Property & Casualty Insurance Exam (National Portion) flashcards

A written amendment attached to an insurance policy that modifies the terms, conditions, or coverage of the original policy.

• Can broaden or restrict coverage.
• Must be signed by an authorized representative of the insurer.
• Becomes part of the legal contract.

Memory trick: Endorsement: 'En-Dorse' it, 'En-Hance' it, 'En-Force' it!

The Fair Credit Reporting Act (FCRA) places strict limits on how long certain negative information can remain on a consumer's credit report to ensure fairness and accuracy.

• Most adverse information must be removed after 7 years.
• Bankruptcies must be removed after 10 years.
• This protects consumers from old information unfairly impacting current credit decisions.

Memory trick: FCRA's Shield Guards Your Past From Being Forever Cast.

A provision in a commercial property policy that modifies coverage if the insured building has been vacant for a specified period (typically 60 consecutive days) prior to a loss.

• Applies after 60 consecutive days of vacancy.
• Reduces payment for certain losses (e.g., fire, vandalism) by 15%.
• Vacancy means both absence of occupants and lack of contents for intended use.

Memory trick: Remember 'V'acancy means 'V'ery few claims get paid in 'V'acuum.