Cheat sheet
Property Casualty Cheat Sheet
Property Insurance
- Not published of exam
- Property Valuation Homeowners Forms Dwelling Forms Perils Coinsurance
Auto Insurance
- Not published of exam
- Auto Coverages PAP Parts Symbols No-Fault UM UIM
Liability Insurance
- Not published of exam
- Liability Concepts CGL Negligence Umbrella Occurrence vs Claims
Commercial Lines
- Not published of exam
- Commercial Property Workers Comp BOP Inland Marine Crime
Regulation + Claims
- Not published of exam
- Regulations Claims Producer Duties Unfair Practices Claims Handling State Law
Quick Facts
- Exam P&C Producer
- Questions 100-175 by state
- Pass CA 60%, FL 70%
- Time 150-195 min by state
- Scope State licensing
- Core Property + liability
- License State issued
- Study 40-80 hours
Named vs Open Perils PR
Named
- Only listed
- Insured proves peril
Open
- All except exclusions
- Insurer proves exclusion
- Listed vs excluded
Coverage Picker PR
- Home owner occupied → HO policy
- Rental dwelling → DP policy
- Tenant contents → HO-4
- Condo unit → HO-6
- Older home → HO-8
- Small business → BOP
Property Valuation PR
- ACV Replacement minus depreciation
- Replacement cost New-for-old cost
- Agreed value Value set upfront
- Stated amount Listed maximum
- Market value Sale price
- Coinsurance Insurance-to-value clause
- Deductible Insured pays first
ACV vs Replacement PR
ACV
- Depreciation deducted
- Lower payout
Replacement
- New cost
- No depreciation
- Old value vs new
Loss Picker PR
- Fire damages house → Property coverage
- Use lost after loss → ALE
- Business shuts down → Business income
- Need quick reopening → Extra expense
- Auto hits object → Collision
- Auto theft occurs → Comprehensive
Homeowners Forms PR
- HO-2 Broad named perils
- HO-3 Open dwelling perils
- HO-4 Renters contents
- HO-5 Open property perils
- HO-6 Condo unit owners
- HO-8 Modified older homes
- Section I Property coverage
- Section II Liability coverage
HO-3 vs HO-5 PR
HO-3
- Open dwelling
- Named contents
HO-5
- Open dwelling
- Open contents
- Contents difference
Dwelling Forms PR
- DP-1 Basic named perils
- DP-2 Broad named perils
- DP-3 Open dwelling perils
- Coverage A Dwelling
- Coverage B Other structures
- Coverage C Personal property
- Coverage D Rental value
PAP Parts AU
- A liability, B med, C UM, D damage.
- A: liability B: med pay C: UM/UIM D: physical
Collision vs Comprehensive AU
Collision
- Impact
- Upset
- Another vehicle
Comprehensive
- Theft
- Fire/weather
- Animal impact
- Crash vs other
Auto Coverages AU
- Part A Liability
- Part B Medical payments
- Part C UM/UIM
- Part D Physical damage
- Collision Upset/impact
- Comprehensive Other-than-collision
- PIP No-fault benefits
- Symbol 1 Any auto
CGL ABC LI
- A BI/PD, B ads, C med.
- A: injury/damage B: personal ads C: med pay
Occurrence vs Claims-made LI
Occurrence
- Event date
- Late claim okay
Claims-made
- Claim date
- Retro date matters
- Event vs claim
Liability Picker LI
- Home guest injured → HO Section II
- Auto BI claim → PAP Part A
- Premises lawsuit → CGL Coverage A
- Libel in ad → CGL Coverage B
- Small injury no fault → Med Pay
- Limits exhausted → Umbrella
Liability Concepts LI
- Tort Civil wrong
- Negligence Breach of duty
- BI Bodily injury
- PD Property damage
- Occurrence Event trigger
- Claims-made Claim trigger
- Umbrella Extra liability
CGL LI
- Coverage A BI/PD liability
- Coverage B Personal advertising injury
- Coverage C Medical payments
- Premises Location liability
- Operations Work liability
- Products Goods liability
- Completed ops Finished work liability
Commercial Property CO
- CPP Package policy
- BPP Business personal property
- Causes Basic Named perils
- Causes Broad More named perils
- Causes Special Open perils
- Business income Lost earnings
- Extra expense Continue operations
- BOP Small business package
Workers Comp CO
- Part One Statutory benefits
- Part Two Employer liability
- Medical Work injury care
- Disability Wage replacement
- Rehab Return to work
- Death Survivor benefits
Policy DICE RE
- DICE: Declarations, Insuring, Conditions, Exclusions.
- D: who/limits I: promise C: duties E: no coverage
Property vs Casualty RE
Property
- First-party loss
- Physical things
- Direct damage
Casualty
- Third-party claims
- Legal liability
- Injury/damage owed
- Own stuff vs liability
Risk Fundamentals RE
- Risk Chance of loss
- Pure risk Loss/no loss
- Speculative risk Gain or loss
- Peril Cause of loss
- Hazard Increases loss chance
- Moral hazard Dishonest behavior
- Morale hazard Careless attitude
Hazards RE
- Physical, moral, morale.
- Physical: condition Moral: dishonesty Morale: carelessness
Policy Parts RE
- Declarations Who/what/limits
- Insuring agreement Coverage promise
- Conditions Policy duties
- Exclusions Not covered
- Endorsement Policy change
- Definitions Meaning of terms
Regulations Claims RE
- Producer Licensed seller
- Appointment Insurer authorization
- Fiduciary Handles premiums
- Rebating Illegal inducement
- Twisting Misleading replacement
- Misrepresentation False policy statement
- Notice Claim reporting
- Proof of loss Sworn claim detail
Common Traps
Peril vs hazard
- Peril causes loss ≠ Hazard increases chance
Moral vs morale
- Moral is dishonest ≠ Morale is careless
ACV formula
- ACV subtracts depreciation ≠ RC ignores depreciation
Medical payments
- Med Pay no fault ≠ Liability needs fault
CGL Coverage B
- Personal injury terms ≠ Not bodily injury
State law
- National concepts repeat ≠ State rules vary
Last Minute
- 1. Peril = loss cause
- 2. Hazard = risk booster
- 3. DICE policy parts
- 4. HO-3: open dwelling
- 5. HO-5: open property
- 6. PAP A/B/C/D
- 7. Collision = crash
- 8. Comp = other damage
- 9. Occurrence = event date
- 10. Claims-made = claim date