25. Property Insurance Flashcards
What is DYNAMIC risk? Give an example.
Dynamic risk is defined as the UNINSURABLE risk associated with changes in the economy, income taxes, and supply vs demand issues.
What is STATIC risk? Give an example.
Static risk is defined as INSURABLE risk associated with events such as accident liability, fire, theft, and vandalism.
What does ‘Fire and hazard insurance’ provide coverage against?
The policy provides coverage against direct loss or damage to property from fire on the premises.
Extending standard fire coverage can cover hazards such as:
Windstorm, hail, smoke damage, and civil insurrection.
What does ‘Business interruption insurance’ cover?
The policy covers the loss of income that occurs if the property cannot produce income.
What does ‘Contents and personal property insurance’ cover?
The policy covers building contents and personal property during periods when they are not actually located on the business premises.
What does ‘Liability insurance’ cover?
The policy covers the risks an owner assumes when the public enters the building.
Medical expenses are paid for a person injured in the building as a result of owner/landlord negligence.
What does ‘Casualty insurance’ cover?
The policies include coverage against theft, BURGLARY, vandalism, and machinery damage as well as health accident.
When are casualty insurance policies are usually written?
Casualty policies are usually written on specific risks such as theft, rather than being all inclusive.
What does ‘Surety bonds’ cover?
Surety bonds cover an owner against financial losses that result from an employee’s criminal acts or negligence while carrying out his or her duties.
What does ‘Boiler and machinery insurance’ cover?
The policy covers the repair and replacement of heating plants, central air-conditioning units, and other major equipment.
What is an ‘Umbrella policy?’
An umbrella policy is a type of excess liability coverage with two basic forms; personal and commercial.
Excess liability coverage that provides coverage for those areas that would “fall between the cracks” with other policies are referred to as
Personal umbrella policies.
What is a ‘Monoline policy?’
This type of policy provides only one line or area of coverage and bears greater relevancy to the insurer than to the insured.
What is a ‘Packaged policy?’
This policy provides for a variety of different coverage types.
