The PC Professional

Table of Contents

Chapter 1: The Agent’s Role		Page 6
	Special Designations	7
	Required State Education	7
	Multilingual Agents Being Sought	10
	A Tough Market for the Unprepared	10
	New Competition Coming from Traditional Entities	10
	A Value to Society	12
	Risk	13
	Understanding Insurance Terminology	16
Chapter 2: Employment Practices Liability Insurance (EPLI)		Page 25
	A Policy Overview	25
	Do Employers Really Need EPLI?	28
	Low Cost Protection	32
	New Technology Firms	33
	All Companies are Vulnerable, Even Small and Mid-Sized	33
	Educating the Employers	34
Chapter 3: FEMA’s Flood Requirements		Page 36
	Course Material	36
	Acronyms Agents Need to Know	37
	NFIP Background	37
	Federal Emergency Management Agency (FEMA)	40
	Community Participation	41
	Emergency Program	42
	Regular Program	43
	Community Rating System	44
	Building Eligibility	45
	Coastal Barrier Resources System and Other Protected Areas	45
	For CBRS Areas	46
	For OPAs	47
	Who Needs Flood Insurance?	47
	Mandatory Purchase of Flood Insurance in High Flood Risk Zones	48
	Recommended in Moderate and Low Flood Risk Zones	49
	Why Flood Insurance is Better than Disaster Assistance	49
	Flood Maps and Zone Determinations, Section II	49
	Flood Hazard Boundary Map (FHBM)	50
	The “100-Year Flood” that Isn’t	50
	Flood Insurance Rate Map (FIRM)	50
	Pre-FIRM / Post-FIRM Defined	51
	Agent’s Premium Calculation Pad (form)	57
	Special Flood Hazard Area Defined	58
	Base Flood Elevation (BFE)	58
	Zone Determination	59
	Policies and Products Available, Section III	59
	Dwelling Policy – Types of Buildings Covered	60
	General Property Policy – Types of Buildings Covered	60
	Residential Condominium Building Association Policy – Buildings Covered	61
	Preferred Risk Policy – Types of Buildings Covered	61
	Definitions	62
	Damages Not Covered	62
	Single Peril Policy	62
	Mudslides Versus Mudflows	63
	Property Covered	63
	Basements	63
	Appurtenant Structures	65
	Loss Avoidance Measures	65
	Debris Removal	66
	Improvements and Betterments	66
	Property Not Covered	67
	Increased Cost of Compliance Coverage (ICC)	68
	Premium Chart	69
	General Rules, Section IV	69
	Statutory Coverage Limits	70
	Deductibles	70
	Property Value Determination for Selecting Coverage Amounts	72
	Loss Settlement / Actual Cash Value (ACV)	73
	Replacement Cost Value (RCV)	73
	Co-Insurance Penalty in RCBAP	74
	Reduction and Reformation of Coverage	74
	Waiting Period / Effective Date of Policy	74
	Policy Term / Cancellations	76
	Rating, Section V	76
	Firm Zones (chart)	77-78
	Types of Buildings	78
	Elevated Buildings	80
	Buildings With Basements	81
	When to Use an Elevation Certificate	81
	Grandfathering	81
	Claims Handling Process, Section VI	82
	Helping Your Client File a Claim	82
	Appeals Process	85
	Steps 1, 2, 3, and 4	85-86
	Claims Handbook	87
	Requirements of the Flood Insurance Reform Act of 2004, Section VII	88
	Mitigating Repetitive Loss Properties	88
	Educating Policyholders	89
	Write Your Own Companies and the NFIP Work Together	90
	National Flood Insurance Reform Act of 1994	92
	Flood Disaster Protection Act of 1973	92
	National Flood Insurance Act of 1968	93
	Agent Resources, Section VIII – Write Your Own (WYO) Program	93
	FEMA and Related Websites	94
Chapter 4: Hurricane Insurance		Page 95
	Six Critical Areas	96
	Wind Resistive Features	97
	Opening Protection	98
	Roof Deck / Coverings	101
	Upgrading Exterior Doors	102
	Upgrading Exterior Walls	105
	Reinforcing Roof-to-Wall	106
	Roof-to-Wall Connectors	106
	In Summary	107
Chapter 5: Crop Insurance		Page 108
	History	108
	Crop Insurance Contracts	110
	Risk Management Terms	112
	Abbreviations	115
	The Basics	117
	The Crop Insurance Agent	117
	Professionalism Essential	118
	Knowing the Industry	119
	Continual Education Required	120
	Multiple Plans of Coverage	120
	Revenue Insurance Plans	121
	Named-Peril Plans	121
	Livestock Insurance	122
	Feeder Cattle	122
	Fed Cattle Risk Protection	123
	Dairy Revenue Protection	123
	Lamb Livestock Risk Protection	124
	Swine Livestock Risk Protection	124
	Natural Disasters and Crop Insurance	124
	Prevented Planting	125
	Supplemental Coverage Option for Federal Crop Insurance	126
	Nursery Commodity Insurance	126
	Pasture, Rangeland, Forage, Pilot Insurance Program	127
	Peanut Revenue Federal Crop Insurance Policy	128
	Stacked Income Protection Plan (STAX) for Upland Cotton	129
	Whole-Farm Revenue Protections	130
	Organic Farming Practices	131
	Apiculture Pilot Insurance Program	132
	Beginning Farmer and Rancher Development Program Loses Funding	133
	Unit Structures in Farming and Ranching	134
	Climate Change Affects Farming	136
	Climate change	136
	Global warming	136
	Changing How the FCIC Operates	137
	Carbon Sinks	145
Chapter 6: Auto Insurance		Page 147
	The Auto Policy	148
	The Policy Declarations Page	148
	Part A: Liability Coverage	149
	Part B: Medical Payments Coverage	149
	Part C: Uninsured Motorist Coverage	149
	Part D: Coverages for Damage to the Automobile	149
	Part E: Duties after an Accident or Loss	150
	Part F: General Provisions	150
	Other Coverage Types	151
	Personal Injury Protection (PIP) / Underinsured Motorists	151
	Rental Reimbursement / Towing and Labor	151
	Extended Non-ownership Liability Endorsement	152
	Sound Receiving and Transmitting Equipment Coverage	152
	Recording, DVDs, or Other Devices	152
	Insurance Contracts	152
	Reading the Policy	152
	Family Automobile Policies (FAP)	154
	Liability Insurance	155
	Property Damage / Medical Payments	157
	States Require Liability Insurance	158
	PIP	159
	No-Fault Insurance	160
	Collision	162
	Comprehensive Coverage	163
	Auto Insurance Rates	164
	Measuring Loss Exposure	166
	Rates set along three basic guidelines	166-167
	Types of risk	167
	Processing an Auto Claim	168
Chapter 7: Homeowner’s Insurance		Page 171
	Renter’s Insurance	171
	Insuring Your Home	171
	To Recap	174
	Basic, Broad, and Comprehensive Forms	176
	Section I of Form #1 (HO-1)	177
	Section II of Form #1	178
	Form #2 (HO-2)	178
	Form #3 (HO-3)	179
	Form #4 (HO-4)	181
	Form #5 (HO-5)	181
	Form #6 (HO-6)	181
	Form #8 (HO-8)	182
	Exceptions	183
	Natural Disasters	184
	Volcanoes / Hurricanes and Tornadoes / Personal Property	187
	Umbrella Insurance	189
	Homeowner’s Liability Insurance	191
	Insurance policy basic format	194
	Declarations / Insuring Agreements / Exclusions	194
	Conditions and Miscellaneous Provisions / Definitions	195
	Perils / Hazards	195
	The Insurance Policy Layout	196
	Negligence Laws	197
	Loss-Adjustment Provisions	198
	Notice of Loss	198
Chapter 8: Ethics		Page 200
	Professional Conduct	201
	What Can Individuals Do?	204
	Example #1	205
	Example #2	206
	Example #3	207
	Example #4	209
	Example #5	210
	The Professional	211
	Policy Suitability Standards	212
	Projecting an Ethical Image	213
	Ethical Selling	216
	Setting Appointments	217
	Getting in the Door	218
	Explaining Policy Benefits and Limitations	220
	Minimizing Misunderstandings (list)	221
	Allowing Misconceptions	222
	Premium Rates / Providing Client Service	223
	Commingling Funds	224
	Continuing Education to Meet State Requirements	224
	Due Diligence	227
	Quantitative Analysis of a Company	231
	The A.M. Best Rating System	232
	Additional Agent Due Diligence	233
	Business Ethics	242
	Taking the Ethical Path	243
	Obtaining Investigative Knowledge	245

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United Insurance Educators, Inc.

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