Author: Rami Planet

  • Earthquake insurance

    Earthquake insurance

      Earthquake insurance The dwelling and homeowners policies do not cover the earthquake peril.  Many insureds do not need this coverage; however, many companies are willing to offer earthquake insurance separately to insureds who want it, either as an endorsement to their dwelling or homeowners policy or as a separate policy. Earthquake insurance generally covers […]

  • Flood Insurance ( Eligibility, Coverage, Property Not Covered, Application Procedures)

    Flood Insurance ( Eligibility, Coverage, Property Not Covered, Application Procedures)

       FLOOD INSURANCE 1. Eligibility Flood insurance coverage was generally unavailable until the federal government became involved.  In 1968, Congress created the National Flood Insurance Program (NFIP) to make flood insurance available to eligible communities through federal subsidization.  The program is managed by the Federal Insurance Administration (FIA), which is a branch of the Federal […]

  • What are the 4 parts of a personal auto policy?

    What are the 4 parts of a personal auto policy?

      The personal auto policy consists of a declarations page and a policy form.  The policy form contains four separate coverages, each with its own insuring agreement, exclusions, and conditions.  They are as follows: ■Part A—liability coverage ■Part B—medical payments coverage ■Part C—uninsured motorists coverage ■Part D—coverage for damage to your auto (physical damage) Many […]

  • Parts E and F of the personal auto policy list conditions

      PARTS E AND F—CONDITIONS Parts E and F of the personal auto policy list conditions that apply to the policy as a whole. Part E—duties after an accident or loss details the duties of insureds following a loss.  They are similar to the duties required under other property and liability policies. Note that under […]

  • what is Underinsured Motorist Coverage, with example?

    what is Underinsured Motorist Coverage, with example?

     UNDERINSURED MOTORISTS COVERAGE Earlier, we stated that a vehicle with liability insurance in an amount equal to or greater than the state’s financial responsibility limit is not considered an uninsured vehicle under uninsured motorists coverage.  This financial responsibility limit, however, often falls far short of fully reimbursing the insured for a loss.  Underinsured motorists coverage […]

  • PERSONAL  AUTO POLICY  ENDORSEMENTS

    PERSONAL AUTO POLICY ENDORSEMENTS

      PERSONAL  AUTO POLICY  ENDORSEMENTS Although the personal auto policy provides broad coverage for an individual’s auto exposures, some insureds may have additional coverage needs that can be met by adding an endorsement to the policy. Earlier, we stated that a personal auto policy can be issued to an individual or a married couple who […]

  • What is no-fault insurance ?

    What is no-fault insurance ?

       NO-FAULT INSURANCE You’ve learned that an insured’s auto liability insurance pays only for losses that the insured is legally liable for.  But in many cases, this traditional fault system has created a backlog in the courts and excessive costs—all to determine who is at fault. In an attempt to deal with these problems, some […]

  • Assigned risk plans in personal auto insurance

       ASSIGNE D RISK PLANS It has become increasingly difficult for some drivers to obtain automobile insurance.  This is partly because most of these drivers are not average drivers.  Because of poor driving records, most companies will not accept them because their loss experience is much greater than the average driver’s.  However, it is in […]

  • COVERAGE FOR DAMAGE TO YOUR AUTO

    COVERAGE FOR DAMAGE TO YOUR AUTO

        PART D—COVERAGE FOR DAMAGE TO YOUR AUTO 1. Coverage The liability section of the personal auto policy excludes damage to property owned by, rented to, used by, or in the care of the insured. Such coverage is provided under the Personal Auto policy by Part D—coverage for damage to your auto, commonly known […]

  • Insurance Principles Questions and Answers

      1. Match each word below with its appropriate definition. 1. Risk –———           A. Increases the chance of loss 2. Insurance        ——-   B. A means of transferring the riskof loss 3. Peril        ————    C. The chance of loss 4. Hazard ————– D. The cause of loss 2. Which of the following represent pure risks? A. […]