ND Property & Casualty flashcards

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

Producer license

A state-issued authorization required to solicit, negotiate, or sell insurance for the lines specified on the license; it must be renewed and kept current with the regulator.

Unfair trade practice

A prohibited insurance business act such as misrepresentation, rebating, twisting, coercion, or unfair claim settlement that can lead to regulatory fines, orders, or license action.

Fiduciary premium duty

Producers must hold premiums and return premiums in a fiduciary capacity, account for them accurately, and avoid commingling those funds with personal or general business funds.

Appointment of producer

A notice filed by an insurer with the state indicating that a licensed producer is authorized to act on the insurer's behalf for specified insurance lines.

Insurable interest

A financial stake in the person or property insured such that the insured benefits from its continued existence and suffers a loss if it is damaged or destroyed.

Indemnity principle

Insurance restores the insured to approximately the same financial position after a loss as before the loss, without allowing the insured to profit from the loss.

Coinsurance formula

For property claims, multiply the loss by insurance carried divided by insurance required, then apply the deductible and policy limit; underinsurance reduces recovery.

Actual cash value

The value of damaged property calculated as replacement cost minus depreciation, reflecting its pre-loss condition and age, subject to policy terms and any applicable deductible.

Mortgagee clause

A property policy provision giving the mortgagee rights to receive loss payments, notice of cancellation, and the ability to pay premiums to protect its interest.

Coinsurance clause

A property insurance condition requiring the insured to carry insurance equal to a stated percentage of property value; a lower limit reduces the claim payment proportionately.

Occurrence policy

A liability policy covering injury or damage that occurs during the policy period, regardless of when the claim is reported, subject to policy terms and limits.

Claims-made policy

A liability policy covering claims first made during the policy period, often subject to a retroactive date; an extended reporting period may extend the reporting window.

Supplementary payments

Liability policy amounts paid in addition to the limit of liability, commonly including defense costs, bail bonds, and interest on judgments, as specified in the policy.

Dwelling policy

A property policy for dwellings and related structures, available in named-peril and special forms; it typically focuses on property coverage and may add liability by endorsement.

Fair rental value

Dwelling coverage that reimburses the reasonable rental income lost when a covered peril makes the rented dwelling uninhabitable, subject to policy limits and conditions.

DP-3 special form

A dwelling policy form providing open-perils coverage on the dwelling and other structures, while personal property is usually covered for specified named perils.

HO-3 special form

A homeowners form insuring the dwelling and other structures on an open-perils basis and personal property for named perils, plus liability and medical payments coverage.

Loss of use coverage

Homeowners coverage that pays additional living expenses or fair rental value when a covered loss makes the residence premises uninhabitable, subject to limits and time conditions.

HO-4 tenants form

A homeowners policy for renters covering personal property, loss of use, personal liability, and medical payments; it does not insure the building itself.

Medical payments coverage

Homeowners Section II coverage paying reasonable medical expenses for accidental bodily injury to others, regardless of fault, subject to per-person limits.

Personal auto policy

A policy covering private passenger auto liability, medical payments, uninsured motorist, and physical damage, with definitions, exclusions, and duties after loss.

Split liability limits

Auto liability limits stated as separate maximums for bodily injury per person, bodily injury per accident, and property damage per accident, such as 25/50/25.

Temporary substitute auto

A vehicle used temporarily while an owned covered auto is out of service due to breakdown, repair, servicing, loss, or destruction; coverage applies as defined.

Uninsured motorist coverage

Auto coverage for bodily injury caused by a driver who has no liability insurance or cannot be identified, subject to policy terms, limits, and state requirements.

Business income coverage

Commercial property coverage replacing lost net income and continuing expenses during the period of restoration after a covered loss, often with extra expense coverage.

Causes of loss special

A commercial property form covering risks of direct physical loss unless specifically excluded, rather than listing covered perils; exclusions and limitations still apply.

Blanket insurance

A commercial property approach applying one limit over multiple locations or property types, with the limit shared among covered items as the policy provides.

CGL occurrence form

A commercial general liability form covering bodily injury or property damage that occurs during the policy period, regardless of when the claim is later reported.

Products-completed operations

CGL coverage for bodily injury or property damage arising from the insured's products or completed work away from the insured's premises, subject to its aggregate.

Personal and advertising injury

CGL Coverage B protects against offenses such as libel, slander, wrongful eviction, and infringement of advertising ideas, subject to exclusions and limits.

Workers compensation exclusive remedy

The statutory principle that workers compensation benefits are the employee's usual remedy against the employer for work-related injury, limiting most tort suits.

Employers liability coverage

Workers compensation policy Part Two covering the employer's legal liability for work-related injury or disease claims that fall outside statutory workers compensation benefits.