MO Property & Casualty flashcards

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

Missouri producer continuing education

Missouri-licensed insurance producers must complete 16 hours of continuing education every two years, including at least 3 hours of ethics instruction, to renew a license.

Certificate of authority

A document issued by a state insurance regulator that authorizes an insurer to transact insurance business in that state; transacting without one is unauthorized insurance.

Rebating

An illegal inducement in which an agent offers part of a commission, or anything of value not stated in the policy, to persuade a buyer to purchase insurance.

Actual cash value

A property valuation method equal to replacement cost minus depreciation, used to indemnify the insured for the value of property at the time of loss.

Insurable interest in property

A financial stake in property that would be lost if the property were damaged; in property insurance it must exist at the time of the loss.

Law of large numbers

The principle that a larger number of similar exposure units allows an insurer to predict losses more accurately and set stable, adequate premium rates.

Named peril versus open peril

Named-peril forms list covered causes and the insured must prove a listed cause; open-peril forms cover all direct loss except causes the insurer excludes.

Property coinsurance penalty

When a property policy requires a minimum limit such as 80 percent, a loss is reduced by the ratio of insurance carried to insurance required, capped at the limit.

Subrogation

The insurer's right to recover amounts it paid from the party that caused the loss, based on the insured's transfer of recovery rights after payment.

HO-3 special form

The homeowners form that insures the dwelling and other structures on an open-peril basis while covering personal property for named perils such as fire, theft and windstorm.

HO-3 Coverage C special limits

Sub-limits cap theft losses for items such as jewelry, furs, firearms and silverware, and cap money at $200 and securities at $1,500 regardless of the Coverage C amount.

Coverage F medical payments

Homeowners Section II coverage that pays reasonable medical expenses of others injured on the insured premises or by an insured's activities, regardless of fault, typically $1,000 to $5,000 per person.

Dwelling policy characteristics

The DP-1, DP-2 and DP-3 forms insure a residence and related property, but they include no personal liability coverage unless it is added by endorsement.

Business income waiting period

Business income coverage typically begins 72 hours after a covered direct loss and continues through the period of restoration needed to rebuild or replace property.

Agreed value option

A commercial property option that states a value for covered property at policy inception and suspends the coinsurance requirement in exchange for that agreed amount.

Building and Personal Property form

The commercial property form covering a building, the insured's business personal property, and personal property of others in the insured's care, custody or control.

Elements of negligence

A claimant must show the defendant owed a duty of care, breached it, and that the breach proximately caused bodily injury or property damage that can be measured as damages.

Claims-made coverage trigger

A liability policy trigger requiring that the claim be made against the insured during the policy period, subject to a retroactive date and any extended reporting period.

Supplementary payments

Liability policy payments for defense costs, bail bonds and loss of earnings of the insured that are paid in addition to the limit of liability and do not reduce it.

Products-completed operations aggregate

The CGL aggregate limit applying to bodily injury and property damage occurring away from the premises after the insured's product or completed work has been released.

CGL damage to premises rented

A CGL limit, sometimes called fire legal liability, that pays for property damage to premises the insured rents, usually capped at $100,000 or a stated amount.

CGL Coverage B

Coverage for personal and advertising injury such as libel, slander, wrongful eviction and invasion of privacy, but not offenses arising out of bodily injury.

Missouri minimum auto liability limits

Missouri requires private passenger auto liability limits of at least $25,000 per person and $50,000 per accident bodily injury plus $25,000 property damage.

Uninsured motorists coverage

Coverage that pays the insured for bodily injury caused by a hit-and-run or uninsured driver; Missouri requires it unless the named insured rejects it in writing.

Business auto symbol 1

The business auto symbol designating any auto, providing liability coverage for owned, hired and non-owned autos used in the insured's business.

Other than collision coverage

Damage to your auto coverage that pays for losses from causes such as fire, theft, glass breakage and animals, often called comprehensive, and normally at actual cash value.

Exclusive remedy doctrine

The principle that workers compensation benefits are the employee's only recovery from the employer for a work injury, replacing tort suits in exchange for no-fault benefits.

Workers compensation Part One

The part of the workers compensation and employers liability policy that pays all statutory benefits the employer is legally required to pay, with no dollar limit.

Experience modifier

A workers compensation premium factor comparing the employer's past loss experience with other employers in the same classification; credits lower premium and debits increase it.

Businessowners policy eligibility

A package policy for small and medium businesses, commonly limited to office, retail and apartment risks within size and occupancy rules, combining property and liability.

Umbrella self-insured retention

The amount the insured must pay out of pocket for a loss before a commercial umbrella applies when no primary policy covers that loss.

Employee dishonesty coverage

Crime coverage that pays for loss of money, securities or other property caused by employee theft, and requires the loss to be discovered within the stated period, often one year.