Property and Casualty Insurance Differences By State

It may come as no surprise that Property and Casualty insurance varies from state to state, but were you aware that these differences aren't just circumstantial? In fact, most states go as far as to enact specific laws they believe will best protect their citizens or aid insurance providers that create employment and economic revenue. Such legislative actions have significant impacts on how insurance products are ultimately sold and managed.

Are the Differences Major?

In general, Property and Casualty insurance offers protection against a range of property risks, such as fire, flooding, earthquakes and boiler leaks. One thing you might have noticed when examining contracts, however, is the fact that some risk situations are outright excluded from coverage.

For instance, if a consumer lives in a state like Massachusetts, their insurance may automatically come with a storm damage clause. Because the likelihood of storm damage is generally perceived to be rare, insurance company lobbyists may not have campaigned against the inclusion of such terms.

In states like South Carolina, on the other hand, the routine occurrence of severe weather systems may mean that consumers have to purchase separate hurricane coverage for such events. Notably, Florida has enacted laws designed to change the way insurance works and support state-run providers in light of local proclivities for natural disasters. Some private insurance firms have even quit offering coverage in these areas as a result, and the corpus of legislation impacting how products may be sold is continually expanding.

Defining Key Terms

Also remember that although they're commonly grouped together, Property insurance and Casualty insurance are different. Property insurance is designed to protect businesses or individuals who have invested in the property itself, while Casualty insurance provides them with legal liability protection in case someone else incurs a property loss or an injury.

Because state laws vary drastically when it comes to tort law and liability proceedings, it's quite possible that a state may require specific endorsements and minimum deductibles for policies to be valid. Quantified minimums are common, and they may also be accompanied by special stipulations pertaining to business consumers, such as New Jersey's Temporary Disability Benefits Law and various worker compensation laws enacted throughout the nation. Due to the unique history of insurance laws in any given state, it's usually critical to study specific codes and statutes in order to gain a better understanding of the variances.

Choosing the Right Life and Health Insurance License Study Guide

The Life and Health Insurance Prep Course from 360training, offered by mindhub, is a comprehensive review of state specific and national insurance laws. Editions are available for various states. This life and health insurance license study guide helps candidates prepare for the state administered exam in order to gain licensure.

What’s included?

The Online Prep Course will allow you to learn and remember the critical insurance vocabulary, concepts and products that will be tested on your State Licensing Exam. Within the course you will find the essential information that you’ll need to obtain your license. This crucial knowledge is presented in easy to read, user-friendly language that is devoid of legal complexities and legislative mumbo-jumbo. The publisher has even taken care to clearly define the insurance terms before they are used.

The instructional content is reinforced with:
  • Interim quizzes in the format of your state exam so that you may monitor your progress easily
  • Key Points summary at the end of each chapter that reduces the critical information to less than a page
  • An extensive glossary/index that allows you to effortlessly define or locate that important term you simply cannot remember
  • A rigorous final exam designed to tell you if you are adequately prepared for the State Exam
  • State Law material translated into plain English which simplifies the section of the test that causes 70% of the failures.

The course is divided into two sections: the ‘national core’ (useful in any state), containing information in sections 1-3, and section 4 is the State Law portion of the course. Within each section, you’ll learn and review insurance vocabulary, concepts and products that will be on your state licensing exam. 
  • Section 1 of the course outlines the purpose of insurance, contract laws and intricacies of underwriting.
  • Section 2 covers life insurance including types of policies, provisions, annuities and retirement plans, business group life and social security information.
  • Section 3 includes accident and health policies and plans. This particular section outlines policies and provisions surrounding medical expenses, disability income, Medicare and Medicaid and individual health care policies.
  • Section 4 goes over state Life and Health insurance laws. Each section is specially designed to give you comprehensive knowledge about Life and Health insurance to help you pass the licensing exam with flying colors.
Included with the course is the easy-to-read Resource Guide that explains the legal complexities of Life and Health insurance coverage as deemed within national and state laws. The Resource Guide mirrors the content, sequence and style of the Online Course. It fleshes out the subject matter, serves as a useful reference and provides a format that can be easily highlighted to organize and reduce the tedium of note taking.