P&C Study Guide 2026

The NAIC model privacy act establishes standards for insurers' collection and use of personal information, giving individuals the right to access their records, challenge inaccurate information, and limit disclosure.

Workers compensation is a statutory program — nearly every state requires employers to carry it, providing injured employees with medical care and wage replacement on a no-fault basis in exchange for the employee giving up the right to sue the employer.

Punitive damages (also known as exemplary damages) are awarded not to compensate the plaintiff for their losses, but to punish the defendant for egregious, malicious, or grossly negligent conduct and to deter others from engaging in similar behavior. Special damages cover specific economic losses (like medical bills), and general damages cover non-economic losses (like pain and suffering).

A floater policy covers property wherever it may be located, meaning coverage travels with the insured item rather than being restricted to a specific location.

The standard mortgagee clause (also called the 'union mortgage clause') gives the lender independent rights under the policy, meaning the insurer must pay the mortgagee even if the insured commits an act that would otherwise void the policy.

A monoline policy covers only one specific line of coverage (e.g., property only or liability only), as opposed to a package policy like a BOP that bundles multiple lines together.