Introduction |
|
xxiii | |
Self-Assessment |
|
xxxi | |
Chapter 1 Principles of Insurance |
|
1 | (10) |
|
|
2 | (1) |
|
|
2 | (1) |
|
|
3 | (1) |
|
|
3 | (1) |
|
|
4 | (1) |
|
Pure and Speculative Risks |
|
|
4 | (1) |
|
|
4 | (1) |
|
Other Elements of Insurability |
|
|
5 | (1) |
|
|
5 | (2) |
|
|
6 | (1) |
|
|
6 | (1) |
|
Physical, Morale, and Moral Hazards |
|
|
6 | (1) |
|
|
7 | (2) |
|
|
9 | (2) |
Chapter 2 The Insurance Contract |
|
11 | (8) |
|
Elements of a Valid Contract |
|
|
12 | (1) |
|
Characteristics of an Insurance Contract |
|
|
13 | (2) |
|
|
13 | (1) |
|
|
13 | (1) |
|
|
13 | (1) |
|
|
14 | (1) |
|
|
14 | (1) |
|
Contract of Utmost Good Faith |
|
|
14 | (1) |
|
|
15 | (1) |
|
Parts of the Insurance Contract |
|
|
15 | (1) |
|
|
16 | (2) |
|
|
18 | (1) |
Chapter 3 Insurance Company Organization and Regulation |
|
19 | (24) |
|
Types of Insurance Organizations |
|
|
20 | (3) |
|
Stock and Mutual Companies |
|
|
20 | (1) |
|
|
21 | (1) |
|
|
21 | (1) |
|
Fraternal Benefit Societies |
|
|
21 | (1) |
|
Risk Retention Groups and Purchasing Groups |
|
|
22 | (1) |
|
|
22 | (1) |
|
Private Versus Government Insurers |
|
|
23 | (1) |
|
|
23 | (1) |
|
Four Major Lines of Insurance |
|
|
23 | (1) |
|
Personal and Commercial Lines |
|
|
24 | (1) |
|
Insurance Company Organization |
|
|
24 | (8) |
|
|
24 | (1) |
|
Continuing Education Needs for Agents |
|
|
25 | (1) |
|
|
26 | (1) |
|
Insurance Marketing Systems |
|
|
27 | (1) |
|
Other Insurance Professionals |
|
|
28 | (1) |
|
Other Insurance Functions |
|
|
29 | (3) |
|
|
32 | (6) |
|
State Insurance Regulation |
|
|
33 | (1) |
|
|
33 | (1) |
|
|
34 | (2) |
|
|
36 | (1) |
|
|
37 | (1) |
|
|
37 | (1) |
|
|
38 | (3) |
|
|
41 | (2) |
Chapter 4 Insurance Transactions |
|
43 | (12) |
|
|
44 | (1) |
|
|
44 | (1) |
|
|
45 | (2) |
|
Fair Credit Reporting Act |
|
|
46 | (1) |
|
|
47 | (1) |
|
|
47 | (1) |
|
|
47 | (1) |
|
|
48 | (1) |
|
|
48 | (1) |
|
Certificates of Insurance |
|
|
48 | (1) |
|
Misrepresentation, Concealment, and Fraud |
|
|
49 | (1) |
|
Representations and Warranties |
|
|
50 | (1) |
|
|
50 | (1) |
|
Cancellation and Nonrenewal |
|
|
50 | (2) |
|
|
52 | (2) |
|
|
54 | (1) |
Chapter 5 Introduction to Property Insurance |
|
55 | (22) |
|
|
56 | (3) |
|
|
56 | (1) |
|
What Property Is Covered and Where |
|
|
57 | (1) |
|
|
58 | (1) |
|
How Much Property Is Insured For |
|
|
58 | (1) |
|
|
59 | (1) |
|
|
59 | (1) |
|
|
59 | (1) |
|
|
59 | (1) |
|
|
60 | (1) |
|
Exclusions and Limitations |
|
|
60 | (2) |
|
|
61 | (1) |
|
|
62 | (8) |
|
|
62 | (1) |
|
|
63 | (1) |
|
|
64 | (1) |
|
|
65 | (1) |
|
|
65 | (1) |
|
|
66 | (1) |
|
|
66 | (1) |
|
|
67 | (1) |
|
Appraisal and Arbitration |
|
|
67 | (1) |
|
|
67 | (1) |
|
|
68 | (1) |
|
|
69 | (1) |
|
|
69 | (1) |
|
|
69 | (1) |
|
Policy Period and Policy Territory |
|
|
70 | (1) |
|
|
70 | (1) |
|
|
70 | (1) |
|
|
71 | (3) |
|
|
74 | (3) |
Chapter 6 Introduction to Liability Insurance |
|
77 | (16) |
|
|
78 | (2) |
|
|
78 | (2) |
|
Defenses Against Negligence |
|
|
80 | (2) |
|
|
80 | (1) |
|
|
81 | (1) |
|
Other Defenses Against Negligence |
|
|
81 | (1) |
|
|
82 | (1) |
|
|
82 | (1) |
|
|
83 | (6) |
|
|
83 | (1) |
|
|
83 | (1) |
|
|
84 | (2) |
|
|
86 | (1) |
|
|
87 | (1) |
|
|
87 | (2) |
|
|
89 | (2) |
|
|
91 | (2) |
Chapter 7 Dwelling Insurance |
|
93 | (30) |
|
|
94 | (1) |
|
|
95 | (7) |
|
|
95 | (2) |
|
|
97 | (1) |
|
|
97 | (2) |
|
|
99 | (1) |
|
|
100 | (1) |
|
|
101 | (1) |
|
Broad Form (DP-2) and Special Form (DP-3) |
|
|
102 | (5) |
|
Covered Perils-Broad Form |
|
|
102 | (2) |
|
Covered Perils-Special Form |
|
|
104 | (1) |
|
|
105 | (1) |
|
|
106 | (1) |
|
Replacement Cost Coverage |
|
|
107 | (1) |
|
Dwelling Forms Comparison |
|
|
107 | (2) |
|
Dwelling Policy Endorsements |
|
|
109 | (5) |
|
|
110 | (1) |
|
|
111 | (1) |
|
Personal Liability and Medical Payments to Others |
|
|
111 | (3) |
|
|
114 | (1) |
|
|
114 | (5) |
|
|
115 | (1) |
|
|
115 | (1) |
|
|
115 | (1) |
|
|
116 | (1) |
|
|
117 | (1) |
|
|
117 | (2) |
|
|
119 | (3) |
|
|
122 | (1) |
Chapter 8 Homeowners Insurance |
|
123 | (34) |
|
|
124 | (1) |
|
Extent and Scope of Homeowners Coverage |
|
|
125 | (1) |
|
|
126 | (13) |
|
Coverage A-Dwelling and Coverage B-Other Structures |
|
|
126 | (1) |
|
Coverage C-Personal Property |
|
|
127 | (2) |
|
|
129 | (1) |
|
|
129 | (3) |
|
|
132 | (4) |
|
|
136 | (1) |
|
|
137 | (1) |
|
Limits of Liability-Deductible |
|
|
138 | (1) |
|
|
139 | (5) |
|
Coverage E-Personal Liability |
|
|
139 | (1) |
|
Coverage F-Medical Payments to Others |
|
|
140 | (1) |
|
|
141 | (1) |
|
|
142 | (1) |
|
|
143 | (1) |
|
|
144 | (3) |
|
|
144 | (2) |
|
|
146 | (1) |
|
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage |
|
|
146 | (1) |
|
Homeowners Forms Comparison |
|
|
147 | (4) |
|
|
151 | (3) |
|
|
154 | (3) |
Chapter 9 Personal Auto Insurance |
|
157 | (28) |
|
Organization and Eligibility |
|
|
158 | (1) |
|
|
159 | (2) |
|
For Liability, Medical Payments, and Uninsured Motorists Coverage |
|
|
160 | (1) |
|
For Physical Damage Coverage |
|
|
160 | (1) |
|
Part A-Liability Coverage |
|
|
161 | (5) |
|
|
161 | (1) |
|
|
162 | (1) |
|
|
163 | (1) |
|
|
163 | (1) |
|
|
164 | (1) |
|
|
165 | (1) |
|
|
165 | (1) |
|
|
165 | (1) |
|
Part B-Medical Payments Coverage |
|
|
166 | (2) |
|
Coverage-Who Is an Insured |
|
|
166 | (1) |
|
|
167 | (1) |
|
Limits of Liability and Other Insurance |
|
|
167 | (1) |
|
Part C-Uninsured Motorists Coverage |
|
|
168 | (3) |
|
|
168 | (1) |
|
Definition of Uninsured Motor Vehicle |
|
|
168 | (1) |
|
|
169 | (1) |
|
|
170 | (1) |
|
|
170 | (1) |
|
|
170 | (1) |
|
|
171 | (1) |
|
Part D-Coverage for Damage to Your Auto |
|
|
171 | (4) |
|
|
171 | (2) |
|
|
173 | (1) |
|
|
173 | (1) |
|
|
174 | (1) |
|
|
175 | (1) |
|
Underinsured Motorists Coverage |
|
|
176 | (1) |
|
Personal Auto Policy Endorsements |
|
|
177 | (1) |
|
|
178 | (1) |
|
|
179 | (1) |
|
|
180 | (3) |
|
|
183 | (2) |
Chapter 10 Miscellaneous Personal Insurance |
|
185 | (16) |
|
|
186 | (3) |
|
|
186 | (1) |
|
|
186 | (1) |
|
|
187 | (1) |
|
|
188 | (1) |
|
|
188 | (1) |
|
|
188 | (1) |
|
|
189 | (1) |
|
|
189 | (1) |
|
Personal Inland Marine Insurance |
|
|
190 | (3) |
|
Personal Inland Marine Forms |
|
|
191 | (2) |
|
Personal Watercraft Insurance |
|
|
193 | (2) |
|
Boatowners and Outboard Motor and Boat Policies |
|
|
193 | (1) |
|
|
194 | (1) |
|
Personal Umbrella Insurance |
|
|
195 | (1) |
|
Excess Liability Coverage |
|
|
195 | (1) |
|
Coverage for Excluded Losses |
|
|
196 | (1) |
|
|
196 | (2) |
|
|
198 | (2) |
|
|
200 | (1) |
Chapter 11 The Commercial Package Policy |
|
201 | (8) |
|
|
202 | (1) |
|
Common Policy Declarations |
|
|
203 | (1) |
|
|
204 | (2) |
|
|
204 | (1) |
|
|
204 | (1) |
|
Examination of Books and Records and Inspections and Surveys |
|
|
205 | (1) |
|
Transfer of Rights and Duties |
|
|
205 | (1) |
|
|
206 | (2) |
|
|
208 | (1) |
Chapter 12 The Businessowners Policy |
|
209 | (34) |
|
Eligibility and Policy Organization |
|
|
210 | (3) |
|
|
210 | (2) |
|
|
212 | (1) |
|
|
212 | (1) |
|
|
213 | (14) |
|
|
213 | (1) |
|
Business Personal Property Coverage |
|
|
214 | (1) |
|
|
214 | (1) |
|
|
215 | (3) |
|
|
218 | (5) |
|
|
223 | (1) |
|
|
224 | (2) |
|
|
226 | (1) |
|
|
227 | (1) |
|
Liability and Medical Expenses Coverage |
|
|
227 | (7) |
|
|
227 | (2) |
|
|
229 | (1) |
|
Medical Expenses Coverage |
|
|
229 | (1) |
|
|
230 | (2) |
|
|
232 | (1) |
|
|
233 | (1) |
|
|
234 | (1) |
|
|
235 | (2) |
|
Utility Services Endorsements |
|
|
235 | (1) |
|
Protective Safeguards Endorsement |
|
|
235 | (1) |
|
Hired Auto and Nonowned Auto Liability |
|
|
236 | (1) |
|
Comparison of Commercial Package Policy and Businessowners Policy |
|
|
237 | (1) |
|
|
238 | (3) |
|
|
241 | (2) |
Chapter 13 Commercial Property Insurance |
|
243 | (34) |
|
Commercial Property Coverage Part |
|
|
244 | (2) |
|
Commercial Property Declarations and Coverage Forms |
|
|
244 | (1) |
|
|
245 | (1) |
|
Commercial Property Conditions Form |
|
|
245 | (1) |
|
Building and Personal Property Coverage Form |
|
|
246 | (9) |
|
|
246 | (2) |
|
|
248 | (1) |
|
|
249 | (2) |
|
|
251 | (1) |
|
|
252 | (2) |
|
|
254 | (1) |
|
Builders Risk Coverage Form |
|
|
255 | (2) |
|
|
255 | (1) |
|
Amount of Coverage Available |
|
|
256 | (1) |
|
|
256 | (1) |
|
Builders Risk Reporting Form |
|
|
257 | (1) |
|
Condominium Coverage Forms |
|
|
257 | (1) |
|
Business Income Coverage Forms |
|
|
258 | (3) |
|
|
258 | (1) |
|
|
259 | (1) |
|
|
260 | (1) |
|
Business Income from Dependent Properties-Broad Form |
|
|
261 | (1) |
|
Extra Expense Coverage Form |
|
|
261 | (1) |
|
Legal Liability Coverage Form |
|
|
262 | (1) |
|
|
262 | (7) |
|
|
262 | (2) |
|
|
264 | (2) |
|
|
266 | (2) |
|
Causes of Loss-Earthquake and Volcanic Eruption |
|
|
268 | (1) |
|
Comparison of Causes of Loss |
|
|
268 | (1) |
|
|
269 | (2) |
|
Value Reporting Endorsements |
|
|
269 | (1) |
|
Ordinance or Law Coverage Endorsement |
|
|
270 | (1) |
|
|
270 | (1) |
|
|
271 | (3) |
|
|
274 | (3) |
Chapter 14 Ocean and Inland Marine Insurance |
|
277 | (28) |
|
|
278 | (3) |
|
Categories of Ocean Marine Insurance |
|
|
278 | (1) |
|
Characteristics of Ocean Marine Insurance |
|
|
279 | (2) |
|
|
281 | (1) |
|
|
281 | (1) |
|
|
282 | (1) |
|
|
282 | (15) |
|
Commercial Inland Marine Coverage Part |
|
|
283 | (1) |
|
Commercial Inland Marine Conditions |
|
|
283 | (1) |
|
|
284 | (1) |
|
Physicians and Surgeons Equipment Coverage Form |
|
|
285 | (1) |
|
Theatrical Property Coverage Form |
|
|
286 | (1) |
|
|
287 | (1) |
|
Commercial Articles Coverage Form |
|
|
288 | (1) |
|
Accounts Receivable Coverage Form |
|
|
289 | (1) |
|
Valuable Papers and Records Coverage Form |
|
|
290 | (1) |
|
|
291 | (1) |
|
Jewelers Block Coverage Form |
|
|
291 | (2) |
|
|
293 | (1) |
|
Equipment Dealers Coverage Form |
|
|
294 | (2) |
|
Camera and Musical Instrument Dealers Coverage Form |
|
|
296 | (1) |
|
|
297 | (3) |
|
|
297 | (1) |
|
Instrumentalities of Transportation and Communication |
|
|
298 | (1) |
|
Commercial Property Floater Risks |
|
|
298 | (2) |
|
|
300 | (3) |
|
|
303 | (2) |
Chapter 15 Commercial General Liability Insurance |
|
305 | (26) |
|
Business Liability Exposures |
|
|
306 | (1) |
|
Premises and Operations Exposure |
|
|
306 | (1) |
|
Products-Completed Operations Exposure |
|
|
306 | (1) |
|
Indirect or Contingent Liability Exposure |
|
|
306 | (1) |
|
Exposures Covered by Commercial General Liability Insurance |
|
|
307 | (1) |
|
Commercial General Liability Coverage Part |
|
|
307 | (4) |
|
|
308 | (1) |
|
|
309 | (2) |
|
|
311 | (3) |
|
|
314 | (1) |
|
Coverage A-Bodily Injury and Property Damage Liability |
|
|
315 | (2) |
|
|
315 | (2) |
|
Coverage B-Personal and Advertising Injury Liability |
|
|
317 | (1) |
|
|
317 | (1) |
|
Coverage A and B Supplementary Payments |
|
|
318 | (1) |
|
Coverage C-Medical Payments |
|
|
319 | (1) |
|
|
319 | (1) |
|
|
319 | (2) |
|
|
319 | (1) |
|
Others Who May Be Insured |
|
|
320 | (1) |
|
Newly Acquired Organizations |
|
|
321 | (1) |
|
|
321 | (1) |
|
|
322 | (3) |
|
Duties in the Event of Occurrence, Offense, Claim, or Suit |
|
|
323 | (1) |
|
|
323 | (1) |
|
|
324 | (1) |
|
|
324 | (1) |
|
Other Commercial General Liability Coverage Forms and Endorsements |
|
|
325 | (1) |
|
|
326 | (3) |
|
|
329 | (2) |
Chapter 16 Commercial Auto Insurance |
|
331 | (22) |
|
Commercial Auto Coverage Part |
|
|
332 | (1) |
|
Business Auto Coverage Form |
|
|
332 | (1) |
|
|
333 | (7) |
|
|
334 | (1) |
|
|
335 | (3) |
|
|
338 | (2) |
|
|
340 | (1) |
|
|
340 | (3) |
|
|
341 | (1) |
|
|
341 | (1) |
|
|
342 | (1) |
|
|
342 | (1) |
|
|
343 | (1) |
|
|
343 | (1) |
|
Trailer Interchange Coverage |
|
|
343 | (1) |
|
Motor Carrier Coverage Form |
|
|
344 | (1) |
|
Motor Carrier Act of 1980 |
|
|
344 | (1) |
|
|
345 | (3) |
|
Drive Other Car Coverage Endorsement |
|
|
345 | (1) |
|
|
346 | (1) |
|
Employees as Additional Insureds |
|
|
346 | (1) |
|
|
346 | (2) |
|
|
348 | (3) |
|
|
351 | (2) |
Chapter 17 Commercial Crime Insurance |
|
353 | (16) |
|
|
354 | (2) |
|
|
354 | (1) |
|
|
355 | (1) |
|
|
356 | (1) |
|
|
356 | (1) |
|
|
357 | (1) |
|
Insuring Agreements and Endorsements |
|
|
357 | (4) |
|
|
358 | (1) |
|
|
358 | (1) |
|
Inside the Premises-Theft of Money and Securities |
|
|
359 | (1) |
|
Inside the Premises-Robbery or Safe Burglary of Other Property |
|
|
359 | (1) |
|
|
359 | (1) |
|
|
360 | (1) |
|
Money Orders and Counterfeit Paper Currency |
|
|
360 | (1) |
|
|
360 | (1) |
|
Extortion-Commercial Entities Endorsement |
|
|
360 | (1) |
|
|
361 | (1) |
|
|
361 | (1) |
|
|
361 | (1) |
|
|
362 | (2) |
|
Cancellation as to Any Employee |
|
|
362 | (1) |
|
|
363 | (1) |
|
Other Conditions That Apply to All Coverages |
|
|
363 | (1) |
|
Conditions That Apply to Selected Coverages |
|
|
364 | (1) |
|
|
364 | (2) |
|
|
365 | (1) |
|
|
365 | (1) |
|
|
366 | (2) |
|
|
368 | (1) |
Chapter 18 Workers Compensation |
|
369 | (14) |
|
Workers Compensation Laws |
|
|
370 | (3) |
|
|
371 | (1) |
|
|
371 | (1) |
|
|
372 | (1) |
|
|
372 | (1) |
|
Compulsory Versus Elective |
|
|
373 | (1) |
|
|
373 | (1) |
|
Workers Compensation and Employers Liability Policy |
|
|
374 | (3) |
|
|
374 | (2) |
|
|
376 | (1) |
|
|
377 | (1) |
|
Federal Workers Compensation Laws |
|
|
377 | (1) |
|
Rating Workers Compensation Coverage |
|
|
378 | (1) |
|
|
379 | (2) |
|
|
381 | (2) |
Chapter 19 Miscellaneous Commercial Insurance |
|
383 | (30) |
|
|
384 | (2) |
|
Farm Property Coverage Forms |
|
|
384 | (2) |
|
Farm Liability Coverage Form |
|
|
386 | (1) |
|
Boiler and Machinery Insurance |
|
|
386 | (11) |
|
Boiler and Machinery Coverage Part |
|
|
387 | (1) |
|
Equipment Breakdown Protection Coverage Form |
|
|
387 | (10) |
|
|
397 | (1) |
|
|
397 | (1) |
|
|
397 | (1) |
|
Professional Liability Insurance |
|
|
398 | (1) |
|
Employment Practices Liability Insurance |
|
|
399 | (1) |
|
Difference in Conditions Insurance |
|
|
399 | (1) |
|
Commercial Umbrella Insurance |
|
|
400 | (1) |
|
|
400 | (2) |
|
|
401 | (1) |
|
|
402 | (1) |
|
|
402 | (1) |
|
|
402 | (1) |
|
The Unauthorized Market and Surplus Lines |
|
|
403 | (1) |
|
Conditions for Obtaining Coverage |
|
|
403 | (1) |
|
Federal Terrorism Risk Insurance Act of 2002 |
|
|
403 | (4) |
|
|
403 | (1) |
|
|
404 | (1) |
|
|
405 | (1) |
|
General Overview of Program |
|
|
405 | (1) |
|
|
406 | (1) |
|
|
406 | (1) |
|
|
407 | (3) |
|
|
410 | (3) |
Chapter 20 Practice Exam 1 |
|
413 | (10) |
|
Practice Exam 1 Questions |
|
|
414 | (9) |
Chapter 21 Answers to Practice Exam 1 |
|
423 | (8) |
|
|
423 | (1) |
|
|
424 | (7) |
Chapter 22 Practice Exam 2 |
|
431 | (10) |
|
Practice Exam 2 Questions |
|
|
431 | (10) |
Chapter 23 Answers to Practice Exam 2 |
|
441 | (8) |
|
|
441 | (1) |
|
|
442 | (7) |
Appendix A What's on the CD-ROM |
|
449 | (4) |
Appendix B Need to Know More CD |
|
Glossary |
|
453 | (38) |
Index |
|
491 | |