The PC Professional
Table of Contents
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Chapter 1: The Agent’s Role |
1 |
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Special Designations |
2 |
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Required State Education |
2 |
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Multilingual Agents Being Sought |
4 |
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A Tough Market for the Unprepared |
4 |
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New Competition Coming from Traditional Entities |
5 |
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A Value to Society |
6 |
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Risk |
7 |
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Understanding Insurance Terminology |
10 |
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Chapter 2: Employment Practices Liability Insurance (EPLI) |
18 |
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A Policy Overview |
18 |
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Do Employers Really Need EPLI? |
21 |
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Low-Cost Protection |
24 |
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New Technology Firms |
25 |
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All Companies are Vulnerable |
25 |
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Educating the Employers |
26 |
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Chapter 3: FEMA’s Flood Requirements |
28 |
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Course Material |
28 |
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Acronyms Agents Need to Know |
29 |
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NFIP Background |
30 |
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Federal Emergency Management Agency (FEMA) |
32 |
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Community Participation |
33 |
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Emergency Program |
34 |
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Regular Program |
35 |
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Community Rating System |
36 |
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Building Eligibility |
36 |
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Coastal Barrier Resources System and Other Protected Areas |
36 |
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For CBRS Areas |
38 |
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For OPAs |
38 |
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Who Needs Flood Insurance? |
38 |
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Mandatory Purchase of Flood Insurance in High Flood Risk Zones |
39 |
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Recommended in Moderate and Low Flood Risk Zones |
40 |
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Why Flood Insurance is Better than Disaster Assistance |
40 |
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Flood Maps and Zone Determinations |
40 |
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Flood Hazard Boundary Map (FHBM) |
41 |
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The “100-Year Flood” |
41 |
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Flood Insurance Rate Map (FIRM) |
41 |
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Pre-FIRM / Post-FIRM Defined |
41 |
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Agent’s Premium Calculation Pad (form) |
42 |
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Risk Modeling |
47 |
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Geographical & Structural Variables |
48 |
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Premium Subsidies & Cross-Subsidies |
48 |
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Special Flood Hazard Area Defined |
48 |
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Base Flood Elevation (BFE) |
49 |
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Zone Determination |
49 |
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Policies and Products Available |
50 |
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Dwelling Policy – Types of Buildings Covered |
50 |
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General Property Policy – Types of Buildings Covered |
51 |
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Residential Condominium Building Association Policy – Types of Buildings Covered |
51 |
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Preferred Risk Policy – Types of Buildings Covered |
51 |
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Definitions |
52 |
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Damages Not Covered |
53 |
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Single Peril Policy |
53 |
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Mudslides Versus Mudflows |
53 |
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Property Covered |
53 |
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Basements |
54 |
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Appurtenant Structures |
55 |
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Loss Avoidance Measures |
55 |
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Debris Removal |
56 |
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Improvements and Betterments |
56 |
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Property Not Covered |
56 |
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Increased Cost of Compliance Coverage (ICC) |
58 |
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General Rules |
60 |
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Statutory Coverage Limits |
60 |
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Charts on Coverage Limits |
60 |
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Deductibles |
61 |
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Charts on Deductible Options |
62 |
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Property Value Determination for Selecting Coverage Amounts |
63 |
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Loss Settlement / Actual Cash Value (ACV) |
64 |
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Replacement Cost Value (RCV) |
64 |
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Co-Insurance Penalty in RCBAP |
65 |
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Reduction and Reformation of Coverage |
65 |
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Waiting Period / Effective Date of Policy |
65 |
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Policy Term |
66 |
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Cancellations |
66 |
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Rating |
67 |
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Geographic Location |
68 |
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Structural Variables |
68 |
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Mitigation Discounts, Floodproofing, RCV |
69 |
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Claims History |
70 |
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Types of Buildings |
71 |
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Elevated Buildings |
73 |
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Buildings With Basements |
73 |
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When to Use an Elevation Certificate |
73 |
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Grandfathering |
74 |
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Elevation Grandfathering |
74 |
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Claims Handling Process |
75 |
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Helping Your Client File a Claim |
75 |
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Appeals Process |
77 |
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Claims Handbook |
79 |
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Requirements of the Flood Insurance Reform Act of 2004 |
79 |
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Mitigating Repetitive Loss Properties |
79 |
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Educating Policyholders |
80 |
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Write Your Own Companies and the NFIP Work Together |
81 |
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National Flood Insurance Reform Act of 1994 |
82 |
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Flood Disaster Protection Act of 1973 |
83 |
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National Flood Insurance Act of 1968 |
83 |
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The National Flood Insurance Reform Act of 1994 |
84 |
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The Flood Insurance Reform Act of 2004 |
84 |
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The Biggert-Waters Flood Insurance Reform Act of 2012 |
84 |
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The Consolidated Appropriations Act of 2014 |
84 |
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Homeowner Flood Insurance Affordability Act of 2014 |
84 |
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Agent Resources, Section VIII – Write Your Own (WYO) Program |
84 |
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FEMA and Related Websites
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85 |
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Chapter 4: Hurricane Insurance |
86 |
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Six Critical Areas |
87 |
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Wind Resistive Features |
88 |
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Opening Protection |
88 |
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Roof Deck / Coverings |
92 |
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Upgrading Exterior Doors |
92 |
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Upgrading Exterior Walls |
95 |
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Reinforcing Roof-to-Wall |
96 |
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Roof-to-Wall Connectors |
96 |
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In Summary |
96 |
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Chapter 5: Commodity/Crop Insurance |
97 |
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History |
97 |
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Crop Insurance Contracts |
99 |
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Risk Management Terms |
100 |
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Abbreviations |
104 |
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The Basics |
105 |
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The Crop Insurance Agent |
106 |
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Professionalism Essential |
107 |
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Knowing the Industry |
107 |
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Continual Education Required |
108 |
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Multiple Plans of Coverage |
109 |
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Yield Based |
109 |
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Revenue Insurance Plans |
110 |
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Named-Peril Plans |
110 |
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Livestock Insurance |
110 |
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Feeder Cattle |
110 |
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Fed Cattle Risk Protection |
111 |
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Dairy Revenue Protection |
111 |
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Lamb Livestock Risk Protection |
112 |
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Swine Livestock Risk Protection |
112 |
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Natural Disasters and Crop Insurance |
113 |
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Prevented Planting |
113 |
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Supplemental Coverage Option for Federal Crop Insurance |
114 |
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Nursery Commodity Insurance |
114 |
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Pasture, Rangeland, Forage, Pilot Insurance Program |
115 |
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Peanut Revenue Federal Crop Insurance Policy |
116 |
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Stacked Income Protection Plan (STAX) for Upland Cotton |
117 |
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Whole-Farm Revenue Protections |
118 |
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Organic Farming Practices |
119 |
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Apiculture Pilot Insurance Program |
120 |
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Beginning Farmer and Rancher Development Program |
120 |
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Agriculture Improvement Act of 2018: Highlights and Implications |
121 |
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Unit Structures in Farming and Ranching |
122 |
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Climate Change Affects Farming |
123 |
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Climate change |
124 |
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Global warming |
124 |
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Changing How the FCIC Operates |
125 |
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Carbon Sinks |
131 |
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Chapter 6: Auto Insurance |
133 |
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The Auto Policy |
133 |
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The Policy Declarations Page |
134 |
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Part A: Liability Coverage |
134 |
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Part B: Medical Payments Coverage |
135 |
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Part C: Uninsured Motorist Coverage |
135 |
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Part D: Coverages for Damage to the Automobile |
135 |
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Part E: Duties after an Accident or Loss |
135 |
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Part F: General Provisions |
135 |
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Other Coverage Types |
136 |
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Personal Injury Protection (PIP) |
136 |
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Underinsured Motorists |
137 |
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Rental Reimbursement / Towing and Labor |
137 |
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Extended Non-ownership Liability Endorsement |
137 |
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Sound Receiving and Transmitting Equipment Coverage |
137 |
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Recording, DVDs, or Other Devices |
137 |
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Insurance Contracts |
137 |
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Reading the Policy |
138 |
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Family Automobile Policies (FAP) |
139 |
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Liability Insurance |
140 |
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Property Damage / Medical Payments |
142 |
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States Require Liability Insurance |
143 |
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PIP |
144 |
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No-Fault Insurance |
145 |
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Collision |
146 |
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Comprehensive Coverage |
147 |
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Auto Insurance Rates |
148 |
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Measuring Loss Exposure |
149 |
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Rates set along three basic guidelines |
150 |
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Types of risk |
151 |
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Processing an Auto Claim |
151 |
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Chapter 7: Homeowner’s Insurance |
154 |
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Renter’s Insurance |
154 |
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Insuring Your Home |
154 |
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To Recap |
156 |
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Basic, Broad, and Comprehensive Forms |
158 |
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Section I of Form #1 (HO-1) |
159 |
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Section II of Form #1 |
160 |
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Form #2 (HO-2) |
160 |
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Form #3 (HO-3) |
161 |
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Form #4 (HO-4) |
163 |
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Form #5 (HO-5) |
163 |
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Form #6 (HO-6) |
163 |
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Form #8 (HO-8) |
164 |
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Form #14 (HO-14) |
164 |
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Exceptions |
165 |
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Natural Disasters |
166 |
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Volcanoes |
168 |
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Hurricanes and Tornadoes / Personal Property |
169 |
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Umbrella Insurance |
171 |
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Homeowner’s Liability Insurance |
172 |
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Insurance policy basic format |
174 |
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Declarations / Insuring Agreements / Exclusions |
175 |
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Conditions and Miscellaneous Provisions |
175 |
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Definitions/Perils / Hazards |
176 |
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The Insurance Policy Layout |
177 |
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Negligence Laws |
177 |
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Loss-Adjustment Provisions |
178 |
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Notice of Loss |
179 |
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Chapter 8: Ethics |
180 |
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Professional Conduct |
180 |
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What Can Individuals Do? |
183 |
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Example #1 |
184 |
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Example #2 |
185 |
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Example #3 |
186 |
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Example #4 |
188 |
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Example #5 |
188 |
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The Professional |
189 |
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Policy Suitability Standards |
190 |
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Projecting an Ethical Image |
191 |
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Ethical Selling |
194 |
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Setting Appointments |
194 |
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Getting in the Door |
196 |
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Explaining Policy Benefits and Limitations |
197 |
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Minimizing Misunderstandings (list) |
198 |
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Allowing Misconceptions |
199 |
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Premium Rates |
200 |
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Providing Client Service |
200 |
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Commingling Funds |
200 |
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Continuing Education to Meet State Requirements |
201 |
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Due Diligence |
203 |
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Quantitative Analysis of a Company |
206 |
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The A.M. Best Rating System |
208 |
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Additional Agent Due Diligence |
208 |
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Business Ethics |
217 |
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Taking the Ethical Path |
217 |
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Obtaining Investigative Knowledge |
219 |
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Property, Life and Casualty Fraud |
222 |
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Premium Diversion |
222 |
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Free Churning/Asset Diversion |
224 |
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Types of Fraud |
225 |
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Insurance Company Fraud |
225 |
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United Insurance Educators, Inc.
PO Box 1030
Eatonville, WA 98328
(800) 735-1155