Personal Risk Management and Insurance Table of Contents

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Institute, Inc.

Personal Risk Management and Insurance Table of Contents

Personal Risk Management and Insurance

Hyperpolicies

o Personal Auto Policy Form (PP 00 01 01 05)

o Homeowners 3—Special Form (HO 00 03 05 11)

o Homeowners 3—Special Form (HO 00 03 10 00)

Personal Risk Management Tips

3: Survey and Checklists

o Overview of Exposure Survey Questionnaire and Checklists

How To Use the Exposure Survey Questionnaire and Checklists

Pre-Interview Questionnaire

Exposure Survey Questionnaire

Survey Explanation Recommendations

Checklists

o Your License To Reproduce and Use the Exposure Survey Questionnaire

o READ ME FIRST: Tips for Using the Files

o Exposure Survey: Pre-Interview Information

o Personal Risk Management Exposure Survey

o Explanation/Recommendations: Exposure Survey

Background Information

Real Property Exposures-Land and Buildings

Survey Questionnaire

Personal Property Exposures

Pre-interview


Business/Professional Exposures


Automobile Exposures

Pre-interview


Watercraft Exposures

Pre-interview


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Aircraft Exposures

Pre-interview


Community/Political Activities


Other Liability Exposures


Overall Program Considerations


Workers Compensation Exposures


Health Insurance


Medicare


Disability Insurance


Long-term Care


Financial/Life Insurance


Estate


o Personal Auto Checklist

o Homeowners Checklist

o Personal Umbrella Checklist

o Personal Inland Marine Checklist

o Dwelling Policy Checklist

o Watercraft Checklist

o Recreational Vehicle Checklist

o Mobilehome Checklist

4: Risk Management Techniques & Issues

o Introduction to Risk Management Techniques & Issues

Risk Identification

Risk Analysis

Designing the Risk Management Strategy

Risk Avoidance

Risk Control

Risk Financing

Selecting the Right Combination


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Implementation

Review

Major Personal Lines Loss Exposures

o Personal Auto Exposures, Hazards, and Loss Control

Collision

Alcohol Impairment

Speeding

Young Drivers

Urban Driving Hazards

Other Driving Hazards

Vehicle Body Styles and Collisions

IIHS Top Safety Picks

Automobile Safety Features

Theft

Antitheft Devices

Fire

Safety Tips

Organizations and Websites

o Residential Exposures, Hazards, and Loss Control

Fire

Careless Smoking

Cooking

Heating Devices

Electrical Fires

Arson

Clothes Dryers

Halogen Lamps

Candles

Wildfires

Security Bars

General Loss Control Techniques For Fires

Lightning

Lightning Protection Systems

Windstorm and Hail

Hurricanes

Tornadoes

Windstorm Loss Control Measures

Water Damage

Mold

Ice Dams


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Weight of Ice, Snow, and Sleet

Other Water Damage Loss Control Measures

Flood

Loss Control Measures

Earthquake

Earthquake Loss Control Measures

Theft

Burglar Alarms

Property Identification Program

Safeguarding Doors and Windows

Other Loss Control Measures

Other Property Perils

Volcano

Landslide

Smoke

Vandalism and Malicious Mischief

Identity Theft

Liability Loss Exposures

Dog Bites

Poisoning

Swimming Pool Accidents

Slips and Falls

Boating Accidents

Organizations and Websites

o Personal Catastrophe Planning

Communication

Loss Control

Developing a Comprehensive Disaster Plan

Identify Hazards in the Home

Learn First Aid and CPR Skills

Develop an Emergency Evacuation Plan

Establish a Disaster Meeting Place and Family Contact

Develop Adequate Water Storage

Prepare a Food Supply

Store Emergency Supplies

Care for Pets

Prepare for Disaster in a Vehicle

Prepare for Disaster at Work or School

Practice Modify and Maintain the Plan

Other Sources of Information


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o A Personal Risk Management Approach to Identity Theft

How Identity Thieves Obtain Valuable PII

Forms of Identity Theft and Tools for Prevention

Account Takeover and Financial Impersonation

Child Identity Theft

Medical Identity Theft

Synthetic Identity Theft

Debt Tagging

Data Breach and Hacking

Issues and Trends

Information Broker Industry

Government Public Records Increasingly Online

Electronic Medical Records and Pay-by-Phone

Loss Prevention

Protect SSNs

Protect Personal Belongings

Protect Mail

Protect Trash

Protect Passwords and PINs

Protect Credit Cards, Credit Reports, and Debit Cards

Protect PII on Websites and with E-mail

Protect Your PC and Mobile Devices

Loss Reduction

Identity Theft Insurance Options

5: ISO Personal Auto

o ISO Personal Auto Policy

o Insuring Agreement

Consideration

Definitions

"You" and "Your" Definition

"We", "Us" and "Our" Definition

Leased Vehicles Definition

Other Words and Phrases

"Bodily Injury" Definition

"Business" Definition

"Family Member" Definition

"Occupying" Definition

"Property Damage" Definition

"Trailer" Definition

"Your Covered Auto" Definition


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"Newly Acquired Auto" Definition

Coverage for Newly Acquired Autos

o Part A--Liability Coverage

Insuring Agreement

Definition of "Insured"

Supplementary Payments

Liability Exclusions: Any Insured

Intentional Injury or Damage

Property Damage to Owned or Transported Property

Care, Custody, or Control

Bodily Injury to an Employee

Public or Livery Conveyance Use

Employees of Automobile-Related Businesses

Other Business Use

No Entitlement

Nuclear Energy

Liability Exclusions: Particular Vehicles or Circumstances

Vehicles with Less Than Four Wheels or Designed for Off-Road Use

Noncovered Autos Owned by Named Insured or Available for Use

Noncovered Autos Owned by Family Members or Available for Use

Racing in a Facility Designed for this Purpose

Limit of Liability

Out of State Coverage

Financial Responsibility

Other Insurance

o Part B--Medical Payments Coverage

Insuring Agreement

Medical Payments Exclusions

Vehicles with Less Than Four Wheels

Public or Livery Conveyance

Vehicle Used as a Residence

Course of Employment

Noncovered Autos Owned by Named Insured or Available for Use

Noncovered Autos Owned by Family Members or Available for Use

No Entitlement

Business Use

Nuclear Weapon, War, Insurrection, or Rebellion

Nuclear Reaction, Radiation, or Contamination

Racing in a Facility Designed for this Purpose

Limit of Liability


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Other Insurance

o Part C--Uninsured Motorists Coverage

UM Insuring Agreement

"Insured" Definition

"Uninsured Motor Vehicle" Definition

UM Coverage Exclusions

Limit of Liability

Other Insurance

Arbitration

o Part D--Coverage for Damage to Your Auto

Insuring Agreement

"Collision" Definition

Other-Than-Collision Perils Covered

"Custom Equipment" Definition

"Nonowned Auto" Definition

Transportation Expenses

Exclusions

Public or Livery Conveyance

Wear and Tear, Freezing, Mechanical Breakdown, or Road Damage

Radioactive Contamination, Nuclear Weapon, War, or Rebellion

Electronic Equipment

Tapes, Records, Discs, or Other Media

Destruction or Confiscation by Governmental Authorities

Particular Trailer, Camper Body, or Motor Home Exposures

Lack of Entitlement for Nonowned Autos

Radar or Laser Equipment

Custom Furnishings or Equipment

Automobile-Related Businesses

Racing

Nonowned Auto Rental

Limit of Liability

Payment of Loss

No Benefit to Bailee

Other Sources of Recovery

Appraisal

o Part E--Duties after an Accident or Loss

Duties

Notification of Accident

Duties Required for any Coverage

Duties Required for Uninsured Motorists Coverage


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Duties Required for Damage to Your Auto Coverage

o Part F--General Provisions

Bankruptcy

Changes

Fraud

Legal Action Against Us

Our Right To Recover Payment

Policy Period and Territory

Cancellation

Nonrenewal

Automatic Termination

Other Termination Provisions

Transfer of Your Interest in this Policy

Two or More Auto Policies

o Personal Auto 2005 Program Overview

Form Amendments

Endorsement Amendments and Additions

o The "Special Personal Auto Policy" from ISO

Definitions

Liability Coverage

Insuring Agreement

Exclusions

Exclusions That Apply to any Insured

Exclusions That Apply to Certain Types of Vehicles Activities

Exclusions Restricting Coverage to State Minimum Limits

Exclusion of Punitive or Exemplary Damages

Limit of Liability

Medical Payments

Uninsured Motorists Coverage

Insuring Agreement

Exclusions

Limit of Liability

Physical Damage Coverage

Insuring Agreement

Exclusions

Limit of Liability

Duties after an Accident or Loss and General Provisions

Top 10 Restrictions in the SPAP


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6: ISO Personal Auto Endorsements

o Introduction to PAP Endorsements

Index of ISO Personal Auto Countrywide Endorsement Forms

o List of ISO PAP State Exception Endorsements -- Alabama - Louisiana

o List of ISO PAP State Exception Endorsements -- Maine - Wyoming

o PAP Category 02--Termination, Suspension, and Reinstatement Endorsements

o PAP Category 03--Miscellaneous Endorsements

o PAP Category 04--UM/UIM Motorists Endorsements



7: Non-ISO Personal Auto Forms

o Introduction to Non-ISO Personal Auto Policy Forms

o Allstate PAP Versus ISO PAP Key Distinctions

o Farmers PAP Versus ISO PAP Key Distinctions

o GEICO PAP Versus ISO PAP Key Distinctions

o Nationwide PAP Versus ISO PAP Key Distinctions

o Progressive PAP Versus ISO PAP Key Distinctions

o State Farm PAP Versus ISO PAP Key Distinctions

o USAA PAP Versus ISO PAP Key Distinctions

8: Personal Auto Practical Concerns

o Introduction To Personal Auto Practical Concerns

o ISO PAP Countrywide Eligibility/Rule Analyses

Rule 1: Definitions

Rule 2: Eligibility

Rule 4.C.1: Use Classifications

Business Use

Farm Use

Pleasure Use

Work Less Than 15 Miles

Work 15 or More Miles

Other Factors

Primary and Secondary Classifications

o Rental Car Contracts and Coverage Issues

Types of Car Rental Options and Companies

Selected Rental Contract Provisions in Traditional Car Rental Agreements

Parties to the Contract

Liability Insurance

Uninsured and Underinsured Motorists Insurance

No-Fault, Medical Payments, Personal Accident, and Personal Effects Coverage

Physical Damage to the Rental Vehicle


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Optional Loss Damage Waiver

Authorized Drivers

Prohibited Uses of the Rental Vehicle

Hold Harmless Agreement

Rental Charges

Global Positioning Satellite (GPS) Systems

PAP Countrywide Coverage for Traditional Car Rental Activities

Liability Coverage

Medical Payments

Uninsured and Underinsured Motorists Coverage


Credit Card Coverage for Traditional Car Rental Activities

Car Sharing: Insurance Coverage Issues

Car Sharing Rental Contract/Agreement Provisions

PAP Countrywide Coverage for Car Sharing

A Compendium of Statutes and Amendatory Endorsements under the PAP

o Car Sharing and Ride Sharing: Personal Lines Insurance Implications

TNCs

Car Sharing Companies

Ride Sharing

PAP Coverage Issues

PAP Standard Exclusions

ISO Car Sharing Exclusion Endorsement

ISO Ride Sharing Endorsements

Personal Umbrella Liability Coverage

Public or Livery Conveyance Exclusion

Ride Sharing Exclusionary Endorsement

Legislative Activity

TNC Insurance Coverage

Peer-to-Peer Car Sharing

TNC Insurance Coverage for Ride Sharing

Coverage Coordination Issues and Questions

Peer-to-Peer Car Sharing Coverage Questions

Ride Sharing Coverage Coordination Questions

Insurance Challenges and Solutions

9: Personal Auto State Laws

o Introduction to Personal Auto State Laws

o State Cancellation Provisions for Personal Auto Coverage


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o Overview of Selected State Auto Laws

Financial Responsibility and Compulsory Liability Insurance

Compulsory Liability Insurance Laws

No-Fault Laws

Summary of Selected State Auto Laws

o State Variations in Approved Personal Auto Forms and Rules

o State Changes to the "Newly Acquired Auto" Definition

o UM/UIM Coverage

Uninsured Motorists (UM) and Underinsured Motorists (UIM) Coverage

Benefits of Purchasing UM/UIM Coverage in Optional States

Determining Policy Limits

Structure of UM/UIM Coverage Endorsements

Insuring Agreement

Exclusions

Limit of Liability

Other Insurance

Two or More Auto Policies

Other Conditions

Analysis of UM/UIM Coverage by Jurisdiction

Format of State Pages

o UM/UIM State Pages

o No-Fault

History of No-Fault Auto Laws

No-Fault Auto Insurance Characteristics

Tort Threshold

How No-Fault Coverage Is Provided

Add-On

Choice

Debate over No-Fault

No-Fault Studies

Comparing Costs under No-Fault Laws to Traditional Tort Systems

Effects of No-Fault Laws on Accident Rates

Impact of No-Fault Laws on Claim Rates When Accidents Occur

Impact of No-Fault Laws on Average Claim Costs

Impact of No-Fault Laws on Fraudulent Activities

Impact of No-Fault Laws on Claims Processing Time and Consumer Satisfaction

Impact of No-Fault Laws on Litigation Activities

Other Factors

State Developments


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Conclusion and Recommendations

Recommendations for Reform

o No-Fault Laws--State Pages

10: ISO Homeowners 3--Property

o Introduction to the Homeowners 3--Special Form

o Homeowners 3--Insuring Agreement, Definitions and Deductible

Definitions

"You", "Your", "We", "Us", and "Our" Definitions

Definitions Lead-In

Aircraft, Hovercraft, Motor Vehicle, and Watercraft Liability Definition



"Employee" Definition


"Insured Location" Definition

"Motor Vehicle" Definition

"Occurrence" Definition


"Residence Employee" Definition

"Residence Premises" Definition

Deductible

Deductible Provision--2000 Version Only

o Section I--Property Coverages

Coverage A--Dwelling

Coverage B--Other Structures

Coverage C--Personal Property

Limit for Property at Other Locations/Residences

Special Limits of Liability

Property Not Covered

Coverage D--Loss of Use

Additional Coverages--Debris Removal

Additional Coverages--Reasonable Repairs

Additional Coverages--Trees, Shrubs, and Other Plants

Additional Coverages--Fire Department Service Charge

Additional Coverages--Property Removed

Additional Coverages--Credit Card, Electronic Fund Transfer Card or Access Device,

Forgery, and Counterfeit Money

Additional Coverages--Loss Assessment

Additional Coverages--Collapse

Additional Coverages--Glass or Safety Glazing Material


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Additional Coverages--Landlord's Furnishings

Additional Coverages--Ordinance or Law

Additional Coverages--Grave Markers

o Section I--Perils Insured Against

Dwelling and Other Structures Insuring Agreement

Dwelling and Other Structures Exclusions Lead-In

Property Section Exclusions

Collapse

Freezing of Plumbing, Heating, Air Conditioning, or Sprinkler Systems, and Household

Appliances

Freezing, Thawing, Pressure, or Weight of Water or Ice

Theft Involving Dwelling under Construction

Vandalism and Malicious Mischief for Vacant Dwellings

Mold, Fungus, or Wet Rot

Dwelling and Other Structures--Additional Exclusions

Exception to Exclusion 2.c.(6)

Ensuing Loss

Coverage C Perils

Fire or Lightning

Windstorm or Hail

Explosion

Riot or Civil Commotion

Aircraft

Vehicles

Smoke

Vandalism or Malicious Mischief

Theft

Falling Objects

Weight of Ice, Snow, or Sleet

Accidental Discharge or Overflow of Water or Steam

Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging

Freezing

Sudden and Accidental Damage from Electrical Current

Volcanic Eruption

o Section I--Exclusions

Section I--Exclusions Lead-In

Ordinance or Law

Earth Movement

Water Damage/Water

Power Failure


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Neglect

War

Nuclear Hazard

Intentional Loss

Governmental Action

Coverage A and B Exclusions

o Section I--Conditions

Insurable Interest and Limit of Liability

Deductible--2011 Version Only

Duties after Loss

Loss Settlement Lead-In

Property Valued at Actual Cash Value (or ACV Valuation)

Replacement Cost Valuation (or Property Valued at Replacement Cost)

Loss to a Pair or Set

Appraisal

Other Insurance and Service Agreement

Suit Against Us

Our Option

Loss Payment

Abandonment of Property

Mortgage Clause

No Benefit to Bailee

Nuclear Hazard Clause

Recovered Property

Volcanic Eruption Period

Policy Period

Concealment or Fraud

Loss Payable Clause

11: ISO Homeowners 3--Liability

o Section II--Liability Coverages

Coverage E--Personal Liability

Coverage F--Medical Payments to Others Lead-In

Coverage F--Medical Payments to Others

o Section II--Exclusions

Motor Vehicle Liability

Watercraft Liability

Aircraft Liability and Hovercraft Liability

Coverage E and F Exclusions

Expected or Intended Injury

Business


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Professional Services

Insured's Premises Not an Insured Location

War

Communicable Disease

Sexual Molestation, Corporal Punishment, or Physical or Mental Abuse

Controlled Substance

Residence Employees Exception

Coverage E Exclusions Lead-In

Loss Assessment and Contractual

Property Damage to Property Owned by an Insured

Property Damage to Property Rented To or Used by an Insured

Bodily Injury to any Person Eligible to Receive Other Benefits

Nuclear Exclusion

Bodily Injury to Named Insured or any Insured

Coverage F Exclusions Lead-In

Residence Employee

Any Person Eligible to Receive Other Benefits

Nuclear Exclusion

Other Persons

o Section II--Additional Coverages

Lead-In

Claim Expenses

First Aid Expenses

Damage to Property of Others

Loss Assessment

o Section II--Conditions

Limit of Liability

Severability of Insurance

Duties after Occurrence

Duties of an Injured Person--Coverage F

Payment of Claim--Coverage F

Suit Against Us

Bankruptcy of an Insured

Other Insurance

Policy Period


o Sections I and II--Conditions

Liberalization Clause

Waiver or Change of Policy Provisions

Cancellation


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Nonrenewal

Assignment

Subrogation

Death

o Overview of ISO 2011 HO Policy

12: Other ISO Homeowners Forms

o Introduction to Other ISO Homeowners Forms

o Comparison: HO 3 to HO 2

Coverage Distinctions


Eligibility Distinctions




Coverage Distinctions (continued)


Eligibility Distinctions




13: ISO Homeowners Endorsements

o ISO Homeowners Endorsements

Index of ISO Homeowners Endorsement Forms--2000 Program

Index of ISO Homeowners Endorsement Forms--2011 Program

o List of ISO Homeowners State Exception Endorsements -- Alabama - Montana

o List of ISO Homeowners State Exception Endorsements -- Nebraska - Wyoming

o Homeowners Category 03--Deductibles

o Homeowners Category 04--Optional Property Endorsements

o Homeowners Category 05--Optional Property Endorsements

o Homeowners Category 06--New Endorsements for 2011 Homeowners Program

o Homeowners Category 07--Home Business Endorsements

o Homeowners Category 16--Miscellaneous Property Endorsements

o Homeowners Category 17--Condominium Endorsements

o Homeowners Category 24--Optional Liability Endorsements

o Homeowners Endorsements for Mobile Homes

14: Non-ISO HO Forms

o Introduction to Non-ISO Homeowners Forms

o AAIS's Homeowners Policy HO 00 03 versus ISO's HO 3 Key Distinctions

o Allstate Property and Casualty Insurance Company's Homeowners Policy APC 416 versus ISO's HO

3 Key Distinctions


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o Farmers' Homeowners Policy versus ISO's HO 3 Key Distinctions

o Nationwide's Homeowners Policy versus ISO's HO 3

o State Farm's Homeowners Policy versus ISO's HO 3

o "High End" Homeowners Policies--Insurance Targeted at the Affluent

Fireman's Fund--Added Measure Endorsement

Chubb--Masterpiece Personal Insurance

AIG--Private Client Group Homeowners

Summary

o Fireman's Fund Prestige Premier versus ISO HO 5 Distinctions

o Chubb's "Masterpiece" Policy versus ISO's HO 5 Distinctions

o Comparison of AIG "Private Client Group" Policy with ISO HO 5

o Farmers Homeowners Policy versus ISO'S HO 5 Distinctions

o AAIS Homeowners Program HO 00 03

Insuring Agreement

Definitions

"You" and "Your"

"Actual Cash Value"

"Aircraft," "Hovercraft," and "Watercraft"

"Bodily Injury"

"Business"

"Described Location"

"Fungi"

"Motorized Vehicles"

"Vermin"

Property Coverages--Principal Property Coverages

Residence

Related Private Structures

Personal Property

Additional Living Costs and Loss of Rents

Property Coverages--Incidental Property Coverages

Perils Insured Against--Coverages A, B, C, and D

Applicable Exclusions--Coverages A and B

Applicable Exclusions--All Section I Coverages

Liability Coverages--Principal Liability Coverages

Liability Coverages--Incidental Liability Coverages

Liability Exclusions

Exclusions That Apply to Liability and Medical Payments

Exclusions That Apply Only to Personal Liability

Exclusions That Apply Only to Medical Payments


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What Must Be Done in the Event of a Property Loss

What Must Be Done in the Event of a Liability Loss

What the Insurer Pays in the Event of a Property Loss

What the Insurer Pays for a Liability/Medical Payments Loss

Insurance under More Than One Policy

Property Loss Payment

Conditions That Apply to the Entire Policy

Conditions That Apply to Property Coverage

Conditions That Apply to Liability Coverage

Summary

15: Miscellaneous Coverages

o Introduction to Miscellaneous Coverages

o Dwelling Policy Eligibility and Analysis

ISO Dwelling Program

Reasons for Purchasing

Structure

AAIS Dwelling Program

ISO Dwelling Program Eligibility

Coverage A Eligibility

Coverage B Eligibility

Coverage C Eligibility

Coverage D Eligibility

Minimum Limits of Liability

AAIS Dwelling Program Eligibility

Dwelling Property 3 Form Analysis

Coverage A--Dwelling

Coverage B--Other Structures

Coverage C--Personal Property

Coverage D--Fair Rental Value

Coverage E--Additional Living Expense

Other Coverages

Insured Perils

General Exclusions

Conditions

Comparison Overview of HO 3 Section I to DP 3

Comparison of ISO DP 3 to Other All-Risk Dwelling Property Forms

Format

Coverages

Insured Perils


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Exclusions Pertaining to All Property Coverages

Conditions

o Dwelling Property Policy Types

ISO Dwelling Property Types

DP 1 Perils/Loss Settlement



Chart Comparisons

AAIS Dwelling Property Types

Available Forms and Basic Differences

o Dwelling Supplemental Coverages and Endorsements

Optional Residential Theft Coverage

Broad Theft Coverage

Limited Theft Coverage

Personal Liability Supplement

Liability Coverages

Exclusions

Additional Coverages

Conditions

ISO Countrywide Dwelling Endorsements

ISO Dwelling Property State Amendatory Endorsements

o Personal Inland Marine Insurance

Purpose and Terminology

Inland Marine Coverage Forms

Evolution

Life, Fire, Casualty, and Marine Insurance Companies

The Nationwide Marine Definition

Personal Effects Floater Policies

The Personal Property Floater

Government Service Floaters

Fur, Jewelry, Fine Arts, Coin, and Musical Instrument Floaters

Wedding Presents Floaters

Mobile Articles, Machinery and Equipment Floaters

Installment Sales and Leased Property Policies

Live Animal Floaters

Filed versus Nonfiled Inland Marine Classes

Personal Inland Marine Classes Filed by AAIS and ISO

Nonfiled Classes of Personal Inland Marine Insurance


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Distinctive Features of Personal Inland Marine Insurance Coverage

Tailored Coverage

Appropriate Limits and Established Values

Coverage for Most Perils

Worldwide Coverage

Normally No Deductible

Limitations of Homeowners Coverage

Property Not Covered

Limits

Blanket (Unscheduled) Personal Property Coverage

Valuation

Perils Covered and Excluded

Sublimits Applicable to All Perils

Sublimits Applicable to Theft Only

Deductibles

Common Provisions in Personal Inland Marine Policies

Agreement and Definitions

Exclusions

Valuation Provisions (Loss Conditions) in ISO Floaters

Valuation Provision in AAIS Floaters

Loss Conditions

Other Conditions

Personal Articles Floaters versus Single-Class Forms

Personal Articles Floaters

Single-Class Forms

Jewelry

Jewelry Exposures

Jewelry Items

Precious Metals

Gemstones

Homeowners Coverage on Jewelry

Jewelry Coverage

Underwriting Jewelry Coverage

Selling Jewelry Coverage

Furs

Fur Exposures

Homeowners Coverage on Furs

Fur Coverage

Underwriting Fur Coverage

Selling Fur Coverage


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Cameras

Camera Exposures

Homeowners Coverage on Cameras

Camera Coverage

Underwriting Camera Coverage

Selling Camera Coverage

Musical Instruments

Classes of Musical Instruments

Musical Instrument Exposures

Homeowners Coverage on Musical Instruments

Musical Instruments Coverage

Underwriting Musical Instrument Coverage

Selling Musical Instrument Coverage

Silverware

Silverware Exposures

Homeowners Coverage on Silverware

Silverware Coverage

Underwriting Silverware Coverage

Selling Silverware Coverage

Golfer's Equipment

Golfer's Equipment

Golfer's Equipment Exposures

Golfer's Equipment Coverage

Underwriting Golfer's Equipment Coverage

Selling Golfer's Equipment Coverage

Fine Arts

Fine Arts Exposures

Homeowners Coverage on Fine Arts

Fine Arts Coverage

Underwriting Fine Arts Coverage

Selling Fine Arts Coverage

Stamp and Coin Collections

Stamp and Coin Collections Exposures

Homeowners Coverage on Stamp and Coin Collections

Stamp and Coin Collections Coverage

Underwriting Stamp and Coin Collections Coverage

Selling Stamp and Coin Collections Coverage

Bicycles

Bicycle Exposures

Homeowners Coverage on Bicycles


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Bicycle Coverage

Underwriting Bicycle Coverage

Selling Bicycle Coverage

Personal Effects Floaters

Covered Property

Excluded Perils

Valuation

Coverage Options

Underwriting Personal Effects Coverage

Selling Personal Effects Coverage

Personal Property Floaters

Personal Property Coverage

Underwriting Personal Property Coverage

Selling Personal Property Coverage

Motorized Vehicles

Motorized Vehicle Exposures

Motorized Vehicle Coverage

Excluded Perils

Valuation

Reinstatement of Coverage

Limited Property Damage Liability Coverage

Coverage Options

Other Policy Provisions

Underwriting Motorized Vehicle Coverage

Selling Motorized Vehicle Coverage

Nonfiled Personal Inland Marine Coverages

o Watercraft Exposures and Underwriting

Watercraft Statistics

Watercraft Exposures

Watercraft Underwriting and Pricing

Application

Driving Records

Credit Report

Loss Report

Marine Survey

Other Considerations

o Watercraft Insurance

Watercraft Coverage under the PAP

Watercraft Coverage under the Homeowners Policy

Property Coverage


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Liability Coverage

Watercraft Coverage under the Personal Umbrella Policy

Boatowners Policy

Property Coverage

Property Exclusions

Property Loss Settlement

Liability Coverage

Liability Exclusions

Uninsured Watercraft Coverage

Marine Representations/Warranties

Outboard Motor and Boat Policy

Yacht Policy

Property Variations

Liability Variations

Key Features of Watercraft Policies

o Watercraft Types and Terminology

Watercraft Types

Exhibit 15.I.2 - Kayak, Raft, Jet Ski

Exhibit 15.I.2 - Pontoon, Fishing Boat, Runabout

Exhibit 15.I.2 - Cabin Cruiser, Sportfishing, Speedboat

Exhibit 15.I.2 - Dingy, Catboat, Sloop, Cutter

Exhibit 15.I.2 - Cutter, Catamaran

Exhibit 15.I.2 - Schooner, Ketch

Exhibit 15.I.2 - Auxiliary, Motor Sailer

Exhibit 15.I.2 - Yacht, Super Yacht

Nautical Terms

o Appendix A -- Glossary of Nautical Terms

o Recreational Vehicle Insurance

Recreational Vehicle Types

Motor Homes

Towable Units

RV Loss Exposures

Recreational Vehicle Underwriting and Pricing

Coverages

RV Information

Operator Information

RV Usage

Loss History

Pricing


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Motor Home Insurance Policy Analysis

Automobile Liability

Personal Injury Protection/Medical Payments

Uninsured/Underinsured Motorists Coverage


Pet Injury Coverage

Full-Timers Package

Full-Timers Personal Liability

Full-Timers Medical Payments Coverage

Full-Timers Loss Assessment Coverage

Full-Timers Secured Storage Contents Coverage

Vacation Liability

Loss Settlement Provisions/Options

Personal Effects Coverage

Roadside Assistance

Attached Accessories

Miscellaneous Features

Travel Trailer Insurance Policy Distinctions

Definitions

Collision

Key Features of RV Insurance Policies

o Mobile Home Insurance

Terminology and Definitions

Real or Personal Property?

Organization

Mobile Home Statistics

Mobile Home Loss Exposures

Mobile Home Insurance Policy Analysis

Mobile Home Endorsements

AAIS Endorsements

Foremost Endorsements

American Modern Endorsements

o Motorcycle Insurance

Motorcycle-Vehicle Types

Street Motorcycles

Off-Road Motorcycles

Dual Purpose (Dual Sport)

Miscellaneous Vehicles Often Eligible for Motorcycle/Off-Road Vehicle

Insurance


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Motorcycle Loss Exposures and Underwriting

Coverage

Motorcycle/Vehicle Information

Operator/Named Insured Information

Motorcycle Usage

Loss History

Pricing

Discounts/Surcharges

Motorcycle Insurance Policy

Definitions Specific to Motorcycle Insurance Policies

Liability Coverages

Medical Payments

Uninsured/Underinsured Motorists (UM/UIM) Coverage


Specialty Motorcycle Programs

Key Features of Motorcycle Policies

o Personal Umbrella/Excess Liability Overview

Umbrella Liability Insurance

Functions of a Personal Umbrella Policy

Loss Scenarios

Structure of a Personal Umbrella Policy

Agreement

Definitions

Coverages

Exclusions

Conditions

"Umbrella" versus "Excess" Insurance

Umbrella Insurance Pricing

Umbrella Insurance Underwriting

Umbrella Insurance Liability Limits

o The Personal Umbrella Policy

Background Information

Agreement

Definitions

"You" and "Your" Definition

"We," "Us," and "Our" Definition

Other Words and Phrases

"Aircraft" Definition

"Auto" Definition



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"Family Member" Definition

"Fuel System" Definition


"Motor Vehicle" Definition

"Occurrence" Definition

"Personal Injury" Definition

"Pollution" Definition


"Retained Limit" Definition

"Underlying Insurance" Definition

Other Definitions

Coverages

Insuring Agreement

Defense Coverage

Supplementary Payments

Optional Coverages

Exclusions

Aircraft

Business/Business Property

Care, Custody, or Control

Communicable Disease

Contractual Liability

Directors and Officers

Discrimination

Intentional Acts/Injury

Intra-Family Exclusion

Motor Vehicles, Watercraft, and Recreational Vehicles

Nuclear Energy

Owned Property

Pollution

Professional Services

Punitive Damages

Racing

Uninsured/Underinsured Motorists

War

Workers Compensation

Miscellaneous Exclusions


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Conditions

Appeals

Assignment

Bankruptcy of an Insured and/or Insurer

Cancellation

Changes


Duties After Loss

Liberalization Clause

Limit of Liability

Maintenance of Underlying Insurance

Other Insurance

Policy Period/Policy Territory

Severability of Interests

Subrogation

Suit Against Insurer

Key Features

o Personal Umbrella Endorsements

o National Flood Insurance Program

Overview of the National Flood Insurance Program

Flood Definitions

Flood Statistics

Loss Control Measures

Flood Risk

Need for Flood Insurance

How Flood Insurance Differs from Other Property Insurance

Why Flood Insurance Is Better than Disaster Assistance

NFIP Background

Arranging NFIP Flood Insurance Coverage

Building Property Eligibility

Contents Eligibility

Coastal Barrier Resources System and Other Protected Areas

Flood Maps and Rating

Base Flood Elevation

Zone Determination

Types of Buildings

Premium Calculation

Special Rating Situations

General Rules

Eligibility Rules for Standard NFIP Forms


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Eligibility Rules for Preferred Risk Policy

General Application Procedures

Waiting Period/Effective Date of Policy

Statutory Coverage Limits

Deductibles

Cancellation

Miscellaneous Rules

Covered Property and Additional Coverages

Covered Building Property (Coverage A)

Covered Personal Property (Coverage B)

Excluded Property

Other Coverages (Coverage C)

Increased Cost of Compliance (Coverage D)

Covered Peril and Other Provisions

Definition of Flood

Exclusions

Key Conditions and Provisions

Miscellaneous Issues

Claims Handling Process

Flood Insurance Reform Act of 2004

Agent Resources

o Farm Insurance and Risk Management

Farm Statistics and Demographics

General Description of Farming

U.S. Farm Statistics

U.S. Farm Demographics

Farm Risk Management

Types of Farm Risks

Traditional Risk Management Techniques for Farmers

Financial Risk Management Techniques for Farmers

ISO'S Farm Property Insurance Products

Key Rules

Farm Property Coverages

Farm Inland Marine Coverage Forms

Other ISO Farm Property Endorsements

ISO Farm Liability Insurance Products

Farm Liability Coverage Form (FL 00 20)

Farm Umbrella Liability Policy (FB 00 01)


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Other ISO Farm Liability Options

Basic Farm Premises Liability (FL 04 11) Endorsement Attached to the

Commercial General Liability Form (CG 00 01)

Commercial Liability Umbrella Coverage Form (CU 00 01) and the Farm

Premises and Personal Umbrella Liability (FB 04 01) Endorsement

Farm Excess Liability Policy (FE 00 01)

AAIS Farmowners Program

Overview of Program

Key Rules

Dwelling Coverage--Special Form (FO-3)

Farm Coverage (FO-6)

Personal Liability Coverage--Farm (GL-2)

AAIS Additional Farm Insurance Products

Farm Umbrella Program

Farm Inland Marine Program

Farm Properties Program

Agricultural Output Program (AgOp)

Agricultural General Liability Program (AgGL)

Crop Insurance

Private Crop-Hail Insurance

Federal Crop Insurance

Differences between Private Crop-Hail and Federal Crop Insurance

o Wedding Insurance

WedSafe Policy

WedSafe Coverages

WedSafe Liability and Property Damage Insurance Policy

Weddingsurance Policy

Weddingsurance Coverages

Who Should Purchase this Insurance?

o Travel Insurance

Why Buy Travel Insurance?

Trip Cancellation and Interruption

Trip Delay

Loss or Delay of Baggage

Medical Expense Benefit

Emergency Medical Transportation

Flight Accident Benefit

Renters Collision Insurance

Conditions

Other Benefits


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Other Travel Insurance Policies

Access America

CSA Travel Protection Freestyle

Common Exclusions

Conclusion

16: Homeowners Practical Concerns

o Introduction to Homeowners Practical Concerns

o ISO Homeowners Countrywide Rules Analyses

Rule 101: Limits of Liability and Coverage Relationships

Dwelling Limit

Other Structures Limit

Personal Property Limit

Loss of Use Limit

Personal Liability and Medical Payments Limits

Rule 102: Description of Coverages

Rule 103: Mandatory Coverages

Rule 104: Eligibility

Rule 104.A: HO 2, HO 3, HO 5, and HO 8 Forms

Rule 104.B: HO 4 Form

Rule 104.C: HO 6 Form

Rule 104.D: Seasonal Dwelling

Rule 104.E: Mobile Home, Trailer Home, or House Trailer

Rule 104.F: Permitted Business Occupancies

Rule 104.G: Farm Property

Rule 104.H: Residence Held in Trust (All Forms except HO 4)

Rule 105: Secondary Residence Premises

Rule 106: Protection Classification Information

Rule 107: Construction Definitions

Rule 107.A: Frame

Rule 107.B: Masonry Veneer

Rule 107.C: Masonry

Rule 107.D: Superior Construction

Rule 107.E: Mixed (Masonry/Frame)

Rule 404: Protective Devices

Rule 509: Home Day Care Coverage

Rule 510: Permitted Incidental Occupancies Residence Premises

Rule 528: Home Business Insurance Coverage

Rule 528.A: Eligibility

Rule 528.B: Classifications

Rule 614: Farmers Personal Liability


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Rule 615: Incidental Farmers Personal Liability

o State Variations in Approved Homeowners Forms

o State Cancellation Provisions for Homeowners Coverage

o State Workers Compensation Laws and Domestic Workers

o Valuing a Home Correctly: How To Avoid Underinsurance

Causes of Inaccurate Home Valuation

Who Is the Best Party To Value a Home?

The Current Replacement Cost "System"

Construction Cost Indices

Why Change?

The California Epicenter

What If I'm Not in California?

Control of the Transaction

Duties of an Insurer

Accurate Replacement Cost Valuation Database

Integrity of Application

Cooperative Communication

Continuously Update the Individual Homeowners Valuation

Completely and Intelligibly Explain the Policy Valuation Provisions

The Future

o Homeowners Contents Form Issues

Myth #1: Coverage Is Expensive

Myth #2: Exposure Is Already Covered

Myth #3: Coverage Is Unnecessary

Myth #4: Coverage Is Narrow in Scope

The Benefit for Insurance Agents

o Insuring the Home-Based Business

Home-Based Business Statistics

Coverage Limitations under Homeowners Policies

Business Property Restrictions

Business Liability Restrictions


Court Decisions and Interpretation of "Business"

Business Property Limitation Exclusion

Business Liability Exclusion

ISO Business-Related Homeowners Endorsements

AAIS Home-Based Business Endorsement

Businessowners Policy


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Other Insurance Lines

Automobile

Excess Liability

Professional Liability

Workers Compensation

Conclusion

o Homeownership Transferred To a Trust and Other Entities

Coverage Issues

Coverage for a Trust under a Homeowners Policy

Underwriting Considerations

o Inadequate Condominium Coverage

"Bare Walls" versus "Single Entity" Approach to Real Property Coverage

The Increasing Association Master Policy Deductible

Tips To Improve Insurance Protection and Avoid Coverage Gaps

o Sewer Backup Losses

o Domestic Worker Loss Exposures

o Contractor Injuries at Insured's Residence

o Proper Coordination of Overall Insurance Program

o Standard of Care Owed to Others

Invitee

Licensee

Trespasser

Doctrine of Attractive Nuisance

State Amendments to Traditional Common Law Classifications

o Proximate Cause Analysis

Analytical Frameworks

"But for" Test

Proximate Cause Rules

Chain of Events Default Rule

Sequential Events Default Rule

Concurrent Events Default Rule

Modification of Common Law Rules

ACC Language

Ensuing Loss Clauses

17: Claims

o Introduction to Claims

o Legal Environment of Claims Adjusting

Types of Adjusters

Staff and Independent Adjusters

Public Adjusters


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Insured's Duties after a Loss

Notice of Loss

Proof of Loss

Cooperation

Examinations under Oath (EUOs)

Honest Representation of Pertinent Facts

Insurer's Duties after a Loss

Duty To Indemnify

Duty To Defend

Insurer's Options for Responding to a Claim

Accept the Claim without Qualification

Deny the Claim Outright

Investigate under a Reservation of Rights

File a Declaratory Judgment Action

Resolving a Claim

Negotiation

Mediation

Arbitration

Trial

Appraisal

Subrogation

Other Legal Issues

Confidentiality of Claim File

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

Bad Faith

o Key Coverage Issues in Personal Lines Claims

The Rules of Insurance Contract Interpretation

The Duty To Defend

Duty To Defend Determined by Potential for Coverage

Duty To Defend Determined by the Allegations in the Complaint

Duty To Defend Determined by Facts Outside the Complaint

Duty To Defend Applies to All Allegations--Covered and Noncovered

Insured May Have the Right To Select Defense Counsel

Insurer Must Reserve Its Rights While It Provides for Defense

Insurer May Seek Recovery for Defense Costs

Summary

When Are Emotional Distress Claims Bodily Injury

When Are Emotional Distress Claims Recoverable?

Intentional Infliction of Emotional Distress Claims

Investigating Emotional Distress Claims


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The Cooperation Clause: When Is There Cooperation

The Insured's Breach of the Cooperation Clause

The Insurer May Have To Show Substantial Prejudice

Cooperation Clause Does Not Waive Attorney Client Privilege

Applying the Cooperation Clause: Some Dos and Don'ts

Negligent Entrustment: Liability and Coverage

Liability for Negligent Entrustment

Coverage for Negligent Entrustment Claims

Investigation of Negligent Entrustment Claims

Evaluating Bodily Injury Claims under Personal Lines Policies

Serious Bodily Injury Claims

The Elements of Damage

Investigating the Serious Bodily Injury Claim

The Model Unfair Claims Settlement Practices Act

o Key Coverage Issues in Personal Auto Claims

Auto Coverage for Using or Occupying a Vehicle

When Is the Driver a Permissive User?

Express Permission

Implied Permission

Secondhand Permission

Deviation from the Permission

Summary

o Key Coverage Issues in Homeowners Claims

The Wear and Tear Exclusion

Only Applies to Normal and Ordinary Wear and Tear and Not to Unexpected

Wear and Tear

The Wear and Tear Must Cause the Damage

Implications for Claims Handling

When Is a Collapse a Collapse?

Earlier Forms of Collapse Coverage

Collapse Coverage Today

Covered Causes for Collapse Coverage

Conclusion

The Business Pursuits Exclusion

The Scope of the Business Pursuits Exclusion

The "Arising Out of" Requirement

The Rental Exception

The Investigation of Business Pursuits

Conclusion


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The Water Exclusion

The Anti-Concurrent Cause Provision

The Flood Exclusion

The Sump Pump and Sewer Backup Exclusion

Water Beneath the Surface of the Ground

Recommended Investigation

Conclusion

The Homeowners Policy Ensuing Loss Provision

The Courts and the Ensuing Loss Provision

When Must The Ensuring Loss Come

The Ensuing Loss Provision and Water Damage Claims

A Proposed Formula for Applying the Ensuing Loss Provision

Guidelines for Handling Claims under the Ensuing Loss Provision

Concurrent Causation in First-Party Property Claims

The Development of Concurrent Causation

Application of Concurrent Causation to First-Party Property Losses

Guidelines for the Application of Concurrent Causation

Applying the Exclusion for "Neglect"

Neglect Preceding a Loss

What Is Considered an Imminent Peril?

How Much Effort Is Sufficient?

The Effect of Joint versus Several Coverage on the Neglect Exclusion

Recommendations for Applying the Neglect Exclusion

Appraisal Process: Scope of Loss and Causation Included?

Scope of Loss

Causation

Recommendations for the Appraisal Process


Documents

Personal Risk Management and Insurance Table of Contents