical, nuclear |
| Two types of commercial insurance policies. | Multiline and mononline |
| 3 common formats commercial insurance policies take. | commercial package policy, business owners policy, output policy. |
| Commercial package policy (definition) | Multiline policy composed of two or more coverage parts more can be added. |
| The two mandatory parts of a commercial package policy are? | Buildings and Personal Property and General Liability |
| Each coverage part of a policy consist of? | Declarations, Coverage Forms, Applicable Endorsements, Common Policy Conditions Form |
| Business Owners Policy (Definition) | Designed for small business, relatively uncomplicated, multiline. Highly automated and streamlined. |
| Parts of a Common Policy Conditions Form (6) | Cancellation, Changes, Examination of Books and Records, Inspections and Surveys, Premiums, Transfer of Rights and Duties Under This Policy. |
| Cancellation Rules | An insured can cancel at any time by written notice. Insurer can cancel with 10 days notice for non payment or 30 days for any other reason. |
| Changes Rules | Change can only be made by written endorsement. |
| Examination of Books Rules | Any time during policy up to 3 years after. |
| Other Possible Conditions (not mandatory) | Concealment, Control of Property, Insurance with 2 or more coverages, Legal Action Against Us, Liberalization, No Benefit to Bailee, Other Insurance, Transfer of Rights of Recovery Against Others To Us. |
| Control of Property | If insured does not have control of property any act of neglect will not affect coverage. |
| Legal Action Against Us | Before an insured can sue the insurer it must comply with all terms of the policy and within 2 years. |
| Liberalization | Revisions adopted to broaden coverage during policy period or 45 days before without charge are to be granted to insured. |
| Other Insurance | If another applicable policy is in place the insurer agrees to pay it's share on a pro rata basis. |
| Loss Valuation Methods (3) | Actual Cash Value, Replacement Cost, Selling Price |
| Actual Cash Value- Definition | Replacement cost minus depreciation |
| Coinsurance Equation | Did/ Should x Loss - Deductible |
| Insureds duties after a loss. | Give notice, file police report, protect from further loss, allow for inventory inspection, provide proof of loss, submit to examination under oath. |
| Appraisal disagreements | Each party selects an appraiser and the two appraisers select an umpire decision by any 2 of the three is binding. |
| Vacancy Rules | If building is vacant for 60 consecutive days the insurer is not liabile for vandalism, sprinkler damage, building glass, water damage, theft. All other perils the loss is reduced by 15%. Buildings under construction are not considered vacant. |
| Mortgageholder Rules | Insurer does pay the mortgageholder even if insured claim is denied. |
| Cancellation Rules | An insured can cancel at any time by written notice. Insurer can cancel with 10 days notice for non payment or 30 days for any other reason. |
| Changes Rules | Change can only be made by written endorsement. |
| Examination of Books Rules | Any time during policy up to 3 years after. |
| Other Possible Conditions (not mandatory) | Concealment, Control of Property, Insurance with 2 or more coverages, Legal Action Against Us, Liberalization, No Benefit to Bailee, Other Insurance, Transfer of Rights of Recovery Against Others To Us. |
| Control of Property | If insured does not have control of property any act of neglect will not affect coverage. |
| Legal Action Against Us | Before an insured can sue the insurer it must comply with all terms of the policy and within 2 years. |
| Liberalization | Revisions adopted to broaden coverage during policy period or 45 days before without charge are to be granted to insured. |
| Other Insurance | If another applicable policy is in place the insurer agrees to pay it's share on a pro rata basis. |
| Loss Valuation Methods (3) | Actual Cash Value, Replacement Cost, Selling Price |
| Actual Cash Value- Definition | Replacement cost minus depreciation |
| Coinsurance Equation | Did/ Should x Loss - Deductible |
| Insureds duties after a loss. | Give notice, file police report, protect from further loss, allow for inventory inspection, provide proof of loss, submit to examination under oath. |
| Appraisal disagreements | Each party selects an appraiser and the two appraisers select an umpire decision by any 2 of the three is binding. |
| Vacancy Rules | If building is vacant for 60 consecutive days the insurer is not liabile for vandalism, sprinkler damage, building glass, water damage, theft. All other perils the loss is reduced by 15%. Buildings under construction are not considered vacant. |
| Mortgageholder Rules | Insurer does pay the mortgageholder even if insured claim is denied. They must pay premiums due, submit for loss within 60 days, must notify the insurer of any ownership changes they find out about. |
| Loss Payees | Other then mortgage holders (like owner of leased equipment) have some rights but not as many as a mortgageholder. Provision must exist in policy. |
Created by:
GARYSCHILD
Popular Insurance sets