Property Policy for Carrier Proposal
30 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What defines an act of terrorism under the Terrorism Risk Insurance Act?

  • It must be carried out by organized criminal groups.
  • It can involve domestic individuals but must target foreign interests.
  • It must be certified by the Secretary of the Treasury. (correct)
  • It must only involve a loss of over $1 million.

What significant change was made in the 2007 re-authorization of the Terrorism Risk Insurance Act?

  • The requirement of a minimum loss amount was increased to $10 million.
  • Insurance coverage for terrorism is no longer offered.
  • The act can now be certified even if committed by U.S. citizens. (correct)
  • Acts must now be committed exclusively by foreign terrorists.

What is the primary purpose of the Terrorism Risk Insurance Act?

  • To share the risk of loss from terrorism between the federal government and the insurance industry. (correct)
  • To impose restrictions on how insurance companies operate.
  • To completely eliminate risks associated with terrorism.
  • To provide insurance without any governmental involvement.

How does the notice clarify the relationship between the notice and the policy?

<p>The policy provisions apply in case of any conflict with the notice. (C)</p> Signup and view all the answers

What event must occur for a terrorism act to be certified under the federal program?

<p>It must be acknowledged by the Secretary of the Treasury. (C)</p> Signup and view all the answers

What percentage of terrorism losses is the federal government responsible for in 2015, provided the losses exceed the applicable insurer retention?

<p>85% (C)</p> Signup and view all the answers

What happens if the aggregate insured losses from certified terrorist acts exceed $100 billion in a calendar year?

<p>The Treasury will not pay beyond $100 billion (A)</p> Signup and view all the answers

How will the federal government's share of losses change after 2015?

<p>Decrease by 1 percentage point each year (D)</p> Signup and view all the answers

Which provision still applies if an act of terrorism occurs?

<p>Nuclear war exclusions (C)</p> Signup and view all the answers

What must an insurer meet to be liable for losses from certified terrorist acts under federal law?

<p>Insurer deductible under the Act (C)</p> Signup and view all the answers

What is required for an act of terrorism to be considered certified under the federal program?

<p>Meeting specific criteria established by law (A)</p> Signup and view all the answers

Which document confirms that coverage for certified acts of terrorism has been accepted?

<p>Policyholder Notice (A)</p> Signup and view all the answers

Who has the authority to cancel the policy?

<p>Only the first Named Insured shown in the Declarations (B)</p> Signup and view all the answers

How many days notice must be provided if the policy is canceled for nonpayment of premium?

<p>10 days before cancellation (A)</p> Signup and view all the answers

What limitation does the company set concerning inspections?

<p>They are not obligated to make any inspections (B)</p> Signup and view all the answers

What is the purpose of the actions the company may undertake regarding reports or recommendations?

<p>To relate only to insurability and premiums (C)</p> Signup and view all the answers

In what scenario must the company provide 30 days notice of cancellation?

<p>For any other reason not related to nonpayment (C)</p> Signup and view all the answers

Which statement accurately reflects the company's stance on safety?

<p>They do not warrant that conditions are safe or healthful (A)</p> Signup and view all the answers

What type of notice must be given to the first Named Insured when the company cancels the policy?

<p>Written notice (A)</p> Signup and view all the answers

What is the primary reason for the company conducting any inspections or surveys?

<p>To evaluate insurability (D)</p> Signup and view all the answers

To whom does the company send the cancellation notice?

<p>To the last known address of the Named Insured (B)</p> Signup and view all the answers

What will be the nature of the refund if the insurance policy is canceled by the insurer?

<p>Refund will be pro rata. (A)</p> Signup and view all the answers

Who is authorized to make changes to the terms of the policy?

<p>The first Named Insured with consent. (A)</p> Signup and view all the answers

What is required for a notice of cancellation to be considered valid?

<p>Proof of mailing. (D)</p> Signup and view all the answers

What happens to the rights and duties under the policy in case of the Named Insured's death?

<p>They are transferred to the legal representative. (B)</p> Signup and view all the answers

What is the responsibility of the first Named Insured regarding premium payments?

<p>They are responsible for the payment of all premiums. (D)</p> Signup and view all the answers

What is the policy on transferring rights and duties under the insurance policy?

<p>Written consent is required, except in case of death. (C)</p> Signup and view all the answers

What is the maximum time period during which the insurer may examine and audit the insured's books and records?

<p>For three years after the policy period. (A)</p> Signup and view all the answers

What will happen if the first Named Insured cancels the policy?

<p>They will receive a refund that may be less than pro rata. (B)</p> Signup and view all the answers

Which of the following statements is accurate regarding the policy's amendments or waivers?

<p>They can only be made by endorsement issued by the insurer. (B)</p> Signup and view all the answers

Flashcards

Terrorism Risk Insurance Act

A federal program that shares the risk of losses from future terrorist attacks with the insurance industry.

Certified Act of Terrorism

A certified act of terrorism involves an act of terrorism that meets the criteria set by the federal government's program.

Foreign Interest Requirement

The Act originally required that terrorist acts be committed by individuals acting on behalf of a foreign interest to be certified. This requirement was removed in 2007.

Offer of Terrorism Coverage

The insurer is obligated to offer you the option to purchase coverage for losses resulting from a certified act of terrorism.

Signup and view all the flashcards

Policy Notice Impact

The information provided in this notice doesn't modify or change the terms and conditions of your policy.

Signup and view all the flashcards

Federal Share of Terrorism Losses

The government covers a portion of losses from certified terrorist attacks, with the share decreasing over time.

Signup and view all the flashcards

Limit on Government Payments

If insured losses from terrorist acts exceed $100 billion in a year, the government won't cover anything above that limit.

Signup and view all the flashcards

Insurer Deductible for Terrorism Coverage

The insurer will cover terrorism losses up to a certain amount, but the government may pay a portion of the loss exceeding the insurer's deductible.

Signup and view all the flashcards

Pro Rata Allocation of Losses

In the case of claims exceeding the $100 billion limit, the money available is split proportionally among all insurers.

Signup and view all the flashcards

Terrorism Coverage Confirmation

This policy covers terrorism losses that meet the federal certification requirements.

Signup and view all the flashcards

Other Policy Exclusions

The policy includes standard exclusions, such as those related to nuclear, war, or military actions, which apply to terrorism-related losses as well.

Signup and view all the flashcards

Terrorism Coverage Premium

The cost of terrorism coverage may be listed separately on the insurance policy or certificate.

Signup and view all the flashcards

Cancellation Notice - Nonpayment

Cancellation due to non-payment of premium requires a 10-day notice period.

Signup and view all the flashcards

Cancellation Notice - Other Reasons

Cancellation due to other reasons (besides nonpayment) requires a 30-day notice period.

Signup and view all the flashcards

Cancellation Notice Recipient

The first named insured on the policy receives the cancellation notice.

Signup and view all the flashcards

Common Policy Conditions

This policy includes common conditions that affect all coverage parts.

Signup and view all the flashcards

Policy Cancellation Reasons

The insurer may cancel this policy for reasons beyond non-payment.

Signup and view all the flashcards

Policyholder's Cancellation Right

The insured has the right to cancel the policy by giving advance written notice.

Signup and view all the flashcards

Insurer's Inspection Right

The insurer may inspect the insured property to assess risks and premiums.

Signup and view all the flashcards

Insurer's Inspection Obligation

The insurer isn't obligated to perform inspections, but they may choose to do so.

Signup and view all the flashcards

Insurer's Liability Disclaimer

The insurer doesn't guarantee safety or compliance with regulations, only assessing insurability and premiums.

Signup and view all the flashcards

Cancellation Effective Date

The date a policy cancellation becomes effective.

Signup and view all the flashcards

Policy Period End

The policy period will end on the cancellation date.

Signup and view all the flashcards

Pro Rata Refund

A refund calculated based on the time remaining on the policy.

Signup and view all the flashcards

First Named Insured Responsibilities

The first Named Insured is responsible for paying all premiums and receives any refund.

Signup and view all the flashcards

Policy Agreement

This policy outlines all the agreements between you and the insurer.

Signup and view all the flashcards

Policy Changes

Changes to the policy require the insurer's consent.

Signup and view all the flashcards

Book and Record Examination

The insurer has the right to review your financial records related to the policy.

Signup and view all the flashcards

Inspections and Surveys

The insurer may inspect, survey, or report on your property or operations for risk assessment.

Signup and view all the flashcards

Policy Transfer

Your rights and duties under the policy cannot be transferred without the insurer's consent.

Signup and view all the flashcards

Study Notes

Policyholder Notice - Terrorism Coverage

  • This notice does not form part of the policy, grant coverage, or change any policy terms.
  • "We" refers to the insurer; "you" refers to the policyholder.
  • Policyholders have a right to purchase terrorism coverage subject to all policy provisions.
  • A federal program within the Department of Treasury shares terrorism loss risk with the insurance industry.
  • The definition of a Certified Act of Terrorism has changed since 2007. This no longer requires the act to be committed by a foreign interest.
  • The 2015 federal share is 85% of losses exceeding the insurer retention and this percentage decreases to 80% over time.
  • If insured losses exceed $100 billion in a calendar year, the Treasury will not pay any amount in excess of $100 billion.
  • There is a limit on liability for payment of insured losses exceeding $100 billion in a calendar year.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Property Sample Policy PDF

Description

Test your knowledge on the Terrorism Risk Insurance Act, focusing on its definitions, key provisions, and significant changes made during its 2007 re-authorization. This quiz covers aspects like government responsibility for losses, certification of acts of terrorism, and insurer requirements under federal law.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser