Other CIC Designation Courses: Property, Casualty, Agency and Insurer Operations
This domain draws on Agency Management, Commercial Property, Commercial Casualty, Commercial Multiline, Personal Lines, and Insurance Company Operations. It tests breadth: how property and casualty coverages respond, how agencies manage E&O and perpetuation, and how insurers underwrite, rate, and reinsure.
Property fundamentals
- HO forms: HO-3 (special on dwelling, broad on contents), HO-5 (open perils on both), HO-4 renters, HO-6 condo, HO-8 older homes; Coverages A–F.
- Commercial causes of loss: basic (named perils), broad, special (open perils subject to exclusions). Coinsurance requires insurance to value: payment = (carried ÷ required) × loss, less deductible.
- Business income covers lost profit and continuing expenses during the period of restoration, subject to a waiting period, commonly 72 hours.
- Blanket versus specific, agreed value versus coinsurance, and margin clauses.
Casualty fundamentals
- PAP: Part A liability, Part B medical payments, Part C uninsured/underinsured motorist, Part D collision and other-than-collision; business-use and racing exclusions.
- CGL: occurrence versus claims-made; Coverage A (BI/PD), B (personal and advertising injury), C (medical payments); products-completed operations aggregate; additional insured endorsements versus certificates of insurance.
- Umbrella versus excess: an umbrella can drop down over a self-insured retention; excess follows form.
- Workers compensation: exclusive remedy; Part One statutory, Part Two employers liability, Part Three other states.
Agency and insurer operations
- E&O prevention: documentation, coverage checklists, certificates that disclaim coverage, avoiding unauthorized binding; producer agreements should address ownership of expirations.
- Perpetuation planning: valuation, funding, buy-sell, contingency planning.
- Insurer operations: underwriting selection, ratemaking components (loss costs, expenses, profit), reinsurance treaty versus facultative and pro rata versus excess of loss, claims handling, premium audit.
Worked example
Building replacement cost $1,000,000; the insured carries $600,000 with an 80% coinsurance clause, so $800,000 is required. A $200,000 loss occurs; deductible is $1,000. Payment = (600,000 ÷ 800,000) × 200,000 = $150,000, less $1,000 = $149,000. The insured absorbs $51,000 as a coinsurance penalty.
Traps that cost marks
Forgetting the coinsurance ratio uses carried over required; assuming special form covers everything (exclusions remain); treating a certificate as an endorsement; assuming an umbrella drops down without exhausting or retaining the SIR; ignoring the claims-made extended reporting period.