GA Property & Casualty flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

McCarran-Ferguson Act

A 1945 federal law confirming that the states primarily regulate the business of insurance; federal antitrust statutes apply only to conduct the states do not regulate.

Certificate of authority

A license issued by a state insurance department that authorizes an insurer to transact insurance business in that state; insurers lacking one are nonadmitted.

Georgia agent continuing education

Georgia resident agents must complete 24 hours of continuing education every two years, including at least 3 hours of ethics, to renew a property and casualty license.

Insurable interest

A financial stake in the subject matter such that a loss causes measurable economic harm; it is required at policy inception for life insurance and at the time of loss for property.

Principle of indemnity

Insurance restores the insured to approximately the pre-loss financial position and never better, preventing profit from loss and supporting actual cash value settlement of property claims.

Aleatory contract

An insurance contract in which the values exchanged by the parties are unequal and depend on the occurrence of an uncertain future event such as a covered loss.

Subrogation

After paying a covered loss, the insurer acquires the insured's legal right to recover those damages from the negligent third party who caused the loss.

Coinsurance clause

A property policy condition requiring the insured to carry a stated percentage of the property's value; recovery equals insurance carried divided by insurance required, times the loss.

Actual cash value

The valuation method equal to replacement cost minus depreciation; the settlement is then capped by the policy limit and any applicable coinsurance calculation.

Mortgagee clause

A policy provision protecting a lender's interest in insured property; the lender receives loss payments to the extent of its interest and notice of cancellation or nonrenewal.

Negligence elements

To recover for negligence a claimant must prove a legal duty owed, a breach of that duty, proximate cause linking the breach to the injury, and actual damages.

Split liability limits

Liability limits written as three numbers, such as 25/50/25, meaning the per-person bodily injury limit, the per-occurrence bodily injury limit, and the property damage limit.

Comparative negligence

A rule that reduces an injured party's recovery in proportion to that party's own fault; under Georgia's modified rule a claimant 50% or more at fault recovers nothing.

Res ipsa loquitur

Latin for the thing speaks for itself; it lets a court infer negligence when the injury-causing instrument was in the defendant's exclusive control and the accident would not ordinarily happen without negligence.

Dwelling DP-3 form

The dwelling special form, which insures the dwelling and other structures against open-peril risks and personal property against named perils; it includes no liability coverage.

Dwelling other structures limit

Dwelling coverage for detached structures on the residence premises, such as garages, fences, and sheds, typically limited to 10% of the Coverage A amount.

Dwelling vandalism vacancy rule

Dwelling policies exclude vandalism and malicious mischief losses once the dwelling has remained vacant beyond 60 consecutive days, unless the policy is endorsed otherwise.

HO-3 special form

The homeowners special form, which covers the dwelling and other structures on an open-peril basis while personal property is insured for broad named perils.

HO-4 contents broad form

The renters form insuring tenants' personal property for broad named perils and providing personal liability, medical payments, and loss of use; it contains no building coverage.

Homeowners Coverage C special limits

Dollar sub-limits that cap recovery within personal property coverage for categories such as money, securities, theft of jewelry, theft of firearms, theft of silverware, and business property.

Newly acquired auto

Under the personal auto policy, a newly acquired private passenger auto is covered for 14 days, or immediately if it replaces a listed auto, provided the insured reports it.

PAP Part C coverage

Uninsured motorist coverage pays damages the insured is legally entitled to recover from an uninsured, underinsured, or hit-and-run driver, up to the stated limits.

Named driver exclusion

An endorsement that removes a specifically named person from coverage, so the insurer owes nothing for losses arising while that person operates a covered auto.

Commercial general liability

Occurrence-based commercial coverage for bodily injury and property damage, personal and advertising injury, and medical payments, subject to occurrence and aggregate limits.

Products-completed operations aggregate

A separate general liability aggregate limit applying to injury or damage arising out of products sold or work completed and relinquished away from the insured's premises.

Business income coverage

Commercial property coverage paying lost net income and continuing normal expenses during the period of restoration after a covered loss, plus extra expense to resume operations.

Workers compensation Part Two

Employer's liability coverage that pays damages for work-related injury or disease claims falling outside statutory workers compensation benefits; it is written with a separate limit.

Exclusive remedy doctrine

The doctrine that statutory workers compensation benefits are an employee's sole remedy against the employer for work-related injury, generally barring tort lawsuits.

Workers compensation premium basis

Premium equals the classification rate per $100 of payroll multiplied by payroll divided by 100, then adjusted by the experience modification factor.

Businessowners policy

A package policy for eligible small businesses combining property, business income, and general liability coverage under simplified eligibility and rating rules.

Extended business income

A businessowners coverage extension that continues business income payments after property is restored, typically up to 12 months, while income returns to pre-loss levels.

Cyber liability coverage

Specialty coverage for data breach response costs, network interruption losses, and third-party claims arising from privacy or network security failures.