Property and Casualty Chapter 7

The tendency for people who have a high need for a particular type of insurance coverage to buy that insurance is called _____.

Adverse selection.

Under the National Flood Insurance Program (NFIP) private insurance companies sell the policies and collect the premiums, but ultimately, the ____ is the Insurer and takes the risk.

Federal government

All residential _____, _____, and _____ buildings in designated areas are eligible for Flood insurance. Ineligible property for NFIP includes crops, docks and structures that are not buildings.

Dwellings, Farm, and Commercial

Under the Flood program the standard deductible is $ ____ and is applied twice: once on the building and again on the ____.

$1000, contents

The definition of a Flood would include Mud flows but not ____, ____, or ____ ____.

Landslides, Mudslides, Sewer Backup

The Homeowners policy provides adequate property and liability coverage for ____, _____, and _____ watercraft (low risk and cheap).

Small, Slow, and Inexpensive

However, the Homeowners Policy does NOT provide Theft coverage for boats or motors that are located away from the _____.

Residence premises

A Homeowners policy does NOT provide Liability coverage for high risk boats, such as high performance ____, water ski tow boats, personal watercraft or {$alias_1}.

Bass boats

If a customer has an expensive high risk boat of the size that is normally trailered behind a private passenger motor vehicle, you would probably recommend a _____ policy.

Boat owners

If you own a larger boat that you can live on and cruise long distances on, you would insure it using a ____ policy.

Yacht

Suppose your Yacht policy states that the coverage's are provided only if you use your boat in the inland waters of the U.S. or Canada. These are referred as _____.

Territorial limits

Yacht policies provide Workers Comp-type coverage's for a paid captain and crew. This coverage is called _______.

Long shore and Harbor Workers Compensation.

Marine coverage's are primarily for property that is in _____.

Transit

____ Marine policies are used to insure ships and _____ that are exposed to the perils of the sea (which also includes rivers, streams and the Great Lakes).

Ocean and Cargo

____ Marine policies are used to insure: 1. ____ that is in transit where there will be no exposure to the perils of the ____, such as by railroad, air or by truck; 2. Stuff that is move able, like jewelry, fire arms or bulldozers, or 3. Things that help in transportation, like bridges, ____ or docks.

Inland, Cargo, Sea, Tunnels.

The 1976 Nationwide Marine Definition states that there are six categories of Marine. They are (1) Imports (cargo); (2) Exports (cargo); (3) _____ (cargo); (4) Bridges, Tunnels, Docks, and other Instruments of Transportation and Communication and two types of ____ policies: (5) Personal and (6) Commercial.

Domestic Shipments, Floater

The FAIR Plan is designed to provide ____ insurance to individuals living in high risk ____ areas.

Property and Urban

FAIR stands for _______.

Fair Access to Insurance Requirements