General P&C Concepts
30%of exam
Residential + Commercial
36%of exam
Auto + Liability
27%of exam
Arizona Law + Regulation
7%of exam
DIFI25/50/15Pure ComparativeLicensing + CE
Quick Facts
- Exam
- Series 13-34
- Questions
- 150
- Time
- 150 min
- Pass
- 70%
- Fee
- $59
- Vendor
- PSI
- Regulator
- DIFI
- Pre-license
- None required
Policy Parts DICE
D-I-C-E builds every policy
D: DeclarationsI: Insuring agreementC: ConditionsE: Exclusions
Peril vs Hazard
Peril
- Cause of loss
- Fire wind theft
- Direct event
Hazard
- Increases chance
- Condition risk
- Physical moral
Cause vs condition
Key Terms
- Peril
- Cause of loss
- Hazard
- Increases loss chance
- Indemnity
- Restore, no profit
- Insurable interest
- Financial stake at loss
- Subrogation
- Insurer recovers third party
- Salvage
- Insurer sells damaged goods
- Aleatory
- Unequal exchange
- Adhesion
- Take-it-or-leave-it contract
ACV vs RCV
ACV
- Minus depreciation
- Lower payout
- Actual cash value
RCV
- Full replacement
- No depreciation
- Like kind quality
Depreciation vs full pay
Policy Parts
- Declarations
- Who what limits premium
- Insuring agreement
- Promise to pay
- Definitions
- Defined policy terms
- Conditions
- Duties of parties
- Exclusions
- Not covered
- Endorsements
- Policy modifications
- Warranty
- Guaranteed true statement
- Representation
- Believed true statement
Settlement Terms
- ACV
- Replacement minus depreciation
- RCV
- No depreciation deducted
- Coinsurance
- Carry percent or penalty
- Deductible
- Insured retention amount
- Pro rata
- Share by policy limits
- Equal shares
- Each pays equally
- Valued policy
- Agreed value at loss
HO Forms
4 rent 6 condo 8 old
HO-4: renterHO-6: condoHO-3: open dwellingHO-5: open both
HO-4 vs HO-6
HO-4
- Renter tenant
- Contents only
- No dwelling cover
HO-6
- Condo owner
- Unit improvements
- Association master policy
Rent vs own unit
HO Form Picker
- Renter needs contents→HO-4(No dwelling)
- Condo unit owner→HO-6(Walls-in)
- Standard owner occupied→HO-3(Most common)
- Want open peril both→HO-5(Broadest)
- Older home value→HO-8(Repair cost)
- Named peril budget→HO-2(Basic)
- Landlord rental only→DP-3(Dwelling policy)
- Vacant property→DP-1(Basic peril)
HO Forms
- HO-2
- Broad named peril both
- HO-3
- Open dwelling named contentsCommon
- HO-4
- Renters contents only
- HO-5
- Open peril both
- HO-6
- Condo unit owner
- HO-8
- Older home repair cost
- Section I
- Property coverages A-D
- Section II
- Liability coverages E-F
HO Coverages
- Coverage A
- Dwelling structure
- Coverage B
- Other structures
- Coverage C
- Personal property
- Coverage D
- Loss of use
- Coverage E
- Personal liability
- Coverage F
- Medical payments others
- Special limits
- Cash jewelry caps
- Scheduled floater
- High value items listed
Commercial Lines
- BOP
- Small business package
- CPP
- Modular commercial policy
- Building
- Structure coverage
- BPP
- Business personal property
- Business income
- Lost profit coverage
- Extra expense
- Temp relocation costs
- Inland marine
- Mobile property coverage
Occurrence vs Claims-Made
Occurrence
- Loss during period
- Long tail covered
- CGL standard
Claims-made
- Claim filed during
- Needs tail coverage
- Professional lines
When loss vs claim
Auto Coverage Picker
- Bodily injury others→Part A BI(Required AZ)
- Property damage others→Part A PD(Required AZ)
- Passenger medical bills→Part B(No fault needed)
- Uninsured hits you→Part C UM(Offered AZ)
- Underinsured at fault→Part C UIM(Offered AZ)
- Your car collision→Part D collision(Optional)
- Theft vandalism hail→Part D comp(Optional)
- Rental car short term→Loss of use(Endorsement)
PAP Coverages
- Part A
- Liability BI PD
- Part B
- Medical payments
- Part C
- Uninsured motorist
- Part D
- Physical damage auto
- Collision
- Upset or impact loss
- Comprehensive
- Other than collision
- Split limits
- Per person accident PD
- UM UIM
- Uninsured underinsured motorist
Collision vs Comprehensive
Collision
- Upset impact
- Hit object
- Your fault crash
Comprehensive
- Theft vandalism
- Hail flood glass
- Other than collision
Impact vs other peril
Liability + WC
- CGL
- Commercial general liability
- Occurrence
- Loss during policy period
- Claims-made
- Claim filed during period
- BI
- Bodily injury liability
- PD
- Property damage liability
- Workers comp
- Employer injury coverage
- Exclusive remedy
- WC bars most suits
AZ Auto Limits
25 person 50 accident 15 PD
25: BI per person50: BI per accident15: property damageTort at-fault state
DIFI vs ADOI
DIFI
- Current regulator
- Insurance plus banking
- Title 20 enforcer
ADOI
- Old department name
- Pre-2020 only
- Trap answer
Current vs outdated
Arizona Auto Law
- 25/50/15
- AZ minimum liability limits
- Tort state
- At fault pays damages
- Pure comparative
- Fault reduces recovery only
- No PIP
- No no-fault medical
- UM offer
- Must offer reject writing
- UIM offer
- Must offer reject writing
- SR-22
- Proof financial responsibility
- Competitive rating
- File and use rates
Rate Standards
Not excessive inadequate discriminatory
Excessive: too highInadequate: threatens solvencyDiscriminatory: unfair class gap
DIFI + Licensing
- DIFI
- AZ insurance regulator
- Title 20
- Arizona Insurance Code
- Producer
- Licensed seller negotiator
- 4 year term
- License renewal cycle
- 48 CE hours
- Per four year period
- 6 ethics
- Required CE ethics hours
- 4 retakes
- Max attempts per year
- APCIGF
- AZ guaranty fund
Common Traps
Cause vs condition
Peril causes loss ≠ Hazard increases chance
ACV vs replacement
ACV minus depreciation ≠ RCV full like kind
Renter vs condo
HO-4 is renters ≠ HO-6 is condo
DIFI vs ADOI
DIFI is current ≠ ADOI is outdated
AZ comparative fault
Pure reduces only ≠ No fifty one bar
PSI vs Prometric
PSI runs AZ exam ≠ Prometric is wrong vendor
Last Minute
- 1.150 Q 150 min 70% pass
- 2.PSI vendor not Prometric
- 3.No pre-license education required
- 4.25 per 50 accident 15 PD
- 5.Pure comparative negligence AZ
- 6.DIFI not ADOI regulator
- 7.4 year license 48 CE hours
- 8.6 ethics hours per renewal
- 9.File and use competitive rating
- 10.HO-4 renter HO-6 condo
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