note for all fire insurance

combined ratio over 100% mean lossing $

ch 5 direct loss eg physical damage of prop by fire
indirect loss eg loss ch business b/c closing

5 starr = share transfer avoid retain reduce

you want belove 100% and it means you make profit ie combined ratio
% of each premium dollar a co spend on claim against expense

all risk = open peril = special form = coverall perils that are not specifically excluded
vs
named peril = cover only perils named
so
concurrent causation = 2+ perils happen at the same time

short rate = insured cancelled b4 exp, co refund less than pro-rata [premium charge is adjusted in proportion to exact time the protection has been in force] return of the premium
vs
flat rate = cancel without penalty

cancellation [terminating] vs renewal [continuance]
lapse [no premium so terminate] vs non-renewal [terminate beyond its original term]

earned premium (insurer coverd and so earned) vs unearned (paid 6 month but canceled after 4 mth ie balance is unearned)

3 rates manual rate (according to manual) vs judgement rate (experience) vs merit rates (manual + loss history)

claim term
first party (directly insured)vs 3rd party (other-than-insured)

subrogation = insured party willingly give up right to sure another person who is at fault for a covered loss eg insurer pay 1st and then pursue payment from responsible party

loss reserved = by law reserved for loss report/ unreported/ not yet reported


property = physical obj (tangible) belonging to insured
vs
liability = injury / damage to other + THEIR possession

insurable interest requirement (applicant must show ownership/ interest in P and L exposure)

insurable interest btn property vs life/health
property = interest must exist when insurance take effect AND when loss occurs
life/health = = interest must exist when insurance take effect BUT NEED NOT EXIST when loss occurs

excluded peril under HO3 = no war coverage, earthquake, flood, nuclear hazard sewer backup wearNtear, animal bird vermin, building ordinace

coverage D = 2 type of loss of use = pay for living expenses while repaired

duplex or triplex = unit can't be live-in and it is tenant occupied due to lawn maintenance then it is loss of use and insurance paid 50%-70%

11 additioal coverage
tenant improvement, $500 cc (counterfeit $ but u have deductible too), debris removal expense (included ash and dust by volcanic eruption), reasonable cost for repairs (no damage if tree fall to fence), removal (property removed from premise), fire dept $500 service charge, landlord furniture, lawnTreePlantShrubs max $500 or $5% of coverage A, glass breakage, collapse

collapse 4 reasons:
hidden decay, hidden insect, rainSnow on roof weight, weight of people concent animal, defective materials by workman, any broad form perils

exclusions list for HO3 = all risk form (everything is covered unless excluded)

3 exclusion :
earth movement, flood, building ord or law


ch8
HO section 1 and 2 vs auto Part A & B

1. Bodily Injury and Personal Property Liability
Two major components of an automobile insurance policy involve liability coverage. These areas insure the policyholder against injuries caused to another person and to property. All 50 states and the District of Columbia require minimum liability coverage amounts. These requirements are typically listed as a series of three numbers that define how much, in thousands of dollars, the policy will cover in the event of an accident.

For example, California requires its drivers to carry minimum liability coverage of 15/30/5. This means that the insurance company will pay up to $30,000 for all people injured in an accident, not exceeding $15,000 on any one person and $5,000 for property damage.

2. Personal Injury Protection (PIP)
PIP coverage pays for both medical expenses and lost wages to the policyholder and any passengers injured in the vehicle in the event of an accident.

3. Collision and Comprehensive
These are two parts of a policy that can add significant costs to your premium. Collision provides coverage in the event of any kind of accident, whether it's with another car or an object, such as a utility pole or fire hydrant. Comprehensive insurance covers you in the event of theft or natural disaster.

4. Uninsured Motorist
As the name indicates, this coverage provides you protection from crashes with motorists not carrying car insurance, as well as covering you in the event of a hit-and-run accident. Also, uninsured motorist insurance coverage comes into play when an at-fault driver doesn't have enough liability coverage to pay for the damages from an accident. Most states require drivers to carry uninsured motorist coverage.

collision
impact with another vehi
impact with another obj wall tree pole but not animal
upset = flipping vehicle over

other than collision
impact with animal
damage from hail windstorm fire theft vandalism glass breakage water flood falling obj aircraft explosion missiles

california mimimum 15/30/5
$15k for bodiliy injury per person
30K for bodily injury per ACCIDENT
5k for PROPERTY damage per ACCIDENT

4 ways to show fiancial responsiblity in CA
purchase auto liabilty insurance
deposti $35K in cash per vehicle in DMV
purchase a surety bond for $35K from CA insurer
obtain DMV issued self-insurer certificate

mexico coverage endorsement - within 25 miles of US mexico border and applies only when insured in Mexico for 10 days or less

towing and labor = $25/50/75 = jump batter, bring gas/ change tire/ unlock car

auto gap = residual debt = insurance pay diff btn loan amount u bought the car $15K - $10K blue book value 1 yr later if you get a car accident a year later u bought the car

gap insurance - requested within 30 days - / odometer 1000 -/ drop off after 3 yrs

CAARP - driver try 60 days before applying/ = ca auto assigned risk plan

umbrella = can't write by itself, over sth, $1m normally, over auto-home
self-insured retention == $10K deductible paid first (for commercial)
excess liability insurance can kick in (water boat, business,