ISO = standard forms + advisory loss costs; never final rates (§1855.5).

ACORD = standard forms and data standards; it is not an insurer.

WCIRB = California workers' comp rating bureau (§11750.3); NCCI = out-of-state example. Test audits: within 1 year after expiration.

A rating = an opinion of financial strength, not a guarantee that a claim is paid.

Each agency has its own scale: A++ is AM Best's top, AAA is S&P's top.

Financial statements give dollar values but miss off-the-books exposures.

Flowchart = bottlenecks and dependencies; inspection = slow, costly, misses the unseen.

Direct = the peril damages the property; indirect = loss that follows from that damage.

Lost income, continuing expenses, extra expense and lost rent are indirect.

Property pays the insured's own loss; liability pays others.

Loss ratio = incurred losses ÷ EARNED premium.

Combined = loss + expense; over 100% = underwriting loss.

§923.5: reserves for all losses and claims plus adjusting expense; required by law = statutory.

Lapse = ended for unpaid premium; nonrenewal = insurer won't continue; cancellation = ended early.

Short rate keeps a penalty; must be disclosed in writing (§481(c)(1)).

Commercial nonrenewal: 60-120 days' notice; late notice = 60 more days (§678.1).

Earned = time passed; unearned = time left (returned on pro rata cancellation).

§481(b): auto liability and homeowners premium is fully earned only at expiration.

§481.5(e): net unearned = gross unearned − unearned commission.

Manual = class rate; merit = class rate adjusted for the insured's record; judgment = underwriter's experience.

Experience mod below 1.00 lowers premium: $40,000 × 0.85 = $34,000.

First party = claims under own policy (includes UM claims); third party = claims against an insured.

Subrogation = the payer pursues the party at fault.

UM disputes: one neutral arbitrator (§11580.2(f)).

Assignment of a policy generally needs the insurer's written consent.

§305: selling the property suspends the insurance; §303 death and §304 co-owner transfers are exceptions.

§520: a pre-loss ban on assigning a post-loss claim is void.

§280: no insurable interest = void contract; §281: ownership not required (liability counts).

§282: expectancy coupled with an existing interest is insurable; §283: a mere hope is not.

§285: a carrier or depositary's interest = value of the thing held.