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The Texas Standard Fire Policy...Two Main Concepts...
- Share the Risk: A group of merchants would pool moey together and be distributed to the merchant who suffered the loss.
- Law of Large Numbers: Spreading a merchant's goods among severals ships instead of just one.
The Texas Standard Fire Policy
"Contract of Indemnity" This means an oblication to bring back to whole. This is a Standard Fire Policy
TSFP began as a basic commercial policy used most often for older buildings in high crime areas.
- Texas Standard Fire Policy (TSFP)
- *Named Perils only
- *ACV only
- *Does not include liability, covers only property damage.
- *No Contents
As the TSFP evolved, additional perils were added:
- Vehicles of others
Texas Personal Auto Policy
Medical Payments Coverage
Texas Personal Auto Policy...
Coverage begins as soon as the policy is purchased ad the contract is signed. Collision coverage automatically begins when a new auto is purchased if the auto owner requestes coverage within 14 days of the purchase.
MPC vs PIP
- B1 is Medical Payments Coverage (MPC). This covers:
- *Medical Expenses
- *Funeral Expenses
- B2 is Personal Injury Protection (PIP). This Covers:
- Medical Expenses; Funeral Expenses; 80% of Lost Wages; Services (defined by the policy)
Commercial Inland Marine Insurance
Provides coverage for properties in transit...Cargo Shipments. This is NOT boat or vessel coverage.
Coverage includes: Domestic Shipments on Consignment; Coverage is not to exceed 120 days.
Commercial Ocean Marine Insurance
A commercial inland marine policy...in the domestic US
Ocean Marine Summary...forms available:
- Marine Cargo Policy and Cargo War Risk Policy...only protects the cargo while on board.
- Hull Insurance...protects the ship from perils of the sea
A guarantee that contractual obligations will be fulfilled. There are hundreds of different typs of Surety Bonds.
Bonds that protect an employer for losses by an empolyee (employee theft)
required by lenders to guarantee outstanding loans against a job are paid upon completion
In the custody of others' property
Bonds are 3 party contracts between:
- *Principle: the obligor, the entity that has agreed to fulfill the obligation.
- *Obligee: the entity that is the recipient to the principle (school or customer)
- *Surety: the insurance company providing the bond for a fee.
Workers Compensation (WC)
A form of insurance that provides compensation for medical care of employees injured on the job.
Workers Comp offers:
- *A form of disability insurance to replace lost wages.
- *A form of health insurance for reimburseent or payment of both past and future medical expenses.
- *A form of life insurance which pays benefits to the dependents of workers killed during employment.
- *Not Covered: compensation for punitive damages, pain & suffering & employer negligence.
WC (Workers Comp Highlights)
- *WC policies has no policy limits
- *Contracters and sub-contracters may be required to obtain WC.
- *WC does not pay any pre-existing debts, loans or liens.
To process a Workers Comp case, must have these 3 items:
- *Established statements,
- *Pre-existing medical information
- *Wage verification
Commercial General Liability: designed to protect the insured with limits of liability specifically designed for business.
Commercial General Liability (CGL)
- Coverage Territory...US, territories and Intl air space except during transport or travel
- ...Worldwide Products Coverage: if the product is either sold or manufactured in a covered territory, there is coverage.
In TX there are 2 CGL policy programs available
(Commercial General Liability)
1: Occurrence Based Policy
2: Claims Made Policy
Commercial Property Policy (CPP)
- *Building and Personal Property Coverage
- *2 major property policies:
- 1: Standard Property Coverage...named peral policy.
- 2: Special Property Coverage...All Risk policy
Texas State Statues
Investigates or adjust losses on behalf of either an insurer or self - insured.
Adjusters shall not include:
- An Attorney
- A Salaried employee of an insurer
- Persons employed only for the purpose of furnishing tech assistance
- A licensed agent or general agent of the insured who wrote the policy.