Property & Casualty Insurance Cheat Sheet.
The night-before summary, built like the exam.

Memorize the coinsurance formula: amount carried divided by amount required, multiplied by the loss, minus the deductible, along with the common coinsurance percentages of 80, 90, or 100 percent of property value. Know the homeowners internal limits, including Coverage B at typically 10 percent of Coverage A and Coverage C at typically 50 percent, plus the rule that a dwelling should be insured to at least 80 percent of replacement cost. Also lock in how split limits read, for example 100/300/50 meaning $100,000 per person and $300,000 per accident for bodily injury and $50,000 for property damage.

The classic traps are look-alike term pairs. Peril versus hazard: a peril is the actual cause of loss like fire or theft, while a hazard is a condition that increases the likelihood or severity of loss. Moral versus morale hazard: moral involves dishonesty like intentionally causing a loss, while morale is carelessness because insurance exists. Named versus open perils also flips the burden of proof — the insured must prove a covered peril under named perils, while the insurer must prove an exclusion under open perils.

Know the coverage basis of each major form: the HO-2 broad form covers both dwelling and personal property on a named perils basis, the HO-3 covers the dwelling on an open perils basis but personal property on named perils, and the HO-5 covers both on open perils for the broadest protection. Also remember that jewelry, furs, and firearms carry special theft sublimits and need a scheduled personal property endorsement for full protection. The HO-3's mixed basis is one of the most tested distinctions.

Focus on indemnity, which limits recovery to the actual loss so no one profits from a claim; insurable interest, which in property insurance must exist at the time of loss; and subrogation, which lets the insurer recover from a responsible third party after paying a claim. Also know the insured's duties after a loss: prompt notice, protecting property from further damage, and submitting a signed proof of loss. When multiple policies cover one loss, the pro rata condition splits it among insurers in proportion to their limits.

For the CGL, know the occurrence versus claims-made split: an occurrence form covers injury or damage that happens during the policy period no matter when the claim is filed, while a claims-made form covers only claims first made during the policy period, often subject to a retroactive date. Remember the BOP packages property and general liability for small and medium businesses in one policy. For workers compensation, benefits are statutory and no-fault, most states mandate the coverage, and the exclusive remedy rule means employees generally give up the right to sue the employer.

Use it as a final recall check, not a first read: cover each section, recite the rule from memory, then verify. Prioritize the coinsurance formula, the homeowners form comparisons, the auto coverage parts, and the term pairs that trip people up. The cheat sheet compresses what you already learned through practice questions and full study, so if a line surprises you the night before, flag that topic for a quick morning review rather than cramming new material late.