Chapter 12 - Misc. Commercial

Question 1

What are the 6 classes of property that can be insured under marine contracts?

Answer 1

Imports
Exports
Domestic Shipments and Property in Transit
Instrumentalities of Transportation or Communication
Personal Property Floaters
Commercial Property Floater Risks

IEDIPC

Question 2

What are the two classes of Inland Marine?

Answer 2

Controlled lines and Uncontrolled (rates are not filed)

Question 3

What is the difference between the Contractors Equipment Floater and Equipment Dealers Floater?

Answer 3

Equipment dealer is for mobile agriculture and construction equipment AND property of others in the dealer’s care. Contractors equipment is coverage for the Insured’s equipment.

Question 4

What are the two coverage available for Jewelers Block Coverage?

Answer 4

Show window - coverage for articles in a show window, if window is broken or smashed and depends on whether or not store was ope or closed and if alarm is available.
Money - coverage for theft of money from safes

Question 5

What is a straight bill of lading?

Answer 5

Does not contain a value limitation for the cargo being shipped. Carrier is responsible for the full value of transported goods.

Question 6

What is a released bill of lading?

Answer 6

issued when a carrier and shipper agree that the carrier’s responsibility is limited to the value stated on the bill

Question 7

Motor Truck Cargo Carrier Liability form is for what type of property?

Answer 7

Others

Question 8

Motor Truck Cargo Owner Liability form is for what type of property?

Answer 8

Owned property - open perils

Question 9

Ocean Marine Insurance provides coverage to what?

Answer 9

Hull, Cargo, Freight, Protection and Indemnity

Question 10

Who is responsible for Cargo on FOB Point of Shipment?

Answer 10

Shipper

Question 11

Who is responsible for Cargo on FOB Point of Destination?

Answer 11

Seller

Question 12

What does Protection and Indeminity Insurance cover?

Answer 12

Cargo lost, damage to other prop and prop on board, and injuries to seamen from the ship not being seaworthy

Question 13

What does the Inchmaree Clause cover?

Answer 13

Loss due to faults in navigation, damage caused by bursting of boilers and breaking of propeller shafts.

Question 14

Regarding Bonds, who is the Principal (Obligor)?

Answer 14

The party owing the duty, usually the Insured.

Question 15

Who is the Surety (Guarantor)?

Answer 15

The Insurer, the party guaranteeing.

Question 16

Who is the Obligee?

Answer 16

The party that gets paid by the surety if the Principal (obligee) fails.

Question 17

What is the difference between Surety and Fidelity Bonds?

Answer 17

Surety - performance (contract, court, license/permit)

Fidelity - employee honesty

Question 18

What does the Equipment Breakdown Protection Coverage Form cover?

Answer 18

Property damage, expediting expenses, BI/EE, spoilage damage, newly acquired premises, ordinance or law, errors and omissions, brands and labels,

Question 19

What is considered breakdown?

Answer 19

mechanical failure or electrical failure,

Question 20

What are the coverage parts in a Farm Policy?

Answer 20

a - Dwelling
b - other structures (not farm use)
c - personal property (not farm use)
d - loss of use
e - scheduled farm
f - unscheduled farm
g - other farm structures

Question 21

What are the three forms available for Farm Policies?

Answer 21

Basic, Broad, Special

Question 22

What are the farm liability insurance coverage parts?

Answer 22

H - BI
I - Personal/Advertising
J - Medical Payments