Study guide
7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts
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
7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts
Key Takeaways Explain This Topic AI
PAP policy territory is the US, its territories/possessions, Puerto Rico, and Canada - Mexico is excluded and needs a separate policy.
Other insurance is pro rata for owned autos but excess for non-owned autos; subrogation lets the insurer recover from the at-fault party.
After 60 days the insurer may cancel only for nonpayment, license suspension/revocation, or material misrepresentation; nonrenewal requires advance notice.
Common endorsements include towing/labor (PP 03 03), extended non-owned (PP 03 06), miscellaneous-type vehicle (PP 03 23), and ride-sharing (PP 23 40).
No-fault states use PIP for first-party injury benefits regardless of fault, with monetary or verbal tort thresholds gating the right to sue.
Last updated: June 2026
Part F: General Provisions, Endorsements, and No-Fault Concepts
Part F - General Provisions contains the policy-wide rules that govern how the entire PAP operates: where coverage applies, how disputes are litigated, what happens when other insurance exists, how the insurer recovers from at-fault parties, and how the policy is changed or ended. This section also surveys the most common PAP endorsements and the no-fault framework many states overlay on the auto policy.
Core Part F Provisions
Policy Territory. Coverage applies in the United States, its territories and possessions, Puerto Rico, and Canada , and during transport between their ports. Mexico is excluded - the trap answer is that a weekend drive into Mexico is not covered without a separate Mexican auto policy or endorsement.
Bankruptcy or insolvency of the insured does not relieve the insurer of its obligations.
Legal Action Against Us. No suit may be brought until the insured has fully complied with policy terms; for liability, the insurer's obligation must first be determined.
Our Right to Recover Payment (Subrogation). After paying a loss, the insurer steps into the insured's rights against the responsible party. The insured must do nothing to impair that right.
Other Insurance and Termination
Other Insurance. If other applicable physical-damage insurance exists, the PAP pays only its share - the proportion the policy's limit bears to the total of all applicable limits (pro rata). For a non-owned auto , the PAP is excess over any other collectible insurance.
Termination. Cancellation and nonrenewal rules vary by state, but the PAP framework provides:
The insured may cancel anytime by returning the policy or giving notice.
The insurer's right to cancel is restricted after the policy has been in effect 60 days - thereafter cancellation is generally limited to nonpayment of premium, suspension/revocation of a driver's license, or material misrepresentation .
Nonrenewal requires advance written notice (commonly 20-30 days , set by state law).
Worked example (pro rata other insurance). Two policies cover the same damaged owned auto: Policy A with a $20,000 applicable limit and Policy B with $30,000. The loss after deductibles is $10,000. Policy A pays its share of the total $50,000 of limits: 20,000 / 50,000 x $10,000 = $4,000 ; Policy B pays 30,000 / 50,000 x $10,000 = $6,000 . (In practice anti-stacking and primary/excess rules often override pure pro rata, but the pro-rata math is the testable concept.)