OK Property & Casualty flashcards

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

Oklahoma Insurance Commissioner

Elected statewide official who heads the Oklahoma Insurance Department, enforces state insurance laws, issues producer and insurer licenses, examines insurer conduct, and may impose fines, suspensions, or revocations for violations.

Oklahoma producer continuing education

Oklahoma-licensed producers must complete 24 hours of continuing education every two years, including at least 3 hours of ethics, before renewing a license on its biennial expiration date.

Fiduciary duty of producers

Premiums and returned premiums a producer collects are held in trust for the insurer or the insured; commingling those funds with personal money is prohibited and can lead to license suspension or revocation.

Oklahoma Insurance Guaranty Association

State entity that pays covered claims of policyholders of insolvent property and casualty insurers up to statutory per-claim limits, funded by assessments on member insurers; solvent insurers' claims are not covered.

Insurable interest

A financial interest in the person or property insured such that a loss would cause monetary harm; it must exist at policy inception for life insurance and at the time of loss for property insurance.

Indemnity principle

Insurance restores the insured to approximately the same financial position held before the loss, no better and no worse, which prevents an insured from profiting from a covered loss.

Law of large numbers

The principle that as the number of similar exposure units increases, actual loss experience more closely matches predicted loss experience, allowing insurers to set accurate rates and reserves.

Aleatory contract

An insurance contract in which the dollar amounts exchanged by the parties are unequal and depend on chance; the insured may pay premiums for years and never receive a loss payment.

Coinsurance formula

(Insurance carried divided by insurance required) multiplied by the loss, minus the deductible, never exceeding the policy limit; a penalty applies when the insured carries less than the required amount.

Mortgagee clause

Policy provision giving a lender the right to receive loss payments up to its interest, to be notified of cancellation or nonrenewal, and to pay premiums to keep coverage in force.

Proof of loss

Sworn statement from the insured detailing the amount, date, and cause of loss; it is a condition precedent to payment and is typically due within 60 days of the insurer's request.

Vacancy provision

Condition that suspends or excludes coverage when a building has been vacant beyond a stated period, commonly 60 days, because fire and vandalism losses rise sharply in empty buildings.

HO-4 tenants policy

Homeowners form for renters that insures personal property, loss of use, personal liability, and medical payments, but provides no Coverage A or Coverage B building coverage; the landlord insures the structure.

HO-6 condominium policy

Form for unit owners covering personal property, liability, and limited building items such as fixtures and improvements inside the unit, plus loss assessment coverage for association charges.

Special limits of liability

Dollar caps in homeowners policies that restrict recovery for certain property such as cash, securities, jewelry theft, firearms theft, and silverware theft, regardless of the overall Coverage C limit.

Replacement cost condition

Homeowners loss settlement that pays the cost to repair or replace with new property of like kind, provided the limit carried is at least 80 percent of the dwelling's full replacement cost.

Business income coverage

Commercial property coverage that pays the net income the business would have earned plus continuing normal operating expenses during the period of restoration following a covered loss.

Businessowners policy

Package policy for eligible small businesses combining commercial property, business income, and liability coverages in one contract, often with broader coverage and lower cost than separate policies.

Agreed value option

Commercial property option in which the insurer accepts a stated value for the insured property and waives the coinsurance requirement, so partial losses are paid without penalty.

Negligence elements

The four elements a claimant must prove: a legal duty owed by the defendant, a breach of that duty, proximate cause linking the breach to the injury, and actual damages.

Compensatory damages

Money awarded to make an injured party whole; special damages cover documented economic losses such as medical bills and lost wages, while general damages cover intangible harms like pain and suffering.

Claims-made policy

Liability policy covering claims first made during the policy period, often limited by a retroactive date, rather than covering occurrences that happen during the policy period.

Duty to defend

The liability insurer's obligation to provide legal counsel and pay defense costs for covered claims, which is broader than the duty to indemnify and applies even to groundless lawsuits.

Oklahoma minimum auto liability

Oklahoma requires bodily injury liability limits of at least $25,000 per person and $50,000 per accident, plus $25,000 for property damage, unless higher limits are purchased.

Uninsured motorist coverage

Personal auto coverage paying the insured's bodily injury damages caused by a hit-and-run driver or an at-fault driver with no insurance; Oklahoma requires the insurer to offer it.

Other than collision coverage

Personal auto physical damage coverage for losses from fire, theft, vandalism, hail, flood, or animal strike, subject to a deductible separate from the collision deductible.

Business auto symbol 1

The any-auto covered auto designation, providing liability coverage for owned, hired, and non-owned autos; it is the broadest covered auto symbol available on a business auto policy.

CGL occurrence form

Commercial general liability form covering bodily injury and property damage that occurs during the policy period regardless of when reported, with general and products-completed operations aggregate limits.

Umbrella liability policy

Policy providing excess limits above underlying auto, general liability, and employers liability coverage, and which may drop down over a self-insured retention to cover gaps.

Exclusive remedy doctrine

Workers compensation benefits are the employee's sole legal remedy against the employer for work-related injury, barring most tort suits in exchange for no-fault statutory benefits.

Workers compensation Part Two

Employers liability coverage within a workers compensation policy, paying damages for work-related injury claims that fall outside the exclusive remedy system, such as certain third-party actions.

Experience modification factor

A multiplier applied to workers compensation manual premium based on the employer's past loss history compared with similar employers; a factor below 1.00 reflects favorable experience.