Assignment #4

Question 1

3 Parties Impacted by Loss

Answer 1

Property Owner
Property Holder (Bailee)
Secured Lender

Question 2

Parts of CPP

Answer 2

Declarations
Building and Personal Prop Coverage
Business Income and extra expenses coverage
Causes of loss
Conditions
Endorsements

Question 3

Parts of BPP

Answer 3

Buildings
Business Personal Property (100 feet rule)
Personal Property of Others (100 feet rule)

Question 4

Specialized Coverages

Answer 4

Equipment Breakdown Coverage – accidental breakdown of equipment (BPP doesnt cover)

Business Income Coverage (either w or w/o extra expenses)

Commercial Inland Marine
- Property in Transit (Annual, Trip, Motor Truck Liability)
- Contractor’s equip floater
- Builders Risk Policy
- Bailee’s customers property
- Dealers policy
- Instrumentalities of communication and transportation

Commercial Crime (for govt and non-financial orgs, employee theft / forgery)

Question 5

Amount Subject vs NLE vs PML vs MFL

Answer 5

Amount Subject – TIV subject to loss (varies UW to UW)
NLE – loss if all protections work
PML – probable maximum loss (assumes 2 protections go wrong for 1 event)
MFL – maximum foreseeable loss (everything goes wrong except passive protections… also called maximum possible loss)

Question 6

Commercial Property Exposed to Loss (5)

Answer 6

(1) Buildings (incl equip used to service and boilers and machinery)
(2) Business Personal Property
(3) Money and Securities (unique risks to being stolen)
(4) Vehicles & watercraft
(5) Property in transit