7364080
Description
Flashcards by Dylan Overstreet, updated more than 1 year ago
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Created by Dylan Overstreet
almost 8 years ago
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| Question | Answer |
| CP-F-113 Pollution Clean Up and Removal What is the Federated Limit? | 100k |
| P-F-113 Pollution Clean Up and Removal Federated covers pollution ____ or _____ | at or from |
| P-F-113 Pollution Clean Up and Removal What types of losses are covered? How many days do you have to report a a claim? | Specified Causes of Loss 180 days |
| P-F-113 Pollution Clean Up and Removal Give a claims example | A machine shop has large tubs of machining oil. A fire takes out the whole building and when the Fire Department is putting out the fire the machine oils run off the insured premise. Federated coverage will cover the clean up and removal of the pollution coming from the insured Premise |
| Debris Removal on the CP-F-113 Explain the two scenarios where Federated will increase the Debris Removal Limit | 1) If the debris removal is more than 25% of the entire claim Federated will provide an additional 50k 2) If the limit is exhausted Federated offers an additional 50k |
| ERPL Which policy has a a retroactive date? Claims Made or Occurrence | Claims Made policy |
| What are some types of losses that are covered by ERPL | Harassment Discrimination Retaliation Wrongful termination |
| Does Data and Cyber coverage cover Defense cost? | Yes it sure does |
| Question Text | Answer Text |
| Why is Workers Comp not a commodity (Be able to name at least 3). | SIR's Managed Care Return to Work Light Duty Programs Risk Management Practices |
| Commercial Umbrella Sits over what main 3 things? Federated Also has the Commercial Umbrella Sit over what 3 Additional things? | 1) Auto Liability, General Liability, Employers Liability 2) Garage Keepers, EDSF Part B, Legal Liability Building |
| Give a claims example of how the commercial Umbrella would work with Garage Keepers Liability? | Fire burns down a tire dealer and the all the customer cars are total losses, the value of the customer vehicles exceed the Garage Keeper limit. In a situation like this the commercial umbrella will sit and handle the rest of the customers vehicle damages. |
| Commercial Umbrella Explain Non-Employment Harassment Give a claims Example | Explanation: Federated Commercial Umbrella is primary and pays from dollar one. Claims Example: A fine looking customer comes in to our insured auto dealer, 23 blonde with an athletic frame. Salesman Chad makes a comment about the customer to a fellow coworker, she hears him, is offended and sues. |
| Commercial Umbrella Explain personal liability and why it is excluded by the commercial Umbrella. | Excludes Non-Owned, non-business use of a company owned auto driven by employees or a customer. The Umbrella will only protect if the business gets brought into the case but will not protect the employer/customer in their liability. |
| Commercial Liability Personal Liability is excluded, what adds individuals back? | Designated Individuals - Adds back owners and other key employees to be covered for liability when in a company owned auto while using it for personal use. |
| Give an example of when Personal Liability is excluded by the commercial umbrella | An employee is driving a demo on the weekend and causes and accident, the umbrella will not sit on top in this claim to protect the employee for their liability. |
| What are the three coverages in Executive Personal Liability? | Contingent Work Comp Personal Executive Non-For-Profit personal liability |
| Explain and Give an example of Contingent Work Comp | Provided work comp coverage to a business owner when they hire someone to work at their residence. Example: Kid mowing owners yard gets hurt, this coverage would provide Work Comp coverage to the kid. |
| Explain and give an example of Non-For-Profit | Provides coverage for property damage and bodily injury arising out a business owners/family member role on a board at a Non-For-Profit. Example: Owner is on the board at BGC and an employee is injured while working, the employee sues the board members. This coverage protects the business owner. |
| Explain and give an example of Personal Executive Liability Coverage | Personal Protection to a business owner and their family resulting from stalking, attack, harassment, assault or the threat of one of the above. What is Covers: Provides Coverage for Security Cost and medical expenses Example: Daughter stalked, pays for security cost. |
| SIR candidates need to have what three things? | Good Financials Good Lost history Good Risk Management |
| For a P&C SIR explain how Deductibles impact the SIR | Deductibles do not chip away at the the SIR. You have to pay the SIR and then the deductible on top of it. Example: 25k SIR -- 10k loss -- 1k deducible The insured would have to pay 11k for a P&C SIR. |
| For a WC SIR is there a deductible? | No |
| Business Income Limit for the Bronze, Silver and Gold | Bronze: None Silver: 100k Gold: Actual Loss up to 12 months |
| Business Income limit for Systems Breakdown for Bronze, Silver, and Gold | Bronze: No Coverage Silver: Property Limit of insurance Gold: Property Limit of Insurance |
| What are the main 4 overages included on a BOP? What main coverage can be added with a CPP? | Property, Inland Marine, Crime, GL Business Auto can be added by a CPP |
| What is the premium threshold for a BOP? What is the turn around time for a BOP? When does the underwriting take place for a BOP? | 50k 48 hour turn around time Underwriting takes place after the sale and is rule based. |
| Building Material has 5 Major Property Advantages name them. | Property off Premise Property in Transit Borrowed, Leased Equipment Delivery Site Drop Off Railroad Car Legal Liability |
| Building Material Dealer Explain and give a claims example of Property off Premise | Provides coverage for covered property when is is temporarily at another location. Example: Dealer attends a trade show and has display windows there, vandals break in and break all the windows. Federated provides 50k to cover property . |
| Building Material Dealer Explain and give an example for Delivery Site Drop Off | Provides coverage for 72 hours for a building Material dealer when the drop off an order to a customer. Example: Dealer drops off a load of lumber to a construction site, the lumber is stolen later that night. Federated Provides coverage for 50k |
| Building Material Dealer Explain and Provide a claims example of Property in Transit | Provides coverage for covered property while in or on an insured owned(leased/operate) vehicle. Example: Dealer employee is driving back from a supplier with shipment. Sever winds lift the shipment off the truck and it is completely damaged. Fed provides 50k in coverage. |
| Building Material Dealer Provide an example of Railroad Car Liability | Example: Lumberyard receives most of its lumber from a railroad supplier. During a shipment an employee unloading drops a cigarette that causes a fire and damages the car. Federated provides 50k for the damage to the car |
| Building material Dealer Provide and example of Borrowed or Leased Equipment | Example: EE is delivering supplies to a construction site and borrows the contractor fork lift to move some supplies. While on the forklift the EE misjudges a turn and flips the forklift. Fed provides 50k in coverage. |
| Tire Dealer Property Off Premise provide a claims example | Taking tires to a trade show and the building catches on fire damaging the tires/property. Federated Provides Coverage |
| Tire Dealer False Pretense - provide a claims example | The insured is tricked into voluntarily giving up their property. Example: A tire dealer tells tires to a customer, when they go to cash the check it gets rejected. Insured calls the bank and the check is completely fake. |
| Tire Dealer Provide a claims example for Garage Keepers. | Example: Insured technician is working on a customers car and drops the welder which causes the customer car to go up in flames. Garage keeper provides coverage for customer's autos. |
| Tire Dealer Explain and provide an example for the Amendment of Product and Faulty Repair Coverage | Removes the exclusion from for Faulty Work and Product from the GL. Adds back coverage once the possession is relinquished to the customer. $1500 deductible and 75% RR equals Free |
| Auto Service BOP What is the limit for EE tools? | Built into the BPP limit while on Premise Example: Break in and Employee tools are stolen. |
| Auto Serivice Faulty Work Performed by your service techs | Adds back the exclusion for faulty product and work to the GL and the GK form. NO free option |
| Auto Service Dealer Limited Short Term Pollution Event Explain and provide an example | You can only get this option with Silver or Gold. -Covers Bodily Injury and Property Damage and cleanup (defense cost outside the limit) from an above ground tank less than 276 gallons. -Has to be less than 48 hours start to finish. -Have to be able to identify when the loss occured. |
| Machine Shield Brand and Labels - Explain and give an Example | Pays for the extra cost incurred by the insured to remove their brand/labels after a loss Example: Insured has an order that is damaged and this will cover the cost stamp the lost order with salvage and remove the insured label. |
| Machine Shield Employees tools and equipment - Covered where? | Provided under the BPP limit |
| Machine Sheild Pattern, Dies and Molds and Precious Alloys and Metals What Cause of loss exclusion is removed? | Theft |
| Machine Shop Explain how the PMVE breaks down the BPP? What are the parts valued at? What are the benefits of the PMVE? | -Production Machinery and Equipment is covered at a functional replacement cost -All other BPP is covered at a Replacement Cost -If you dont want all new machines and it can save you 10% |
| Machine Shop Explain the E&O box example | 2 million dollar machine, 500k tooling package. Tooling package doesn't work and has to be redone. This coverage will pay 80% of the cost to redo the tooling package. -The damage to the customer machine will be covered under the GL. -Loss of use would be 75% from GL and 25% from E&O. |
| Machine Shop Patent Infringement - explain and give an example | Federated provided 50k for this liability and defense coverage Example: Machine Shop received an order for parts and the specs from their customer. After completing the order they are named in a suit for patent infringement. Most liability policies exclude patent infringement. |
| Machine Shop Product Recall - What expenses does it cover? | Covers the cost to notify the customers, ship the product back, dispose of the product, EE overtime. -- |
| Machine Shop Does Product Recall cover to redo the work? | No - Business E&O would cover the cost to redo the work. Product Recall covers the expenses that go into a recall. |
| Machine Shop Product Recall - the insured has to pay what in claim like this? | 10% of the loss and their deductible |
| Machine Shop Work in Process -- The insured can get a extended reporting period for how long? | 30 days |
| Contractor Shield Name Item A-G | Item A: Installation Floater Item B: Contractors Equipment Item C: Business Personal Property Item D: Employee Tools Item E: Borrowed, Leased, Rented Equipment Item F: Rental Item G: Underground Property |
| Contractors Floater Item A covers what 2 elements? Coverage applies where? What is the time limitation after the job is completed? How is it valued? Why does it need to be scheduled at 100%? | -Covers labor and materials -Coverage applies while in waiting, on the vehicle, or at a job site -90 days after completion -Valued at Actual COST of Labor and Materials -Get a 25% to the ACV |
| Contractors Floater Item B covers what? What is the limit to schedule property? Why is it important to schedule at 100%? | -Covers equipment and attaches accessories listed on the schedule -$10k -You can get an additional 25% |
| Contractor Floater Item C covers what? Covers it where? These items have to less than? How is Item C valued | --BPP (includes portable tools/equipment) --In or on a vehicle or away from the insured premise --$10k or less --RCV or ACV |
| Contractor Floater Item D Covers what? Covered Where? How is the limit set? Valuation? | --Covers EE tools that are used in your business --Covered anywhere in the world --Insured selects the limit --ACV or RCV |
| Contractor Floater Item E covers what? For how many days? (endorsed?) Maximum limit? Valuation? | Borrowed, leased, or Rented Equipment --90 days (120 or 180) --$200k --Usually covered at ACV, can be limited RCV if required by contract |
| Contractor Floater Provide a claims example for Item A | Item A: Insured is doing a job and halfway through the job the site is destroyed by a tornado. This coverage provides for the materials and labor they already completed. |
| Contractor Floater Provide a claims example for Item B | Item B: The insured has a forklift that is valued at 15K. Because it is over the 10k threshold, the insured schedules the forklift. The forklift malfunctions and catches fire, it would be covered under Item B. |
| Contractor Floater Provide an example for Item C | Item C: The insured vans are parked at a construction site and filled with the insured tools. During lunch the van gets broken into and portable tools are stolen. There would be coverage under Item C. |
| Contractor Floater Provide a claims example for Item D | Item D: Insured EE drives the van home after work. The van has some the EE personal tools that he uses for the business. The van is broken into and the EE tools are stolen, there would be coverage under Item D. |
| Contractor Floater Provide a claims example for Item E | Item E: The insured borrows a backhoe (not covered under Item B). The insured EE wrecks and flips the backhoe causing serious damage. The coverage for the borrowed backhoe is under Item E. |
| Contractor Extension Endorsement In order to get this you have to have what? Why isn't worker under this coverage not covered by E&O? | --Item A and E&O --The work is not completed |
| Contractor Extension Endorsement adds back coverage for 3 exclusions, name them? and Give examples for the main 2. | Artificially Electrical Currents Hidden or Latent Defect -- Installing a AC unit and when turned on something wrong with the unit and it destroys itself. Faulty Inadequate, Defective Work -- The contractor makes a mistake and uses the wrong material and the work needs to be redone. |
| Contractor Shield Limited Fungi or Bacteria Provides coverage for what losses? Give a claims example | --Property Damage and Bodily Injury --The contractor installed an AC unit and did not install the fittings correctly. The pipes begin to leak and the moisture builds up in the ceiling of the building and creates mold. This coverage provides for BI and Prop Damage. |
| Contractor Shield -- Limited Job site Pollution Covers what types of losses? Give an Example | Bodily Injury, Property Damage, Clean Up Cost and Defense Cost --Insured bring a diesel tank to fill up their equipment, someone hits the tank and it leaks over the job site. This coverage will pay to clean up the leak and cover any damages. |
| Cabinet Shield Give an example of undamaged Stock | Example: The insured completes a large order and half of it is destroyed in a fire. The insured is unable to sell the undamaged portion. This coverage will cover the money the insured would have made if the order wasn't damaged. |
| Cabinet Shield Give a claims example for temperature extension | Employee accidentally turns off the humidity control on Friday where the completed cabinets are kept. On Monday the Insured comes back to find multiple orders of cabinets warped because the humidity. Standard ISO policy exclude extreme changes in temperature and dampness and dryness |
| Cabinet Shop - Extension Endorsement Removes what 3 exclusions? | Artificially Generated, Hidden or Latent, Faulty, Inadequate Work |
| Funeral BOP Explain and provide a claims example for Exhumation Expense | Federated provides $2500 for Silver and Gold for Exhumation expenses Example: An insured buries a body and forgets to take off the women's wedding ring, Fed will cover to dig the body back up to get the ring. |
| Funeral Service Professional Liability Explain what is covers for? Give an example | Covers Bodily injury including Mental Anguish Example: The insured cremates the body instead of embalming the body. The customer sues the insured. |
| Funeral BOP Customer Auto Coverage Explain and provide an example What are the two limits? | A customer drops their vehicle off, the insured offers valet services. The insured EE drives the customer car and gets in a wreck. This coverage will provide collision coverage for the customer vehicle. Liability will be covered by the insured Business auto policy. --25K for the auto, 2k for customer personal property |
| Term Life - what are the length of the two terms? | 10 and 20 years |
| Explain Renewability - until what age can you renew the policy. | Allows you to keep renewing the policy up until the age of 95. You will get the same coverage as the year before but have to continue to pay higher premiums. |
| Term Life Explain Convertibility | Can convert at anytime during the policy period Do not need to prove insurability If you do it within the first 5 years you get a 20% credit to you first year premium of the permanent product. |
| Term Life Name the 5 risk classes What 2 can be table rated?*** | Preferred Plus Preferred Tobacco Preferred Non-Tobacco Standard Tobacco*** Standard Non-Tobacco*** |
| Life insurance Be able to explain Beneficiary Contingent Beneficiary Irrevocable Beneficiary | Beneficiary - Person who gets the death benefit Contingent - Gets the death benefit is the primary passes away Irrevocable - Cannot change the beneficiary from the policy |
| Explain Contestability in regards to life insurance | You can be underwritten at anytime during the first two years of the policy. If something fraudulent is that would have changed Federated's rating the policy can be cancelled and premiums will be refunded. |
| Explain the Suicide Provision within the life insurance policy. | If the policy holder commits suicide within the first two years of the policy the death benefit will not be paid. The premiums will be reimbursed. |
| Life Insurance Riders Children Insurance Riders does what? What ages? Limit Range? Covers who? | Provides life insurance for the insured children. Ages 14 days to 25 years 5k-15k limit Covers the insured children and any future children they have or adopt. |
| Life insurance Rider Waiver of Premium Rider Waive premium for what type of disability Until what age? Have to be disabled for how long? First two years is? and then what? | --Total Disability --Until Age 60 --Has to be disabled for 6 months --First two years covered at a regular/own occupation after that it goes to any occupation |
| Universal Life Insurance When will the policy be cancelled? | When there is not enough in the policy to cover the next months cost of insurance and expense charges. |
| Universal Life Insurance Name 3 points for option 1 and option 2 | Option 1: Level death benefit Cash Values grow within the policy Cheaper than Option 2 Option 2: Increasing Death Benefit Cash Value grow outside the policy More expensive that Option 2 |
| Universal Life Insurance -- Interest Rates Guaranteed Rate? Current Rate? How often can it change? | Guarenteed: 3% Current: 5% It can change quarterly |
| Universal Life Insurance What is the loan interest rate? What is the net interest rate for a loan? | Loan Rate: 7% Net Rate: 4% |
| Universal Life Insurance Explain when you should take a loan versus letting the policy lapse | Taking a loan is better for a short term need if you plan to pay the loan back --Surrender is a better option if you plan to not repay anything back and want to avoid the interest rate. |
| Universal Life Explain the Premium Load by year | 1st year - 10 percent 2nd year - 7.5 percent 3rd year and on - 5 percent |
| Universal Life How long do surrender charges last? Why do we have surrender charges? | 10 years Motivates the policy holder to keep the policy in force |
| Universal Life Expense charges on the policy last for how long? | 5 to 15 years |
| Universal Life Riders Children's Rider Limit? Ages? Who? | Limit: $5k - 25K Ages: 14 days - 25 years Who: Current and future children (including adopted) |
| Universal Life Riders Option to increase Rider Does what? Between what ages? What are the two increase options? Can be accelerated for what occasions? | -Allows you to increase the Death Benefit WITHOUT improving insurability every 3 years -Ages 25-43 -50k max of 250k or 100k max of 500k --Marriages, Child Birth, Adoption |
| Universal Life Riders Waiver of Premium Rider Does what? Disability has to start before when? Own occupation for how many years? | Waives the cost of insurance and extra expense charges in the even of a total disability for over 6 months --Has to start before 60 --2 years |
| Disability Income What percentage of DI claims are from illness? 1 in how many policy holders have a DI claim? | 80-85% illness claims 1 in 4 policy holders |
| Disability Income At what point does Federated require income verification (besides Cali) | $100k |
| Disability Income How long does Own Occupation last for DI? What Rider waives that? | 3 years EROR |
| Disability Income Waiver of Premium Rider is (included/not included?) in the policy You have to be disabled for how long? What does it do? | --Included --90 days --Will waive future premiums and refund premiums paid in the first 90 days |
| Disability Income What are the 3 benefit options? | 2 years 5 years Age 67 |
| Disability Income What are the two parts of the DI benefit? What part of the benefit can be reduced if WC kicks in? What is the MAX of this part? | Basic and SIS --SIS can be reduced --SIS max is $1400 |
| Disability Income What are the waiting period options? When is the first DI check issued? | 30, 60, 90, 180, 365 --First check is issued 30 days after the waiting period |
| Disability Income Riders EROR stands for? Does what? What type of disability? Available for what Occupation classes? | Extended Regular Occupation Rider Removes the 3 year own occupation and extends it to age 67. --Has to be a total disability --2A, 3A and 4A |
| Disability Income Rider GMI stands for? Does what? Until what Age? What increase options do you have? | Guaranteed Medical Insurability --Increases coverage every 2 years without proving Insurability --Age 52 --$100, $200, and $300 |
| Disability Income Rider COLA stands for? Does what? Rate of increase? Based on? What type of disability? | Cost of Living Adjustment Rider --Increases the death benefit every 12 months --Will increase 3-8% based on the CPI --Total Disability |
| Disability Income Rider BOBR stands for? Limit Option? Time limitations? Owner has to meet 2 requirements? How can you spend the money? | Business Owner Benefit Rider --$1k - 5k --12 months at one time, 24 months policy period. --own 25% of the business and work atleast 30 hours per week --Anyway you want |
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