PROPERTY AND CASUALTY
INSURANCE STUDY GUIDE PART ONE
REVISED EDITION FULLY SOLVED
⩥ Commercial Auto policies protect... Your business if you're in an auto
accident while working or in a company vehicle
⩥ Workers Comp policies protect... Your business if an employee is
injured on the job
⩥ Professional Liability policies protect... Your business if a client
accuses you of making a mistake or giving bad advice (AKA errors and
emissions insurance)
⩥ Commercial Property policies protect... Your business if the space,
assets, and/or equipment are damaged and need to be replaced/repaired
⩥ Fiduciary Liability policies protect... Your business from lawsuits
claiming the mismanagement of employee benefit plans
⩥ Host Liquor Liability policies protect... Businesses that don't sell
alcohol, but permit drinking on their property (generally included on a
GL policy)
,⩥ Inland Marine policies protect... Business property that gets
transported over land (such as medical equipment, construction vehicles,
etc.)
⩥ Aggregate Limit The maximum amount an insurer will pay for all
covered losses during the covered policy period.
⩥ Arbitration Settling a dispute by agreeing to accept the decision of
a neutral 3rd party
⩥ Commercial Umbrella Insurance Extends coverage beyond the
limits of scheduled underlying liability policies.
⩥ Fidelity Bond Insurance policy that pays the employer money in the
case of employees' theft
⩥ Fiduciary Someone who has to act in the best interest of another
party
⩥ GL class code Code to identify different types of businesses based on
their risk level (helps insurer determine cost)
⩥ Hold Harmless Agreement Protects a party from liability if there
are damages or losses (protects from a 3rd party's claim)
,⩥ Indemnity A payment for damage or loss (agreement between
business and insurer to help business be whole after a loss)
⩥ Insurance Adjuster Someone who evaluates damages to determine
costs insurer will pay for losses
⩥ Loss Payee A person or an entity other than the named insured to
whom the proceeds of insurance will be paid
⩥ Named Perils Only those perils specifically named in the policy are
covered
⩥ Nose Coverage Protects business from claims filed for an incident
that occurred during an older/previous policy
⩥ Open Perils All perils are covered unless specifically excluded
(common with property insurance)
⩥ Products and Completed Operations Helps cover losses if your
products/completed service causes bodily injury or damage to another
person's property
, ⩥ Products-Completed Operations Aggregate Limit The most the
insurer will pay for losses payable under Coverage A included in the
Product and Completed Operations Hazard.
⩥ Subrogation The right for an insurer to pursue a third party that
caused an insurance loss to the insured
⩥ Vicarious Liability Legal responsibility placed on one person for the
acts of another
⩥ Workers Comp class code Codes that identify type of work and
risk workers face
⩥ Direct/physical loss Self explanatory (house fire, car accident, etc)
⩥ Indirect loss Consequential loss as the result from a direct loss
(temporary housing, rental car, etc)
⩥ Peril The cause of a loss (fire, flood, disease, icy roads, etc)
⩥ Moral Hazard Results from a decision to do something wrong or be
less cautious
INSURANCE STUDY GUIDE PART ONE
REVISED EDITION FULLY SOLVED
⩥ Commercial Auto policies protect... Your business if you're in an auto
accident while working or in a company vehicle
⩥ Workers Comp policies protect... Your business if an employee is
injured on the job
⩥ Professional Liability policies protect... Your business if a client
accuses you of making a mistake or giving bad advice (AKA errors and
emissions insurance)
⩥ Commercial Property policies protect... Your business if the space,
assets, and/or equipment are damaged and need to be replaced/repaired
⩥ Fiduciary Liability policies protect... Your business from lawsuits
claiming the mismanagement of employee benefit plans
⩥ Host Liquor Liability policies protect... Businesses that don't sell
alcohol, but permit drinking on their property (generally included on a
GL policy)
,⩥ Inland Marine policies protect... Business property that gets
transported over land (such as medical equipment, construction vehicles,
etc.)
⩥ Aggregate Limit The maximum amount an insurer will pay for all
covered losses during the covered policy period.
⩥ Arbitration Settling a dispute by agreeing to accept the decision of
a neutral 3rd party
⩥ Commercial Umbrella Insurance Extends coverage beyond the
limits of scheduled underlying liability policies.
⩥ Fidelity Bond Insurance policy that pays the employer money in the
case of employees' theft
⩥ Fiduciary Someone who has to act in the best interest of another
party
⩥ GL class code Code to identify different types of businesses based on
their risk level (helps insurer determine cost)
⩥ Hold Harmless Agreement Protects a party from liability if there
are damages or losses (protects from a 3rd party's claim)
,⩥ Indemnity A payment for damage or loss (agreement between
business and insurer to help business be whole after a loss)
⩥ Insurance Adjuster Someone who evaluates damages to determine
costs insurer will pay for losses
⩥ Loss Payee A person or an entity other than the named insured to
whom the proceeds of insurance will be paid
⩥ Named Perils Only those perils specifically named in the policy are
covered
⩥ Nose Coverage Protects business from claims filed for an incident
that occurred during an older/previous policy
⩥ Open Perils All perils are covered unless specifically excluded
(common with property insurance)
⩥ Products and Completed Operations Helps cover losses if your
products/completed service causes bodily injury or damage to another
person's property
, ⩥ Products-Completed Operations Aggregate Limit The most the
insurer will pay for losses payable under Coverage A included in the
Product and Completed Operations Hazard.
⩥ Subrogation The right for an insurer to pursue a third party that
caused an insurance loss to the insured
⩥ Vicarious Liability Legal responsibility placed on one person for the
acts of another
⩥ Workers Comp class code Codes that identify type of work and
risk workers face
⩥ Direct/physical loss Self explanatory (house fire, car accident, etc)
⩥ Indirect loss Consequential loss as the result from a direct loss
(temporary housing, rental car, etc)
⩥ Peril The cause of a loss (fire, flood, disease, icy roads, etc)
⩥ Moral Hazard Results from a decision to do something wrong or be
less cautious
