Maryland Property and Casualty License
Study online at https://quizlet.com/_9ydi9j
1. Insurance transfer of risk
2. Stock Companies policyholders do not participate in dividends resulting from stock ownership
- Nonparticipat-
ing
3. Mutual Compa-
nies - Participat-
ing
4. Mutual Compa- the policyowners participate in dividends
nies - Participat-
ing
5. Divisible surplus is the amount of earnings paid to policy owners as dividends after the insurance
company sets aside funds required to cover reserves, operating expenses, and
general business purposes
6. Adhesion means that the contract has been prepared by one party (the insurance company)
with no negotiation between the applicant and insurer
7. Unilateral his means that only one party (the insurer) makes any kind of enforceable promise
8. Estoppel is the legal impediment to one party denying the consequences of its own actions
or deeds if such actions or deeds result in another party acting in a specific manner
or if certain conclusions are drawn
9. What are the 2 Section 1: Property Insurance
sections of a HO Section 2: Casualty Insurance
policy?
10. Property Insur- pertains to damage to a dwelling, including real property (buildings affixed to the
ance land) and contents (personal property) or belongings owned by the insured
1/7
, Maryland Property and Casualty License
Study online at https://quizlet.com/_9ydi9j
11. Casualty Insur- Comprehensive Personal Liability (CPL) coverage which pays for bodily injury and
ance property damaged of others caused by the negligence of an insured which is
unrelated to business activities of negligence arising out of use by the insured of
an automobile
12. Forms of HO poli- HO-2, HO-3, HO 4, HO-5 and HO-6
cy coverage
13. HO-2, HO-3and Are they types of HO policies that owner-occupied property owners would chose
HO-5 from. All offer replacement cost coverage
14. HO 2: Broad Form is a Named Perils coverage on both dwelling and contents. It is replacement cost
coverage on the dwelling and any detached structure while providing actual cash
value coverage (ACV) on contents (personal property).
15. HO 3: Special is an Open Perils coverage on the dwelling and other detached structure but
Form provides named perils coverage
16. HO 5: Compre- provides open perils coverage ("all-risks coverage") on the dwelling, other struc-
hensive Form tures and personal property
17. HO4: Tenant is a Named Perils to protect contents of renters who are occupying a building as a
Broad non-owner. Since there is no real property ownership, the renter does not require
coverage on dwelling or buildings. Also included are Loss of Use (Coverage D) and
Comprehensive Personal Liability (Coverages E and F).
18. HO 6: Condomini- is Named Perils to protect contents of condominium and co-op owners (including
um Unit Owner townhomes). Although the condo owner does have real property ownership and
insurable interest in the real property, dwellings and buildings of a condo complex
are insured under some form of a commercial property or business owner policy.
19. Nonconcurrency happens when the umbrella and the underlying policy both cover identical loss
exposure, but the separate policies have different start and expiration dates of
coverage.
2/7
Study online at https://quizlet.com/_9ydi9j
1. Insurance transfer of risk
2. Stock Companies policyholders do not participate in dividends resulting from stock ownership
- Nonparticipat-
ing
3. Mutual Compa-
nies - Participat-
ing
4. Mutual Compa- the policyowners participate in dividends
nies - Participat-
ing
5. Divisible surplus is the amount of earnings paid to policy owners as dividends after the insurance
company sets aside funds required to cover reserves, operating expenses, and
general business purposes
6. Adhesion means that the contract has been prepared by one party (the insurance company)
with no negotiation between the applicant and insurer
7. Unilateral his means that only one party (the insurer) makes any kind of enforceable promise
8. Estoppel is the legal impediment to one party denying the consequences of its own actions
or deeds if such actions or deeds result in another party acting in a specific manner
or if certain conclusions are drawn
9. What are the 2 Section 1: Property Insurance
sections of a HO Section 2: Casualty Insurance
policy?
10. Property Insur- pertains to damage to a dwelling, including real property (buildings affixed to the
ance land) and contents (personal property) or belongings owned by the insured
1/7
, Maryland Property and Casualty License
Study online at https://quizlet.com/_9ydi9j
11. Casualty Insur- Comprehensive Personal Liability (CPL) coverage which pays for bodily injury and
ance property damaged of others caused by the negligence of an insured which is
unrelated to business activities of negligence arising out of use by the insured of
an automobile
12. Forms of HO poli- HO-2, HO-3, HO 4, HO-5 and HO-6
cy coverage
13. HO-2, HO-3and Are they types of HO policies that owner-occupied property owners would chose
HO-5 from. All offer replacement cost coverage
14. HO 2: Broad Form is a Named Perils coverage on both dwelling and contents. It is replacement cost
coverage on the dwelling and any detached structure while providing actual cash
value coverage (ACV) on contents (personal property).
15. HO 3: Special is an Open Perils coverage on the dwelling and other detached structure but
Form provides named perils coverage
16. HO 5: Compre- provides open perils coverage ("all-risks coverage") on the dwelling, other struc-
hensive Form tures and personal property
17. HO4: Tenant is a Named Perils to protect contents of renters who are occupying a building as a
Broad non-owner. Since there is no real property ownership, the renter does not require
coverage on dwelling or buildings. Also included are Loss of Use (Coverage D) and
Comprehensive Personal Liability (Coverages E and F).
18. HO 6: Condomini- is Named Perils to protect contents of condominium and co-op owners (including
um Unit Owner townhomes). Although the condo owner does have real property ownership and
insurable interest in the real property, dwellings and buildings of a condo complex
are insured under some form of a commercial property or business owner policy.
19. Nonconcurrency happens when the umbrella and the underlying policy both cover identical loss
exposure, but the separate policies have different start and expiration dates of
coverage.
2/7
