PreLicense.com PC Key Points PDF

Licensing Exam Prep Property & Casualty Insurance Core Concepts Overview Lesson Key Points Review Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license...

Licensing Exam Prep Property & Casualty Insurance Core Concepts Overview Lesson Key Points Review Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE General Insurance Overview Insurance: An economical way for an individual or group to transfer the financial risk of loss to an insurance company. Property insurance transfers to a property insurance company the risk of financial loss resulting from damage or destruction of the insured’s personal or commercial property. Casualty insurance (also called liability insurance) transfers to a casualty insurance company the risk of financial loss resulting from damage to a person or commercial property due to the insured’s words, actions or failure to take corrective action. Damage may be tangible (e.g. a damaged automobile) or intangible (e.g., a person or business’s reputation). Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE General Insurance: General Insurance Principles Risk and Loss Risk: Chance of loss Loss: Unplanned reduction in economic value Exposure: The state of being subject to possible loss high exposure means high risk Peril: The cause of a loss common covered perils: fire, explosion, windstorm, flood, theft, collision Hazard: A condition that increases the chance of a peril moral, morale, physical Risk Management: Process we all use to manage life’s risks risk transfer: The risk management role played by insurance Insurable Risk: loss must be definable, measurable, outside of applicant’s control, not catastrophic only pure risks are insurable Adverse Selection: Tendency of high risks to seek insurance Law of Large Numbers: Mathematical principle of probability underlying insurance Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE General Insurance: General Insurance Principles Insurance Providers Mutual companies, owned by policyowners, issue participating policies which pay policy dividends to their policyowners. Stock companies do NOT issue participating policies, and pay stock dividends to stockholders. County mutuals are mutual companies that operate in a limited geographical area. Originally property insurance, now other types also. Reciprocal insurers are groups of members that insure each other through contracts of indemnity. Fraternal insurers sell insurance to members of a fraternal benefit society. Federal and state government insurance programs: Federal: NFIP, Crop Insurance, Social Security, Medicare State: Workers Compensation, Unemployment, Medicaid, FAIR Plans Admitted vs. non-admitted Admitted companies need a Certificate of Authority from the state Domestic, Foreign, Alien Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE General Insurance: General Insurance Principles Insurance Producers Agent and Principal agent (producer) acts on behalf of principal (insurer) exclusive (captive) agent: represents one insurer independent producer: can represent multiple insurers Producer’s authority express authority: Defined in contract with insurer implied authority: Understood to be part of job apparent authority: Producer’s actions not approved by insurer Producer’s responsibilities to applicants and insureds Full disclosure of all relevant information Honest representation (no misrepresentation) Suitable recommendations Errors and Omissions (E&O) Insurance Protects producer against unintentional mistakes (not willful misconduct) Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE General Insurance: General Insurance Principles Insurance Contracts Offer and Acceptance Signed application and initial premium is the applicant’s offer Issuance of policy as applied for is the insurer’s acceptance Consideration By applicant: Premium payment By insurer: Good faith promise to honor contract Contract of Adhesion Ambiguities in the contract are interpreted to the benefit of the policyowner Indemnity vs. Valued Contracts Indemnity: Reimburse loss (most property insurance) Valued: Pay policy face amount (hard-to-value property) Representations vs. Warranties Applicant's truthful statements on application considered representations Not a misrepresentation if applicant truly believed statement was truthful Misrepresentations discovered within contestable period may void contract Insurer’s promises in contract are warranties Fraud Deliberate act to deceive; misrepresentation Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE State General Insurance Laws Complete knowledge of state laws is crucial for exam success! Focus on the details Common General State Insurance Law Topics*: Department of Insurance Duties of the Commissioner (Director, Superintendent) Hearings Penalties Producer and Insurance Company Regulation Licensing and renewals Resident vs. non-resident producers Agent appointment Property and Casualty Insurance Minimum Requirements *Non-exclusive partial list of topics that may be included in your course. Knowledge of these topics alone is not a replacement for full review of all State General Insurance Law lessons Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Property Insurance Basics 2 Types of Property Real Property Land and structures attached to land (e.g. buildings, patios, fences) Personal Property Anything tangible that is not Real Property (e.g. contents in buildings, autos, jewelry) 4 Types of Construction Frame, Masonry, Masonry Veneer, Superior (non-combustible, masonry, fire-resistive) Types of Property Losses Direct or Indirect (consequential) Insurable Interest Must exist at all times (including time of loss) Policyowner must have financial interest in property insured Loss Valuation Replacement Cost (valuing houses and commercial property) Functional Replacement Cost (valuing older buildings) Actual Cash Value (ACV) (valuing household contents and other personal property) Market Value (valuing cars) Stated Amount (values are listed in a schedule in the policy) Agreed Value (valuing paintings, antiques and other items that are difficult to value) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Causes of Loss Hazards: Conditions that Increase likelihood or severity of loss Moral Hazard (personal traits or tendencies) Morale Hazard (bad attitude or indifference to loss) Physical Hazard (physical conditions) Perils: Causes of loss Named Perils vs. Open Perils Named Peril (specified perils) Policy lists perils that ARE covered Examples: fire, lightening, explosion, smoke, riot, falling objects, theft, burglary, robbery Policyowner has burden of proof that named peril was cause of loss Open Perils (special perils) Policy lists perils that are NOT covered All other perils are covered Insurer has burden of proof that cause of loss was an excluded peril Concurrent Causes of loss If a loss involves at least one covered peril, loss is covered even if other perils not covered Difference in Conditions (D-I-C) Separate policy that covers perils not covered by commercial property policy (e.g., earthquakes and floods) Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Liability Insurance Basics Liability (casualty) insurance = “lawsuit protection” Protection against civil wrongs (involves tort law) Plaintive (claimant) brings suit against the defendant (insured) Negligence (failure to use degree of care reasonably necessary to avoid causing injury) Plaintiff must prove all 4 conditions existed to hold defendant (insured) liable: Duty of Care (does defendant have a duty of care?) Breach of Duty of Care (did defendant fail in that duty of care?) Causation (was the accident’s proximate cause the result of defendant’ breach of duty of care?) Damages (did the accident result in legally compensable injury or damage?) Compensatory damages (special damages and general damages) Punitive damages Defenses to Negligence assumption of risk contributory negligence comparative negligence Strict (Absolute) Liability vs. Vicarious Liability strict: Liable by nature of the cause of loss even when not careless vicarious: Legally responsible for the actions of another Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics The Underwriting Process Underwriting: Insurer determines if applicant is insurable (that is, acceptable to insurer), and if so, at what premium amount. Underwriting Process Agency Underwriting binder (provides temporary coverage while supplication goes through underwriting process) Underwriter’s Risk Analysis uses: application agency report loss history data and loss control report motor vehicle record (MVR) Inspection report (inc. photos) and credit information The Underwriting Decision accept, reject, or accept with modifications (rated policy) Implement the Decision deliver policy and collect premium Monitor and Measure the Results loss ratio (compares insurer’s losses and premiums) expense ratio combined ratio Rates vs. Premiums Rate: Cost of insurance per unit of exposure Premium: Periodic payment required to maintain coverage (equal to insurance rate times number of exposure units) Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Policy Structure Standard Policy Structure Declarations: Information unique to the policy Insured name and address, premium, deductible(s), policy limits, policy period Definitions: Key terms that relate to the policy Determines who or what is covered under the policy Insuring Agreement(s): Sets forth the insurer’s basic promise under the policy Conditions: Requirements needed to qualify for or maintain coverage Endorsements: Modify coverage by adding exclusions or expanding coverage Exclusions: Limits policy coverage Purposes: Eliminate/reduce overlapping coverage Remove coverage not typically needed Reduce incentive to create losses Remove coverage for uninsurable risks Common exclusions: Building ordinance or law Earth movement or earthquake Nuclear hazard Flood and leakage or seepage Maintenance wear or tear and mechanical breakdown Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Property and Casualty Insurance Policy Conditions Parties entitled to coverage Insureds and secured creditors (mortgage holders, loss payees) “No Benefit to Bailee” Provision Bailees (who temporarily hold insured’s property) not covered Liberalization clause Named insured benefits from policy enhancement at next renewal Conditions affecting property insurance coverage Policy limits (limit of liability) Deductibles Coinsurance (requires the insured to buy a limit of insurance at least equal to a specified percentage of the full insurable value of the covered property, e.g., 80%) Restoration of limits Policy period Conditions after loss By Insured: Notify insurer of loss Notify police if theft or other law violation Protect property from further harm Cooperate with insurer Sworn proof of loss within 60 days of insurer’s request By Insurer: Salvage: Insurer may salvage total loss property Subrogation: Insurer may recover claim payment from party responsible for loss Appraisal: Independent appraisal when insured and insurer cannot agree on value Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property and Casualty Insurance: Property and Casualty Insurance Basics Insurance Regulation Federal Regulation Insurance primarily state-regulated, but there are important federal regulations Fair Credit Reporting Act (FCRA) Protects consumers when credit reporting agencies (CRAs) collect personal data on them Application includes Notice of applicant’s rights under FCRA If coverage denied on basis of consumer report, insurer must notify applicant Gramm-Leach-Bliley (GLB) Insurers barred from disclosing consumers’ nonpublic personal information Insurers must provide customers with privacy notice upon application and annually thereafter Federal Trade Commission Act (FTCA) Makes deceptive or unfair trade practices illegal Violation of insurer’s privacy policy is illegal Health Insurance Portability and Accountability Act (HIPAA) Enforces privacy rules regarding consumer protected health information Terrorism Risk Insurance Act (TRIA) P&C Insurers in U.S. must offer coverage for “certified acts of terrorism” National Flood Insurance Program (NFIP) Makes flood coverage available on residential and commercial buildings and personal property Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE State Property & Casualty Insurance Laws NOTE: Your course may or may not have a chapter on common P&C Insurance Laws Focus on the details Common P&C State Insurance Law Topics*: Mandatory P&C Policy Provisions Policy Cancellation and Nonrenewal Standards Property and Casualty Insurance Minimum Requirements State Property and Casualty Guaranty Association Federal Terrorism Insurance Program *Non-exclusive partial list of topics that may be included in your course. Knowledge of these topics alone is not a replacement for full review of all State P&C Insurance Law lessons Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Homeowners Policy Homeowners Policy, Part 1 (screen 1 of 2) Homeowners Insurance Package policy that combines 2 or more separate coverages (e.g., property and liability) Homeowners Coverage Forms HO 2 (Broad Form) Dwelling, other structures, personal property on named perils basis Loss of use, personal liability, medical payments HO 3 (Special Form) Dwelling and other structures on open perils basis Personal property on a named perils basis (16 specified perils) Loss of use, personal liability, medical payments HO 4 (Contents Broad Form) Tenants coverage (house or apartment) Personal property on named perils basis Loss of use, personal liability, medical payments HO 5 (Comprehensive Form) Broadest homeowners coverage Dwelling, other structures and personal property on open perils basis Loss of use, personal liability, medical payments HO 6 (Unit Owners Form) Condo and co-op apartment coverage Limited dwelling coverage Personal property on named perils basis Loss of use, personal liability, medical payments HO 8 (Modified Form) Insures older homes when replacement cost exceeds market value Dwelling and other structures coverage based on cost to repair or replace Loss of use, personal liability, medical payments Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Homeowners Policy Homeowners Policy, Part 1 (screen 2 of 2) Homeowners Property Coverage: Section I of the HO Policy Coverage A (Dwelling) Insured’s house and attached structures Attached garage and toolshed Construction materials on or next to dwelling Coverage B (Other Structures) Structures not attached to dwelling Detached garage, gazebo, driveway, swimming pool, fence Excludes structures rented to non-tenant; business structure Coverage C (Personal Property) Covers all ‘stuff’ owned by insured Coverage applies anywhere in the world (including hotels) Excludes animals, motor vehicles, tenants property, separately scheduled property Coverage D (Loss of Use) Three Benefits: Additional living expenses Fair rental value Prohibited use (civil authorities) Additional Coverages Provided through HO 3 property section Covered and Excluded Perils Refer to table in lesson Conditions and Selected Endorsements Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Homeowners Policy Homeowners Policy, Part 2 Homeowners Liability Coverage: Section II of the HO Policy Coverage E (Personal Liability) Insurer provides defense, regardless of lawsuit’s merit Policy will pay up to the limit of the policy’s liability coverage Coverage provided only when insured is legally responsible for damages Coverage F (Medical Payments to Others) Goodwill Coverage: Medical payments made due to moral obligation Pays reasonable and necessary medical expenses within three years from the date of the accident Covered Persons: Does NOT cover the insured or regular residents of the insured Liability Exclusions 12 exclusions applicable to both personal liability and medical payments 6 exclusions applicable only to personal liability 4 exclusions applicable only to medical payments coverage Conditions and Selected Endorsements 3 common endorsements: Home business insurance coverage Permitted incidental occupancies Home day care coverage Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Dwelling Policy The Dwelling Policy Dwelling Policy: When an HO Policy is inappropriate or too much Property Coverage Only (no liability, except as supplemental coverage) Coverage Forms Dwelling Property 1 (DP 1) Basic form Coverages A, B, C , D Coverage E by endorsement 3 covered (named) perils: fire, lightening, internal explosion other perils optional Dwelling Property 2 (DP 2) Broad form Coverages A, B, C , D, E 10 covered perils Dwelling Property 3 (DP 3) Special form Coverages A, B, C , D, E Open perils for Dwelling and Structures; 10 named perils for Personal Property Coverages Coverage A – Dwelling Coverage B – Other Structures (10-20% of Coverage A) Coverage C – Personal Property (50-70% of Coverage A) Coverage D – Fair Rental Value (20% of Coverage A) Coverage E – Additional Living Expense (20% of Coverage A) Exclusions and Selected Endorsements Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Commercial Package Policy (CPP) Commercial Property Insurance Insurance to cover business and commercial buildings and contents Key Commercial Property (CP) policy forms: Common Policy Conditions form (IL 00 17) Standard policy conditions (e.g., cancellation, changes, premiums, etc.) Commercial Property Conditions form (CP 00 90) Standard property conditions (e.g., misrepresentation, control of property, liberalization, no benefit to bailee, policy period, etc.) Coverage Forms Describe property that is insured, plus limitations or exclusions Different forms for different types of property (e.g., Building and Personal Property, Condominium Association, Builders Risk, etc.) Causes of Loss Forms Describe what causes of loss are covered Basic Causes of Loss (CP 10 10) 12 named perils Broad Causes of Loss (CP 10 20) 16 named perils Special Causes of Loss (CP 10 30) open perils Selected Endorsements Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Businessowners Policy The Businessowners Policy (BOP) Package policy provides both property and general liability coverage Designed for small to medium-sized businesses Business cannot exceed 35,000 sq.ft. and $6 million in annual gross sales BOP Eligibility Conditions: Size of Business (square footage and revenue) Type of Business 11 Eligible Types Excludes: manufacturers auto repair or service stations auto and motorized vehicle dealers parking lots, garages or motorized vehicle self-storage facilities bars and pubs places of amusement banks and other financial institutions Three Sections to BOP Form Section 1 – Property Section II – Liability Section III – Common Policy Conditions Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Businessowners Policy The Businessowners Policy (BOP) – Property Provisions Property Coverage for Buildings, Business Personal Property, or Both Building Coverage Applies to building or structures identified in declarations Business Personal Property Coverage Covers property on or within 100 feet of premises, including: business-owned property used in the business personal property of others in insured’s care or custody leased personal property that insured contractually obligated to insure tenant’s improvements or betterments exterior building glass owned by or in care of insured tenant Excluded property includes money and securities; illegal goods; vehicles subject to motor vehicle registration; valuable papers; electronic data; outdoor fences and detached signs Losses are valued on a replacement cost basis Open perils coverage Additional Coverages Covers many indirect expenses (e.g., debris removal; pollutant cleanup; fire department charges; preservation of property; counterfeit money) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Businessowners Policy The Businessowners Policy (BOP) – Liability Provisions Three categories of liability coverage: Business liability coverage pays damages for which insured is liable Supplementary payments for claims and suit-related expenses, payable in addition to limits of insurance Includes defense cost coverage Medical expenses related to accident on insured’s premises or involving insured’s operations (regardless of fault) Payable only to the other party (not the insured, a tenant or person hired by the insured) Business Liability Coverage bodily injury (injury, sickness, disease, death) property damage (inc. fire or explosion damage to rented premises) personal and advertising injury, including: slander or libel violation of privacy rights or invasion of private occupancy rights false arrest or detention, or malicious prosecution copyright infringement, or use of another’s advertising idea, trade image, or slogan Exclusions expected or intended injury contractual liability liquor liability workers comp and employers liability pollution professional liability war product recall other Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Businessowners Policy The Businessowners Policy (BOP) – Selected Endorsements Endorsements provide state-specific coverages or conditions mandated by the state They can broaden, limit, clarify, or otherwise modify a policy Most common endorsements: Protective Safeguards (BP 04 30) Maintenance of protective safeguards are a condition of coverage Utility Services – Direct Damage (BP 04 56) Covers direct damages to insured’s property due to interruption of utility services Service interruption must result from damage to utility company property from a covered cause of loss Utility Services – Time Element (BP 04 57) Covers lost income or expenses incurred due to interruption of utility services Hired Auto and Nonowned Auto Liability (BP 04 04) Covers bodily injury or property damage from use of hired auto by insured or employee Appropriate for business that does not own automobiles An employee using his/her own car must rely on a personal auto policy (PAP) for auto protection Identity Fraud Expense Coverage (BP 14 01) Covers specified expenses incurred as a direct result of identity fraud $250 deductible Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Inland and Ocean Marine Insurance Inland Marine Insurance Insures exposures that are not confined to a fixed location or cannot be insured under a standard form Floater Inland marine policy that covers specific items for individuals, families and businesses Covers property that frequently moves (“floats”) from one location to another Personal and Commercial Floaters: Personal inland marine insurance (“floater policy”) Personal articles floater Either a separate policy or endorsement to a homeowners policy jewelry, furs, cameras, musical instruments, art, stamp & coin collections, etc. Commercial Inland marine insurance (“commercial property floater”) Valuation of property: lesser of: ACV, cost to restore, or cost to replace Common floaters: accounts receivable floater bailees’ customers floater commercial articles floater contractors’ equipment floater electronic data processing floater equipment dealers floater installation floater jewelers block floater signs floater valuable papers and records floater transportation coverages Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Inland and Ocean Marine Insurance Ocean Marine Insurance Two forms of ocean marine coverage: Hull Insurance Protects against loss to the vessel Cargo Insurance Protects cargo being transported on a ship Hull Insurance Agreed value approach to valuing ship Perils of the sea Covered perils that are unique to ocean transportation and could not be reasonably prevented (e.g., heavy weather, gale winds, large waves) General average losses All parties to the venture share in loss incurred for common good Salvage Save endangered property and protect from further loss Salvage expenses are payable to third-party “salvors” who render assistance in saving a ship and its cargo Collision liability (‘running down clause’) Protects ship owner or operator against loss from liability for damages to another vessel Property damage only (no bodily injury liability coverage) Does not cover liability for damage to piers, wharves, or cost of removing navigation obstructions caused by a collision Cargo and Freight Insurance Types of cargo losses: total vs. partial losses Salvage charges Freight insurance reimburses shipper for lost freight (i.e., charges for carrying goods) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Farm Insurance Farm Insurance Coverage Farm Property Coverage Forms Farm Property-Farm Dwellings, Structures and Household Personal Property (FP 00 12) Covers farm owner’s residential (non-farm) property Coverages A, B, C, D Farm Property-Farm Personal Property (FP 00 13) Scheduled Farm Personal Property and Unscheduled Farm Personal Property Coverages E, F Farm Property-Barns, Outbuildings and Other Farm Structures (FP 00 14) Covers 7 types of structures Does NOT cover: Land; Water; Field Fences; Below-Ground Structures; Wharves; Docks Coverage G Causes of Loss Form-Farm Property (FP 10 60) Covered causes of loss: Basic, Broad, Special Farm Property-Other Farm Provisions Form-Additional Coverages, Conditions (FP 00 90) Eliminates need to repeat fundamental provisions in every form Contains: 6 additional coverages, 11 loss conditions, 6 general conditions, 13 definitions, a limits of insurance section, and a deductible section Farm Inland Marine Coverage Forms Mobile Agricultural Machinery and Equipment Coverage Form (FP 00 30) Open perils form provides coverage for mobile agricultural machinery equipment Farm Livestock Coverage (FP 00 40) Named perils form covers loss or damage to livestock Does NOT cover livestock in custody of common or contract carrier, public stockyards, slaughterhouses or packing plants Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Farm Insurance Farm Liability Insurance Farm Liability Coverage Form (FL 00 20) Farming Operation of agricultural or aquaculture enterprise Includes roadside stand on farm property selling insured farm’s produce Does NOT include retail activity (other than roadside stand) or mechanized processing operations Example: on-premises ‘general store’ or vegetable canning operations Three Basic Coverages: Bodily Injury and Property Damage Liability (Coverage H) Bodily injury includes sickness and disease for which insured is responsible Property damage includes loss of use of undamaged property Insurer has a duty to defend the insured against any suit, regardless of merit Personal Injury and Advertising Injury (Coverage I) All the standard offenses including slander, libel, violations of privacy, false arrest, wrongful eviction, etc. Medical Payments (Coverage J) Pays reasonable medical expenses incurred within 3 years of covered accident Subject to exclusions common to bodily injury and property damage liability coverage Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Flood Insurance National Flood Insurance Program (NFIP) NFIP Fundamentals Special flood hazard areas (SFHA, i.e., flood plain) have 1% chance of being flooded in any given year (100-year flood zone) Standard residential and commercial property policies exclude flood loss coverage Write-Your-Own (WYO) Program Insurers write and issue their own flood policies but coverage is 100% reinsured by NFIP Residential and commercial owners may buy flood insurance from their property insurance company if it participates in WYO Property owners whose insurers do not participate in WYO can buy coverage directly from NFIP if their community participates in NFIP WYO is cooperative between FEMA and the insurance industry 3 Standard Flood Insurance Coverage Forms Dwelling form Provides building and contents coverage to homeowners, residential renters, owners of residential buildings with 1-4 units General property form Provides building and contents coverage for residential buildings with 5 or more units and certain types of nonresidential properties Residential condominium building association policy (RCBAP) form Building coverage and (optional) commonly owned contents for residential condo buildings with at least 75% total floor area in residential use Coverage Single peril policy (flood) Inundation of 2 or more acres of normally dry land from water overflow, rapid accumulation of water, or mudflow Collapse or subsidence of land along the shore caused by excessive waves or currents resulting in a flood as defined above Sewer backup, sump discharges, or water seepage resulting from a flood Key Exclusions Loss of use of covered property Lost revenue or profits Loss from business interruption Loss Settlement Replacement cost (single-family dwellings) Special loss settlement (mobile homes) Actual cash value (2-, 3- or 4-family dwellings, detached garages, personal property, appliances and carpets, outdoor equipment) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Other Types of Property Insurance Equipment Breakdown Coverage Covers business equipment and machinery excluded from standard property coverage Equipment Breakdown Policy (EB 00 20) Covered Equipment Pressure or vacuum equipment Electrical or mechanical energy-related equipment Communication and computer equipment Utility-owned equipment used solely on insured’s premises Coverage Options 9 options (inc. property damage, expediting expenses, spoilage damage, utility interruption, newly acquired premises, business income, ordinance or law) Common Exclusions 18 exclusions (inc. ordinance or law, earth movement, nuclear hazard, war or military action, flood, lack of power, explosions except with steam equipment, fungus or rot, testing, depletion, deterioration, corrosion, others) Valuation Replacement cost coverage if repaired within 24 months, otherwise actual cash value Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Property Insurance: Other Types of Property Insurance Surplus Lines and Special Coverages Excess and Surplus (E&S) Lines Insurance Coverage for special needs Underwriting problems Exposures difficult to evaluate Risks requiring especially high coverage limits Can be sold by non-admitted insurers Allows insurer underwriting and premium flexibility Special Types of Insurance Coverage Earthquake insurance Most standard personal and commercial policies do not cover earthquake Mobile Home insurance Less common today, now that HO2 and HO3 policies may cover mobile homes Watercraft insurance Standard homeowners policies provide limited coverage Farmowners insurance Crop-Hail insurance Covers losses due to hail, drought, declining price of the commodity Windstorm insurance Standard homeowners policies do not cover hurricanes, tornadoes, or cyclones Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE State Property Insurance Laws Complete knowledge of state laws is crucial for exam success! Focus on the details Common State Property Insurance Law Topics*: State-Specific Policy Forms Minimum standards and requirements Required Property Policy Provisions State Insurance Access Plans FAIR and High Risk Auto Pool Plans Plan Fundamentals Eligibility Conditions *Non-exclusive partial list of topics. Knowledge of these topics alone is not a replacement for full review of all State Property Insurance Law lessons Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Regulation of Auto Insurance Proof of Insurance (or Financial Responsibility) is compulsory in all states A few states require “evidence of financial responsibility” after-the-fact (e.g., accident); all others always require compulsory insurance (“proof of insurance”) Auto insurance is most heavily regulated of all types of property and casualty insurance Auto Insurance Standards Policy Term: 6 months (sometimes 12 months) Policy expires at end of term and either renewed or not renewed Cancellation: Occurs only during the policy term (either by insurer or insured) Insurer cancels: Written notice must be mailed or delivered to insured Minimum 10-Day notice, and 15 or 20 days in some states Acceptable reasons: Insured did not qualify for insurance: May be cancelled only if discovered in first 60 days Non-Payment of Premium: May be cancelled at any time Misrepresentation on application : May be cancelled at any time Revocation of insured’s license: May be cancelled at any time Insured cancels: Any form of communication acceptable Insurer must return unearned premium Grace Period: No formal grace period; premium due when billed Exceptions in some states Renewal: Insurer sends renewal premium invoice for insured’s acceptance Failure to pay premium constitutes nonrenewal by insured If insured buys new policy from different insurer before renewal date, old policy terminates on new policy’s effective date Uninsured Motorists (UM) and Under Insured Motorists (UIM) coverage included in most auto policies No-Fault Insurance: Insured collects from his/her own insurer regardless of fault Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance The Personal Auto Policy (PAP) PAP combines property and liability coverage in single policy 3 major parts to PAP: Declarations Page insured, insurer, and agent’s name and address year, model, make of vehicle Vehicle must be owned (or leased at least 6 months) by named insured to be listed in declarations coverage limits deductibles Personal Auto Policy Coverage Form Part A-Liability Includes damage to the other person’s car or property Part B-Medical Payments Part C-Uninsured Motorists Part D-Damage to Insured Auto Part E-Duties After an Accident or Loss Part F-General Provisions Selected Endorsements May add, delete, or modify provisions in coverage form Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Liability Coverages of the Personal Auto Policy Part A – Liability Coverage Insuring Agreement Insurer pays for damages for which insured is responsible bodily injury to others property damage of others “Insured” includes persons or organizations deemed liable in addition to the named insured Example: An organization the insured was driving for when accident occurred Includes defense coverage… …even if cost exceeds coverage limits Limit of Liability: Per Person Bodily Injury, Per Accident Bodily Injury, and Per Accident Property Damage Example: 20/40/15 $20,000 per person for body injury $40,000 per accident total for bodily injury $15,000 per accident for property damage Insurance coverage follows the car If non-insured is the driver, the car is still covered in an accident If insured drives a non-owned vehicle, that vehicle’s PAP is the primary coverage in an accident Part B – Medical Payments Coverage Pays for relatively small amounts for medical expenses regardless of fault ‘goodwill insurance’ Exceptions: fewer than 4 wheels; public livery (taxi); motor homes; workers comp; noncovered autos; business use; racing Part C – Uninsured Motorists Protect insureds from at-fault drivers with no insurance Includes hit-and-run Coverage for insureds and family members hit as pedestrians as well as occupants in a car (owned or non-owned) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Property Coverages of the Personal Auto Policy Part D –Coverage for Damage to Insured Auto Collision Coverage vs. Other-than-Collision Coverage Collision: Impact with another object by insured auto in motion Other-than-Collision: Open perils protection including (not limited to): Theft, falling objects; fire; explosion; windstorm; flood; riot; contact with animal; glass breakage Coverage applies regardless of insured’s negligence Nonowned Auto Coverage Includes rental cars rented by insured or listed family member Coverage equals maximum amount of coverage on any insured auto Deductibles Apply to Part D Damages coverage Do NOT apply to Part A Liability, Part B Medical Payments, or Part C Uninsured Motorists Conditions Duties after accident or loss Insurer’s right to recover payments from other insured (subrogation) Selected Endorsements Towing and Labor Costs Coverage Joint Ownership Coverage Recognizes joint ownership of vehicle by couples other than traditional husband-and-wife Extended Non-Owned Coverage (e.g., company car) Personal Injury Protection (PIP) Coverage Additional coverage for insured in no-fault states Limited Mexico Coverage Limited coverage for accident or loss incurred in Mexico Named Driver Exclusion Does not cover a person specified by name in the policy Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Commercial Auto Insurance Business Auto Policy (BAP) Standard policy sections: Declarations Insuring Agreement (Coverages) Policy Conditions BAP endorsements (e.g., Nuclear Energy Liability Exclusion) Business Auto Declarations (‘decs’): Six Items 1. Named Insured 2. Coverages and Covered Autos 1. Many common auto insurance coverages (e.g., liability, personal injury, medical payments, UM, UIM, physical damage, etc.) 2. Covered autos denoted by symbols (e.g., 1-Any Auto, 2-Owned Autos Only, 9- Nonowned Autos Only, 19-Mobile Equipment subject to insurance laws, etc.) 3. Owned Autos 1. Detailed rating and underwriting info for each covered auto 4. Hired of Borrowed Auto Coverage and Premiums 1. Estimated exposure for hired or borrowed autos 1. Post-period review and premium reconciliation 5. Nonownership Liability 1. Liability coverage for employees who drive covered autos they don’t own 6. Gross Receipts or Mileage Rating Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Liability Coverages of the Business Auto Policy Insuring Agreement Describes insurer’s obligation to respond to a claim or lawsuit due to bodily injury, property damage, or pollution cleanup from a covered auto Three categories of insured: Named Insured Permissive User Person responsible for permissive user insured (vicarious liability) Limitations and Exclusions Insurer only covers damages for which the insured is legally liable Standard exclusions (e.g., intentional injuries, workers compensation, property owned by insured, operation of mobile equipment, war, racing or stunt driving, others) Policy Conditions Duties in event of accident, claim, suit or loss Other insurance Subrogation Limits and Deductibles Selected BAP Endorsements Auto Medical Payments Uninsured/Underinsured Motorists Coverage Lessor Mobile Equipment Individual Named Insured Employees as Insureds Pollution Liability Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Auto Insurance Other Business Auto Policy Forms Garage Coverage Form Only insures auto and trailer dealers Does NOT cover service stations or parking garages Declarations Type of auto covered denoted by symbol (e.g., 21-any auto, 22-owned auto only, etc.) 11 types of covered autos (symbols 21 thru 31) Liability Coverage Two insuring agreements: General liability exposures Covers damages due to bodily injury or property damage resulting from garage operations Auto liability Covers damages due to ownership, maintenance or use of covered autos resulting from garage operations Garagekeepers Coverage Property coverage for autos in care of garagekeeper (as bailee) Truckers and Motor Carrier Coverage Forms Truckers Policy: Motor carriers that operate on a “for hire” basis Discontinued by ISO in 2010 but still used in some states Motor Carrier Policy: Motor carriers that operate either “for hire” or privately Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Commercial General Liability Insurance Commercial General Liability (CGL) Policy Commercial General Liability (CGL) Insurance Provides a business’s general liability coverage Does NOT cover auto or professional liability Covers four exposures: Premises and operations liability Products and completed operations liability Contractual liability Independent contractor liability CGL’s three coverages: A – Bodily injury and property damage Property damage does NOT cover electronic data loss Two versions of CGL: Occurrence policy: Coverage for loss occurring while policy was in force, even if policy is expired when claim is made BERP – Up to 5 years after expiration SERP – Indefinitely upon expiration of BERP Claims-Made policy: Coverage for loss only if claim is made while policy is in force B – Personal and advertising injury C – Medical payments Pays without regard to legal liability of the insured Selected Endorsements Limited Fungi or Bacteria Coverage (CG 24 25) Limited Pollution Liability Extension (CG 24 15) ISO Pollution Liability Coverage (CG 00 39, CG 00 40) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Workers Compensation Insurance Workers Compensation State-Mandated Employer Liability Insurance Provides worker benefits regardless of employer fault or negligence Not necessary to sue employer for benefits Most states: Compulsory (i.e., employer must accept the law and pay WC benefits) Two states (TX and NJ): Elective (i.e., employer can accept or reject state law Injured employees must sue employer for benefits… …but employers are denied three common defenses: assumption of risk; contributory negligence; and fellow employee negligence Exclusive remedy WC benefits provided by law are sole remedy available to injured employee (i.e., employee cannot also sue for more) Workers Compensation Benefits medical benefits disability benefits (lost wages) Four classes of disability: temporary total; permanent total; permanent partial; temporary partial rehabilitation benefits death (Survivor) benefits Qualifying for Benefits Burden of proof on employee to prove that: Injury or illness has occurred; It occurred in the course of employment; AND It arose out of employment with the employer Workers Compensation Insurance Markets Monopolistic state fund Voluntary private market Competitive state fund organization State residual market plan Federal Workers Compensation Laws US Longshore and Harbor Workers Compensation Act (LHWCA) Outer Continental Shelf Lands Act (OCSLA) Jones Act Federal Employers Liability Act (FELA) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE  Casualty Insurance: Workers Compensation Insurance Workers Compensation and Employers Liability Insurance Policy Details “Information Page” = declarations page Who is insured: Employer ONLY Employees, officers are NOT ‘insureds’ No protection against law suits brought by co-workers Covered workplaces Estimated premium Part One: Workers Compensation Insurance Policy benefits (inc. limits) are prescribed by state law Part Two: Employers Liability Covers employer against claims brought by employees or dependents falling outside statutory coverage Injury must still arise out of employment with the insured employer Ex.: Dependent files a consequential bodily injury suit related to worker’s employment Part Three: Other States Insurance Covers liability claims payable under other states’ laws Useful when covering traveling employees who pass through states not listed on Information Page Part Four: Employer’s Duties If Injury Occur Notify and cooperate with insurer, do not interfere with insurer’s right to recover from others, make no voluntary payments Part Five: Premium Part Six: Conditions Insurer must give insured 10 days’ written notice before canceling policy Selected Endorsements Voluntary Compensation and Employers Liability Coverage: Covers exempt employees not usually covered by workers comp Sole Proprietors, Partners, Officers, and Others Coverage: Used when an owner or officer elects to become covered by workers comp Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Workers Compensation Insurance Workers Compensation Premium Calculation Premium Definitions Rate = Price of insurance per unit of exposure Based on employer’s risk profile Example: $1.75 per unit of exposure Higher risk means higher rate Unit of Exposure = $100 of payroll Example: $250,000 payroll = 2,500 units of exposure Net Premium = Rate x Units of Exposure Example: $1.50 rate x $2,500 units of exposure = $3,750 premium Gross Premium = Net premium with experience adjustments Premium Factors Job classification Construction worker has a higher rate than a clerical worker Payroll Adjustment Upon Audit Actual premium determined at end of policy period Experience Modification Factor Rate adjusted to reflect employer’s actual loss history Modifier of 1.0 indicates average loss experience Greater than 1.0 = higher losses; less than 1.0 = lower losses Premium Discount Think: Volume Discount Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Crime Insurance and Bonds Commercial Crime Policy Why the Need for Commercial Crime Insurance? Employee dishonesty is NOT covered in property insurance policies Money and securities do NOT qualify as property in property policies Named peril policies do NOT cover theft as a covered loss ISO Crime Coverage Form: 8 Coverages in One Policy Employee theft Blanket coverage (standard) applies to all employees Scheduled coverage (by endorsement) only covers named employees Covered property: money, securities, ‘other property with intrinsic value’ (data and computer programs NOT covered) Employee theft includes forgery Forgery or alteration (from someone OTHER THAN an employee) Checks, bank drafts, promissory notes drawn on insured’s bank account Inside the premises: Theft of money and securities Includes disappearance or destruction of money and securities (e.g., due to fire or high winds) Inside the premises: Robbery or safe burglary of other property Covers loss of property OTHER THAN money and securities Outside the premises Covers theft, disappearance or damage to money, securities or other property in insured’s custody outside of the premises Computer fraud Excludes loss due to credit or debit card transactions Funds transfer fraud Money orders and counterfeit money Other Crime Coverages and Endorsements Lease of safe deposit box Securities deposited with others Guests’ properties Business that provide guests with safe deposit boxes Extortion Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Crime Insurance and Bonds Fidelity and Surety Bonds Fidelity Bond Used in employer-employee relationships Indemnifies employer for employee’s dishonest act Financial Institution Bonds Crime coverages that meet special needs of banks, S&Ls, credit unions, other financial institutions Applies only to losses related to: Embezzlement Counterfeit money Forgery or alteration Money in transit Public Official Bonds Guarantees honesty and faithful performance of public official’s duties Surety Bond Pledge by (1) the surety guaranteeing to (2) the obligee that (3) the principal will faithfully perform specified obligations Surety is usually an insurance company Surety will respond to default by principal regardless of reason for default (even intentional act by principal) Surety bond usually based on an underlying contract In event of principal’s default, surety’s obligation determined by this contract Surety bonds are noncancellable Insurer can subrogate against principal if forced to pay bond due to principal’s default of obligation Contract Bonds Bid Bonds: In competitive bid, guarantees that contractor awarded bid will perform work for price quoted Performance Bonds: Guarantees that contractor will perform work in accordance with construction contract Payments Bonds: Guarantees that suppliers and subcontractors will be paid by general contractor License and Permit Bonds Fiduciary Bonds Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Aviation and Marine Insurance Aviation Insurance Coverage for all types of privately owned aircraft: Light passenger or recreational aircraft, which may also be used for commercial purposes. Helicopters Experimental aircraft Ultralights, gliders and hang gliders Hot air balloons Types of Coverage Aircraft Hull Insurance Physical damage coverage Open perils coverage Applies also to aircraft’s tools and equipment Excluded perils include: Worn tires Wear and tear War confiscation Depreciation Cargo and Freight Insurance Cargo: Goods carried on aircraft Total loss: actual vs. constructive Partial loss: particular (cargo owner bears full loss) vs. general (shared by multiple parties) Freight: Cost of carrying goods and all related paperwork Aircraft Liability Insurance Covers bodily injury and property damage to others Separate coverages for persons inside and outside the aircraft Coverage exclusions include named insureds, aircraft without a certificate of airworthiness, flights where number of passengers exceeds the policy declarations, flights where air regulations were violated, unrated pilot, others Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Aviation and Marine Insurance Protection and Indemnity (P&I) Marine Liability Insurance P&I insurance provides maritime liability protection to oceangoing vessels and their owners Exception: Does NOT cover liability that is covered under a workers compensation policy and under the collision clause in a hull policy Ship owners may be liable for injury or damage to: crew members passengers longshoremen other vessels third parties Two primary sources of maritime liability: general maritime (common) law statutory law (e.g., Jones Act) Jones Act (Merchant Marine Act of 1920) gives seamen three rights: right to sue right to trial by jury elimination of the fellow servant rule Longshore and Harbor Workers' Compensation Act (LHWCA) of 1927 workers compensation coverage Death on the High Seas Act (DOHSA) of 1920 Allows representative of deceased seaman or passenger to recover damages when death is caused by wrongful act Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Miscellaneous Types of Insurance Other Liability Insurance Coverages Umbrella (Excess) Liability Policies Personal Umbrella Liability Policy (DL 98 01) Also called an excess liability policy, it provides high limits of coverage to protect against catastrophic liability loss Supplements primary liability coverage of insured’s homeowners or any other type of liability policy Commercial Liability Umbrella Coverage Form (CU 00 01) Provides excess limits to supplement general liability, auto liability or employers liability insurance Also ‘drops down’ to provide liability protection for some claims not covered by underlying policy Maintenance of underlying insurance condition requires insured to maintain same level of primary coverage that existed when umbrella was issued Executive and Professional Liability Insurance Directors and Officers (D&O) Liability Insurance Protects corporation’s directors and officers against liability arising out of non-willful wrongful acts Employee Benefits Liability (EBL) Insurance Deals with claims involving errors or omissions in administering employee benefit plans Fiduciary Liability Insurance Covers claims alleging breach of fiduciary duties involving employee benefit plans or their assets Employment Practices Liability Insurance (EPLI) Covers employee claims alleging violations of workplace responsibilities by company Medical Professional Liability Insurance Five types of coverage covering medical care providers (e.g., physicians, hospitals, nurses, nursing homes, allied healthcare professionals) Errors and Omissions (E&O) Liability Insurance Covers liability arising out of unintentional errors and actions in various professions e.g., lawyers, accountants, insurance agents, architects) Liquor Liability Coverage Forms Covers liability exposure of businesses that make, sell, distribute or serve alcohol Coverage is excluded if a required liquor license is not in effect or the injury arises from the product itself (e.g., contaminated liquor) Copyright 2020 by WebCE, Inc.®. 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May be used only in conjunction with insurance pre-license education courses provided by WebCE Casualty Insurance: Miscellaneous Types of Insurance Residual Markets Residual market provides insurance to consumers unable to obtain it in the voluntary market Voluntary market: preferred, standard, and nonstandard risks Residual market consumers pay higher premiums, with limited benefits, than voluntary market Due to higher risk and reduced policy availability Most common residual market coverages: workers compensation (risky industry) personal auto liability (bad drivers) property insurance (risky location) FAIR: Fair Access to Insurance Requirements Property insurance residual market Federally mandated state programs provide insurance to qualifying inner-city markets All admitted insurers must participate in their state’s FAIR program and share risks Exceptions: Indiana and Kansas FAIR losses assessed to insurers in proportion to their share of voluntary market Covers dwellings and commercial property that is not in poor condition Dwellings: Homeowners coverage (including liability) Commercial: Property coverage only Auto Residual Market Automobile Insurance Plans (Assigned Risk Plans) Drivers with poor driving records (e.g., DUI, multiple at-fault accidents, etc.) All admitted insurers must participate in their state’s plan and share risks In FL, HI, MI, MO: Joint Underwriting Associations (JUAs) Mine Subsidence Insurance Plans Not a residual market, but way to provide property coverage for mine subsidence peril USDA Risk Management Agency Oversees and administers crop insurance program Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE State Casualty Insurance Laws Complete knowledge of state laws is crucial for exam success! Focus on the details Common State Casualty Insurance Law Topics*: State requirements for: Homeowners’ Insurance liability coverages Minimum coverages and standard endorsements Auto Policy coverages Medical payments limits Uninsured and underinsured motorists Policy cancellation and nonrenewal Notices and Disclosures Workers Compensation rules FAIR Plans and Risk Retention Groups Guaranty Funds and Compulsory Associations Producer Conduct and Behavior *Non-exclusive partial list of topics that may be included in your course. Knowledge of these topics alone is not a replacement for full review of all State Casualty Insurance Law lessons Copyright 2020 by WebCE, Inc.®. All rights reserved. May be used only in conjunction with insurance pre-license education courses provided by WebCE