Key facts p&c

• Liability covers BI and PD to others for which an insured is proven to be negligent.

• The Auto Assigned Risk Plan provides a method for those who have been rejected in the normal market to obtain coverage.

• All authorized insurers selling auto insurance must participate in the Auto Assigned Risk Plan.

• Supplementary payments under a PAP do not cover the insured's loss of earnings except when the insured is attending a hearing or trial at the insurer's request. The insured's injuries are not covered.

• The personal auto coverage form will provide coverage for radios and tape decks if they are permanently installed in the dash.

• The medical payment section of the personal automobile policy pays necessary medical and funeral expenses caused by an accident and sustained by an insured.

• The medical payments coverage found in the personal automobile policy will not pay for lost wages.

• Auto medical on a PAP protects the insured and passengers in the car. It is an optional coverage. It is not a supplementary payment, and it is no-fault.

• On a PAP, an at-fault driver's injuries would be covered by medical.

Physical Damage:

• Coverage D on a PAP is called coverage for damage to an insured’s car and is optional. It is divided into collision and other than collision.

• Other than collision coverage is also known as comprehensive coverage.

• Coverage D is written on an ACV basis and has a deductible. Collision coverage on the PAP covers colliding with another object, rollover, and upset. Everything else is covered by other than collision coverage.

• Hitting a pole with an insured automobile would be an example of a collision.

• Hitting a deer is an example of other than collision.

• If a bird were to hit the insured’s windshield, the windshield is covered under other than collision on a PAP.

• Towing and labor is an optional coverage on the PAP and costs extra.

• The optional coverage limit for towing and labor pays on a per-event/occurrence basis.

• In an accident, the owner's PAP is always the primary policy; the driver's PAP, if different, is always the excess policy.

Uninsured Motorists:

• Insureds purchase uninsured motorist coverage because of their concern of being in an auto accident with someone who has no insurance and is at-fault.

• Included in the definition of an uninsured motorist is a hit-and-run driver, one whose insurer has gone bankrupt, and one who does not carry the state minimum limits.

• If an individual is concerned about being in an auto accident with someone who has inadequate limits of liability and who is at- fault, they would purchase underinsured motorist coverage.

Exclusions:

• A PAP does not provide coverage in Mexico.

• A PAP does not cover an insured’s property in transit.

• Auto medical covers the insured and any passengers, but not injured pedestrians.

• A PAP will cover small pick-up trucks, even if they are used for farming or ranching, but will not cover motorcycles, dump trucks, or farm implements driven on the highway.

• On the PAP, exclusions under other than collision include wear and tear, freezing, and mechanical breakdown.

• The PAP does not cover autos used as taxis or livery, but carpools are covered.

Business Auto:

• Business auto coverage form does not cover an employee injured while driving a company car.

• On a business auto policy, damage to an insured vehicle caused by a falling object would be covered under comprehensive coverage.

• On a business auto policy, if the employer's partner drives their own car on company business, the partner would need to add owned auto coverage.

• On a business auto policy, if the employer wants coverage while their employees are driving their own cars on company business, the employer needs to add hired and non-owned auto coverage.

• On garage insurance, car dealers who have fluctuating inventories should utilize reporting forms.

• Garage liability covers product liability but does not cover the cost of a recall.

• The garage coverage form was created for auto dealers, repair shops, service stations, parking garages, and similar risks.

• In a garage form, it is the garagekeepers coverage that provides coverage for property in the care, custody, and control of the insured.

--- Text from businessowners policy key facts.jpg --- Businessowners Policy

Businessowners Policy (BOP):

• A businessowners policy (BOP) covers bodily injury (BI), property damage (PD), and personal injury liability, but not employer’s liability.

• On a BOP, if the building has been vacant for more than 60 consecutive days, there is no coverage for vandalism, sprinkler leakage, glass breakage, water damage, or theft.

• An unendorsed BOP does not cover auto liability, including liability for the operation of a non-owned auto.

• On a BOP, loss of business income is covered without dollar limit for a maximum of 12 months.

• On a BOP, the optional endorsement designed to cover employee's property will not cover theft.

• According to the common conditions section of a BOP, an insurer may cancel a policy if the building has been vacant or unoccupied for 60 or more consecutive days.

• Manufacturing companies are not eligible for a BOP.

• A BOP may not be written for a bank or credit union.

• If an insured buys a special policy to cover his printing presses in addition to a BOP, a claim will be pro-rated.

• On a BOP, the protective safeguards warranty allows the insurer to deny a claim if systems are not properly maintained.

• An unendorsed BOP will pay claims on an all-risk basis.

• BOP written for a tenant will automatically cover tenant improvements and betterments.

• On the BOP, the inflation guard endorsement increases policy limits on each policy anniversary date by 8% automatically.

• The BOP is all-risk on both building and contents, and it contains an 80% coinsurance clause. It is written on a replacement cost basis and covers theft.

• The BOP automatically covers business liability for BI, PD, personal injury, advertising, fire legal liability, and medical.

• The protective safeguard endorsement when attached to a BOP requires the insured to maintain the sprinkler system or the alarm system in good working order.

• The aggregate limit of liability contained in CGL and BOP is the most the insurance company will pay for all occurrences during the policy period.

--- Text from commercial lines key facts.jpg --- Commercial Lines Commercial Package Policy (CPP):

• The common conditions section of a CPP permits either the insured or the insurer to cancel the policy.

• CPPs are subject to premium audit for 3 years after policy expiration.

• Business income insurance is a type of time-element coverage.

Commercial Property:

• On commercial property, replacement cost coverage, ordinance or law coverage, and value reporting forms are all optional endorsements. However, valuation is a loss condition in the policy.

• On commercial property insurance, signs that are not attached to the building are covered as business personal property.

• The commercial property leasehold interest coverage form protects an insured for the value of his lease in the event it is canceled as a result of physical loss or damage to the property by a covered cause of loss.

• The commercial property causes of loss forms are basic, broad, and special.

• The coverage territory on a commercial property policy is the US, Puerto Rico, and Canada.

• The legal actions clause on a commercial property policy states that the insured has a maximum of 2 years to file a lawsuit against the insurer.

• Commercial fire policies only cover trees, shrubs, and plants up to $500 each.

Inland Marine:

• A list of risks eligible for inland marine insurance published by the National Association of Insurance Commissioners (NAIC) is known as the Nationwide Definition.

• On equipment breakdown insurance, the insurer may inspect the insured's equipment, but they are not required to.

• The scheduled personal property endorsement is used to insure personal property with high values such as furs, antiques, and jewelry.

• To properly insure computer equipment, an individual would buy a data processing floater.

• A fine arts floater will provide automatic coverage for newly acquired fine art for 90 days.

• A scheduled personal property floater provides coverage on an ACV basis.

• In case of a loss to a pair or set, the insurer may elect to repair or replace the set to its value before the loss or pay the difference in value before and after the loss. To calculate the difference, the insurer would subtract the value of the remaining from the value of the full set.

CGL Coverage:

• On a CGL, the occurrence limits apply separately for each claim, but the aggregate limit applies to all claims turned in during the policy period.

• The CGL always contains 3 coverage sections: Part A is liability, Part B is personal injury and advertising injury, and Part C is medical payments to others. There is no deductible on these coverages.

• A CGL policy will provide liability anywhere in the world as

• Liability covers BI ad PD to others for which an insured is proven to be negligent.

• The Auto Assigned Risk Plan provides a method for those who have been rejected in the normal market to obtain coverage.

• All authorized insurers selling auto insurance must participate in the Auto Assigned Risk Plan.

• Supplementary payments under a PAP do not cover the insured's loss of earnings except when the insured is attending a hearing or trial at the insurer's request. The insured's injuries are not covered.

• The personal auto coverage form will provide coverage for radios and tape decks if they are permanently installed in the dash.

• The medical payment section of the personal automobile policy pays necessary medical and funeral expenses caused by an accident and sustained by an insured.

• The medical payments coverage found in the personal automobile policy will not pay for lost wages.

• Auto medical on a PAP protects the insured and passengers in the car. It is an optional coverage. It is not a supplementary payment, and it is no-fault.

• On a PAP, an at-fault driver's injuries would be covered by medical.

Physical Damage:

• Coverage D on a PAP is called coverage for damage to an insured’s car and is optional. It is divided into collision and other than collision.

• Other than collision coverage is also known as comprehensive coverage.

• Coverage D is written on an ACV basis and has a deductible. Collision coverage on the PAP covers colliding with another object, rollover, and upset. Everything else is covered by other than collision coverage.

• Hitting a pole with an insured automobile would be an example of a collision.

• Hitting a deer is an example of other than collision.

• If a bird were to hit the insured’s windshield, the windshield is covered under other than collision on a PAP.

• Towing and labor is an optional coverage on the PAP and costs extra.

• The optional coverage limit for towing and labor pays on a per-event/occurrence basis.

• In an accident, the owner's PAP is always the primary policy; the driver's PAP, if different, is always the excess policy.

Uninsured Motorists:

• Insureds purchase uninsured motorist coverage because of their concern of being in an auto accident with someone who has no insurance and is at-fault.

• Included in the definition of an uninsured motorist is a hit-and-run driver, one whose insurer has gone bankrupt, and one who does not carry the state minimum limits.

• If an individual is concerned about being in an auto accident with someone who has inadequate limits of liability and who is at- fault, they would purchase underinsured motorist coverage.

Exclusions:

• A PAP does not provide coverage in Mexico.

• A PAP does not cover an insured’s property in transit.

• Auto medical covers the insured and any passengers, but not injured pedestrians.

• A PAP will cover small pick-up trucks, even if they are used for farming or ranching, but will not cover motorcycles, dump trucks, or farm implements driven on the highway.

• On the PAP, exclusions under other than collision include wear and tear, freezing, and mechanical breakdown.

• The PAP does not cover autos used as taxis or livery, but carpools are covered.

Business Auto:

• Business auto coverage form does not cover an employee injured while driving a company car.

• On a business auto policy, damage to an insured vehicle caused by a falling object would be covered under comprehensive coverage.

• On a business auto policy, if the employer's partner drives their own car on company business, the partner would need to add owned auto coverage.

• On a business auto policy, if the employer wants coverage while their employees are driving their own cars on company business, the employer needs to add hired and non-owned auto coverage.

• On garage insurance, car dealers who have fluctuating inventories should utilize reporting forms.

• Garage liability covers product liability but does not cover the cost of a recall.

• The garage coverage form was created for auto dealers, repair shops, service stations, parking garages, and similar risks.

• In a garage form, it is the garagekeepers coverage that provides coverage for property in the care, custody, and control of the insured.

--- Text from businessowners policy key facts.jpg --- Businessowners Policy

Businessowners Policy (BOP):

• A businessowners policy (BOP) covers bodily injury (BI), property damage (PD), and personal injury liability, but not employer’s liability.

• On a BOP, if the building has been vacant for more than 60 consecutive days, there is no coverage for vandalism, sprinkler leakage, glass breakage, water damage, or theft.

• An unendorsed BOP does not cover auto liability, including liability for the operation of a non-owned auto.

• On a BOP, loss of business income is covered without dollar limit for a maximum of 12 months.

• On a BOP, the optional endorsement designed to cover employee's property will not cover theft.

• According to the common conditions section of a BOP, an insurer may cancel a policy if the building has been vacant or unoccupied for 60 or more consecutive days.

• Manufacturing companies are not eligible for a BOP.

• A BOP may not be written for a bank or credit union.

• If an insured buys a special policy to cover his printing presses in addition to a BOP, a claim will be pro-rated.

• On a BOP, the protective safeguards warranty allows the insurer to deny a claim if systems are not properly maintained.

• An unendorsed BOP will pay claims on an all-risk basis.

• BOP written for a tenant will automatically cover tenant improvements and betterments.

• On the BOP, the inflation guard endorsement increases policy limits on each policy anniversary date by 8% automatically.

• The BOP is all-risk on both building and contents, and it contains an 80% coinsurance clause. It is written on a replacement cost basis and covers theft.

• The BOP automatically covers business liability for BI, PD, personal injury, advertising, fire legal liability, and medical.

• The protective safeguard endorsement when attached to a BOP requires the insured to maintain the sprinkler system or the alarm system in good working order.

• The aggregate limit of liability contained in CGL and BOP is the most the insurance company will pay for all occurrences during the policy period.

--- Text from commercial lines key facts.jpg --- Commercial Lines Commercial Package Policy (CPP):

• The common conditions section of a CPP permits either the insured or the insurer to cancel the policy.

• CPPs are subject to premium audit for 3 years after policy expiration.

• Business income insurance is a type of time-element coverage.

Commercial Property:

• On commercial property, replacement cost coverage, ordinance or law coverage, and value reporting forms are all optional endorsements. However, valuation is a loss condition in the policy.

• On commercial property insurance, signs that are not attached to the building are covered as business personal property.

• The commercial property leasehold interest coverage form protects an insured for the value of his lease in the event it is canceled as a result of physical loss or damage to the property by a covered cause of loss.

• The commercial property causes of loss forms are basic, broad, and special.

• The coverage territory on a commercial property policy is the US, Puerto Rico, and Canada.

• The legal actions clause on a commercial property policy states that the insured has a maximum of 2 years to file a lawsuit against the insurer.

• Commercial fire policies only cover trees, shrubs, and plants up to $500 each.

Inland Marine:

• A list of risks eligible for inland marine insurance published by the National Association of Insurance Commissioners (NAIC) is known as the Nationwide Definition.

• On equipment breakdown insurance, the insurer may inspect the insured's equipment, but they are not required to.

• The scheduled personal property endorsement is used to insure personal property with high values such as furs, antiques, and jewelry.

• To properly insure computer equipment, an individual would buy a data processing floater.

• A fine arts floater will provide automatic coverage for newly acquired fine art for 90 days.

• A scheduled personal property floater provides coverage on an ACV basis.

• In case of a loss to a pair or set, the insurer may elect to repair or replace the set to its value before the loss or pay the difference in value before and after the loss. To calculate the difference, the insurer would subtract the value of the remaining from the value of the full set.

CGL Coverage:

• On a CGL, the occurrence limits apply separately for each claim, but the aggregate limit applies to all claims turned in during the policy period.

• The CGL always contains 3 coverage sections: Part A is liability, Part B is personal injury and advertising injury, and Part C is medical payments to others. There is no deductible on these coverages.

• A CGL policy will provide liability anywhere in the world as long as the product was made within the policy territory and the lawsuit is filed there.