LIMITED LINES AUTO & HOME

TEST SUNDAY !

GENERAL INSURANCE

TRANSFER RISK FROM INDIVIDUALS TO AN INSURANCE COMPAMY

RISK MANAGMENT

THE PROCESS OF IDENTIFING, ANALYZING AND ADDRESSING POTENTIAL RISK. SPECIFIC RISK IN EXCHANGE FOR PREMIUM

PURE RISK

INVOLVES ONLY THE CHANCE OF LOSS INSURABLE —EX: ACCIDENTS & NATURAL DISASTERS

SPECULATIVE RISK

INVOLVES POSSIBLE GAIN OR POSSIBLE LOSS…EX: INVESTMENS OR GAMBLING

PRINCIPAL OF INDEMNITY

RESTORES DOESNT REWARD, NO PROFIT: RESTORES TO THE SAME FINANCIAL POSITION

INSURABLE INTERST

THE INSURED MUST HAVE SOMTHING TO LOSE FINANCIALLY OR EMOTIONALLY

LAW OF LARGE NUMBERS

A STASTICAL PRINCIPAL THAT INSURERS RELY ON TO PREDICT LOSSES ACURATELY-BY POOLING LARGE #’S OF SIMILAR RISK

PERIL

IS AN EVENT OR IS A CAUSE OF A LOSS ex: FIRE, THEFT,FLOOD-IF YOUR HOUSE IS DAMAGED BY FIRE THE FIRE IS THE PERIL

HAZARD

A CONDITION THAT INCREASES THE CHANCE OR SEVERITY OF PERIL EX: FAULT WIRE

PHYSICAL HAZARD

SOMTHING IN THE ENVIORMENT THAT CAN CAUSE INJURY, ILLNES OR HARM EX: LOUD NOISE, EXTREME TEMP, RADTION AND SLIPPERY FLOORS

MORALE HAZARDS

BEING CARELESS OR INDIFFRENT BECAUSE THEY HAVE INSURANCE TO PROTECT AGAINST LOSS. EX- THEY KNOW THEY ARE COVERED SO THEY DONT LOCK THE CAR DOOR.

MORAL HAZARD

DISHONEST ACTIONS BY THE INSURED EX: ARSON, DRINKING AND DRIVING-INTERNTIONALLY CAUSING DAMAGE

PROPERTY INSURANCE

COVERS LOSS OR DAMAGE FOR TANGIBLE ASSET LIKE HOME OR VEHICLES EX: PERSONAL BELONGINGS, FURNITURE& EQUIPMENT BUSINESS PROPERTY CASH

TANGIBLE ASSET

SOMTHING A PERSON OR BUSINESS OWNS HAS PHYSICAL FORM & VAUE -TANGIBLE MEANS YOU CAN TOUCH IT

CASUALTY INSURANCE

PROVIDES LIABILITY PROTECTION FOR LEGAL RESPONSABILITIES DUE TO INJURY OR DAMAGE TO OTHERS EX: AUTO INSURACE

LIFE INSURANCE

PAYS BENEFITS $$$ UPON INSURED DEATH TO DESIGNATED BENEFICIARIES-INSURANCE THAT PAYS YOUR LOVED ONES AFTER YOUR DEATH

HEALTH INSURANCE

COVERS MEDICAL EXPENSES OR LOST INCOME DUE TO ILLNESS OR INJURY EX: HOSPITAL STAYS, DOCTOR VISITS, MEDICAL EXPENSES, MEDICATIONA AND TREATMENTS

OUR OPTION PROVISION

GIVES INSURER THE RIGHT TO REPAIR OR REPLACE OR SETTLE ACV(ACTUALCASHVAULE)

ACTUAL CASH VALUE

IS THE REPLACEMNET COST MINUS DEPRECITION-WHAT ITS CURRENTLY VAULED AT MINUS WEAR & TEAR

STATED VALUE

VAULE AMOUNT IS BASED ON WRITTEN APPRAISAL + DESCRIPION OF ITEM INSURED

LIBERALIZATION

AUTOMATICALLY GIVES CURRENT POLICYHOLDER BETTER COVERAGE IF INSURANCE COMPANY UPDATES ITS POLICY FORMS OR IF THE LAW CHANGES TO EXPAND PROTECTION

NON- RENEWAL

30 DAYS WRITTEN NOTICE DUE TO NON-RENEWAL OF AUTO POLICY

UMBI(uninsured motorist Bodily Injury)

(Insurance pays for your medical bills and lost wages)-COVERAGE CAN APPLY TO A HIT&RUN ACCIDENT- BUT THERE HAS TO BE EVIDENCE OF DAMAGE DONE TO YOUR VEHICLE-APPLIES 2 U & UR PASSANGERS

PIP

PERSONAL INJURY PROTECTION-NO FAULT INSURANCE, HELPS PAY FOR MEDICAL EXPENSES AND RELATED COST IF YOU OR YOUR PASSANGER ARE HURT. REGUARDLESS WHO CAUSE THE ACCIDENT

COMPREHENSIVE LOSS

INSURANCE THAT PAYS DAMAGE TO YOUR CAR FROM THINGS OTHER THAN COLLISION EX: THEFT HITTING AN ANIMAL, FIRE,VANDALISIM, FALLING TREES, HAILS STORMS AND FLOODING USUALLY HAS A DEDUCTABILE

GROSS NEGLIGENCE

A SEVERE & EXTREME DISGUARD FOR SAFTEY OR PROPERTY CARE FAR BEYOND A SIMPLE MISTAKE EX: DRIVING WHILE INTOCICATED

COMPARATIVE NEGLIGENCE

A SYSTEM WHERE FAULT IS SPLIT TWO OR MORE PEOPLE, PAYOUTS AR REDUCED BASED ON EACH PERSON’S SHARE OF THE BLAME

CONTRIBUTORY NEGLIGENCE

A STRICT RULE WHERE A PERSON CANNOT RECOVER MONEY IF THEY WERE PARTLY AT FAULT FOR THEIR OWN INJURY

VICARIOUS

WHEN ONE PERSON IS HELD ACCOUONTABLE FOR THE ACTIONS OF ANOTHER- EX: EMPLOYER IS RESPONSIBLE FOR EMPLOYEE

ARIS(arson reporting information system)

DATA BASE TO AID IN THE INVESTIGATION & PROSECUTION OF ARSON RELATED INSURANCE FRAUD - EX: COLLECTION, ANALYSIS,SHARING INFOR ABOUT SUS FIRE LOSSES

SIU’S(special investigation unit)

DEDICATED TO DETECTING, INVESTIGATING AND PREVENTING FRAUD.

DWELLING INSURACE DP-1 BASIC

COVERS BASIC RISKS (fire,lightning,internal explosions)- PAYS OUT ACV, SUBTRACTING DEPRECTION FROM YOUR PAYOUT.

DWELLING INSURANCE DP-2 BROAD FORM

COVERS BASIC PERILS PLUS WIDER COVERAGE EX: ICE SNOW, FALLING OBJECTS, ACCIDENTAL WATER DAMAGE (pays out replacement cost basis-DOESNT NOT SUBTRACT DEPRECIATION)

DWELLING INSURANCE DP-3

OPEN PERILS, HIGHEST LEVEL OF PROTECTION - COVERS ALL RISK EXCEPT SPECIFIC EXCLUSIONS…ex floods, earthquakes and intentional neglect… PAYS REPLACEMENT COST BASIS

REPLACEMENT COST

THE ACTUAL AMOUNT OF MONEY IT TAKES TO REPAIR OR REPLACE YOUR DAMAGED PROPERTY. WITHOUT SUBTRACTING ANY MONEY FOR DEPRECIATION

DEPRECIATION

WEAR AND TEAR-AGING AND USAGE

HOA 2,3,5 REGULAR HOUSE

2 IS BROAD named perils only (low-risk area)- 3 IS SPECIAL Open perils, covers all risk except those excluded (standard choice)- 5 IS COMPREHENSIVE Open perils covers all ex exlusions,property open perils ex exclusions (best for high values homes)

HOA 4 ,6

HOA 4 IS RENTERS (contents only) HOA6- CONDO (upgrades)if u have a condo and it burns the owner of the whole building will build everything but if you want specific upgrades, you will need a HOA 6 for better materials….

RISK

IS THE UNCERTANTIY (may or may not) OR CHANCE (could happen) OF LOSS OCURRING

EXPRESS AUTHORITY

SPECIFIC WRITTEN POWER AN INSURACE COMPANY GIVES AN AGENT IIN THIER AGENCY CONTRACT EX: ISSUING INSURACE POLLICY, COLLECTING PROCESSING PAYMENTS, BINDING COVERAGE FOR CLIENT ON THE SPOT

IMPLIED AUTHORITY

IS NOT WRITTEN BUT NEEDED TO CARRY-OUT EXPRESSED DUTIES

PROXIMATE CAUSE

IS THE MAIN CAUSE OF LOSS, an event that is legally recognized as the primary, direct, and foreseeable cause of a resulting injury or damage

INDEMNITY

PREVENTS PROFIT FROM CLAIMS, IT ENSURES THAT THE INSURED IS COMPENSATED ONLY TO THE EXTENT OF THEIR LOSS

ADVERSE SELECTION

DESCRIBES THE TENDENCY OF HIGH-RISK INDIVIDUALS TO SEEK INSURANCE MORE ACTIVLY THAN LOWER-RISK

AUTO COVERAGES PART A

OTHER PARTY 1. LIABILITY PAYS FOR INJURIES&MEDICAL PAYMENTS 2. PROPERTY DAMAGE (money to fix their car) or fix a fence

AUTO COVERAGE’S PART B

YOU- MEDICAL PAYMENTS PER PERSON, MONEY FOR YOU IF YOUR AT FAULT

AUTO COVERAGE PART C

UNDERINSURED&UNINSURED MOTORIST NOT ENOUGH COVERAGE AND NO COVERAGE AT ALL

AUTO COVERAGE PART D

NEW CAR/ON A LOAN. - THIS IS SO THAT YOU DONT PAY A LOAN FROM YOUR CAR IF YOU TOTAL IT AND YOU'RE GIVING PAYMENTS ON IT

MINIMUM LIABILITY PER CIC (california insurance code)

THIRD PARTY OTHER PERSON 30/60/15—-30 is for injury or death .60 is for injury/death to more than one person this is the max amount it can pay . 15 is damage to property

COMPHEHENSIVE

HANDLES DAMAGES TO YOUR CAR, FROM INCIDENTS UN RELATED TO A CRASH…. EX THEFT, HITTING A DEER, VANDALISM

COLLISION

YOUR AT FAULT! -YOUR CAR CRASHES WITH ANOTHER VEHICLE HELPS PAY FOR DAMAGES, NO MATTER WHOS AT FAULT

PAP(PART E & F) Personal auto policy

further explaination

PERSONAL AUTO POLICY:PART( A.B,C,D,) E,F- E IS DUTIES AFTER AN ACCIDENT/LOSS THE STEPS U SHOULD TAKE-PARTF: GENERAL PROVISIONS includes: how policy can be cancelled ,transfer of interest,Termination & Subrogation rights

IN LAND MARINE INSURANCE

COVERS PROPERTY IN TRANSIT OVERLAND-MOVABLE PROPERTY ex: expensive camera

PROVISION

SET RULES: EXPLAINS HOW AND WHEN COVERAGES APPLIES. TERM OR CONDITION IN AN INSURACE POLICY THAT DEFINES THE RIGHTS, DUTIES,AND LIMITSOF BOTH THE POLICYHOLDER AND THE INSURACE COMPANY

TORT LAW

A LEGAL SYSTEM THAT HOLDS A PERSON OR BUSINESS FINACIALLY RESPONSIBLE ex:libel,slander,bodily injury

FEMA (federal emergency management agency

(PROVIDED THRU NFIP). Federal agency that manages disaster response and administers the National Flood Insurance Program. Administers national flood insurance program

NFIP (national flood insurance program)amount in coverage?

MAXIMUM COVERAGE IS 250,000 PERSONAL 500,000 COMMERCIAL

STATIONARY REAL ESTATE

INMOVABLE PERMANANT BUILDING DOES NOT MOVE! CAN’T BE MOVED

PPF(personal property floater)

IS EXTRA INSURACE THAT PROTECTS HIGH VAULE PERSONAL ITEMS (jewelry)