PREMIER GROUP INSURANCE

PREMIER GROUP INSURANCEInsurance 101

Insurance 101 Table of Contents(Auto)Liability Coverage UMBI/UMPDMedical CoverageFull CoverageFull Coverage Add-onsMVR ReportsClue ReportsDrivers License

SR22sBroad form PolicyNon-Owners PolicyQuiz

Liability CoverageLiability coverage may vary by state, it is the basic coverage required in order to drive legally on the road. Please check with your state to find out what your state law liability requirements are.Example: 25/50/15-25 is the bodily injury damage caused by you to another person. Insurance companies may pay up to $25,000 for a single driver.-50 is the bodily injury damage cause by you to more than one person. Insurance companies may pay up to $50,000 for multiple drivers.-15 is the property damage cause by you to other vehicles. Insurance companies may pay up to $15,000 for property damage.

At fault Accident

UM/UIM & UMPDUninsured/Underinsured bodily injury coverage can be added to your liability policy. This coverage is in effect when involved in a car accident with an uninsured driver. Along with UMBI/UNBI, you may ADD UMPD. Uninsured motorist property damage can protect your vehicle when involved in an accident with an uninsured driver. Did you know? 1 driver out of 7 drivers in the United States is currently uninsured. In some states, it is the law to carry Uninsured Motorist coverage, please check with your state. UMPD standard deductible is $250

Medical CoveragePersonal Medical coverage can be added to your auto insurance policy. This covers medical expenses when involved in an accident, when walking, riding with a friend or while on public transportation. It does NOT carry a deductible and covers everyone in your vehicle up to the amount of medical coverage selected. Insurance carriers offer multiple limits, a standard amount of medical coverage would be $5,000 and above. Medical coverage is required in some states, unless specifically rejected.

Full CoverageFull coverage is comprehensive and collision added to your policy per vehicle selected.-Comprehensive is other than collision, for example: Hail, fire, theft, water and vandalism damage. Standard deductible $500-Collision is coverage for your vehicle when involved in an accident at fault or not at fault. For example: Running into another vehicle, crashing in to a wall or crashing into a grocery store. Standard deductible $500

Full Coverage Add-ons When selecting full coverage (Comprehensive & Collision) you may add rental car reimbursement and road assistance coverage. Rental car reimbursement can be used when your vehicle is in a repair shop due to a covered incident. For Example: 30/900 The insurance carrier will cover $30 per day and up to $900 total for the claim.Roadside Assistance covers for the following incidents: Flat tire, battery jump, locksmith, emergency fluid delivery and towing service. This may vary per carrier, please check your carrier guidelines.

MVR REPORTSMVR stands for Motor Vehicle Records. Every carrier will complete a MVR when purchasing an insurance policy. The MVR identifies if the driver has driving violations. This includes minor/major violations, drivers license suspensions, accidents and DUIs. Carriers do surcharge depending on the type of violation. Some carriers will surcharge violations for the past 3 to 5 years. You must check with your carrier underwriting guidelines.

Clue ReportClue Report provides a seven year history losses associated with an individual and his/her personal property. For example: each loss date, loss type and amount paid along with general information such as policy number, claim and insurance company name. Insurance carriers will use this report to reflect your premium. A driver with multiple losses is considered to be a high risk.

Drivers LicenseEvery state requires a drivers license to legally drive on public roads. Although, a driver with a suspended license/international license can still purchase an insurance policy. In other words, he can still be insured under an insurance carrier but it doesnt necessarily mean he/she can legally drive on public roads. When moving out of state, you must apply for a new license from that state after establishing residency within 30 to 60 days. http://www.dmv.org/co-colorado/relocation/moving-out-of-state.php

SR22sA SR22 is referred to as Certificate of Financial Responsibility. Why would someone need a SR22?A SR22 is a mandatory court order which you must carry for a certain amount of time. Most drivers with serious traffic violations have a court order to maintain a SR22 on their insurance policy. Here are some examples of why someone would be assigned a SR22 by the court system:-Driving under the influence.-Driving without car insurance.-Drivers driving under a suspended or revoked license.-Drivers with an excessive amount of violation points on their driving record.Please check with your state law, some states do not require a SR22.SR22 is a way for the insurance company to communicate with the DMV that one is complying with state law requirements.

Broad Form PolicyA Broad Form Is a Named Owner Operator policy. Coverage is only provided for the named insured, no one else is covered. (no permissive use)An insured can drive any vehicle owned or non owned and have coverage as long as it is used for personal, not business use. A Broad Form policy does NOT qualify for full coverage or UMPD.http://www.thetruthaboutinsurance.com/broad-form-auto-insurance/

Non-Owners PolicyA Named Non-Owner policy is an insurance policy for someone who does not own a vehicle. This policy does not qualify for full coverage, although you may add UM/UIM. Its purpose is for personal use only not business use. You may not add multiple drivers to this policy, it only covers the name insured. http://carinsurance.about.com/od/PolicyFundamentals/a/What-Is-Non-Owners-Insurance.htm

QuizWhy do you need liability coverage?Do I need a drivers license to be insured?What is a SR22?An insured does not own a vehicle and the courts require that he/she carry a SR22. what type of policy can you offer this client?An insured is financing a vehicle. What type of policy can you offer this client? Can an insured still purchase Medical coverage under his/her policy even though they have health insurance?What is a Clue Report?An insured carries liability only on his/her auto policy and an uninsured motorist damages their vehicle. Is this covered on their policy?An insured has full coverage and his/her car is hit by a hail storm and damages their vehicle. This is covered under _______________ and not _______________.

Insurance companies will look back _____ to _____ years for any violations, accidents and claims.

Insurance 101Table of Contents (Home) Section I Property CoveragesCoverage A (Dwelling)Coverage B (Other Structures)Coverage C (Personal Property)Coverage D (Loss of Use)Section II Liability CoveragesCoverage E (Personal Liability)Coverage F (Medical Payments)EndorsementsExtended Replacement Cost (Endorsement)Water Back UpReplacement Cost of Contents Loss Assessment Ordinance or LawQuiz

Coverage A (Dwelling)Coverage A (Dwelling Coverage) limits should reflect an amount that will allow the customer to rebuild their existing dwelling.The dwelling must be insured for 100 percent of its replacement cost as determined by the Replacement Cost Guide. The Coverage A amount is displayed on the declarations page.This is what it would cost to rebuild the home if it were destroyed does not include value of land

Coverage B (Other Structures) This is the amount the policy would pay to repair or replace any structures not attached to the home that were damaged due to a covered loss10% of coverage A is a standard, it can be increased.Example: Detached garage, tool shed or fence.

Coverage C (Personal Property)This is the amount the policy would pay to repair or replace personal property that was damaged due to a covered loss.50% of coverage A, it can be increased.

Coverage D (Loss of Use)This is the amount the policy would pay to cover additional living expenses you incurred if you were out of your home due to a covered loss.Loss of Use is 20% of coverage A, it can be increased.

Coverage E (Personal Liability)This is the amount the policy would have available should you become liable for damage to another person or property belonging to othersExamples: Your child throws a ball through a neighbor's window accidently breaking an expensive vase - you may be held responsible for the damages caused. Under personal liability coverage, the insurance company defends you if you are sued, and pays damages to the injured person up to the limit of liability.

Coverage F (Medical Payments)This is the amount the policy would make available to your guests who are injured on your property both invited and non-invited. Example:

What Is A Peril?A Peril is a probable cause that exposes a person or property to the risk of damage, injury or loss and against which an insurance policy is purchased.Examples: Fire, wind, hail, smoke, theft and vandalism. A named peril policy may be purchased as a less expensive alternative to a comprehensive or broad policy. This type of policy will outline listed perils that are specifically covered. An all-risk or open peril policy cover any peril unless specifically excluded in the policy. The all-risk insurance policy is usually more expensive than the named peril policy because it is more comprehensive.

Extended Replacement CostSome policies offer extended replacement cost to cover the cost of rebuilding a home that has been destroyed. It is a percentage of Coverage A (25%, 50% or 100%). This coverage may be purchased/endorsed on a home owners policy. Example: A policy may have 50% ERC on it. This would mean that the policy would pay 150% of Coverage A to rebuild the home. If a home has a Coverage A limit of $100,000 and the policy has a 50% ERC on it, the policy would pay up to $150,000 ($100,000 x 150% = $150,000) to rebuild the home should it be destroyed. All policies will pay up to the limit of Coverage A as long as the home is insured at 100% of the RCT (Replacement Cost Tool) determination.

Water Back UpWater backup coverage is an endorsement you can add to your homeowners insurance policy.A typical homeowners insurance policy does not include water backup coverage, which protects you when water comes up through the sewer or drains. As a homeowner, you will need water backup coverage in the event of a sewer system backup or a sump pump failure that results in an overflow.Likewise, flood insurance will not cover a sewer backup, toilet or sump overflow.

Replacement Cost of ContentsPolicies are written on ACV (Actual Cash Value) unless RCC (Replacement Cost of Contents)is added as an endorsement. ACV is the amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss. It is the actual value for which the property could be sold, which is always less than what it would cost to replace it. The term "replacement cost" means the cost to replace property of comparable material and quality used for the same purpose. It will replace an item of the same like, kind and quality. The only difference between replacement cost and actual cash value is a deduction for depreciation. However, both are based on the cost today to replace the damaged property with new property.

Loss AssessmentLoss assessment coverage helps protect you from paying out of pocket for damage or liability that exceeds your condominium association master policy limits. When you own a condominium, and damage to community owned property costs more than its insured for, you and other condo owners could be responsible for paying the difference out of pocket. Loss assessment coverage helps compensate for this out-of-pocket difference.Example: Someone gets injured at a community pool, damages incurred are $100,000 to be paid by the HOA (Home Owners Association). The HOA policy has a deductible of $10,000. There is 20 residence in this community, each resident would be assessed $500 towards this deductible. With this endorsement the loss assessment portion of your home owners policy will help compensate you for this out of pocket expense.

Ordinance or LawOrdinance or Law are building codes and zoning laws that affect every piece of property no matter how big or small. These laws are continually changingrequiring new or improved features such as better wiring, handicap access, sprinkler systems and more. If a loss situation triggers code upgrades, it could be financially devastating unless you have Ordinance or Law coverage.

QuizWhat is coverage F under a home owners policy?The dwelling must be insured for ____ percent of its replacement cost as determined by the Replacement Cost Guide.Explain Loss of Use coverage under a homeowners policy:Personal Liability is coverage __ under a home owners policy.Coverage __ (other Structures) is typically 10% of coverage A.Is Extended Replacement Cost Coverage automatically included on a home owners policy?