WY Property & Casualty cheat sheet

Pure risk offers only loss or no loss and is insurable; speculative risk offers loss or gain and is not insurable.

Characteristics of an insurable risk: accidental/fortuitous loss, definite and measurable, large number of similar exposure units, losses not catastrophic, and affordable premium.

Principle of indemnity: the insured is restored to approximately the pre-loss financial position, never better; replacement cost and valued policy laws are limited exceptions.

Insurable interest is required in property insurance at the time of loss; in life insurance it must exist at policy inception, plus the insured's consent.

Contract characteristics: adhesion, aleatory, conditional, unilateral, and personal; ambiguity in an adhesion contract is construed against the insurer.

Utmost good faith duties: representations must be true to the best of the applicant's knowledge, warranties must be literally true unless waived, and concealment or fraud voids coverage.

Subrogation transfers the insured's right of recovery against a negligent third party to the insurer after the claim is paid; the insured may not impair that right.

Agent authority: express (granted by the insurer in writing), implied (customary to perform the granted duties), and apparent (created by the insurer's conduct toward a third party).

Hazard types: physical (tangible conditions), moral (dishonest intent such as arson or fraud), and morale (carelessness or indifference because insurance exists).

Coinsurance formula: (insurance carried ÷ insurance required) × loss, then subtract the deductible; insurance required = coinsurance percentage × value of the property.

Replacement cost pays the cost to repair or replace with like kind and quality without depreciation; actual cash value is replacement cost minus depreciation.

Homeowners forms: HO-2 broad named perils, HO-3 open perils on the dwelling and named perils on personal property, HO-5 open perils on both, HO-8 modified form for older homes.

HO-3 loss settlement pays full replacement cost on the dwelling only when the Coverage A limit is at least 80% of the dwelling's replacement cost; otherwise partial losses settle at actual cash value.

Homeowners coverages: A dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others.

Commercial property Causes of Loss forms: Basic (named perils), Broad (adds perils such as glass and water damage), Special (open perils subject only to exclusions).

Common property exclusions: earth movement, flood and surface water, ordinance or law, neglect, intentional loss, war, nuclear hazard, wear and tear, and vermin.

Mortgagee clause: the insurer pays the lender to the extent of its interest even when the insured's acts void coverage, and must give the lender notice of cancellation or nonrenewal.

Business income pays lost net income plus continuing normal expenses during the period of restoration; extra expense pays costs that let the insured resume operations sooner.

Negligence elements: a legal duty owed, breach of that duty, proximate cause, and actual damages.

Compensatory damages split into special damages (medical bills, lost wages) and general damages (pain and suffering); punitive damages punish rather than compensate.

Personal auto policy parts: A liability, B medical payments, C uninsured/underinsured motorists, D coverage for damage to your auto, plus duties after an accident.

Split limits (for example 25/50/25) state bodily injury per person, bodily injury per accident, and property damage separately; a combined single limit applies one amount per accident to all damages.

Claims-made liability forms are triggered by a claim first made during the policy period, subject to a retroactive date; occurrence forms are triggered by injury or damage occurring during the policy period.

Workers compensation benefits: medical care, disability income (temporary and permanent), death benefits, and rehabilitation; the exclusive remedy rule bars most employee tort suits against the employer.

Umbrella and excess policies pay after underlying limits are exhausted; an umbrella may drop down to cover gaps, and a self-insured retention applies before coverage responds.

Other than collision (comprehensive) covers fire, theft, vandalism, glass, weather, and animal strikes; collision covers impact with another vehicle or object.

Businessowners policy (BOP) combines property and general liability for small businesses, usually including business income, and is written with optional endorsements.

The Wyoming Department of Insurance is headed by the Insurance Commissioner, who is appointed by the Governor and administers the Wyoming Insurance Code (Title 26).

Resident producer licenses are renewed on a biennial basis; resident producers must complete 24 hours of continuing education per term, including at least 3 hours of ethics.

Insurers must notify the Commissioner when a producer's appointment is terminated, and appointments must be filed for producers authorized to act for the insurer.

Producers must report administrative actions taken against them, criminal prosecutions, and changes of address to the Commissioner within the time limits set by statute and rule.

Premiums and return premiums collected by a producer belong to the insurer or insured and are held in a fiduciary capacity; commingling with personal or business funds is prohibited.

Unfair trade practices include misrepresentation, twisting, rebating, false advertising, boycott, coercion, and unfair claim settlement; the Commissioner may fine, issue cease-and-desist orders, or suspend licenses.

The Wyoming Insurance Guaranty Association pays covered claims of insolvent member property and casualty insurers, funded by assessments on member insurers; agents may not use it as a sales inducement.

Surplus lines coverage may be placed with a non-admitted insurer only after a documented diligent search shows that admitted insurers will not write the risk.

The Commissioner has authority to examine insurers and producers, hold hearings, and issue orders; final orders are subject to judicial review.