nsurance Company and Short Rate Refund Question

aWhat is a short rate refund?

Explain a named insured and additional insureds.

What is an insurable interest and when must it exist in a life policy and in a property policy?

What is the difference between a stock and a mutual insurance company?  Explain the history of mutual insurance cos.

What is reinsurance?  What is its purpose?  What is the difference between facultative and treaty reinsurance?

Explain the difference between admitted and no admitted insurers.

What broad types of transactions go to the surplus lines market?

Define contract of utmost good faith

Explain the difference between concealment and representation.

Explain underwriting.

How do you evaluate an underwriter?

What is the first page of an insurance policy?

Explain the difference between a named peril and an open peril policy.

Explain coinsurance and what it attempts to prevent.

Explain the difference between basic, broad and special cause of loss coverages.

Liability insurance is designed to protect who?

What 4 requirements are required to prove negligence?

Explain the difference between a judgement and a settlement.

Explain the difference between compensatory and punitive damages.

Explain the difference between comparative and contributory negligence.  Which is better for the defendant?

Trial lawyers represent the defendant or the plaintiff?

What does it mean when a lawyer accepts a lawsuit on a contingency basis?

Explain the difference between occurrence and aggregate limits.

What is liability umbrella policy?

What are the coverages in a homeowner’s policy?

What are some excluded types of property?

What are some limited types of property?

Which is better for the homeowner, ACV or replacement cost coverage on contents?  Why?

How much is the deductible on your family’s HO coverage?

What are some perils excluded?

If a state that a coastal homeowner has a homeowner policy ex wind, what does that mean?  What additional types of coverage should that coastal HO add?

Name some additional coverages that can be added to a HO policy?

Does a HO policy pay defense costs?  When would the Homeowner need defense?

What are some liability exclusions?

What are the minimum liability limits on Alabama auto insurance? Florida?  Explain these split limits.

If you visit a state with higher liability limits than required in your home state, are you legal?  Explain.

What are the parts of an auto policy?

What is you deductible?

What watercraft coverage is providing in your homeowner’s policy?

What is a stated value policy?

Who provides flood insurance for homeowners?

Why is it excluded by most insurance companies?

How do people in non-flood areas subsidize those in flood areas?

How long is the waiting period on flood coverage?

What are the max amounts on flood coverage?

What is a package policy?

What is business personal property?  Provide examples.

What are some items not covered by a commercial property policy?

What are some additions to a commercial property policy?

Whys is there a vacancy clause?

What is business income coverage?  It is based on what amount?

How is terrorism risk covered?

Explain builder’s risk.

Explain each of the types of commercial liability.  Provide examples of contractual liability.

What is hold harmless agreement?  Provide an example.

What type of liability are not covered by the CGL policy?

Explain the difference between an occurrence and a claims made policy.

Explain self-insured retention.

Explain each of the following

D&O liability

Employment practices liability


Fiduciary liability

What is the difference between theft and burglary?

What risk does a fidelity bond cover?

Explain the difference between ocean and inland marine and provide an example of each.

Explain the difference between contract and common carriers.

What is garage keepers coverage?

What is a manuscripted policy?

What are the 4 categories of ocean marine coverage?

Name 4 coverages in an inland marine policy.

Explain why a BOP is called a package policy?

Name 4 types of businesses eligible for a BOP and 4 types not eligible.

What is required for a BOP to pay replacement cost on business personal property?

What is workers compensation insurance?  When is it required?

When will it not pay?

Insurance is regulated at the state or federal level?  Who is the insurance commissioner for Alabama?  What is the NAIC?

What is the FIO?  When was it formed?

How many hours of CE are required to remain licensed?

What is appointed?

Define twisting.


How many states have elected insurance commissioners?

What is a binder?

What is the insurance guaranty association?  What is the max it will pay?

How is it funded?

What is a good value?  What steps could you take to improve a poor combined ratio?

If your insurance company had a combined ratio of 105, what does this imply?

Could you still have a positive net income?  How?

How does it impact capacity?

What are loss reserves?  Where do they appear on the balance sheet?

How do you estimate loss reserves?

What happens in time of a catastrophe in relation to loss reserves?

What is the effect of keeping too much in liquid assets?

What are opportunity costs?

What is a yield curve?  Draw a normal shaped yield curve.

How does a soft market impact the insurer?  The insured?

What are the insurance problems with cyber risk?

How will blockchain technology affect insurance?

How will autonomous autos affect auto insurance?