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26 Cards in this Set
- Front
- Back
write your own (wyo) |
program allowing private insurers to write flood insurance under the national flood insurance program |
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emergency program |
initial phase of a community's participation in the national flood insurance program in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates |
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regular program |
second phase of the national flood insurance program in which the community agrees to adopt flood-control and land-use restrictions in which property owners purchase higher amounts of flood insurance than under the emergency program |
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maximum amounts of flood ins |
- $500k for nonresidential properties - $500k for personal property - $250k residential condominium times number of units - $100k for residential condominium contents emergency program - $100k |
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general property form |
version of the national flood insurance program standard flood insurance policy that is used for insuring commercial buildings and contents |
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residential condominium building association policy |
version of national flood insurance program standard insurance policy that is used for insuring residential condominium buildings as well as contents that are owned by owner or association |
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coinsurance |
insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount will be reduced |
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increased cost of compliance |
national flood insurance coverage that pays for compliance costs related to floodplain management for qualifying structures |
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difference in conditions policy (dic) |
policy that covers on an "all risk" basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage |
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highly protected risk |
large property whose construction meets high standards of risk mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specific occupancy |
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layered property coverage |
two or more property policies arranged in levels of coverage, the policies in the second or higher levels provide coverage only when the loss exceeds the coverage afforded by the lower level policies |
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attachment point |
dollar amount above which the reinsurer responds to losses |
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how does NFIP pay losses |
ACV, no option for RC |
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NFIP vs standard CPP |
* NFIP covers bldg and contents on ACV only basis, no RC. CPP has RC option * NFIP does not include coinsurance * NFIP can't be written on blanket basis * NFIP excludes loss of use and loss income * NFIP excludes several types of property |
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3 insuring agreements under NFIP coverage C other coverages |
1. debris removal 2. loss avoidance measures 3. pollution damage |
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ISO Flood broader than NFIP |
* ISO has greater variety of property * ISO can be attached to CPP, can provide loss income etc. * NFIP - ACV, ISO- RC option |
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earthquake endorsement (CP 10 40) |
subject to attached policy's coinsurance clause and therefore limit for endorsement is same as policy limit for other perils |
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earthquake endorsement (CP 10 45) |
not subject to coinsurance and permits earthquake coverage to be written subject to sub limit lower than policy limit |
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ISO Earthquake deductible |
expressed as a percentage. |
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DIC policies for flood and earthquake |
applies sublimits. |
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advantages for DIC insurance |
* cost effective for flood and earthquake cov * do not require coinsurance * nonfiled in many states * broader coverage for some perils |
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4 types of property covered differently under output policy |
1. building and other structures 2. personal property at unspecified location 3. personal property in transit 4. personal property of others |
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3 optional coverages under output policies |
1. auto physical damage 2. equipment breakdown 3. flood and earthquake |
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how does HPR define covered property |
real property and personal property |
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4 advantages of layered property insurance |
1. provides opportunity to obtain adequate limits and flexibility in setting layered limits 2. provide lower overall premiums 3. make broader coverage available 4. provide a bigger market to purchase insurance |
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perils for HPR |
open perils with fewer exclusions than special form |