KY Property & Casualty flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- McCarran-Ferguson Act
- The 1945 federal law that delegates insurance regulation to the states and exempts insurance from federal antitrust law to the extent the states regulate it.
- NAIC
- A voluntary association of state insurance regulators that drafts model laws and runs an accreditation program but does not itself license or discipline producers.
- Producer appointment
- An insurer's authorization for a licensed producer to act on its behalf; without appointment the producer cannot legally submit business to that insurer.
- Continuing education requirement
- Ongoing credit hours a licensed producer must complete each renewal cycle, often including ethics hours, to keep the license active.
- Pure risk
- A situation with only the chance of loss or no loss and never gain; it is the only type of risk insurance is designed to transfer.
- Indemnity principle
- The rule that an insured should be restored to roughly the same financial position after a loss and should not be made better off.
- Insurable interest
- A financial stake in the person or property insured such that a loss causes genuine economic harm; for property it must exist when the loss occurs.
- Utmost good faith
- The insurance contract doctrine requiring both parties to disclose material facts honestly; concealment or material misrepresentation can allow the insurer to rescind.
- Kentucky Commissioner of Insurance
- The head of the Kentucky Department of Insurance, appointed by the Governor, who enforces state insurance laws and adopts administrative regulations.
- Kentucky Access
- Kentucky's residual market auto insurance plan that offers coverage to drivers who are unable to obtain it in the voluntary market.
- Choice no-fault
- Kentucky's system in which drivers select between no-fault tort restrictions and full tort liability, while personal injury protection remains required.
- Unfair claim settlement practices
- Statutorily prohibited insurer claim conduct such as failing to investigate promptly, denying without a reasonable basis, or delaying settlement unnecessarily.
- Actual cash value
- The replacement cost of damaged property minus depreciation; it is the default valuation method in many property insurance policies.
- Coinsurance clause
- A property provision that penalizes underinsurance by paying a loss in proportion to the ratio of insurance carried to the required amount.
- Open peril coverage
- A policy form insuring against all direct physical loss except perils specifically excluded, rather than listing each covered peril.
- Mortgagee clause
- A property policy provision protecting a lender's interest by entitling the lender to loss payment and to notice of cancellation.
- HO-3 special form
- A homeowners policy insuring the dwelling on an open-peril basis while personal property is covered only for named perils.
- Coverage C personal property
- Homeowners coverage for the insured's movable belongings, usually worldwide and subject to special sublimits for items such as jewelry.
- Business income coverage
- Commercial property coverage reimbursing lost net income and continuing expenses while the business is shut down by a covered loss.
- Businessowners policy
- A package policy for small, low-hazard businesses that combines property and general liability coverage at a simplified, often lower cost.
- Negligence elements
- Duty owed, breach of that duty, proximate cause, and resulting damages; all four must be proven before legal liability attaches.
- Claims-made policy
- A liability policy covering claims first made during the policy period, with coverage tied to a retroactive date rather than the injury date.
- Supplementary payments
- Amounts a liability policy pays in addition to the limit, such as defense costs, bail bonds, and interest, typically not reducing the aggregate.
- Workers compensation Part Two
- The employers liability section covering suits by employees for work injuries that fall outside the exclusive remedy of the workers compensation statute.
- Products-completed operations
- CGL coverage for bodily injury or property damage occurring after the insured's product or completed work has left its control.
- Additional insured endorsement
- An endorsement extending CGL coverage to another party, often a client or landlord, for liability arising from the named insured's work.
- Coverage B personal injury
- CGL coverage for offenses such as libel, slander, invasion of privacy, and wrongful eviction, as distinct from bodily injury.
- General aggregate limit
- The maximum a CGL policy pays for all covered claims other than products-completed operations during one policy period.
- Personal auto Part D
- Coverage for damage to the insured's own auto, comprising collision and other-than-collision (comprehensive) coverages.
- Uninsured motorist coverage
- Pays the insured for bodily injury caused by a driver with no insurance or by a hit-and-run driver; limits may be stacked across vehicles.
- Personal injury protection
- No-fault auto coverage paying medical expenses, lost wages, and similar economic losses regardless of who caused the accident.
- Permissive use
- Operation of a covered auto by a person with the named insured's reasonable permission, which generally makes that person an insured.