declarations page
often a first-page summary of an insurance policy
What typically appears on the declaration page
The name of the insured party who controls the coverage (often called the named insured)
Anyone who has been proactively added to the policy as an additional insured (such as a mortgage lender)
The insurance company issuing the coverage
The dollar limit of the coverage (sometimes more generally known as the insurer’s limit of liability)
The deductible, if any
The duration of the policy (often called the policy period)
Whether the property is covered up to its actual cash value or its replacement cost
The policy number
The premium
Other specifics about the insured risk, such as a property address or type of insured vehicle
What rights do the named insured poses
The responsibility to pay the premium
The right to receive premium refunds following cancellation
The ability to change coverage with the insurer’s consent
The ability to cancel the insurance (in writing)
The ability to assign rights contained in the policy (with the insurer’s consent)
What is the limit of liability?
The maximum amount an insurance company will pay for a covered loss.
What are per-occurrence limits?
A payout cap that applies to each separate loss event.
What are aggregate (cumulative) limits?
A payout cap that applies to all losses during the entire policy period.
What is an insurance deductible?
The amount you must pay out of pocket before your insurance starts paying for a covered loss.
Why do insurance companies use deductibles?
1) To make sure policyholders pay part of their losses.
2) To avoid processing small claims.
How do deductibles affect premiums?
Higher deductibles usually mean lower premiums.
What is a per-occurrence deductible?
A deductible you must pay for each separate loss event.
What is a per-policy period deductible?
A deductible you only pay once during the policy period (e.g., annually).
Do deductibles apply to both property and liability coverage?
Usually only to the property portion of a policy.
What is a percentage-based deductible?
A deductible that’s a set percentage of the home’s insured value, often used for windstorm or hail damage.
Policy Period
The set time an insurance policy is active, from its start date to its end date. Losses are only covered if they happen during this period. Usually lasts 12 months and can be renewed.
Definitions
The section of an insurance policy that explains specific meanings of key terms, which may be more restrictive than everyday usage. These definitions shape coverage and guide court interpretations in disputes. If a term isn’t defined in the policy, courts use its common dictionary meaning
Insuring agreement
in an insurance policy, the insurance company’s basic promise to the consumer
package policy
an insurance product designed to cover multiple kinds of risk and thereby containing multiple insuring agreements
Property Insurance common exclusions
intentional damage, floods, non-sudden water damage, earth movement, pollutants, nuclear events, war, wear and tear, and government-ordered destruction.
Casualty Insurance common exclusions
intentional acts, war, pollution, operating vehicles without specific coverage, liability between people under the same policy, and situations covered by workers’ compensation.
Supplementary Payments / Additional Coverages (Simple Definition)
Extra benefits in an insurance policy that help with costs beyond the main coverage, usually at no extra cost to the policyholder’s
In Auto Insurance supplementary payments might include…
The cost to defend the insured person in a lawsuit
The cost of a bail bond if a driver is arrested after an accident
The cost of taking time off from work to help an insurer in an accident-related court proceeding
In Property Insurance supplementary payments might include…
The expense of storing belongings at an off-site location after a building becomes unsecure
The cost of temporary repairs
The cost of debris removal after a covered peril
The cost to replace damaged trees or plants
Expenses charged by local fire departments after a loss
Conditions (Insurance Policy)
Rules in the policy that spell out what the policyholder must do after a loss and what the insurer must do when handling a claim.
If the rules aren’t followed, the insurer can deny or limit payment.
Key Policyholder Duties:
Report the loss quickly.
Provide proof of loss.
Cooperate with investigations.
Prevent further damage.
Report crimes to police.
Let the insurer go after the person who caused the loss.
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Level 1 Chapter 129
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Level 1 chapter 236
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Level 1 chapter 351
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Level 1 chapter 442
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Level 2 chapter 120
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Level 2 chapter 229
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Level 2 chapter 360
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Level 3 chapter 116
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Level 3 chapter 278
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Level 3 chapter 336
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Level 4 Chapter 134
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Level 4 chapter 2 Business Interruption Insurance38
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Level 4 Chapter 3 Marine Insurance19
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Level 4 chapter 4 Assorted Commercial Property Products56
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Level 5 Chapter 1 Personal Lines Casualty Insurance103
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Level 5 chapter 2 Assorted Personal Lines Casualty Products17
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Level 6 Chapter 1 Commercial Lines Casualty Insurance90
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Level 6 Chapter 2 Commercial General Liability Insurance48
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Level 6 chapter 3 Employment Practices Liability Insurance29
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Level 6 chapter 4 Workers' Compensation and Employers' Liability Insurance66
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Level 6 chapter 5 Professional Liability/Errors and Omissions Insurance35
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Level 6 Chapter 6 Cyber Insurance36
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Level 6 Chapter 7 Miscellaneous Casualty Insurance Products45
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Level 7 chapter 1 Texas Laws and Rules107
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Level 7 Chapter 2 Texas Laws and Rules (Property and Casualty)101
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Missed information32
