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Idaho Property Insurance > 5- Commercial Property Policies > Flashcards

5- Commercial Property Policies Flashcards

1
Q

Breach

A

breaking or failing to observe a law or agreement

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2
Q

Direct damage

A

physical damage to property that results from inability to use the damaged property

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3
Q

Monoline policy

A

a policy that covers one type of insurance

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4
Q

Modular policy

A

a policy that consists of several different documents which together form a complete policy

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5
Q

Personal effects

A

privately owned items normally worn or carried on the person

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6
Q

Commercial package policy (CPP)

A

Pre-designed policy that consists of multiple coverage parts

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7
Q

7 coverage parts of a CPP

A
  1. General Liability;
  2. Commercial property;
  3. Inland marine;
  4. Commercial auto;
  5. Equipment breakdown;
  6. Crime; &
  7. Farm
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8
Q

Modular parts

A

parts combined to create a full contract

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9
Q

CPP Cancellation

A

first named insured may cancel at any time with given written notice

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10
Q

CPP changes

A

Changes may only be made by endorsements issued by insurer. First named insured may request them.

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11
Q

Examination of books

A

insurer is granted rights to audit books and records relating to the policy for up to 3 years after the end of the policy.

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12
Q

Inspections & surveys

A

Insurer is granted right to make inspections, surveys, reports, and recommendations relating to the insurance.

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13
Q

Interline Endorsements

A

endorsements that apply or could apply to more than one coverage part.

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14
Q

Why do Interline Endorsements exist?

A

To eliminate redundancy and minimize number of endorsements on a policy

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15
Q

CPP building and property coverage form

A

Main package used to cover buildings, business property, and property of others.

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16
Q

CPP building coverage

A

Insures buildings described in declarations, outdoor fixtures & furnishings, & items used in service to property.

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17
Q

Business Personal Property Coverage (BPP)

A

Covers property located in or on the buildings or structures described in declarations, within 100 ft of the building

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18
Q

What does Personal Property of others cover?

A

property that is in the care, custody, or control of the insured, id located on or in the building described or within 100 feet.

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19
Q

What animals are covered under Personal Property of Others?

A

Animals owned by others and boarded, or those owned by the insured as “stock” while inside the building

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20
Q

Pollutant cleanup and removal

A

Pays up to $10,000 for expenses incurred to remove pollutants if discharge was from a covered peril.

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21
Q

Coverage extensions

A

Property that can be covered if the policy has over 80% coinsurance percentage.

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22
Q

Newly acquired or constructed property must be added to the insurance when?

A

30 days for new buildings & property, up to $100,000 coverage

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23
Q

Valuable papers and records

A

$2,500 for the cost to research, replace, or restore lost information from valuable papers and records that are not electronic data.

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24
Q

Property off premise

A

Up to $10,000 for property, including stock, temporarily off premise (trade show, fair, exhibition)

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25
Q

Safety glazing material

A

glass treatments to make them less likely to break or to make pieces pose less of a threat when broken.

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26
Q

Builders Risk form

A

insures buildings while under construction.

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27
Q

Property covered under a Builders Risk form

A

buildings or structures, temporary structures, machinery, equipment, materials, and supplies within 100 ft

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28
Q

Property not covered under a Builders Risk form

A

land or water, outdoor lawns, trees, shrubs, bushes, satellite dishes, or signs.

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29
Q

4 additional coverages of a Builders Risk form

A
  1. Debris removal
  2. Preservation of property
  3. Fire dept. service charge
  4. Pollutant cleanup and removal
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30
Q

2 coverage extensions of Builders Risk form

A
  1. building materials and supplies of others

2. Sod, trees, shrubs, and plants

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31
Q

Coverage for indirect losses is

A

NOT automatic with CPP

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32
Q

Business income formula

A

business income=net profit or loss (before taxes) + continuing normal operating expenses include payroll

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33
Q

Suspension

A

slowdown or cessation of the insured’s business activites

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34
Q

Operations

A

business activity at premises

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35
Q

Period of restoration

A

the time period within 72 hours of a direct physical loss for business income.

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36
Q

Civil Authority

A

coverage will be extended if the insured suffers extra expenses because of neighboring property (no more than 1 mile).

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37
Q

Civil authority coverage limit

A

4 weeks and a 72-hour waiting period.

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38
Q

Commercial Extensions of Coverage

A
  • Additional insureds
  • Newly acquired organization
  • Newly acquired property
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39
Q

Commercial Newly acquired ventures include

A

new organizations, other than partnerships or joint ventures, but only for 90 days or until the end of the policy period, whichever is sooner.

40
Q

Commercial Newly acquired property includes

A

coverage for buildings or personal property that comes into insured’s control, care, or custody after the beginning of policy period

41
Q

Coverage of Commercial Newly acquired property ends when

A

the policy expires, 30 days after property comes under insured’s control, or when values are reported to insurer- whichever comes first

42
Q

Commercial concealment, misrepresentation, or fraud condition

A

If insured commits fraud, then coverage will be voided as it relates to the policy at the time.

43
Q

Filed Coverages

A

standardized coverage forms through state authorities

44
Q

Uniled Coverages

A

Present unique exposure to loss where standardized forms do not yet exist.

45
Q

Nationwide Marine Definition

A

statement about the types of coverage that may be properly written on Inland Marine and Ocean Marine insurance forms.

46
Q

NAIC

A

National Association of Insurance Commisioners

47
Q

4 General Classes of risk for Inland Marine coverage

A
  1. Domestic shipments and transport risks;
  2. Bridges, tunnels, and other instrumentalities of transp & comm;
  3. Commercial property floater risks;
  4. Personal Property floater risks
48
Q

What is the typical deductible for Filed forms of Inland marine coverage?

A

$250 for any one loss.

49
Q

Inland marine covers what?

A

mobile equipment, material, or products

50
Q

Accounts receivable coverage

A

Form that provides coverage in the event that accounts of customers are lost in a way that makes it impossible to collect from them. (Ex. Accounts receivable records are lost)

51
Q

Bailee’s Customer form

A

covers loss to customer’s property in care, custody, or control of the insured

52
Q

Commercial article form

A

Covers interest of the owners of commercial cameras, musical instruments, and similar property

53
Q

Contractor equipment floater

A

Unfiled form to cover mobile equipment and contractor’s equipment owned, rented, or borrowed by contractors.

54
Q

When does Contractor equipment floater form cover equipment?

A

When it is on a job site, in transportation to and from a job site, or while temporarily stored between jobs.

55
Q

Electronic data processing form

A

covers businesses that own, lease, or rent data processing equipment

56
Q

4 coverages for Electronic data processing

A
  1. Computer hardware that is specifically scheduled;
  2. Data processing media, including tapes, punch cards, discs;
  3. Extra expense the insured incurs to continue business after a loss;
  4. Business interruptions cover loss of income related to damaged equipment data
57
Q

Installation floater form

A

Covers heating and cooling equipment intended to become permanent part of a building

58
Q

Signs form

A

Limited coverage of $2500 for attached outdoor signs

59
Q

Valuable paper and records forms

A

Most important and most popular coverage.

Covers inscribed, printed, or written documents; manuscripts or records; abstracts; books; deeds; drawings; films; maps; or mortgages.

60
Q

Valuable paper and records does NOT include

A
  • money or securities;
  • converted data;
  • programs or instructions for data processing;
  • material on which such data is stored
61
Q

3 categories of property carrier

A
  1. Common carriers (transport property of anyone who hires them)
  2. Contract carriers (transport property of those with a written contract)
  3. Private carriers (transport own property)
62
Q

3 parties with interest in property being transported

A
  1. Shipper (co. sending the goods)
  2. Consignee (person receiving the goods)
  3. Carrier (co. transporting the goods)
63
Q

Motor truck cargo policy-carriers form

A

Covers the carrier against liability for damage to the goods.

64
Q

Motor truck cargo policy-owners form

A

Only covers goods in or on a vehicle while in transit and covers direct damage to owner’s property

65
Q

Annual transit

A

Policy used by those businesses that ship goods on a regular basis.

66
Q

Trip Transit

A

Policy used to cover specific shipments or trips. Can be named peril or all-risk basis.

67
Q

Equipment breakdown was previously called

A

Boiler or machinery coverage

68
Q

Equipment Breakdown Policy

A

Pays for direct loss to covered property caused by the breakdown of covered equipment.

69
Q

Expediting Expenses

A

Up to $25,000 for temporary repairs or expediting permanent repairs or replacement

70
Q

Spoilage damage

A

Covers damage to raw materials, property in process, or finished products

71
Q

Utility interruption

A

If interruption is a direct result of a breakdown (electrical, A.C., heating, gas, sewer, etc)

72
Q

In what time frame must equipment be fixed or replaced?

A

Within 24 months of the original break

73
Q

What are the limits to coverage for fungus, wet or dry rot?

A

Breakdown covered for 12 months and $15,000 for testing, removal, and restoration.

74
Q

All accidents at the same location at the same time and by the same cause are considered what?

A

A single accident

75
Q

4 types of farm coverage

A
  1. Farm property;
  2. Farm liability;
  3. Mobile ag. machinery & equipment;
  4. Livestock
76
Q

Farm Policy Coverage A

A

Dwellings. Similar to Homeowners program, but antennas, towers, & satellite are covered up to $1,000

77
Q

Farm Policy Coverage B

A

Other private structures

Automatic limit of 10% of Coverage A for any other structures that are primarily used for farm purposes

78
Q

Farm Policy Coverage C

A

Personal Property. Covered when owned by insured and located on the insured location.

79
Q

Farm Policy Coverage D

A

Loss of Use. Covers additional living expenses if principal living quarters become uninhabitable.

80
Q

Farm Policy Coverage E

A

Scheduled Farm Personal Property. Pays for direct loss of or damage to covered property.

81
Q

Covered Scheduled farm property may be

A
  • Grain & grain in sacks
  • hay, straw, fodder
  • Farm products, materials, & supplies
  • Livestock
  • Bees, worms, fish, etc.
  • Poultry while in open or in coop
  • Computers related to farm mgmt
  • Portable buildings or structures
82
Q

Coverage E- Scheduled farm property does NOT cover

A

Growing crops, trees, or household personal property

83
Q

Special limits of Liability to Coverage E- Scheduled farm property

A
  • Hay, straw, & fodder in the open ($10,000 oer stack);
  • Misc. Farm equipment (no more than $3,000 per item);
  • Poultry @ market value;
  • Livestock not specifically insured to ACV
84
Q

Farm Policy Coverage F

A

Unscheduled Farm Personal Property.

85
Q

Farm Policy Coverage G

A

Other Farm structures. Includes Barns, outbuildings, and other strucures

86
Q

Mobile Ag Machinery and Equipment Form

A

Includes mobile devices for everyday farm operation, such as accessories, tools, and spare parts

87
Q

Livestock Coverage Form

A

Named peril coverage insuring losses resulting in death or necessary destruction of livestock, except by a vehicle.

88
Q

Livestock Coverage may be extended to

A

Accidental shooting, drowning, electrocution, attack by wild dogs or animals, loading or unloading accidents, & building collapse

89
Q

Custom farming

A

specific planting, cultivating, harvesting, or similar specific operations by an insured farm, not at an insured location

90
Q

Livestock

A

Cattle, sheep, goats, horses, mules, and donkeys, but not poultry.

91
Q

Basic loss form for Farms includes

A

Collision coverage for E & F when causing:

  • damage to machinery
  • death of covered livestock
  • damage to other farm property
92
Q

Broad form includes what perils

A
  • Electrocution of covered livestock
  • Attacks on livestock by dogs or other animals (except to sheep)
  • Accidental shooting
  • Drowning of livestock
93
Q

Bankruptcy of insured farms will NOT

A

relieve insurer of their obligations

94
Q

Business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. What is the nature of this type of coverage?

A

Time element

95
Q

What is the limit payable on business property located away from premises?

A

$500

96
Q

Peak Season endorsement

A

Provides higher coverage within months where a business may carry more inventory

Idaho Property Insurance (9 decks)

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