Study guide
16.3 Cyber, Aviation, and Other Specialty Lines
Arkansas Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Arkansas Property & Casualty Insurance Exam Overview
Arkansas 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
4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)
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: Arkansas P&C Insurance Regulation & Licensing
1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities
22 Chapter 2: Arkansas Property Insurance
2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance
23 Chapter 3: Arkansas Casualty & Auto Insurance
3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance
24 Chapter 4: Arkansas Ethics & Professional Conduct
4.1 Ethical Practices and Consumer Protection
16.3 Cyber, Aviation, and Other Specialty Lines
Key Takeaways Explain This Topic AI
Cyber policies split into first-party coverages (the insured's own losses) and third-party coverages (liability to others).
Aviation insurance separates hull (physical damage) from liability, with in-motion vs. not-in-motion hull distinctions.
Ocean marine has four parts: hull, cargo, freight, and protection & indemnity (P&I); inland marine covers movable property and instrumentalities of transportation.
Umbrella/excess policies pay above an underlying retention and require a self-insured retention (SIR) for losses the underlying policy does not cover.
Specialty lines (D&O, E&O, EPLI, terrorism/TRIA) are usually claims-made and fill gaps the commercial package leaves open.
Last updated: June 2026
Cyber insurance: first-party vs. third-party
Cyber is the fastest-growing specialty line on the exam. The single most-tested concept is the split between first-party and third-party coverage:
First-party - the insured's own losses from a breach: forensic investigation, business interruption / extra expense from network downtime, data restoration , cyber extortion / ransomware payments, and breach-notification costs.
Third-party - the insured's liability to others : lawsuits from customers whose data leaked, regulatory fines and penalties (where insurable), and media/network security liability .
Most cyber forms are written claims-made , so the claim must be made (and reported) during the policy period or extended reporting period, and a retroactive date bars acts committed before it. A common trap: business interruption from a cyber event is a first-party coverage, while a class-action by affected customers is third-party . Cyber typically carries its own sublimits (for example, a $5,000,000 policy may sublimit cyber extortion to $250,000) and a waiting period (an hourly deductible, e.g., 8 hours) before business-interruption coverage begins.
Distinguish a few terms candidates confuse: a data breach is unauthorized access to protected information; a network security failure is a broader systems compromise; and social engineering / phishing fraud (an employee tricked into wiring funds) is often a separate sublimited coverage or an exclusion unless endorsed.
Social engineering is frequently confused with funds transfer fraud (an unauthorized electronic transfer). Many losses also overlap with the Computer Fraud insuring agreement of the commercial crime form, so the exam may ask which policy responds - cyber for breach-response and BI, crime for direct theft of money.
Aviation insurance
Aviation parallels auto in structure: physical damage (called hull ) plus liability, but with aviation-specific wrinkles.
Hull coverage - physical damage to the aircraft. Forms distinguish in-motion (in flight or taxiing) from not-in-motion (parked/moored); not-in-motion rates are lower because most crashes happen in motion.
Liability - bodily injury and property damage to others. Watch the passenger liability distinction: "BI excluding passengers" is cheaper than "BI including passengers." A single limit including passengers is the broadest.
Admitted vs. non-admitted - much aviation risk is written in the surplus lines market.
A worked split-limit example: a policy reads "$1,000,000 BI per person / $5,000,000 BI per occurrence / $1,000,000 PD per occurrence, excluding passengers ." If the insured aircraft damages a hangar ($800,000) and injures two ground workers ($600,000 each), the BI pays $600,000 + $600,000 = $1,200,000 (each within the $1,000,000 per-person cap and total within $5,000,000), and PD pays $800,000 (within $1,000,000). Total = $2,000,000 . Passenger injuries would be excluded under this form.
Aviation policies also tie coverage to defined uses (pleasure & business, industrial aid, commercial, special use) and to pilot warranties - if a pilot not meeting the named qualifications (minimum hours, ratings, medical certificate) is flying, coverage can be void. Ground risks not in motion may also include hangarkeepers liability for damage to aircraft of others in the insured's care, custody, or control - a CCC exposure parallel to garage operations in auto.