The Commercial Lines Insurance Curriculum is designed to prepare candidates for licensing exams and practice in commercial insurance, which addresses the needs of businesses rather than individuals. The curriculum focuses on various commercial insurance products, underwriting principles, regulatory compliance, and state-specific requirements.
Commercial Lines Insurance Licensing Curriculum
1. General Insurance Principles
- Risk Management for Businesses
- Understanding business risks: Property, liability, and operational risks
- Loss prevention and mitigation strategies
- Insurance Contracts
- Elements of a contract: Offer, acceptance, consideration, legal purpose, competence
- Characteristics of insurance contracts: Adhesion, aleatory, unilateral, conditional
- Regulatory Environment
- Role of the state Department of Insurance
- Federal laws impacting commercial insurance (e.g., OSHA, ADA)
- Consumer protection laws and market conduct
2. Commercial Property Insurance
- Types of Policies
- Building and personal property coverage form
- Business income and extra expense coverage
- Causes of loss forms: Basic, broad, and special
- Inland marine insurance (e.g., contractor’s equipment, transportation risks)
- Policy Provisions
- Coverage extensions and endorsements (e.g., ordinance or law, spoilage)
- Valuation methods: Actual cash value, replacement cost, agreed value
- Risk Assessment and Underwriting
- Business location, construction, occupancy, and fire protection
- Unique risks: Flood, earthquake, and terrorism coverage
3. Commercial Liability Insurance
- Types of Policies
- Commercial general liability (CGL) coverage
- Professional liability (errors and omissions, malpractice)
- Employment practices liability insurance (EPLI)
- Cyber liability insurance
- Umbrella and excess liability policies
- Key Coverage Areas
- Premises and operations
- Products and completed operations
- Contractual liability and personal/advertising injury
- Policy Provisions
- Limits of liability: Occurrence vs. aggregate
- Policy exclusions and endorsements
- Claims-made vs. occurrence forms
4. Commercial Auto Insurance
- Types of Policies
- Business auto coverage form (BACF)
- Garage and garagekeepers insurance
- Truckers and motor carrier coverage forms
- Key Coverages
- Liability: Bodily injury and property damage
- Physical damage: Comprehensive and collision
- Additional coverages: Hired and non-owned auto
- Policy Management
- Fleet management and rating factors
- Special risks: Long-haul trucking, delivery fleets
5. Workers’ Compensation Insurance
- Coverage Overview
- State-mandated requirements for employee injury coverage
- Medical benefits, lost wages, and rehabilitation
- Employer liability for work-related injuries
- Policy Provisions
- Monopolistic vs. competitive states
- Exclusions and endorsements
- Underwriting Considerations
- Experience modification factor (MOD)
- Job classifications and premium calculations
6. Commercial Crime Insurance
- Types of Coverages
- Employee dishonesty
- Theft, robbery, and burglary
- Forgery or alteration
- Policy Provisions
- Inside/outside premises coverage
- Exclusions and limitations
7. Specialized Commercial Insurance
- Surety Bonds and Fidelity Bonds
- Types: Contract bonds, license and permit bonds, judicial bonds
- Key differences between insurance and bonds
- Business Owners Policy (BOP)
- Comprehensive coverage for small to mid-sized businesses
- Coverages: Property, liability, and business interruption
- Professional and Industry-Specific Coverages
- Errors and omissions for consultants, accountants, etc.
- Medical malpractice, legal malpractice
- Builders risk, equipment breakdown
8. Ethics and Market Conduct
- Suitability and needs analysis for business clients
- Ethical practices in underwriting and claims
- Compliance with anti-discrimination laws
- Prohibited practices: Rebating, misrepresentation
9. State-Specific Laws and Regulations
- Licensing requirements for commercial lines agents
- Continuing education mandates
- Unique state programs (e.g., FAIR Plans for high-risk businesses)
- Local laws for workers’ compensation, liability, and property coverage