The PC Professional

Table of Contents

 

 

Chapter 1: The Agent’s Role

Page 6

 

Special Designations

7

 

Required State Education

7

 

Multilingual Agents Being Sought

10

 

A Tough Market for the Unprepared

10

 

New Competition Coming from Traditional Entities

10

 

A Value to Society

12

 

Risk

13

 

Understanding Insurance Terminology

16

Chapter 2: Employment Practices Liability Insurance (EPLI)

Page 25

 

A Policy Overview

25

 

Do Employers Really Need EPLI?

28

 

Low Cost Protection

32

 

New Technology Firms

33

 

All Companies are Vulnerable, Even Small and Mid-Sized

33

 

Educating the Employers

34

Chapter 3: FEMA’s Flood Requirements

Page 36

 

Course Material

36

 

Acronyms Agents Need to Know

37

 

NFIP Background

37

 

Federal Emergency Management Agency (FEMA)

40

 

Community Participation

41

 

Emergency Program

42

 

Regular Program

43

 

Community Rating System

44

 

Building Eligibility

45

 

Coastal Barrier Resources System and Other Protected Areas

45

 

     For CBRS Areas

46

 

     For OPAs

47

 

Who Needs Flood Insurance?

47

 

Mandatory Purchase of Flood Insurance in High Flood Risk Zones

48

 

Recommended in Moderate and Low Flood Risk Zones

49

 

Why Flood Insurance is Better than Disaster Assistance

49

 

Flood Maps and Zone Determinations, Section II

49

 

Flood Hazard Boundary Map (FHBM)

50

 

The “100-Year Flood” that Isn’t

50

 

Flood Insurance Rate Map (FIRM)

50

 

Pre-FIRM / Post-FIRM Defined

51

 

     Agent’s Premium Calculation Pad (form)

57

 

Special Flood Hazard Area Defined

58

 

Base Flood Elevation (BFE)

58

 

Zone Determination

59

 

Policies and Products Available, Section III

59

 

Dwelling Policy – Types of Buildings Covered

60

 

General Property Policy – Types of Buildings Covered

60

 

Residential Condominium Building Association Policy – Buildings Covered

61

 

Preferred Risk Policy – Types of Buildings Covered

61

 

Definitions

62

 

Damages Not Covered

62

 

Single Peril Policy

62

 

Mudslides Versus Mudflows

63

 

Property Covered

63

 

Basements

63

 

Appurtenant Structures

65

 

Loss Avoidance Measures

65

 

Debris Removal

66

 

Improvements and Betterments

66

 

Property Not Covered

67

 

Increased Cost of Compliance Coverage (ICC)

68

 

     Premium Chart

69

 

General Rules, Section IV

69

 

Statutory Coverage Limits

70

 

Deductibles

70

 

Property Value Determination for Selecting Coverage Amounts

72

 

Loss Settlement / Actual Cash Value (ACV)

73

 

Replacement Cost Value (RCV)

73

 

Co-Insurance Penalty in RCBAP

74

 

Reduction and Reformation of Coverage

74

 

Waiting Period / Effective Date of Policy

74

 

Policy Term / Cancellations

76

 

Rating, Section V

76

 

     Firm Zones (chart)

77-78

 

Types of Buildings

78

 

Elevated Buildings

80

 

Buildings With Basements

81

 

When to Use an Elevation Certificate

81

 

Grandfathering

81

 

Claims Handling Process, Section VI

82

 

Helping Your Client File a Claim

82

 

Appeals Process

85

 

Steps 1, 2, 3, and 4

85-86

 

Claims Handbook

87

 

Requirements of the Flood Insurance Reform Act of 2004, Section VII

88

 

Mitigating Repetitive Loss Properties

88

 

Educating Policyholders

89

 

Write Your Own Companies and the NFIP Work Together

90

 

National Flood Insurance Reform Act of 1994

92

 

Flood Disaster Protection Act of 1973

92

 

National Flood Insurance Act of 1968

93

 

Agent Resources, Section VIII – Write Your Own (WYO) Program

93

 

FEMA and Related Websites

 

 

94

Chapter 4: Hurricane Insurance

Page 95

 

     Six Critical Areas

96

 

Wind Resistive Features

97

 

Opening Protection

98

 

Roof Deck / Coverings

101

 

Upgrading Exterior Doors

102

 

Upgrading Exterior Walls

105

 

Reinforcing Roof-to-Wall

106

 

Roof-to-Wall Connectors

106

 

In Summary

107

Chapter 5: Crop Insurance

Page 108

 

History

108

 

Crop Insurance Contracts

110

 

Risk Management Terms

112

 

Abbreviations

115

 

The Basics

117

 

The Crop Insurance Agent

117

 

Professionalism Essential

118

 

Knowing the Industry

119

 

Continual Education Required

120

 

Multiple Plans of Coverage

120

 

     Revenue Insurance Plans

121

 

     Named-Peril Plans

121

 

Livestock Insurance

122

 

Feeder Cattle

122

 

Fed Cattle Risk Protection

123

 

Dairy Revenue Protection

123

 

Lamb Livestock Risk Protection

124

 

Swine Livestock Risk Protection

124

 

Natural Disasters and Crop Insurance

124

 

Prevented Planting

125

 

Supplemental Coverage Option for Federal Crop Insurance

126

 

Nursery Commodity Insurance

126

 

Pasture, Rangeland, Forage, Pilot Insurance Program

127

 

Peanut Revenue Federal Crop Insurance Policy

128

 

Stacked Income Protection Plan (STAX) for Upland Cotton

129

 

Whole-Farm Revenue Protections

130

 

Organic Farming Practices

131

 

Apiculture Pilot Insurance Program

132

 

Beginning Farmer and Rancher Development Program Loses Funding

133

 

Unit Structures in Farming and Ranching

134

 

Climate Change Affects Farming

136

 

Climate change

136

 

Global warming

136

 

Changing How the FCIC Operates

137

 

Carbon Sinks

145

Chapter 6: Auto Insurance

Page 147

 

The Auto Policy

148

 

The Policy Declarations Page

148

 

Part A: Liability Coverage

149

 

Part B: Medical Payments Coverage

149

 

Part C: Uninsured Motorist Coverage

149

 

Part D: Coverages for Damage to the Automobile

149

 

Part E: Duties after an Accident or Loss

150

 

Part F: General Provisions

150

 

Other Coverage Types

151

 

Personal Injury Protection (PIP) / Underinsured Motorists

151

 

Rental Reimbursement / Towing and Labor

151

   

Extended Non-ownership Liability Endorsement

152

   

Sound Receiving and Transmitting Equipment Coverage

152

 

Recording, DVDs, or Other Devices

152

 

Insurance Contracts

152

 

Reading the Policy

152

 

Family Automobile Policies (FAP)

154

 

Liability Insurance

155

 

Property Damage / Medical Payments

157

 

States Require Liability Insurance

158

 

PIP

159

 

No-Fault Insurance

160

 

Collision

162

 

Comprehensive Coverage

163

 

Auto Insurance Rates

164

 

Measuring Loss Exposure

166

 

     Rates set along three basic guidelines

166-167

 

     Types of risk

167

 

Processing an Auto Claim

168

Chapter 7: Homeowner’s Insurance

Page 171

 

Renter’s Insurance

171

 

Insuring Your Home

171

 

To Recap

174

 

     Basic, Broad, and Comprehensive Forms

176

 

Section I of Form #1 (HO-1)

177

 

Section II of Form #1

178

 

Form #2 (HO-2)

178

 

Form #3 (HO-3)

179

 

Form #4 (HO-4)

181

 

Form #5 (HO-5)

181

 

Form #6 (HO-6)

181

 

Form #8 (HO-8)

182

 

Exceptions

183

 

Natural Disasters

184

 

Volcanoes / Hurricanes and Tornadoes / Personal Property

187

 

Umbrella Insurance

189

 

Homeowner’s Liability Insurance

191

 

     Insurance policy basic format

194

 

Declarations / Insuring Agreements / Exclusions

194

 

Conditions and Miscellaneous Provisions / Definitions

195

 

     Perils / Hazards

195

 

The Insurance Policy Layout

196

 

Negligence Laws

197

 

Loss-Adjustment Provisions

198

 

Notice of Loss

198

Chapter 8: Ethics

Page 200

 

Professional Conduct

201

 

What Can Individuals Do?

204

 

     Example #1

205

 

     Example #2

206

 

     Example #3

207

 

     Example #4

209

 

     Example #5

210

 

The Professional

211

 

Policy Suitability Standards

212

 

Projecting an Ethical Image

213

 

Ethical Selling

216

 

Setting Appointments

217

 

Getting in the Door

218

 

Explaining Policy Benefits and Limitations

220

 

     Minimizing Misunderstandings (list)

221

 

Allowing Misconceptions

222

 

Premium Rates / Providing Client Service

223

 

Commingling Funds

224

 

Continuing Education to Meet State Requirements

224

 

Due Diligence

227

 

     Quantitative Analysis of a Company

231

 

The A.M. Best Rating System

232

 

Additional Agent Due Diligence

233

 

Business Ethics

242

 

Taking the Ethical Path

243

 

Obtaining Investigative Knowledge

245

 

 

Thank you for ordering from United Insurance Educators, Inc.

 

UIE has offered CE since 1987.  Our goal is to present information in a manner that is easily read and understood.  Hopefully that was accomplished.

Thank you,

United Insurance Educators, Inc.

 

Website: www.uiece.com

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