A D Banker Property and Casualty Chapter 7 Study Guide

Personal Inland Marine Insurance - ANSWERScan be attached by endorsement to a Homeowners or Dwelling Policy; it may also be written as a separate policy. Personal Inland Marine Insurance is a form of coverage used to insure moveable property against direct loss Floater - ANSWERSmoveable property also known as floating property Personal Articles Floater (Scheduled Article Floater) - ANSWERSused to insure "individual" items of personal property on a scheduled basis. Claims are normally settled on an "actual cash value basis" with some exceptions. Personal Jewelry Floater - ANSWERSCoverage may be written on a valued or actual cash value basis. The floater contains a "Pair and Sets Clause". If a covered loss occurs to an item that is part of a set, the value of the remaining item(s) is reduced based on the difference between the value of the total set and the value of each item individually. Personal Effects Floater - ANSWERSThis floater provides open peril coverage for items worn or carried by tourists and travelers. The coverage applies worldwide, but not at the insured's home. Fine Arts Floater - ANSWERSThis floater covers such items as paintings, etchings, pictures, tapestries, rare manuscripts, and antiques. The floater provides automatic coverage for 90 days for newly acquired items. Coverage is usually written on a valued, or agreed, basis. Cameras Floater - ANSWERSThe insured items are scheduled, with the exception that blanket coverage is provided on items such as shades, filters, etc. Automatic coverage is provided on newly acquired items for 30 days at a limit of insurance up to 25% of the limit designated on the schedule. Musical Instrument Floater - ANSWERSNo coverage is provided if the covered instruments are played for remuneration, or a fee. Anyone playing for hire must purchase an endorsement and pay an additional premium. The insured must report newly acquired items within 30 days. Boatowners Policy - ANSWERSpackage policy that provides both property and liability coverage and is similar in design to the homeowners policy. The coverage it provides is similar to that provided by the personal auto policy. The policy is generally used to insure boats that can be towed by a car. Yacht Policy - ANSWERSA Yacht policy is designed for larger vessels, many of which have crew members. Larger vessels are normally insured under the complete package of yacht coverages, which includes in addition to Hull Insurance, Protection and Indemnity and Medical Payments. Lay Up Warranty - ANSWERSapplies when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. Difference in Conditions (DIC) - ANSWERSspecial form designed to fill in the coverage gaps contained in a property policy. There is no standard policy form. Coverage is generally written on an open perils basis, excluding losses by perils that are covered under standard property forms (such as fire, lightning, windstorm, hail, etc.). National Flood Insurance Program (NFIP) - ANSWERSA federal program that enables certain property owners to purchase flood insurance. The Federal Insurance Administration administers the program under the Federal Emergency Management Agency (FEMA). The federal government makes payment for, or subsidizes, all flood losses. The Emergency Program - ANSWERSfor communities in the earliest stage of participation in the NFIP offers a $35,000 maximum amount of coverage on 1- to 4-family dwellings and a maximum $100,000 on other residential and non-residential buildings. The maximum amount of coverage for contents in a single-family dwelling is $10,000 and $100,000 on other residential and non-residential buildings. The Regular Program - ANSWERScovers a $250,000 maximum amount of coverage on residential buildings and $500,000 on non-residential buildings. The maximum amount of coverage for contents in a residential building is $100,000 and $500,000 on non-residential buildings. Write Your Own Program (WYO) - ANSWERScooperative effort involving FEMA and the private sector that allows existing property and casualty insurance companies to write, issue, and service flood insurance under their own names. It is estimated that over 90% of the flood insurance policies in force are maintained by WYO companies. The remaining policies are written and maintained directly by FEMA. Fair Access to Insurance Requirements (FAIR) plans - ANSWERSto provide basic property insurance to property owners who are unable to secure coverage in the standard property marketplace. are utilized when existing homeowners or dwelling property coverage is being cancelled or non-renewed due to loss history or the property owner or the property fail to meet other underwriting guidelines of an insurer. Insurance may also be purchased from a FAIR plan when a dwelling is currently uninsured, and no carrier in the standard marketplace will write coverage. Personal Umbrella Policy - ANSWERSis liability insurance provided on an excess basis. Each contract is unique and may contain provisions and language not found in other umbrella policies It provides an additional layer of liability insurance after the limits of underlying primary policies are exhausted due to paid claims. It provides coverage on a broader basis than the primary policies. It drops down to provide first-dollar coverage when the underlying primary policies don't provide coverage. Crop/Hail Insurance - ANSWERSThis is private insurance, not reinsured by the federal government. This policy provides named perils coverage. Other perils that may be included in addition to hail are: Fire, lightning, wind. Freezing, drought, insects and disease. Crop Insurance - ANSWERSa specialized policy that protects the insured against reduced yield because of a covered loss to crops before they are harvested. Multi-Peril Crop Insurance (MPCI) - ANSWERSis written by private insurers and is reinsured by the Federal Crop Insurance Corporation (FCIC). Coverage may be provided for approximately 200 different types of crops, but 5 major crops account for 90% of the liability assumed Windstorm Insurance Coverage - ANSWERScovered under the peril of wind in standard property insurance policies. In some states, exclusionary endorsements may be added to property policies to exclude coverage for the peril of wind or windstorm. 5 Major Crops - ANSWERScorn and maize, cereal grains, soybeans, tobacco, and cotton