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Understanding Homeowners&Automobile Insurance15 Hour California InsuranceContinuing Education CoursePublished By:Training Solutions. Online, Anytime, Anywhere. www.infinityschools.comi
Did you know Infinity Schools offersOnline Pre-License Training?Our online pre-license training system includes:1.2.3.4.Online study lessonsInstructor led video trainingOnline practice examsPractice final exam simulatorInfinity Schools prepares thousands of individuals each year to prepare for and successfully passthe California State Insurance examination.If you or any of your staff would like to prepare to pass the state exam please visit our websiteor contact us directly.Publishers Note:Care has been taken to ensure that the information in this course material is as accurate as possible. Please beadvised that applicable laws and procedures are subject to change and interpretation. Neither the authors northe publisher accept any responsibility for any loss, injury, or inconvenience sustained by anyone using this guide.It is further understood that the course, the author nor the publisher is engaged in rendering legal, accounting,or other professional service. If legal advice or other expert assistance is required, the services of a competentprofessional person should be sought.Copyright 2011Infinity Schools Insurance Training CenterAll rights reserved.Printed in the United States of America. No part of this publication may be used for reproduced in any form or by any means, transmitted inany form or by any means, electronic or mechanical, for any purpose, without the express written permission of Infinity Schools.Training Solutions. Online, Anytime, Anywhere. 1310 Esplanade #317-SRedondo Beach, CA omPhone: 800-600-2550Fax: 424-247-9050ii
TABLE OF CONTENTSCHAPTER I: RANKINGS FROM A TO S1INSURANCE RATINGS . 1CHAPTER II: P & C BASICS2BASICS OF INSURANCE . 2TRANSFERING THE RISK . 2THE INSURANCE CONTRACT. 3TYPES OF INSURANCE COMPANIES . 5TYPES OF PROPERTY AND CASUALTY COVERAGES . 5REGULATING THE PROPERTY/CASUALTY FIELD . 6REGULATING THE INDUSTRY . 6REGULATING THE COMPANIES . 6REGULATING THE AGENT . 6RATIFICATION OF FORMS. 6RAFTIICATION OF RATES . 7ENFORCEMENT OF INSURANCE REGULATIONS . 7THE APPLICATION FOR INSURANCE. 7THE APPLICATION FORM . 7THE BINDER . 7EVALUATING AND INVESTIGATING THE APPLICATION . 8RATING THE POLICY. 8PROOF OF INSURANCE . 8CANCELATION OF THE POLICY. 8VOIDING THE POLICY . 8CHAPTER III: PROPERTY INSURANCE11THE HISTORY OF PROPERTY INSURANCE . 11CHAPTER IV: LIABILITY INSURANCE12NEGLIGENCE . 12THE LANGUAGE OF LIABILITY INSURANCE . 13CHAPTER V: HOME INSURANCE BASICS14HOME INSURANCE OVERVIEW . 14ANALYZING THE HOME. 15FACTORS ADDING TO PREMIUM SAVINGS. 15POLICY‟S DOLLAR LIMITS . 15REPLACEMENT COST FOR PERSONAL PROPERTY . 15BE SURE INVENTORY IS TAKEN . 16OTHER PROTECTIONS PROVIDED . 16SUPPLEMENTAL COVERAGE . 16ENDORSEMENTS . 16PERSONAL UMBRELLA LIABILITY INSURANCE . 16DEDUCTIBLES AND PREMIUM RELATIONSHIPS . 16THE PRICE OF BAD CREDIT. 16THE BASICS OF RENTERS INSURANCE . 16STANDARD POLICIES COVERAGE . 16THE BASICS OF CONDO AND CO-OP INSURANCE . 17INSURING THE BUILDING . 18INSURING THE CONDO AND BELONGINGS . 18OPTIONS TO DISCUSS . 18WATER DAMAGE IN THE HOME . 19COMMON QUESTIONS ABOUT HOMEOWNER INSURANCE . 20TAKING A HOME INVENTORY AND WHY . 21SUMMARIZING HOME INSURANCE . 21HERE‟S WHAT A STANDARD HOMEOWNER‟S POLICY COVERS: . 22TEXAS HOMEOWNER INSURANCE DIFFERENCES . 22PART VI: HOMEOWNER’S INS. POLICY25iii
SECTION I: COVERAGE & LIMITS OF LIABILITY . 25PROPERTY COVERAGE-SECTION I . 25LIABILITY COVERAGE-SECTION II . 25POLICY FORMS & ENDORSEMENTS AND CHARGES . 25SECTION 2: TYPES OF HOMEOWNER‟S POLICY FORMS AND THEIR COVERAGES . 26HO-1 AND HO-2 POLICY. 26HO-4 . 28HO-5 POLICY . 28HO-6 POLICIES . 29HO-8 POLICY. 29MOBILE HOMES . 29SECTION 3: PROPERTY COVERAGE-SECTION I . 30THE DWELLING . 30DETACHED STRUCTURES LOCATED ON THE PROPERTY. 30PERSONAL PROPERTY . 30LIMITS OF LIABILITY FOR PERSONAL PROPERTY . 31EXCLUSIONS FOR PERSONAL PROPERTY . 31LOSS OF THE USE OF YOUR STRUCTURE . 32ADDITIONAL LIVING EXPENSE . 32FAIR RETAIL VALUE . 32ADDITIONAL COVERAGES . 32SECTION 4: LIABILITY COVERAGE-SECTION II . 33PERSONAL LIABILITY EXCLUSIONS . 34SECTION 5: THE CLAIM . 35LOSSES MUST BE ACCIDENTAL . 35LOSSES CAUSED BY EXTRANEOUS FACTOR . 35LOSSES CAUSED BY DELIBERATE ACTION ON THE PART OF THE POLICY OWNER . 35LOSSES MUST INVOLVE COVERED, LEGAL PROPERTY . 35SECTION 6: REPLACEMENT COSTS COVERAGE . 36SECTION 7: CLAIMS ON DWELLING. 37DETERMINING COVERAGES . 37DETERMINING THE SCOPE OF REPAIRS . 37DETERMINING THE COST TO REPAIR . 37DETERMINING THE AMOUNT OF CLAIM . 37SECTION 8: CLAIMS ON PERSONAL PROPERTY. 38SECTION 9: THINGS YOU NEED TO KNOW . 39SUBROGATION . 39STATEMENTS . 39SALVAGE . 39NON-WAIVER AGREEMENT . 40CANCELLATION. 40POLICY TERMONOLOGY . 40CHAPTER VII: TYPES OF LIABILITY INS.41A BRIEF REVIEW . 41PROPERTY INSURANCE . 41LIABILITY INSURANCE . 41UMBRELLA POLICY . 41WORKERS' COMPENSATION INSURANCE . 42COMMERCIAL AUTO INSURANCE . 42ERRORS & OMISSIONS INSURANCE . 42BUSINESS OWNERS' POLICY . 42BUSINESS INCOME INSURANCE . 43EMPLOYMENT PRACTICE INSURANCE. 43INLAND MARINE INSURANCE . 43PERSONAL PROPERTY . 43CHAPTER VIII: AUTO INSURANCE BASICS45LIABILITY INSURANCE . 45COLLISION AND COMPREHENSIVE COVERAGES . 45MEDICAL PAYMENTS . 46PIP, AND NO-FAULT COVERAGES . 46UNINSURED/UNDERINSURED MOTORISTS COVERAGES . 46MINIMUM LEVELS OF REQUIRED AUTO INSURANCE . 46iv
NO-FAULT INSURANCE? . 46WAYS TO SAVE ON AUTO INSURANCE PREMIUMS . 47LEASED CARS & INSURANCE . 48GRADUATED DRIVERS LICENSING PROGRAMS . 48TEENS AND DRINKING . 48WHEN A CAR IS TOTALED . 48NOT SATISFIED WITH THE BUYOUT . 49CHAPTER IX: AUTO INSURANCE IN DEPTH51SECTION I: THE NEED FOR AUTO INSURANCE . 51MOTOR VEHICLES AND CHILD SAFETY . 51SAFETY PRECAUTIONS . 52CHILD RESTRAINT RECOMMENDATIONS. 52SUMMARIZING CHILD SAFETY . 52SECTION 2: THE AUTO INSURANCE POLICY . 53LIABILITY COVERAGE . 54BODILY INJURY . 54SINGLE LIMIT . 54SPLIT LIMIT. 54PROPERTY DAMAGE . 55UNINSURED MOTORIST . 55MEDICAL PAYMENTS . 55COMPREHENSIVE AND COLLISION COVERAGE . 56COLLISION . 57EMERGENCY ROAD SERVICE . 57EMERCENCY ROAD TOWING. 57EMERGENCY ROAD SERVICE ORGANIZATIONS . 58EXTRICATING OR WINCHING SERVICE . 58FUEL DELIVERY . 58LOCKOUT AND LOCKSMITH SERVICE . 58EXCESSIVE USE OF SERVICES . 58REIMBURSEMENT FOR INDEPENDENT SERVICE. 58CAR RENTAL/TRAVEL EXPENSE . 58SECTION 3: AUT POLICY ENDORSEMENTS . 60SECTION 4: EXCLUSIONS . 60SECTION 5: THE COST OF AUTO INSURANCE . 60TERRITORIAL RATING . 61PERSONAL STATISTICS . 61AGE . 61GENDER . 61MARITAL STATUS. 61USE OF CARS . 61THE TYPE OF MOTOR VEHICLE . 61THE DRIVING RECORD . 62THE AMOUNT OF INSURANCE DESIRED . 62SECTION 6: DISCOUNTS AVAILABLE. 62MULTI-CAR . 62MULTI-POLICY . 62DRIVER EDUCATION . 62ANTI-THEFT . 62PASSENGER RESTRAINTS . 62GOOD DRIVER . 62GOOD STUDENT . 62STANDARD RISK . 62ANTI-LOCK BRAKES . 62AIR BAGS . 63SECTION 7: ACCIDENTS . 63NOTIFICATION . 63HOW IT OCCURRED . 63WHO WAS INVOLVED . 63WITNESSES . 63THE POLICE . 63COOPERATION WITH INVESTIGATION . 63SUBMITTING TO EXAMINATIONS . 63v
ACCESS TO RELEVANT PERSONAL RECORDS. 63SECTION 8: CANCELLATION . 63CANCELING AN EXISTING POLICY WHILE IT IS IN EFFECT . 64REFUSING TO RENEW A POLICY AT ITS EXPIRATION . 64SECTION 9: NON-STANDARD MARKET . 64SECTION 10: TEEN DRIVERS . 64SECTION 11: SENIOR DRIVERS AND SAFETY . 65EXPERTS URGE TRANSPORTATION ALTERNATIVES . 65DIMINISHED CAPACITIES AT ISSUE . 66A FAMILY‟S RESPONSIBILITY . 66CHAPTER X: UNDERWRITING REVIEW69TRADITIONAL UNDERWRITING PRACTICES . 69LOSS HISTORY . 70ACCIDENT RECORD . 70ACCIDENT RATES BY NUMBER OF ACCIDENTS IN A PRIOR PERIOD . 70FAULT . 70TRAFFIC VIOLATIONS . 71TYPES OF TRAFFIC VIOLATIONS . 71NONVERIFIABLE RECORD . 72PROPERTY LOSSES . 72LIABILITY LOSSES . 73LINES OF INSURANCE . 73COMMERCIAL LINES . 73BOATS . 73DWELLINGS . 73CONDITION OF PROPERTY . 73CONDITION OF AUTOMOBILE . 73CONDITION OF BUILDINGS . 74AGE OF BUILDINGS . 74VALUE OF BUILDINGS . 74OCCUPANCY OF BUILDINGS . 75EFFECT OF THE NEIGHBORHOOD . 75YOUTHFUL DRIVERS . 76ELDERLY DRIVERS . 76AGE RESTRICTIONS . 76GENDER . 77MARITAL STATUS. 77MINGLES. 77SINGLE, SEPARATED, WIDOWED AND DIVORCED . 78OCCUPATION . 78TRAVEL . 78TRANSIENTS . 79OTHER TYPES . 79STABILITY . 79SOCIAL MALADJUSTMENT. 80ATTITUDE . 80CRIMINAL RECORD . 80MENTAL INCOMPETENCY . 81PHYSICAL IMPAIRMENTS . 81LOSS OF LIMB . 81HEARING IMPAIRMENTS . 82ALCOHOL AND DRUGS. 82ALCOHOL . 82DRUGS . 83FOREIGN BORN . 83RELATED BUSINESS . 83PRIOR INSURANCE . 84PRIOR CANCELLATION. 85CHAPTER 11: WORKPLACE ETHICS85ETHICAL PRINCIPLES TO MOLD OUR LIVES . 87COMPETENTLY ADVISE AND SERVE THE CLIENT . 88AGENT TO CLIENT CONFIDENTIAL RELATIONSHIP. 89vi
CONTINUING EDUCATION REQUIREMENT . 89ENHENCEMENT OF PUBLIC REGARD FOR PROFESSIONAL DESIGNATIONS . 89EXPAND YOUR ETHICAL KNOWLEDGE . 91END OF COURSEWC63130 . 94vii
CHAPTER I: RANKINGS FROM A TO SINSURANCE RATINGSIt‟s obvious that offering a policy from a company with an A rating, regardless of the insurance ranking service, is asmarter move t
i Understanding Homeowners & Automobile Insurance 15 Hour California Insurance Continuing Education Course Published By: Training Solutions. Online, Anytime, Anywhere.
