Frequently Asked Questions:
How long do tickets stay on my record?
All minor traffic convictions and accidents remain on your driving
record for three years from the conviction date ( the date you paid the
ticket) . All major violations remain on your driving record for seven
years. Points for traffic convictions and chargeable accidents are added
and removed at the renewal of your policy. There is no change to the
policy during your policy period to add or delete points.
What should I do if I have an accident?
First, make sure you, your passengers and others are not injured. If
there are injuries call 911 immediately. Second, in most states the
police should be notified. Third, you should give your information to
the other driver(s). Provide your name, address, and telephone number.
Also let them know your insurance coverage is through the B&B Premier Insurance Solutions. Then get this same information from the other
driver(s). Finally, contact your insurance company at your first
opportunity. They can process your information make sure your claim gets
handled right away. Most insurance companies have a 24 hr/7 days a
week, toll free number. It will greatly speed up the claim by reporting
directly to the company. Many companies have adjusters answering the
phone which can provide greater customer service.
Why should I buy from a broker?
As a broker of insurance, B&B Premier Insurance Solutions represent you-the
customer. We shop from our panel of 30 different A Rated California
Admitted insurance companies to locate the best combination of price and
coverage for you! Then we continue to stand by you, shopping each
renewal to make sure that your insurance coverage keeps pace with your
How does B&B Premier Insurance Solutions have great rates for all types of drivers?
When you contact us for a quote, we shop our panel of 30 different
insurance companies to find you the most appropriate coverage at a great
price. Some of our carriers specialize in good drivers, while others
write mostly high-risk drivers. No matter what your situation, B&B Premier Insurance Solutions can place you with an insurance company that is right
for you at a very competitive price.
What is Uninsured Motorist Coverage?
Even though uninsured motorist coverage is advisable, there are many
people who do not buy this coverage. If an uninsured motorist causes an
accident you may not be able to recover any damages that you sustain. If
you purchase Uninsured Motorist Coverage, your insurance company will
pay you for the property damage and bodily injury caused by an uninsured
motorist. It will cover you, any family member, and anyone occupying a
covered automobile. The limits for this coverage are usually the same
limits that you selected for liability, although you can choose lower
limits. There are also times when a person who causes an accident has
liability insurance but your damages exceed the limits of that person’s
coverage. In California, Underinsured Motorist Coverage is included in
your Uninsured Motorist Coverage.
How much Liability Coverage do I need?
California laws require that you carry a minimum amount of liability
insurance ($15,000/$30,000/$5,000), which pays for the injuries or
damages you cause to someone else. While some people need only the
minimum level of protection, others have assets that they need to
protect. If you are unsure about how much liability insurance you need,
consult a B&B Premier Insurance Solutions professional. We can tailor a
program to provide the right amount of protection for you and your
family. For property owners, we suggest a minimum of
$100,000/$300,000/$100,000 for auto and $500,000 for homes.
ACT OF GOD – An unpreventable accident or event that is the result
of natural causes; for example, floods, earthquakes, or lightning.
ANTISELECTION – The tendency of individuals who believe they have a
greater than average likelihood of loss to seek insurance protection to a
greater extent than do those who believe they have an average or a less
than average likelihood of loss.
APPRAISAL – A survey by a claims representative or claims appraiser
estimating the amount of damage to property and the cost to repair or
the determination of a complete loss.
ASSESSED VALUE – The monetary worth of real or personal property as a
basis for its taxation. This value, established by a governmental
agency, is rarely used by insurers as a means to determine
ASSET RISK – a measure of an asset’s default of principal or interest
or fluctuation in market value as a result of changes in the market.
AUTHORIZED CONTROL LEVEL RISKED BASED CAPITAL – insurance company’s
theoretical capital amount and surplus that is should maintain.
AVALANCHE - A slippage of built-up snow down an incline possibly
mixed with ice, rock, and soil or plant life in what is called a debris
avalanche. Avalanches are a major danger in the mountains during the
winter as a large one can run for miles, and can create massive
destruction of the lowered forest and anything else in its path.
BENEFICIARY – The person or party named by the owner of a life insurance policy to receive the policy benefit.
BCEGS - Building Code Effectiveness Grading Schedule. A
classification of communities by the Insurance Services Office based on
how well they have implemented and enforced building codes in their
BROAD FORM INSURANCE – Coverage for numerous perils.
CASH VALUE – The savings element of a permanent life insurance
policy, which represents the policy owner’s interest in the policy.
CATACLYSM - Any great upheaval that causes sudden and violent changes, as an earthquake, war, great flood, etc. (New World)
CATASTROPHIC RISK - The risk of a large loss by reason of the
occurrence of a peril to which a very large number of insured are
CATASTROPHIC LOSS- Damage resulting from a catastrophe.
CATEX - An exchange through which insurers trade “standardized catastrophe units.”
COINSURANCE CLAUSE – A clause requiring the insured to maintain
insurance on the property at least equal to a stipulated percentage of
its value in order to collect partial losses in full.
CONCENTRATION FACTOR – all companies are subject to an asset
concentration factor that reflects the additional risk of high
concentrations in single exposures
CONSUMER PRICE INDEX – An index of consumer prices based on the
typical market basket of goods and services consumed by all urban
consumers during a base period.
CONTINGENT BENEFICIARY – The party designated to receive proceeds of a
life insurance policy following the insured’s death if the primary
beneficiary predeceased the insured.
CONVERTIBLE TERM INSURANCE POLICY – A term life insurance policy that
gives the policy owner the right to convert the policy to a permanent
plan of insurance.
CORRECTIVE ORDER – an order issued by the commissioner specifying
corrective actions that the commissioner has determined are required.
CREDIT RISK – a measure of the default risk on amounts that is due from policyholders, reinsures or creditors.
DISASTER - A natural or man-made event that negatively affects life,
property, livelihood or industry often resulting in permanent changes to
human societies, ecosystems and the environment.
DECLINED RISK – A proposed insured who is considered to present a risk that is too great for an insurer to cover.
DIRECT WRITTEN PREMIUM – The total premiums received by a property
and liability insurance company without any adjustments for the ceding
of any portion of these premiums to the reinsures.
DIRECT INCURRED LOSS – The property loss in which the insured peril is the proximate cause of damage or destruction.
DROUGHT - A drought is a long lasting weather pattern consisting of
dry conditions with very little or no precipitation. During this
period, food and water supplies can run low, and other conditions, such
as famine, can result. Droughts can last for several years and
particularly damaging in areas where residents depend on agriculture for
EARTHQUAKE - A sudden shift or movement in the tectonic plate in the
Earth’s crust. On the surface, this is manifested by a moving and
shaking of the ground, and can be massively damaging to poorly built
EVIDENCE OF INSURABILITY – Proof that a person is an insurable risk.
EXCLUSIONS, HOMEOWNERS INSURANCE – Part of an insurance contract that
excludes coverage of certain perils, persons, property or locations.
EXPERIENCE RATING – A method of calculating group insurance premium
rates by which the insurer considers the particular group’s prior claims
and expense experience.
FACE AMOUNT – The amount of the death benefit payable under a life insurance policy.
FEMA – Federal Emergency Management Agency – A former independent
agency that became part of the new Department of Homeland Security in
March 2003 – is tasked with responding to, planning for, recovering from
and mitigating against disasters
FLOODPLAIN - A land area adjacent to a river, stream, lake, estuary
or other water body that is subject to flooding. These areas, if left
undisturbed, act to store excess floodwater.
FRIENDLY FIRE – Fire intentionally set in a fireplace, stove, furnace or other containment that has not spread beyond it.
FREE LOOK PROVISION – An individual life insurance and annuity
provision that gives the policy owner a stated time, usually 10 days
after the policy is delivered, in which to cancel the policy and receive
a full refund on the initial premium payment.
GRACE PERIOD – A specified length of time within which a renewal premium that is due may be paid without penalty.
HURRICANE – A hurricane is a low pressure cyclonic storm system which
forms over the oceans. It is caused by evaporated water which comes
off of the ocean and becomes a storm. The Coriolis Effect causes the
storms to spin, and a hurricane is declared when this spinning mass of
storms attains a wind speed greater than 74mph.
INSURANCE TO VALUE – The amount of insurance written on property is
approximately equal to its value. An insured most always wants to insure
all property to value.
INCONTESTABILITY PROVISION – An insurance and annuity provision that
limits the time within which the insurer has the right to avoid the
contract on the ground of material misrepresentation in the application
for the policy.
IRREVOCABLE BENEFICIARY – A life insurance policy beneficiary who has
a vested interest in the policy proceeds even during the insured’s
lifetime because the policy owner has the right to change the
beneficiary designation only after obtaining the beneficiary’s consent.
INSURABLE INTEREST – The interest an insurance policy owner has in
the risk that is insured. The owner of a life insurance policy has an
insurable interest in the insured when the policy owner is likely to
benefit if the insured continues to live and is likely to suffer some
loss or detriment if the insured dies.
LANDSLIDE - A disaster closely related to an avalanche, but instead
of occurring with snow, it occurs involving actual elements of the
ground, including rocks, trees, parts of houses, and anything else which
may happen to be swept in.
LIABILITY INSURANCE – Insurance coverage that offers protection
against claims alleging that a property owner’s negligence or
inappropriate action resulted in bodily injury or property damage to
LIFE AND HEALTH GUARANTEE ASSOCIATION – An organization that operates
under the supervision of a state insurance commissioner to protect
policy owners, insured’s, beneficiaries, and specified others against
losses that result from the financial impairment or insolvency of a life
insurer that operates in the state.
LIMNIC ERUPTION - A sudden release of asphyxiating or inflammable gas from a lake.
LOSS OF USE INSURANCE – Compensation for loss caused because the policyholder has lost the use of his property.
LOSS PAYABLE CLAUSE – A policy condition that enables an insured to
direct the company to pay any loss that may be due to a third party.
MATERIAL MISREPRESENTATION – A misrepresentation that would effect the insurance company’s evaluation of a proposed insured.
MORTALITY TABLES – Charts that show the death rates an insurer may
reasonably anticipate among a particular group of insured lives at
MORTGAGE INSURANCE – A contract that insures the lender against loss
caused by a mortgagor’s default on a government mortgage or conventional
MORTGAGEE CLAUSE – A clause in an insurance policy that makes a claim
jointly payable to the policyholder and the party that holds a mortgage
on the property.
MUDSLIDE - A mudslide is a slippage of mud because of poor drainage
of rainfall through soil. An underlying cause is often deforestation or
lack of vegetation.
MULTI PERIL INSURANCE – Personal and business property insurance that
combines in one policy several types of property insurance covering
NAMED PERIL POLICY – The insurance contract under which covered
perils are listed. Benefits for a covered loss are paid to the
policy-owner. If an unlisted peril strikes, no benefits are paid.
NATURAL AND PROBABLE CONSEQUENCES – Consequences from a given act that a reasonable person could foresee.
NEGATIVE TREND – with respect to a life and/or health insurer,
negative trend over a period of time, as determined in accordance with
the “Trend Test Calculation” included in the RBC instructions
NFIP-NATIONAL FLOOD INSURANCE PROGRAM (NFIP) – The program of flood
insurance coverage and floodplain management administered under the Act
and applicable Federal regulations promulgated in Title 44 of the Code
of Federal Regulations, Subchapter B.
OFF-BALANCE SHEET RISK – a measure of risk due to excessive rates of
growth, contingent liabilities or other items not reflected on the
100 YEAR FLOOD - A flooding condition which has a one percent chance
of occurring each year. The 100-year flood level is used as the base
planning level for floodplain management in the National Flood Insurance
ORIGINAL AGE CONVERSION – A conversion of a term life insurance
policy to a permanent plan of insurance at a premium rate, based on the
insured’s age when the original term policy was purchased.
PERMANENT LIFE INSURANCE – Life insurance that provides coverage
throughout the insured’s lifetime and also provides a savings element.
POLICY ANNIVERSARY – As a general rule, the date on which coverage under an insurance policy became effective.
POLICY RIDER – An amendment to an insurance policy that becomes part
of the insurance contract and either expands or limits the benefits
payable under the contract.
PREFERRED RISK – A proposed insured who presents a significantly less
than average likelihood of loss and who is charged a lower than
standard premium rate.
RETENTION LIMIT – A specified maximum amount of insurance that a life
insurer is willing to carry at its own risk on any one life without
transferring some of the risk to a reinsurer.
REPLACEMENT COST – The cost of replacing property without a reduction
for depreciation. By this method of determining value, damages for a
claim would be the amount needed to replace the property using new
RISK BASED CAPITAL (RBC) – the amount of required capital that the
insurance company must maintain based on the inherent risks in the
RBC INSTRUCTIONS – the RBC Report including risked based capital
instruction adopted by the NAIC, as such RBC Instructions may be amended
by the NAIC from time to time in accordance with procedures adopted by
RBC RATIO – measurement of the amount of capital (assets minus
liabilities) an insurance company has as a basis of support for the
degree of risk associated with it s company operations and investments.
This ratio identifies the companies that are inadequately capitalized
by dividing the company’s by the minimum amount of capital that the
regulatory authorities feel is necessary to support the insurance
RBC STATISTIC – ratio of authorized control level risked based
capital of an insurance company to its total adjusted capital. This
statistic determines regulatory action taken by the state’s insurance
SAFFIR SIMPSON SCALE – A 1-5 rating based on a hurricane’s present
intensity. This is used to give an estimate of the potential property
damage and flooding expected along the coast from a hurricane landfall.
Wind speed is the determining factor in the scale.
SCHEDULED PROPERTY – Listing specific personal property for a stated
insured value. This is usually considered for valuable items that are
subject to limited coverage.
SINK HOLE – A sinkhole is a localized depression in the surface
topography, usually caused by the collapse of a subterranean structure,
such as a cave.
Although rare, large sinkholes that develop suddenly in populated areas
can lead to the collapse of buildings and other structures.
STORM SURGE – A storm surge is an onshore rush of water associated
with a low pressure weather system, typically a tropical cyclone. Storm
surge is caused primarily by high winds pushing on the ocean’s
surface. The wind causes the water to pile up higher than the ordinary
sea level. Storm surges are particularly damaging when they occur at
the time of high tide, combing the effects of the surge and the tide.
SOLAR FLARE – A solar flare is a violent explosion in the Sun‘s atmosphere with an energy equivalent to tens of millions of hydrogen bombs. Solar flares take place in the solar corona andchromosphere,
heating the gas to tens of millions of kelvins and accelerating
electrons, protons and heavier ions to near the speed of light. They
produce electromagnetic radiation across the spectrum at all wavelengths
from long-wave radio signals to the shortest wavelength gamma rays.
Solar flare emissions are a danger to orbiting satellites, manned space
missions, communications systems, and power grid systems.
SYNTHETIC GUARANTEED INVESTMENT CONTRACT – modified guaranteed
investment contract in which the underlying assets of the synthetic
contract are owed by the plan itself rather than the insurance company
as is the case with the GIC. This ownership rights is of particular
importance if there is a concern about the long term financial soundness
of an insurance company. The synthetic plan segregates the plan’s
assets from the assets of the insurance company.
SUBROGATION – The circumstance where an insurance company takes the
place of an insured in bringing a liability suit against a third party
who caused injury to the insured.
SUBSIDENCE – Movement of the land on which property is situated. A
structure built on a hillside may slide down the hill due to earth
movement caused by heavy rains.
TENANTS INSURANCE – Coverage for the contents of renter’s home or
apartment and for liability. Tenant policies are similar to homeowners
insurance, except that they do not cover the structure.
Total Adjusted Capital – commonly refers to an insurance company’s
capital base under Standard & Poor’s capital adequacy model. It
includes shareholders’ funds and adjustments on equity, asset values and
UMBRELLA POLICY – Umbrella coverage is insurance coverage that
extends the terms of a regular insurance policy once coverage limits for
the regular policy have been reached. Specifically, umbrella coverage
is for people who want protection against a large jury award that is not
covered in their standard policy.
UNDERWRITING – The process of identifying and classifying the degree of risk represented by a proposed insured.
UNDERWRITING RISK – a measure of the risk that arises from
under-estimating the liabilities from business already written or
inadequately pricing current or prospective business.
UNFRIENDLY FIRE – A fire that escapes from its normal contained area. For example, fire in the fireplace leaps onto the sofa.
WRITTEN PREMIUMS – The total premiums generated from all policies written by an insurance company within a given period of time.