ISO = advisory: standard forms and loss costs, never final rates.

AM Best, Fitch, Moody's, S&P = opinion of financial strength.

Loss cost + the insurer's own expenses and profit = rate.

Direct = the physical damage; indirect = the money lost because of it.

Stay open at higher cost = extra expense; shut down = business income.

Questionnaire: cheap, but can miss exposures unique to one client.

Combined ratio = loss ratio + expense ratio; under 100% = underwriting profit.

Manual = book rate; merit = book rate adjusted for this insured; judgment = underwriter's call.

Loss reserve = estimate of unpaid claims; statutory reserve = required by law.

Named peril = only listed perils; open peril = everything not excluded.

"All-risk" does not mean everything: exclusions still apply.

Narrow to wide: basic, broad, special.

Insured cancels: short rate; insurer cancels: pro rata (standard fire form).

Flat cancellation = canceled at inception, no premium charged.

Earned = time already covered; unearned = time still to come.

First party = insured claiming on own policy; third party = claiming against the insured.

Subrogation only up to what the insurer paid.

Appraisal = amount of loss; arbitration = neutral decides the dispute.

No insurable interest = contract void (§280).

Hope of inheritance: not insurable; valid purchase contract: insurable (§283).

Assignment needs the insurer's written consent.

Fire after earthquake: fire covered, shaking not (unless EQ coverage).

Mudslide after wildfire: covered if the wildfire is the efficient proximate cause.

Predominant cause decides, not the last cause.

Signature within 60 days of application; none at renewal.

Disclosure again every other year at renewal.

The disclosure is NOT part of the policy; the policy controls.

ACV = replacement cost − fair physical depreciation, capped by the limit.

Extended RC = limit + stated %; guaranteed RC = full rebuild cost.

Code upgrade pays the added cost of meeting current codes.

No fire coverage: signed acknowledgment at issue or within 60 days.

Plus a declarations page statement and FAIR Plan / Home Insurance Finder information.

Nonrenewal notice comes with Home Insurance Finder and FAIR Plan information (§678(e)).

Renewal offer with reduced coverage: at least 45 days before expiration.

Nonrenewal notice: at least 75 days; if late, policy continues 75 days from the notice.

Replacement cost policy: code upgrade of at least 10% of the dwelling limit, on top.