C82 Study 5 Flashcards
What types of policies are available for tenants Insurance
Comprehensive - all risk
Basic - specified perils
Additional living expenses insurance limit under the tenants policy is equal to a percentage of the personal property insurance limit rather then a percentage of the dwelling building limit as under a homeowners policy. What is the percentage usually?
Usually 20%
The common elements of the condominium would insured under who’s policy
The condo corps master policy
Unit owners form covers
The owners individual unit
6 condominium coverages are
Personal property insurance Personal liability insurance Additional living expenses Improvments or betterments Loss assessments Unit additional protection
The policy provides that if loss ot damage to improvements or betterments is repaired or replaced within a reasonable time, using similar materials and based on
Actual cost of repairs or replacement without deduction or depreciation
The condo owner could come to a unit owner and have assessments levied against them to cover common elements what coverage would the unit owner have for this
Loss assessment coverage
This coverage only comes into play when the condo corps insurance is not enough
Loss assessment coverage
This coverage is for the individuals unit if the condo corps policy doesn’t cover this peril
Unit additional protection
Mobile homes can have which type of insurance policies
Named perils only
What is a notable exclusion in mobile home policies
Loss or damage occuring while the building is being moved will not be covered, coverage applies when the vehicle is parked
What type of insurance is not typically available for mobile homes but may be available for the contents
Replacement insurance
Insurance coverage that indemnifies for loss or damage to insured property at the current market value rather then at a depreciated value
Replacement value
Exclusions for seasonal residences coverages
Theft, collapse caused by weight of snow, vacant or unoccupied buildings may be excluded or limited
When talking about seasonal residences the following maybe insured for additional premium
Burglary
Vandalism or malicious acts
Glass breakage
Named perils excluding vandalism or all risk is available for what type of property
Rental property
Farms are subject to a two part extended coverage endorsement what are these
Dwelling and contents and rest of the farm
Main differences between the two coverages with a farm
Rupture or escape of water from heating, plumbing or air conditioning systems is covered only for the dwelling and contents section not the farm
Explosion is also broader under dwelling and contents section
Windstorm and hail coverage differs
The rebuilding clause for farm coverage states
Payout is limited to 50% of the loss up front with remainder to be fully paid when rebuild commences within 9-12 months
All occupants and contents have moved out with no intention of returning is the definition of what
Vacant property
What are the 5 major categories of commerical coverages
Property Business interruption Crime Surety bonds Libility
What are the 5 major categories of commerical coverages
Property Business interruption Crime Surety bonds Libility
Polices on business property may be written on 3 types of policies
Fire and extended coverage
Named perils policy
All risks policy
Small-medium sized business packages cover what
Business contents(stock, equipment and tenant improvments) against fire and EC or all risks
What coverages are included in SME’s packages
Contents, liability, crime and business interruption
What are optional coverages for SME’s
Flood, earthquake, sewer backup
Information required when underwriting commerical property policies
Construction
Occupancy
Protection
Exposure
Besides COPE what else do insurers want to know about commercial properties
Damageability
Combustibility
Perishability
Coverage for stock, equipment and tenants improvement; virtually any contents not building coverage. All risks (canada and US) includes theft. Coverage at specified premesis, newly acquired and in transit ex) coverage for samples that a sales person may carry. Deductible and coinsurance applicable.
Commercial Property Floater (CPF)
All risks from corresponding in similar way as CPF but insuring buildings (commercial building, equipment and stock policy is essentially a combination of CPF and _____
Commercial Building Form CBF
Used when your business requires you to regularly collect money from clients
Accounts receivable
Coverage for risks arising out of the use of computers and associated equipment. All risks
Electronic data processing equipment
Risks airising out of the use of computer related technologies would be covered under__________________
Electronic data processing (EDP) form
Coverage of buildings during the course of construction. Can purchase all risks or fire and EC. Includes coverage of construction materials on the job site
Builders Risk
Generally used for equipment that is more expensive than usual ex) cranes for sky scraper. Rating varies due to broad range of work undertaken
Contractors equipment floater
What are the two types of bailees
- Gratuitous Bailee (not paid, ex) storing furniture at a friends house
- Bailee for hire- those paid to look after their customers goods while in their possession
If Tammy gives a ring to peoples jeweler to repair it. Tammy is the _________ and peoples jewellery is the ___________
Bailor
Bailee
List some examples of special retail stores that would use the special retail policies
Jeweler, pawn shop, furrier
Coverage against breakage of glass but excludes fire, war and Nuclear damage is what type of coverage
Glass coverage
Coverage of physical and financial protection against the destructive effects of power when accidentally liberated
Equipment Breakdown Insurances
Power is defined as
The power of pressure
The power of movement
The power of electricity
A major peril when insuring ____________ & ___________ is explosion or rupture, cracking and burning.
Boilers and pressure vessels
A major peril when insuring ____________ is breakdowns
Machinery
What are the two types of commercial crimes
Non fidelity - crimes commited by others
Fidelity - crimes commited by employees
What are some rating factors for glass coverage
Size, type of glass, location, cost of lettering, indoor or outdoor
This covers loss of money, securities and property by theft from various stated locations and damage to the premises and property resulting from theft or attempted theft
Church theft
Coverage for damage to premises by actual/attempted burglary or robbery or by vandalism or malicious mischief committed at the same time
Damage to building by burglary or robbery
Covers an actual attempted robbery of a custodian om the premises is and example of which type lf robbery
Inside
Covers actual or attempted robbery of a custodian away from the premises WHILE engaged in business duties
Outside
Covers loss of money and securities by their actual destruction, disappearance or unlawful removal from within the premises
Inside
Insurance against loss due to the interruption of business by fire or other insured peril occuring at another’s premises such as those of a supplier or large customer
Contingent business interruption insurance
This rider presents three different packages of coverages designed for offices or certain small retail establishments
Office/ store Burglary and Robbery
This rider presents three different packages of coverages designed for offices or certain small retail establishments. An applicant can choose from 3 combinations which include eight possible insuring agreements. What are the 3 combinations and what are the 8 possible insuring agreements
A. Inside robbery B. Outside robbery C. Safe burglary/ burglary of money and securities D. Kidnapping E. Theft of money and securities in night depository or custodians home F. Burglary of stock in store G. Theft from office premises H. Damage to property and premises
4 point office burglary and robbery: A B C H
7 point office burglary and robbery: A B C D E G H
7 point store burglary and robbery: A B C D E F H
This policy form is primarily used only when Coverage for fidelity exposures is required
3D policy
This coverage does not protect you against the named insured for example if you have a partnership and one owner steals from the business. This is to protect against your employees
3D policy
Any risk of financial loss, disruption of business or damage to an organization’s reputation due to a failure of its information technology systmes
Cyber risk
This often comes up in the construction business when contractors say they are going to do something and don’t. These are NOT insurance.
Surety Bonds
Project owner who requires a bond is the
Obligee
Company who issues and guarantees a bond
Surety
Contractor who is bonded for a project
Principal
The maximum total amount that we will be paid out in actual claims during a policy year
Aggregate limit
The maximum total amount that will be paid out for claims arising out of a single occurrence within your aggregate limit
Each occurence limit
The following can each be subject to an “each occurence limit”
Personal injury limit
Tenants legal liability limit
Medical expense limit
Coverage is limited to business duties. Employees are considered insureds when their actions fall within the scope of their limits
Commercial general libility insured
Commercial general liability coverages include
A. Bodily injury and property damage
B. Personal injury liability
C. Medical payments
D. Tenants legal liability
Coverage applies when insured becomes legally obligated to pay compensatory damages for causing personal injury. It is subject to a named perils coverage
CGL section B personal injury liability
What are the exclusions for commercial general liability
Injury to employees
Automobiles, watercraft and aircraft
Care, custody and control
Pollution
Provides higher and broader limits of coverage at a reasonable cost
Umbrella liability
Subject to SIR self insured retained limit
Umbrella liability
True or false you need the threat of violence for robbery to happen
True
