Property Insurance
25%of exam
Auto Insurance
25%of exam
Liability Insurance
20%of exam
Commercial Lines
15%of exam
Regulation + Claims
15%of exam
Quick Facts
- Exam
- P&C Producer
- Questions
- 100-170
- Pass
- 70-75%
- Time
- 2-3 hours
- Scope
- State licensing
- Core
- Property + liability
- License
- State issued
- Study
- 40-80 hours
Named vs Open Perils
Named
- Only listed
- Insured proves peril
Open
- All except exclusions
- Insurer proves exclusion
Listed vs excluded
Coverage Picker
- Home owner occupied→HO policy
- Rental dwelling→DP policy
- Tenant contents→HO-4
- Condo unit→HO-6
- Older home→HO-8
- Small business→BOP
Property Valuation
- ACV
- Replacement minus depreciation
- Replacement cost
- New-for-old cost
- Agreed value
- Value set upfront
- Stated amount
- Listed maximum
- Market value
- Sale price
- Coinsurance
- Insurance-to-value clause
- Deductible
- Insured pays first
ACV vs Replacement
ACV
- Depreciation deducted
- Lower payout
Replacement
- New cost
- No depreciation
Old value vs new
Loss Picker
- Fire damages house→Property coverage
- Use lost after loss→ALE
- Business shuts down→Business income
- Need quick reopening→Extra expense
- Auto hits object→Collision
- Auto theft occurs→Comprehensive
Homeowners Forms
- HO-2
- Broad named perils
- HO-3
- Open dwelling perils
- HO-4
- Renters contents
- HO-5
- Open property perils
- HO-6
- Condo unit owners
- HO-8
- Modified older homes
- Section I
- Property coverage
- Section II
- Liability coverage
HO-3 vs HO-5
HO-3
- Open dwelling
- Named contents
HO-5
- Open dwelling
- Open contents
Contents difference
Dwelling Forms
- DP-1
- Basic named perils
- DP-2
- Broad named perils
- DP-3
- Open dwelling perils
- Coverage A
- Dwelling
- Coverage B
- Other structures
- Coverage C
- Personal property
- Coverage D
- Rental value
PAP Parts
A liability, B med, C UM, D damage.
A: liabilityB: med payC: UM/UIMD: physical
Collision vs Comprehensive
Collision
- Impact
- Upset
- Another vehicle
Comprehensive
- Theft
- Fire/weather
- Animal impact
Crash vs other
Auto Coverages
- Part A
- Liability
- Part B
- Medical payments
- Part C
- UM/UIM
- Part D
- Physical damage
- Collision
- Upset/impact
- Comprehensive
- Other-than-collision
- PIP
- No-fault benefits
- Symbol 1
- Any auto
CGL ABC
A BI/PD, B ads, C med.
A: injury/damageB: personal adsC: med pay
Occurrence vs Claims-made
Occurrence
- Event date
- Late claim okay
Claims-made
- Claim date
- Retro date matters
Event vs claim
Liability Picker
- Home guest injured→HO Section II
- Auto BI claim→PAP Part A
- Premises lawsuit→CGL Coverage A
- Libel in ad→CGL Coverage B
- Small injury no fault→Med Pay
- Limits exhausted→Umbrella
Liability Concepts
- Tort
- Civil wrong
- Negligence
- Breach of duty
- BI
- Bodily injury
- PD
- Property damage
- Occurrence
- Event trigger
- Claims-made
- Claim trigger
- Umbrella
- Extra liability
CGL
- Coverage A
- BI/PD liability
- Coverage B
- Personal advertising injury
- Coverage C
- Medical payments
- Premises
- Location liability
- Operations
- Work liability
- Products
- Goods liability
- Completed ops
- Finished work liability
Commercial Property
- CPP
- Package policy
- BPP
- Business personal property
- Causes Basic
- Named perils
- Causes Broad
- More named perils
- Causes Special
- Open perils
- Business income
- Lost earnings
- Extra expense
- Continue operations
- BOP
- Small business package
Workers Comp
- Part One
- Statutory benefits
- Part Two
- Employer liability
- Medical
- Work injury care
- Disability
- Wage replacement
- Rehab
- Return to work
- Death
- Survivor benefits
Policy DICE
DICE: Declarations, Insuring, Conditions, Exclusions.
D: who/limitsI: promiseC: dutiesE: no coverage
Property vs Casualty
Property
- First-party loss
- Physical things
- Direct damage
Casualty
- Third-party claims
- Legal liability
- Injury/damage owed
Own stuff vs liability
Risk Fundamentals
- Risk
- Chance of loss
- Pure risk
- Loss/no loss
- Speculative risk
- Gain or loss
- Peril
- Cause of loss
- Hazard
- Increases loss chance
- Moral hazard
- Dishonest behavior
- Morale hazard
- Careless attitude
Hazards
Physical, moral, morale.
Physical: conditionMoral: dishonestyMorale: carelessness
Policy Parts
- Declarations
- Who/what/limits
- Insuring agreement
- Coverage promise
- Conditions
- Policy duties
- Exclusions
- Not covered
- Endorsement
- Policy change
- Definitions
- Meaning of terms
Regulations Claims
- Producer
- Licensed seller
- Appointment
- Insurer authorization
- Fiduciary
- Handles premiums
- Rebating
- Illegal inducement
- Twisting
- Misleading replacement
- Misrepresentation
- False policy statement
- Notice
- Claim reporting
- Proof of loss
- Sworn claim detail
Common Traps
Peril vs hazard
Peril causes loss ≠ Hazard increases chance
Moral vs morale
Moral is dishonest ≠ Morale is careless
ACV formula
ACV subtracts depreciation ≠ RC ignores depreciation
Medical payments
Med Pay no fault ≠ Liability needs fault
CGL Coverage B
Personal injury terms ≠ Not bodily injury
State law
National concepts repeat ≠ State rules vary
Last Minute
- 1.Peril = loss cause
- 2.Hazard = risk booster
- 3.DICE policy parts
- 4.HO-3: open dwelling
- 5.HO-5: open property
- 6.PAP A/B/C/D
- 7.Collision = crash
- 8.Comp = other damage
- 9.Occurrence = event date
- 10.Claims-made = claim date
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