NJ PROPERTY AND CASUALTY INSURANCE|WITH COMPLETE SOLUTIONS|ALREADY GRADED A|DOWNLOAD TO PASS

Aleatory Contract Insurance policy is based upon uncertainty of a loss, equal value is not given by the parties to the contract. Utmost Good Faith Parties to the contract rely upon the integrity of one another. Insuring Agreement The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against. Conditions The rights and responsibilities of all parties of the contract. Exclusions Rights and responsibilities of both parties to the contract Monoline Policy Policy that covers only one line of business Multiline policy Policy that includes more than one type of insurance coverage. Property—Personal Lines Insurance Dwelling and contents, homeowners , mobile homes, personal inland marine floaters, personal watercraft,flood,earthquake Property—Commercial Lines Insurance Business owners BOP, commercial package policy CPP, boiler and machinery, commercial inland and ocean marine floaters Casualty— personal lines Personal liability, personal auto policy PAP, personal umbrella policy Casualty— Commercial lines Commercial general liability CGL, Business auto coverage, workers compensation and liability insurance, surety bonds, commercial crime insurance and Fidelity bonds, personal liability insurance, commercial umbrella policies and excess coverages. Surplus Lines any type of insurance for which there is no available market within the state, and the coverage must be placed with a non admitted insurer, are often allow to operate under open competition Residual market coverage A responsibility assumes by insurance regulators to step in and provide insurance situations where private insurance is not readily available when the government provides a type of insurance or mechanism to procure insurance Examples of surplus lines-federal level FloodInsurance, Federal crop insurance, nuclear energy liability insurance, terrorism insurance program. Examples of surplus lines—State level Personal auto insurance plan PAIP an assigned risk plan , commercial auto insurance plan an assigned risk plan, The fair plan (property insurance) , Worker's Compensation assigned risk programs binder A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Certificate of Insurance A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. Adverse Selection Poor risk will seek insurance in greater numbers than good risks Experience Rating A rating plan that adjusts the premium for the current policy period to recognize the loss experience of the insured organization during past policy periods. Usually 3 years retrospective rating A self-rating plan under which the actual losses during the policy period determine the final premium (subject to a minimum and maximum premium). Schedule Rating applies a system of debits or credits to reflect characteristics of a particular insured Nonrenewal A termination of a policy by an insurer on the anniversary or renewal date. Insuring Agreement Promises — Policy coverages, additional coverages, perils insured against, direct and indirect property losses. Conditions Cancellation, non-renewal, misrepresentation, concealment or fraud, Duties following a loss, valuation or loss settlement or how losses will be settled Replacement Cost Replacement cost - depreciation equals actual cash value Insurable Interest And property insurance in insurable interest must be present at the time of the loss Coinsurance Designed to encourage insurers to insure their property for the full value many property policies require the insured to carry 80% properties replacement cost Other Insurance a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk Liberalization If the insured broadens coverage under a certain policy form or endorsement without increasing the premium the insurance existing policy is considered to contain the broad and coverage immediately liberalization condition only works to broaden coverage not restrict