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Michigan Property & Casualty Insurance
Quiz_________________? 15 days -
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File a notice of producer appointment within __ days Quiz_________________? 3 ways to assign rates -
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Judgement, Manual, Experience Quiz_________________? 30 days -
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Time for producer to respond to notification Quiz_________________? 60 -
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Insured must send a signed statement of loss to the insurance company within __ Quiz_________________?
Abandonment -
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Insured cannot abandon property that can be repaired & expect to be paid as if it was a total loss Quiz_________________? Actual Cash Value (ACV) -
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replacement cost - depreciation Quiz_________________? Adverse Selection -
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risks that have a greater than average chance of loss Quiz_________________? Age 18 -
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Applicants minimum age Quiz_________________? Aleatory Contract -
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The exchange of value is unequal. Quiz_________________? Alien Insurer -
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An insurance company that is incorporated outside the United States
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a temporary contract of insurance providing coverage prior to the issuing of a complete insurance policy Quiz_________________? Broad Perils (BIG AFFECT) -
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Burglary damage Ice, sleet, snow (weight of) Glass breakage Accidental Discharge of water or steam Freezing objects Falling objects Electrical Current Collapse Tearing Asunder Quiz_________________? Captive Agent -
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an insurance agent who represents only one insurance company and who is, in effect, an employee of that company Quiz_________________? Certificate of Authority -
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state license for an insurance company
Quiz_________________? Combined Ratio -
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loss ratio + expense ratio Quiz_________________? Commercial Auto Policy -
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Includes liability & physical damage, medical payments can be added by endorsement Quiz_________________? concealement -
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Failure to disclose known facts Quiz_________________? Contract of Utmost Good Faith -
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Both parties bargain in good faith in forming the contract, and rely upon the statements and promises of each other. Quiz_________________? Contracts of Adhesion -
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written by one party and the other party cannot negotiate if ambiguous, the court will decide in favor or the insured
Quiz_________________? Domestic Insurer -
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An insurance company that conducts business in the state of incorporation. Quiz_________________? Dwelling Insurance -
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- not homeowners insurance
- does not have to be owners-occupied
- covers risk that may not be covered by homeowners DP-1: Basic DP-2: Broad DP-3: Special Quiz_________________? Elements of a Legal Contract -
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Consideration, Legal, Offer, Acceptance, Competent parties Quiz_________________? Elements of Insurable Risk -
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Calculable Affordable Non-catastrophic
Homogeneous Accidental Measurable Quiz_________________? Eligible Dwellings -
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- 1 - 4 unit dwellings w/ boarders
- vacation/rental
- endorsement for: mobile home & under construction Quiz_________________? Essential Insurance Act -
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Guarantees than an insurer cannot refuse to insure or continue to insure an eligible applicant Quiz_________________? Estoppel -
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Once a waiver is created it cannot be changed Quiz_________________? Exposure -
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The potential for accidents and other losses Quiz_________________? Express Authority -
Foreign Insurer -
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An insurer licensed to operate in a state but incorporated in another state. Quiz_________________? Fraternal Benefit Society -
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An insurance company formed to provide insurance for members of an affiliated lodge, religious, or fraternal organization with a representative form of government. Quiz_________________? fraud -
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the intentional act to deceive & cheat another Quiz_________________? General Agent -
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Individuals that train, hire, manage other agents Quiz_________________? General damages -
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Payable in addition to special damages, payments for non-economic losses (or not directly measurable) Ex: pain & suffering, loss of companionship Quiz_________________?
Gramm-Leach-Bliley Act -
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requires financial institutions to ensure the security and confidentiality of customer data Quiz_________________? HO-2 (broad form) -
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Owner occupant, Broad Form Quiz_________________? HO-3 (special form) -
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Owner occupant, special form Quiz_________________? HO- 4 -
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Tenants or Renters Quiz_________________? HO-5 Comprehensive Form -
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Owner occupants comprehensive form Quiz_________________? HO- 6 -
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condominium owners
Law of Large Numbers -
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A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss. Quiz_________________? Liberalization -
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If the insurer makes any change that broadens coverage in the policy edition during the policy period or within 60 days before the effective date, these changes will automatically apply, without needing to be endorsed to the policy. Quiz_________________? Lloyd's Association -
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insurance provided by individual underwriters, usually insure unusual risks Quiz_________________? Loss Ratio -
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incurred losses/earned premiums Quiz_________________? Loss sustained crime form -
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Losses that occur after the policy are NOT covered, must be during policy period & discovered up to 1 year after policy expires Quiz_________________? Michigan Catastrophic Claims Association -
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all insurers writing no-fault insurance are members of the: Quiz_________________? Moral Hazard -
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Arise from a person's character (dishonesty) Quiz_________________? Morale Hazard -
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A condition of carelessness or indifference that increases the frequency or severity of loss. Quiz_________________? Mutual Insurer -
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owned by policyholders Quiz_________________? Obligee -
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Who the surety bond protects, who the promise is owed to Quiz_________________? Pair or set condition -
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When part of a set is damaged or destroyed, insured will not be reimbursed for the value of the entire set, only for the part that is damaged or destroyed
Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future. Quiz_________________? Pure Risk -
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only the possibility of loss Quiz_________________? Reciprocal Insurers -
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are unincorporated groups of individual members that provide insurance for other members through indemnity contracts. Each member acts as both insurer and insured and are managed by Attorney in Fact. Quiz_________________? Reduction -
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Lessening the possibility or severity of a loss. Quiz_________________? Reinsurancd -
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Transfers risk from one insurer to another Quiz_________________? Replacement Cost -
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cost of replacement item with no depreciation
Quiz_________________? Representation -
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a statement believed to be true to the best of one's knowledge Quiz_________________? Retention -
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Self-insurance, person will pay for loss Quiz_________________? Risk -
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The possibility that a loss will occur Quiz_________________? Risk Retention Group (RRG) -
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a mutual insurance company formed to insure people in the same business, occupation, or profession Quiz_________________? salvage -
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Insurer has the right to take possession of damaged property after payment of loss Quiz_________________? Self insurers -
Quiz_________________? Subrogation -
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The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss. Quiz_________________? Supplementary Payments -
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Paid in addition to the policy's limit of liability Quiz_________________? Symbol 1 -
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Any Auto, least restrictive Quiz_________________? Symbol 2 -
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Owned autos only Quiz_________________? Symbol 4 -
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Owned autos other than private passenger autos only Quiz_________________? Symbol 48 -
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Trailers in insured's possession Quiz_________________? Symbol 7 -
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Specifically described autos only, most restrictive Quiz_________________? Symbol 8 -
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hired autos only-- coverage only for autos leased, hired, rented, or borrowed from the named insured's employees or family members. Typically, used for liability and physical damage coverage. Quiz_________________? Symbol 9 -
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non-owned autos, any auto owned by an employee or partner while used in the insured's business or personal affairs Quiz_________________? transfer risk -
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The purpose of insurance Quiz_________________? Unilateral Contract -
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