What is Insurable Interest? A stake in the value of a property or event for which an insurance policy is purchased to mitigate risk of loss.Any person or business subject to financial loss from an occurrence has an insurable interest. TYPES OF HAZARDS Physical hazard – A physical hazard increases the likelihood of a loss […]

FEDERAL REGULATION Fraud and False Statements (18 US Code Sections 1033 and 1034) US Code Sec. 1033 – Whoever is engaged in the business of insurance whose activities affect interstate commerce and knowingly, with the intent to deceive, makes any false material statement or report or willfully and materially overvalues any land, property or security […]

LOUISIANA PERSONAL AUTO POLICY Definition Family Member: Any member of the Named Insured’s household who is related to the Named Insured by blood, marriage, or adoption, including a ward or foster child. If a covered person is “Legally Responsible” for Bodily Injury or Property Damage due to an automobile accident or has a claim for […]

COMMERCIAL AUTO POLICY Under the Business Auto Policy (BAP), a commercial auto is defined as “a land or motor vehicle, trailer, or semitrailer designed for travel on public roads but does not include mobile equipment.” COMMERCIAL AUTO LIMITS OF LIABILITY For vehicles with gross weight between 25,000 – 50,000 lbs, limits are: Louisiana law requires […]

DWELLING POLICY Provides more limited property coverage than the homeowners policy; and the unendorsed dwelling policy provides property coverage only, whereas, the homeowners policy provides a package of property and liability coverage. A Dwelling policy is typically used to cover properties that are rented to others. Characteristics – covers only direct losses caused by these […]

HOMEOWNERS POLICY Characteristics Homeowner’s policies contain 2 major sections: Section 1: Property Coverage A – Building coverage Coverage B – Other Structures coverage Coverage C -Personal Property coverage Coverage D – Loss of Use  Section 2: Liability Coverage E – Liability Coverage F – Medical Payments Coverage A – Dwelling – This will cover damages […]

COMMERCIAL PACKAGE POLICY (CPP) A commercial package policy is an insurance policy that combines coverage for multiple perils, such as liability and property risk. Under a CPP, a business owner may combine different coverages and package them so that they cover the specific risks each business owner is exposed to. Coverage options include general liability […]

Umbrella Policy – Provides excess coverage above and beyond what is provided by your homeowners and auto insurance policies. This policy usually provides roughly $1 million to $5 million of additional coverage, and it is possible to get more if you have lots of assets to protect. Businessowners Policy (BOP) – Combines various insurance coverages […]

Commercial Liability Insurance is not mandatory for businesses operating in Louisiana. Louisiana is a pure comparative negligence fault state. The plaintiff can recover even if he or she is at fault. There are no personal injury caps in Louisiana. The statute of limitations for general personal injury and products liability is 1 year. General Liability […]

ELEMENTS OF A CONTRACT Consideration Competent Parties Legal Purpose Offer Acceptance DISTINCT CHARACTERISTICS OF AN INSURANCE CONTRACT Contract of Adhesion – The insurer writes the contract in its entirety and you can either take it or leave it. You must ADHERE to the insurer’s contract without negotiating its terms. Insurance policies are contracts of adhesion. […]