Study guide
16.3 Cyber, Aviation, and Other Specialty Lines
Alaska Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Alaska Property & Casualty Insurance Exam Overview
Alaska Property & Casualty Exam Overview
3 National Portion: Insurance Fundamentals
1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority
4 National Portion: Property Insurance Concepts
2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses
5 National Portion: Dwelling Policies (DP)
3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage
6 National Portion: Homeowners Policies - Forms & Section I
Homeowners Forms HO-2 through HO-8 and Eligibility Section I Coverages A-D and Additional Coverages Section I Perils Insured Against and Exclusions Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
Section II Coverages E (Liability) and F (Medical Payments) Homeowners Conditions and Duties After Loss Common Homeowners Endorsements
8 National Portion: Personal Auto Policy - Liability & Injury
6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists
9 National Portion: Personal Auto Policy - Physical Damage & Duties
7.1 Part D Coverage for Damage to Your Auto 7.2 Exclusions and Part E Duties After an Accident 7.3 Part F General Provisions, Endorsements, and No-Fault Concepts
10 National Portion: Liability Insurance Concepts
8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury
11 National Portion: Commercial Property Insurance
9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP
12 National Portion: Commercial General Liability - Coverages
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments
13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions
11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements
14 National Portion: Commercial Auto Insurance
12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements
15 National Portion: Workers Compensation
13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements
16 National Portion: Other Commercial Lines - BOP, Crime & Marine
14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)
17 National Portion: Other Commercial Lines - Specialty & Professional
15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability
18 National Portion: Other Commercial Lines - Surety, Flood & Specialty
16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines
19 National Portion: Insurance Regulation & Market Conduct
17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations
20 National Portion: Ethics & Unfair Trade Practices
18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection
21 Chapter 1: Alaska P&C Insurance Regulation & Licensing
1.1 Alaska Division of Insurance 1.2 Alaska P&C Producer Licensing Requirements 1.3 Alaska Producer Duties and Responsibilities
22 Chapter 2: Alaska Property Insurance
2.1 Alaska Homeowners Insurance 2.2 Alaska Property Insurance Policy Provisions
23 Chapter 3: Alaska Auto & Casualty Insurance
3.1 Alaska Auto Insurance Requirements 3.2 Alaska Commercial Liability Insurance
24 Chapter 4: Alaska Ethics & Professional Conduct
4.1 Alaska Ethical Standards for Insurance Producers 4.2 Alaska Privacy Laws and Regulatory Compliance
16.3 Cyber, Aviation, and Other Specialty Lines
Key Takeaways Explain This Topic AI
The CGL excludes electronic data and, via endorsements CG 21 06/21 07, data-disclosure liability - which is why stand-alone cyber coverage exists.
Cyber splits into first-party (notification, forensics, business interruption, ransomware) and third-party (customer/regulatory liability); it is claims-made with a retroactive date.
Aviation uses hull (in-motion/not-in-motion/all-risk) plus split BI/passenger/property liability; large risks go to surplus lines.
Aviation split limits cap each claimant at the applicable sub-limit, mirroring auto split-limit logic.
Boiler & machinery (Equipment Breakdown) uniquely bundles mandatory inspection service; surplus lines are non-admitted and not guaranty-fund backed.
Last updated: June 2026
Cyber, Aviation, and Other Specialty Lines
Specialty lines fill gaps left by standard CGL, property, and auto forms. The CGL excludes electronic data as tangible property and (since the 2014 ISO endorsements CG 21 06 and CG 21 07 ) bars coverage for access-to-or-disclosure-of confidential/personal information. That exclusion is precisely why cyber liability exists as a stand-alone line. Aviation, ocean marine, and other specialty risks are similarly excluded from auto and standard property forms, so the exam tests where each loss belongs.
Cyber Liability - First-Party vs. Third-Party
Cyber policies split into two halves; classify the loss to pick the right coverage:
Coverage Party Examples
First-party The insured Breach notification costs, forensic investigation, business interruption from a network outage, data restoration, cyber extortion/ransomware payments
Third-party Others suing the insured Liability for failure to protect customer data, regulatory fines/penalties (where insurable), media/privacy liability
Traps: cyber policies are written on a claims-made basis with a retroactive date ; a loss is covered only if the wrongful act occurred on/after the retro date and the claim is first made during the policy period (or extended reporting period).
Aviation Insurance
Aircraft are excluded from auto and homeowners forms, so aviation is a specialty line with marine-derived terminology:
Hull coverage insures the aircraft itself (physical damage). Written as in-motion , not-in-motion , or all-risk ground and flight .
Liability splits into bodily injury excluding passengers , passenger bodily injury , and property damage , often expressed with a per-passenger sub-limit.
Admitted vs. non-admitted/surplus : large aviation risks frequently move to surplus lines carriers because admitted markets decline them.
Worked Numeric: Aviation Split Limits
A policy reads $1,000,000 / $100,000 / $500,000 (BI per person excluding passengers / passenger BI per seat / single-limit per occurrence is sometimes shown differently, but here): a crash injures one non-passenger for $1,200,000 and one passenger for $150,000.
Non-passenger BI is capped at $1,000,000 (the $1,200,000 claim is paid to the limit; the insured owes the $200,000 excess).
Passenger BI is capped at $100,000 per seat, so the $150,000 claim is paid to $100,000 .
This mirrors auto split-limit logic: each claimant is capped at the applicable sub-limit before any aggregate applies.
Other Specialty Lines
Ocean marine - hull, cargo, freight, and protection & indemnity (P&I) liability; cargo often written with general average and sue and labor clauses.
Inland marine - goods in transit, builders risk, contractors equipment, bailee, and floaters (covering property that moves).
Boiler & machinery (Equipment Breakdown) - mechanical/electrical breakdown and pressure-vessel explosion, with mandatory inspection service that other lines lack.
Professional liability / E&O and Directors & Officers (D&O) - claims-made management/professional exposures excluded by the CGL.
Surplus lines - non-admitted placements for risks admitted carriers reject; not backed by state guaranty funds, requiring a diligent-effort/declination filing.
Ocean Marine in Depth - The Implied Warranties
Ocean marine is the oldest insurance line and the exam tests its three implied warranties that exist even if unwritten in the policy:
Seaworthiness - the vessel is fit for the intended voyage and properly crewed and equipped.
No deviation - the vessel follows the customary route without unjustified departure.
Legal purpose - the venture is lawful.
Cargo is frequently insured with a general average clause: when cargo or equipment is voluntarily sacrificed to save the whole venture (e.g., jettisoning cargo in a storm), all parties share the loss proportionally . A particular average is a partial loss borne by the owner of the damaged property alone. The sue and labor clause reimburses the insured for reasonable expenses incurred to minimize a covered loss.
Inland Marine and the Nationwide Marine Definition
Inland marine grew out of ocean marine to cover property in transit over land and instrumentalities of transportation/communication. The Nationwide Marine Definition sets the classes eligible for inland marine: domestic shipments, bridges/tunnels/pipelines, and various floaters (personal articles, jewelers block, contractors equipment, accounts receivable, valuable papers). Because inland marine is loosely regulated as to forms and rates, it is prized for mobile, high-value, or hard-to-classify property .
Key distinction for the exam: a floater covers property that moves or whose location changes, written typically on an open-perils/all-risk basis with broad valuation - contrasting sharply with the named-peril, fixed-location commercial property forms covered earlier in this chapter.