Personal Lines Insurance PDF

Personal lines Insurer-the company Insured- person who gets protected(customer) Named insured is the customer who gets the broadest coverage i guess because of the area we are in. There's also intermediate and minimum coverage depending on what is being covered or the guidelines. First n...

Personal lines Insurer-the company Insured- person who gets protected(customer) Named insured is the customer who gets the broadest coverage i guess because of the area we are in. There's also intermediate and minimum coverage depending on what is being covered or the guidelines. First named insured is the first name in policy and I'm guessing the one who pays or who chose the plan. Or the customers company name Additional insured is a person or company that is added after the first one. Principle of indemnity is damages covered with certain value they think is fair Underwriting is if the insurer is able to pay the damages or not if they have enough to do so if they can afford it Insurable Interests-make sure that you aren't using it to your advantage Accident-happens happen unexpectedly causes damage Occurrence overtime a leaking seat rots cabinet Cancellation discontinuation of policy before expiration date not paying bills Non-renewal -too many tickets Binder- temporary roof of insurance can be written or verbal ,how much you pay for a plan and what is being covered. Certificate of insurance-paper that is shown to proof that you are insured , it includes when you started to get covered the type of insurance coverage you payed always have it on you Endorsement-making a change to the policy Arbitration-covered or not settles disagreements and questions someone else agrees for them Appraisal-who decides amount of value of vehicle Commissioner of insurance -assigned by governor , sets up rules to make them fair insurer can ask for information and so can the police if any fraud stuff has been done.Required laws of texas Examination of records-revised every 5 years and see if they are financially stable Investigation /notice of hearing- investigates or examines any suspicious activity like any unfair method of competition and if engaged results can end up in consequences can't hold hearing before sixth day Cease and desist -prevents any policy from being violated if it does end up happening, have proof and it helps it from not getting worse. Penalties- money paid as a result from violating a policy. Civil penalty for violation of cease and desist order- penalty can go from normal to civil $50 normal can exceed to $500 Reinsurance reserves will not be released; they will compute (store, analyze and process data.)funded money incase insurer goes bankrupt and still owes money Domicile of insurer - the office 3 categories Domestic-insurer has home office in texas Foreign - office is anywhere in the united states except texas Alien- offices located in another country Admitted insurer- they are allowed to sell insurance here not incorporated here. Sanctions and penalties- if insurer breaks law or rule license will be revoked osea taken away. commissioner must let insurer know 10 days before ,insurer can ask for a second chance (hearing) held within 30 days 10/30 rule Non-admitted insurer-not allowed unlicensed insurer Surplus lines-must have insured unable to obtain the insurance through admitted insurance Texas property and casualty guaranty association - non-profit,insurer must participate in the association(association will pay claims if insurer goes bankrupt)surplus cant cuz they're nonadmitted