Property/Casualty Insurance

Table of Contents

Introduction		1
Chapter 1 - Insurance		2
Underwriting Risk		2
Auto Insurance		6
Insuring a New Vehicle		8
Classic Cars		10
Delivery Drivers		11
RV Insurance		11
Motorcycle Insurance		12
Mechanical Breakdown Insurance (MBI)		13
Foreign Travel		14
Pay-as-You-Go Policies		14
Safe Drivers Pay Less for Insurance		16
Distracted Driving		18
Teenage Drivers		19
A New Problem: Pandemic-Related Dangerous Driving		21
Affordable Coverage		24
Reading the Auto Policy		31
Conditions in an Auto Policy		32
Auto Liability Insurance		35
Property Damage Liability Insurance		36
Medical Auto Insurance		37
Person Injury Protection (PIP)		37
Collision		38
Comprehensive Coverage		38
Auto Insurance for School-Sanctioned Events		39
Uninsured and Under-Insured Motorists Coverage		39
Driving Uninsured: No Pay, No Play Laws		40
Towing & Service for Rental Car Reimbursement		41
Wage Loss & Substitute Services Coverage		41
Determining Auto Insurance Rates		41
When an Auto Accident Occurs		43
No-Fault Insurance		44
Homeowner Insurance		45
As a Recap		48
Homeowner’s Basic Form		49
Homeowner’s Broad Form		49
Homeowner’s Comprehensive Form		50
Section I of Form #1 (HO-1)		50
Section II of Form #1		51
Form #2 (HO-2)		51
Form #3 (HO-3)		52
Form #4 (HO-4) Renter’s Insurance		54
College Student Renter’s Insurance		55
Renter’s Insurance for Businesses		56
Form #5 (HO-5)		56
Form #6 (HO-6)		56
Form #8 (HO-8)		57
Form #14 (HO-14)		57
Homeowner Exceptions		57
Natural Disasters		59
Chapter 2 - Flood Coverage		61
FEMAS’s Flood Requirements		61
	Acronyms Agents Need to Know	62
	NFIP Background	63
	Federal Emergency Management Agency (FEMA)	65
	Community Participation	66
	Emergency Program	67
	Regular Program	68
	Community Rating System	69
	Building Eligibility	69
	Coastal Barrier Resources System and Other Protected Areas	69
	For CBRS Areas	70
	For OPAs	71
	Who Needs Flood Insurance?	71
	Mandatory Purchase of Flood Insurance in High Flood Risk Zones	72
	Recommended in Moderate and Low Flood Risk Zones	72
	Why Flood Insurance is Better than Disaster Assistance	72
Flood Maps and Zone Determinations		73
Flood Hazard Boundary Map (FHBM)		73
	The “100-Year Flood” That Isn’t	73
	Flood Insurance Rate Map (FIRM)	74
	Pre-FIRM / Post FIRM Defined	74
	Risk Modeling	79
	Special Flood Hazard Area Defined	81
	Base Flood Elevation (BFE)	81
	Zone Determination	81
Policies and Products Available		82
	Dwelling Policy – Types of Buildings Covered	82
	General Property Policy – Types of Buildings Covered	83
	Residential Condominium Building Association Policy	83
	Preferred Risk Policy – Types of Buildings Covered	83
	Definitions	83
	Damages Not Covered	84
	Single Peril Policy	85
	Mudslides Versus Mudflows	85
	Property Covered	85
	Basements	85
	Appurtenant Structures	86
	Loss Avoidance Measures (Are You Ready?)	87
	Debris Removal	88
	Improvements and Betterments	88
	Property Not Covered	88
	Increased Cost of Compliance Coverage (ICC)	89
General Rules		91
	Statutory Coverage Limits (with chart)	91
	Deductibles	93
	Charts	94
	Property Value Determination for Selecting Coverage Amounts	95
	Loss Settlement: Actual Cash Value (ACV)	95
	Replacement Cost Value (RCV)	96
	Co-Insurance Penalty in RCBAP	96
	Reduction and Reformation of Coverage	97
	Waiting Period / Effective Date of Policy	97
	Policy Term	98
	Cancellations	98
Rating		99
	To complete a flood rating: steps	99
	Chart: Pre-FIRM construction annual rate table	100
	Types of Buildings	102
	Elevated Buildings	104
	Buildings With Basements	104
	When to Use an Elevation Certificate	105
	Grandfathering	105
Claims Handling Process		106
	Helping Your Client File a Claim	106
	Appeals Process	108
	Claims Handbook	110
Requirements of the Flood Insurance Reform Act of 2004		110
	Mitigating Repetitive Loss Properties	110
	Educating Policyholders	111
	Write Your Own Companies and the NFIP Work Together	112
	National Flood Insurance Reform Act of 1994	113
	Flood Disaster Protection Act of 1973	114
	National Flood Insurance Act of 1968	114
	The Flood Insurance Reform Act of 2004	114
Agent Resources		115
	Write Your Own (WYO) Program	115
	FEMA and Related Websites	115
Chapter 3 – Volcanoes		117
	Hurricanes & Tornadoes	117
	Personal Property in the Homeowner Policy	117
	Umbrella Insurance	119
	Liability Insurance	121
	Homeowner & Auto Premium Rates	122
	Insurance Units	122
	The Insurance Policy Layout	123
	Negligence Laws	124
	Loss-Adjustment Provisions	125
	Notice of Loss	125
	Processing a Claim	125

United Insurance Educators, Inc.

PO Box 1030

Eatonville, WA 98328

Email: mail@uiece.com

(253) 846-1155