This module introduces you to the types, or forms, of insurance that represent the standard forms published by the Insurance Services Office (ISO). These forms may not be identical to those you see when you review a client’s insurance, but they provide a useful tool for learning the basics of property and liability insurance.

When it comes to Property & Casualty insurance, only two types of coverage are compulsory. When a person buys a house by borrowing some of the money, the lender requires him or her to purchase and maintain insurance to protect against loss of the structure. Throughout the United States, owners of vehicles in just about every state are required to have insurance coverage that will protect other drivers against their negligent acts. This module introduces you to homeowners insurance and the personal auto policy (PAP). Additionally, it will introduce personal liability insurance, title insurance, commercial lines of insurance, and professional liability insurance.

Since this is an introduction to property and casualty (P&C) insurance, do not expect to be an expert when you have finished this module. The traditional insurance term, casualty, is synonymous with liability. Many states modify the standard forms, and for some types of coverage the standard forms are rarely used. Property and casualty insurance is complex, and as a financial planner you will best serve your clients by knowing competent, licensed insurance agents who specialize in these areas, and make referrals accordingly. Many property and casualty agents (or producers) avoid dealing with commercial lines of insurance, because it is a specialty all its own. Giving inappropriate advice about these forms of insurance can cost your clients substantial sums of money and may result in you finding out how good your own professional liability insurance is. As with all areas of financial planning, it is important to know your strengths and call on experts to cover your weaknesses.

About the Author

David Mannaioni, CFP®, MPASSM is a professor at the College for Financial Planning. Utilizing his 30+ years of experience in the financial services industry, David also maintains a financial planning practice where he works with his clients in all areas of financial planning. In addition to his certifications, David holds life and health insurance licenses in several states, as well as the Series 6, Series 7, and Series 63 registrations with FINRA. You can contact David at david.mannaioni@cffp.edu.

Complexity Level: Intermediate