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by zubees

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property insurance
insures physical material
casualty insurance
liability insurance covers the other person snd property that is damaged when you are liable
someone who has a great deal of trust and confidence placed in them by others
Insurable Interest
Deemed to have if the possibility exists of suffering financial or economic harms as a result of damage or destruction to person or property
Uneven exchange. Small premium large benefits
Surplus Lines Intermediary
A Surplus Lines Intermediary is authorized by the WI O.C.I. to place certain unusual risks with a non-approved insurance company
Abandonment condition
A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value
Office of the Commissioner of Insurance role is to “administer” & “enforce” Wisconsin insurance laws, but NOT to create laws
How much is the fine per day for not complying with the O.C.I.?
$5000/ day
Solicit, Negotiate, Advise, Place
Every two years
Letter of Certification
Obtaining non-resident license in another state
Letter of Clearance
Wisconsin agents moving to another state and wish to obtain that state’s insurance license
prevent an insurer from denying coverage on an individual if the company had led the individual to believe he/she was insured
What is a Warranty?

What are the two types?
Statements of facts

Affirmative & Promissory
New policies less than 60 days old- 10 days of notice of cancellation
Anniversary Cancellation- 60 days notice
How soon are payments to be made to the insured?
Within 30 days or 12% penalty is paid to the insured
To make whole
Property Insurance
Insures physical material
Casualty Insurance
“Liability Insurance”- Covers the other person and property that is damaged when you are liable
The transfer of risk from one party to another (spread or pool the risks)
Direct Loss
House fire, auto accident
Indirect Loss
Loss of rents, loss of use/sales/income (Consequential & Indirect Loss are the same terms)
Policy holder or entity (Company)
Insurable Interest
substantial economic interest
When must insurable interest be established
  • At the time of the application for insurance
  • Also at the time a claim or loss is submitted
Uncertainty of financial loss
Pure Risk

  • Chance of loss only

  • Can be covered by insurance

Speculative Risk
  • Chance of loss or gain
  • Gambling
  • Cannot be covered by insurance (You have the chance of gaining)
Transfer of risk Retention Avoidance Insurance or Sharing Loss Control or Reduction
  • Actual cause of loss
    • Natural (Acts of God)
    • Human
  • Economic
Perils waiting to happen
What are the types of hazards?
Physical: Moral Morale (careless attitude)
  • Low probability or high probability of loss
  • Low cost or high cost to the insured/owner when it happens
Adverse Selection
  • Tendency of people with significant potential to file claims wanting to obtain insurance coverage
Law of Large Numbers
Used by insurance companies to predict their potential future losses more accurately
Pooling resources through insurance, each person at risk pays a smaller guaranteed payment in exchange for more expensive conditional coverage if a problem occurs
Additional coverage extensions are granted by the insurance contract without additional premium
C.A.N. H.A.M.
  • Calculable
  • Affordable
  • Non-Catastrophic
  • Homogenous exposures (similar risks in same grouping)
  • Accidental
  • Measurable
(splitting the risk with another company)
  • An insurance company’s insurance company
  • Restores policy holder to pre-loss condition
  • No better- no worse
  • Replacement costs on content
  • Declarations page
  • Insuring agreement
  • Conditions (ground rules)
  • Exclusions
Assignment Clause
Writing a policy from one party to another
Cancellation Clause
  • Insurer Cancelled= pro-rated or no penalty
  • Insured Cancelled= short-rated or penalty added (commercial)
  • Property or building, not contents
  • Insured must insure at least 80% of replacement cost
  • Partial losses paid 100% up to what is insured

  • A person or company who takes someone else’s property to fix or repair

  • Bailee’s policy- Care, Custody, and Control

Aggregate Limit
  • Maximum they will pay for all claims during the policy period

  • Has a specific “time and place”

  • An “accident report” is generated


  • A “series of accidents” that are linked and occur over a period of time

Insurance Binder
  • Temporary written agreement, issued in the name of the insurance company, that takes the place of the policy until the policy is issued
  • Only a binder is evidence of immediate coverage
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