Free KS P&C Exam Flashcards

Both are open-peril on the dwelling. HO-3 keeps personal property on a named-peril basis, while HO-5 extends open-peril coverage to personal property too, giving broader (but pricier) protection.

HO-4 is the renters form: it covers a tenant's personal property, liability, and loss of use, with no building coverage since the tenant doesn't own the structure. HO-6 (condo/co-op form) adds limited coverage for unit improvements the master policy leaves to the owner.

HO-8 is designed for older homes whose replacement cost far exceeds market value. It can settle covered losses on a functional/actual-cash-value basis using comparable materials rather than requiring full like-kind reconstruction.

DP-1 is basic named-peril coverage, DP-2 broadens the named-peril list, and DP-3 covers the dwelling on an open-peril basis while personal property generally stays named-peril -- mirroring how the HO series steps up coverage.

A CPP lets an insured mix and match multiple commercial coverage parts (property, general liability, crime, etc.) for larger or higher-hazard risks. A BOP bundles property and liability into one preset package at lower cost for small, low-hazard businesses that qualify.

Builders Risk covers a structure while it's under construction or renovation -- materials, fixtures, and the building itself -- exposures a completed-building commercial property form isn't written to insure.

Cyber First-Party Coverage responds to the insured's own losses from a cyber event -- data restoration, business interruption, and breach-response costs -- distinct from third-party cyber liability, and it now appears as a tested Kansas commercial-lines topic effective March 2025.

A personal articles floater (inland marine) schedules an individual's valuable items like jewelry or cameras, often on an open-peril, no-deductible basis. A commercial property floater covers a business's movable property, such as equipment or goods in transit, wherever it's located.

Standard homeowners and dwelling forms exclude flood. Coverage is obtained through the National Flood Insurance Program (NFIP) or a private flood policy, which is why NFIP appears as its own tested item on the Kansas property content outline.

Replacement cost pays to repair or replace with new materials of like kind and quality, no depreciation deducted. ACV commonly equals replacement cost minus depreciation, so identical damage produces a lower ACV payout.

It encourages insureds to carry limits close to the property's full value (commonly 80%+). If the insured carries less than the required percentage, a partial loss payment is reduced proportionally -- carried limit divided by required limit -- before the deductible applies.

A peril is the cause of damage (fire, windstorm, theft). A hazard is a condition that increases the chance or severity of a loss, such as frayed wiring (physical), poor character (moral), or carelessness (morale). The loss is the actual resulting harm.

Proximate cause identifies the dominant, unbroken cause that set the chain of events leading to the loss in motion. It connects an indirect loss (like lost income after a fire) back to the covered peril that started it.

Most property forms limit or suspend coverage -- especially for vandalism and glass breakage -- once a dwelling sits vacant beyond a stated period (commonly 60 days), because an unoccupied property carries higher risk.

A specific limit applies to one scheduled item or location. A blanket limit applies across multiple covered properties or locations together, so a large loss concentrated at one site can still be paid up to the full blanket amount.

It lets the mortgagee collect covered loss payments even if the owner's own claim is denied for a policy violation the mortgagee didn't cause or know about, as long as the mortgagee meets its own separate duties, like reporting known hazard changes.

Appraisal settles disagreements over the dollar amount of a covered loss, using each party's appraiser and a neutral umpire. It does not decide whether the loss is covered at all -- that's a separate coverage dispute.

A representation is a statement the applicant believes true; a warranty is a statement treated as strictly, literally true; concealment is withholding a material fact altogether. A false warranty, material misrepresentation, or concealment can each jeopardize coverage.

Coverage A pays covered bodily injury and property damage liability; Coverage B pays personal and advertising injury (like libel or false arrest); Coverage C pays limited no-fault medical payments regardless of fault. One incident won't necessarily trigger all three.

An occurrence form is triggered by injury or damage happening during the policy period, no matter when the claim is filed. A claims-made form requires the claim to be made during the policy period (or an extended reporting period) and the injury to fall on or after any retroactive date.

Premises-and-operations covers liability from the insured's current location or ongoing work. Products-completed-operations covers liability arising after a product has been sold or a job has been finished -- a distinction that affects which aggregate limit applies.

Liability pays when the insured is legally at fault for someone else's injury or property damage. Medical payments coverage pays covered medical bills for injured occupants regardless of fault, up to its own separate limit.

Owned autos belong to the business, hired autos are rented or borrowed by it, and non-owned autos usually belong to employees but are used for business errands. The covered-auto symbols on the declarations determine which category actually gets each coverage.

Workers compensation pays statutory medical and wage benefits for a covered job injury without the employee proving employer negligence. Employers liability (Part Two) picks up certain suits -- like third-party-over claims -- that fall outside those statutory benefits.

A surety bond guarantees a principal will perform an obligation to an obligee, and the surety expects reimbursement if it must pay on a default. A fidelity bond protects an employer against covered losses from its own employees' dishonest acts -- there's no reimbursement expectation from a third party.

Burglary requires visible signs of forced entry into an unoccupied premises. Robbery involves taking property from a person by force, threat, or violence. Both differ from simple theft, which requires neither forced entry nor a face-to-face confrontation.

Umbrella coverage adds limits above the underlying CGL, auto, and employers liability policies once those limits are exhausted, and it can also broaden coverage for some claims the underlying policies exclude -- useful once a business's liability exposure outgrows its base limits.

Duty, breach of that duty, causation, and damages. Missing any one element -- for example, a breach that caused no actual harm -- means the negligence claim fails.

Vicarious liability holds one party responsible for another's acts because of their relationship, such as an employer for an employee acting within the scope of employment. Strict liability imposes responsibility for specified activities or defective products without any need to prove negligence at all.

Special damages compensate measurable economic loss (medical bills, lost wages). General damages compensate non-economic harm like pain and suffering. Punitive damages punish especially wrongful conduct and deter repeat behavior -- they don't compensate the claimant's actual loss.

The per-occurrence limit caps what's paid for one covered occurrence. The aggregate caps total covered payments for the policy period across the applicable category, so a claim within the occurrence limit can still be reduced if the aggregate has already been eroded by earlier claims.

The principle of indemnity restores the insured to roughly their pre-loss financial position -- not better. Limits, deductibles, and valuation provisions are all designed to transfer the loss, not create a windfall.

Supplementary payments can cover defense-related costs -- certain court costs, interest on judgments, or bond premiums -- in addition to covered damages. Whether they reduce the liability limit depends on the specific policy wording.

Subrogation lets the insurer step into the insured's shoes and pursue the at-fault third party to recover what it paid. The insured cannot waive or interfere with that right after a loss without jeopardizing coverage.

A certificate merely summarizes coverage in force as evidence -- it doesn't create, amend, or extend coverage. A binder is temporary coverage pending the actual policy, which is the real contract that controls the terms.

TRIA requires insurers to make terrorism coverage available to commercial policyholders and creates a federal backstop that shares losses from certified acts of terrorism above an insurer's deductible -- it conditions how terrorism exclusions can apply rather than banning them outright.

Elected. K.S.A. 40-106 makes the Commissioner of Insurance a statewide elected office, and the Commissioner holds general duties and powers to regulate insurers and licensees under K.S.A. 40-103 through 40-105.

No. Kansas has no pre-licensing education requirement -- candidates can schedule and take exam 12-KS-06 directly, though the state still expects candidates to study the published content outline.

A tax clearance certificate. It must be requested from the Kansas Department of Revenue and electronically submitted to the Kansas Insurance Department (KDOI.licensing@ks.gov) as part of the resident license application.

Fingerprinting for a state and national criminal history check, plus an electronically submitted background Waiver Agreement & FBI Privacy Act Statement Form. Fingerprints stay valid for 365 days while the application, waiver, and fees are pending.

18 hours every two years, with at least 3 of those hours in insurance ethics. The biennial due date falls on the last day of the producer's birth month, in odd years for odd-birth-year producers and even years for even-birth-year producers.

Rebating, misrepresentation, false advertising, defamation, boycott/coercion/intimidation, unfair discrimination, and twisting (inducing a policyholder to drop one policy for another through misrepresentation) are all named violations under K.S.A. 40-2404.

It provides limited protection for eligible unpaid claims -- including some unearned premium -- when a member P&C insurer becomes insolvent, under K.S.A. 40-2901 through 2919. It is not a guarantee that every policy or claim amount is covered.

At least $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability per accident -- the minimums set by K.S.A. 40-3107(e) for every Kansas motor vehicle liability policy.

No-fault. The Kansas Automobile Injury Reparations Act (K.S.A. 40-3101 et seq.) requires every auto policy to include Personal Injury Protection (PIP) benefits that pay regardless of who caused the accident.

At least $4,500 in medical expense benefits, $4,500 in rehabilitation benefits, disability/loss-of-income benefits up to $900 per month (85% of gross income) for up to a year, survivor's benefits, and up to $2,000 for funeral, burial, or cremation expenses.

Uninsured/underinsured motorist coverage, which protects an insured injured by a driver who carries no insurance or insufficient limits to cover the damages, as required under K.S.A. 40-284 and 40-285.

It's the state's residual-market (assigned-risk) mechanism under K.S.A. 40-2102 for drivers who can't obtain required auto liability coverage through the voluntary market -- insurers must equitably share these harder-to-place risks.

The FAIR Plan (K.S.A. 40-2142) makes basic property insurance available to owners who can't obtain it through ordinary methods, while the Automobile Insurance Plan solves the same access problem for auto liability coverage -- two separate residual markets for two different lines.

Once its gross annual payroll exceeds $20,000 (counting wages paid both inside and outside Kansas), with limited exemptions such as some agricultural employers below that threshold. Coverage triggers on payroll size, not headcount alone.