OR Property & Casualty flashcards

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

Oregon Producer License Term

An Oregon insurance producer license is valid for two years and must be renewed before expiration with continuing education completed and the required renewal fee paid to the Division of Financial Regulation.

Oregon Continuing Education Requirement

Oregon producers must complete 24 hours of approved continuing education every two-year license term, including at least 3 hours of ethics, before renewing the license.

Oregon Minimum Auto Liability Limits

Oregon requires liability limits of at least $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 per accident for property damage.

Oregon Personal Injury Protection Minimum

Oregon auto policies must provide at least $15,000 per person of personal injury protection, covering medical expenses, lost wages, and related benefits regardless of fault.

Oregon Uninsured Motorist Coverage Rule

Oregon requires UM/UIM coverage at limits equal to the policy's liability limits unless the insured rejects it in writing; the insurer must offer the coverage.

Oregon FAIR Plan

Oregon's FAIR Plan is a residual market that offers basic property insurance to owners who cannot obtain coverage in the voluntary market because of location or condition.

Oregon Insurance Guaranty Association

OIGA pays covered claims of policyholders of insolvent Oregon insurers, subject to statutory per-claim limits, and is funded by assessments on member insurers.

Oregon Cancellation Notice Periods

For Oregon auto policies, cancellation for nonpayment of premium requires at least 10 days' written notice, while cancellation for other reasons requires at least 30 days' notice.

Insurable Interest

A financial or legal relationship to the subject matter such that loss or damage would cause the insured a genuine economic loss; required at policy inception for life insurance and at time of loss for property.

Principle of Indemnity

The insured should be restored to approximately the same financial position held before the loss, no better and no worse; recovery is limited to the actual amount of loss.

Subrogation

After paying a covered loss, the insurer acquires the insured's legal right to recover that amount from the responsible third party, preventing double recovery by the insured.

Aleatory Contract

An insurance contract in which the dollar amounts exchanged by the parties are unequal and depend on chance, so a small premium may purchase a large claim payment.

Contract of Adhesion

An insurance policy drafted by the insurer with little or no input from the insured; ambiguities in the wording are generally construed against the insurer that wrote them.

Utmost Good Faith

Both parties must deal honestly, with the applicant disclosing all material facts; concealment or material misrepresentation can allow the insurer to rescind the contract.

Adverse Selection

The tendency for people with higher-than-average risk to seek or retain insurance more than low-risk people; underwriters use classification and pricing to control it.

Proximate Cause

The dominant, unbroken cause of a loss that sets in motion a chain of events without which the loss would not have occurred, used to determine whether coverage applies.

HO-3 Coverage C Default

On an unendorsed HO-3, Coverage C personal property is written at 50 percent of the Coverage A dwelling limit, although the amount can be increased by endorsement.

HO-3 Coverage D Limit

Coverage D loss of use is 30 percent of the Coverage A dwelling limit on the standard HO-3 and pays additional living expenses while the home is unfit to live in.

Replacement Cost 80 Percent Rule

To receive full replacement cost on a dwelling loss, the insured must carry insurance equal to at least 80 percent of the dwelling's replacement cost at the time of loss.

Homeowners Special Limits

Standard homeowners forms cap theft of money at $200, theft of jewelry and furs at $1,500, and theft of firearms at $2,500 unless the limits are raised by endorsement.

NFIP Waiting Period

New National Flood Insurance Program policies generally take effect 30 days after purchase, except when coverage is required at a new or revised mortgage loan closing.

Vacancy Exclusion

If a building has been vacant for more than 60 consecutive days before a loss, standard property forms exclude vandalism, glass breakage, and water damage, among other perils.

Business Income Waiting Period

Commercial business income coverage usually begins paying after a 72-hour waiting period following direct physical loss and continues through the period of restoration.

Commercial Coinsurance Formula

Payment equals insurance carried divided by insurance required, multiplied by the loss, then minus the deductible, where insurance required is the coinsurance percentage times the property's value.

CGL Coverage A

Commercial general liability Coverage A pays sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence.

CGL General Aggregate

The general aggregate is the most the policy will pay for all covered claims in a policy period other than products-completed operations, which carries its own separate aggregate limit.

Claims-Made Retroactive Date

The retroactive date is the earliest date on which a covered wrongful act may have occurred under a claims-made policy; acts before that date are not covered.

PAP Part D Coverage

Part D of the personal auto policy covers direct and accidental damage to the insured auto, including collision and other-than-collision losses, subject to the deductible shown.

Business Auto Symbol 1

Symbol 1 on a business auto policy means any auto and provides liability coverage for owned, hired, and nonowned autos used in the business, subject to exclusions.

Workers Compensation Part Two

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

Personal Umbrella Policy

An umbrella policy provides liability limits above the insured's underlying auto and homeowners policies and may cover some losses not covered by those underlying policies, subject to a self-insured retention.

Surety Bond Parties

A surety bond is a three-party agreement among the surety, the principal, and the obligee that guarantees the principal's performance; unlike insurance, the principal must reimburse the surety.