OH P&C flashcards

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

Ohio Superintendent of Insurance

Official appointed by the Governor who heads the Ohio Department of Insurance and enforces state laws on producer licensing, rate and form filing, market conduct, and insurer solvency.

Ohio producer continuing education

Ohio-licensed producers must complete 24 credit hours of continuing education every two years, including at least three hours of ethics instruction, in order to renew the license.

Ohio minimum auto liability limits

Ohio requires bodily injury liability of at least $25,000 per person and $50,000 per accident, plus $25,000 of property damage liability, for private passenger autos.

Ohio uninsured motorist coverage

Ohio insurers must offer uninsured and underinsured motorist coverage at limits equal to the policy's liability limits; the named insured may reject it in writing.

Ohio personal auto cancellation notice

An insurer canceling a personal auto policy must give at least 30 days' written notice, or 10 days' written notice when the cancellation is for nonpayment of premium.

Fiduciary handling of premiums

Premiums an Ohio producer collects belong to the insurer or insured and must be held in trust; commingling them with agency operating funds is prohibited and can lead to license revocation.

Ohio unfair trade practices

Practices such as rebating, twisting, misrepresentation, false advertising, coercion, and unfair claim settlement are prohibited in Ohio and may result in fines, suspension, or revocation of a license.

Ohio P&C Guaranty Association

A statutory entity that pays covered claims of insolvent admitted property and casualty insurers doing business in Ohio, funded by assessments on member insurers, subject to statutory per-claim limits.

Pure versus speculative risk

Pure risk involves only the chance of loss or no loss and is insurable; speculative risk involves the chance of gain as well as loss and is not insurable.

Peril versus hazard

A peril is the actual cause of a loss, such as fire or wind, while a hazard is a condition that increases the likelihood or severity of that loss.

Insurable interest in property

The insured must have a financial stake in the covered property at the time of loss; without insurable interest at that moment, the claim is not payable.

Coinsurance penalty formula

When insurance is below the required percentage of value, the claim pays (limit carried divided by limit required) times the loss, then subtracts the deductible.

Actual cash value

Actual cash value equals replacement cost minus depreciation, reflecting the used value of the damaged property immediately before the loss occurred.

Adequate not excessive rates

Rates must be high enough to pay expected losses and expenses, must not be unreasonably high for the coverage, and must not unfairly discriminate among similar risks.

Apparent authority

Authority a producer appears to have because the insurer created that appearance; the insurer is bound by the producer's acts that fall within this perceived authority.

Adverse selection

The tendency of higher-than-average risks to buy or keep insurance, which increases loss costs and is controlled through underwriting, classification, and deductibles.

HO-3 perils

The HO-3 special form insures the dwelling and other structures on an open-peril basis while insuring personal property for the listed named perils only.

HO-3 coverage limits

On the HO-3, Coverage B other structures equals 10% of Coverage A, Coverage C personal property equals 50% of A, and Coverage D loss of use equals 30% of A.

HO replacement cost condition

Dwelling losses settle at replacement cost only when the Coverage A limit is at least 80% of the dwelling's full replacement cost at the time of loss.

HO special limits of liability

Standard homeowners limits include $200 for money, $1,500 for theft of jewelry, $2,500 for theft of silverware, and $2,500 for theft of firearms.

HO-4 renters policy

A tenants form that insures the renter's personal property and personal liability; it does not cover the building itself, which the landlord insures.

Common property exclusions

Standard property forms exclude earth movement, flood, ordinance or law, neglect, intentional loss, and nuclear hazard, which must be insured separately or endorsed.

Business income waiting period

Business income coverage generally begins paying after a 72-hour waiting period measured from the start of the interruption caused by a covered cause of loss.

NFIP flood waiting period

National Flood Insurance Program policies usually take effect 30 days after the application and premium payment, with limited exceptions such as certain loan closings.

Personal auto policy parts

Part A liability, Part B medical payments, Part C uninsured motorists, Part D damage to your auto, Part E duties after an accident, and Part F general provisions.

Newly acquired auto coverage

A newly acquired auto is automatically covered for up to 14 days under the personal auto policy; the insured must request that the insurer add it.

CGL coverage parts

The commercial general liability form provides Coverage A bodily injury and property damage, Coverage B personal and advertising injury, and Coverage C medical payments.

Claims-made CGL trigger

A claims-made liability policy responds to claims first made during the policy period; the retroactive date limits back coverage and extended reporting periods extend the reporting window.

Ohio modified comparative negligence

A claimant 50% or less at fault recovers damages reduced by their own percentage of fault; a claimant more than 50% at fault recovers nothing.

Ohio workers compensation

Most Ohio employers buy coverage from the state Bureau of Workers' Compensation, which pays statutory benefits to injured workers without regard to fault.

Commercial auto covered auto symbols

Numbers 1 through 9 in the business auto coverage form designate which autos qualify as covered autos, such as owned autos, hired autos, or nonowned autos.

MCS-90 endorsement

Attached to policies of for-hire interstate carriers, it guarantees payment of public liability judgments even when the policy would otherwise exclude the loss.