Chapter 22 Flashcards
Property that can be moved
Personal property
Property permanently attached to land, such as buildings and fixtures
Real property
A policy in which two or nicer coverages are combined into one insurance purchase that provides all generally needed coverages. Insureds must purchase at least two of the packages components, but they may purchase as many other coverage forms as they need
Commercial package policy
Cover policy cancellation, assignment of the policy, and other legal rights and duties
Conditions
Includes such items as machinery, furniture and inventory.
Business personal property
Not owned by the business but in it’s care, custody, or control
Personal property
Physical assets
Tangible property
Intellectual property
Intangible property
Covers 11 perils
Basic form
Extends coverage by adding more perils to the 11, including falling objects and water damage
Broad form
Provides open perils coverage
Special form
Business income form of the CPP is used to cover these losses that typically occur after insured physical damage and are commonly referred to as business interruption losses
Indirect losses
Loss of income, continuing expenses, extra expenses, leasehold interest
Types of indirect losses
The trigger for BI coverage is the necessary suspension of operations caused by insured direct physical loss of if damage to property at the premises described by the declarations. Actual loss of BI consisting of net income and continuing operating expenses 72 hours after
Business income coverage
In some cases, a business suffers no direct physical damage, but it’s operations still may be halted because other businesses or the transportation system sustain physical loss
Business income from dependent properties
The cost per hundred dollars of exposed value
Rate
Multiplying rate by number of hundreds if dollars of value of exposed property
Premium
Operates by placing comparable units into a group then charging a class date reflecting the expected loss experience and expenses of the group. Ex: residential homes, small apartment buildings.
Class rating
Construction of building, occupancy, protection class, exposure are used in class rating system
COPE
Analyzes each property individually and is used primarily in rating commercial buildings. Begins with a base rate and and charges for more hazardous conditions and credits for less hazardous conditions
Schedule rating
Four distinct types of loss exposure, hull, cargo, loss of freight, liability loss. Mostly dealing with transportation on the sea
Ocean marine
Includes value of the ship and it’s equipment
Hull exposure
Value of goods being shipped
Cargo exposure
Loss of income that the shipowner would have earned if the cargo or passengers had been delivered rather than loss
Freight exposure
The loss a shipowner would suffer if the ship were held legally responsible for negligently injuring other people or their property
Liability
Losses are those borne by the owners of the ship or cargo due to direct damage to their property
Particular average
The loss attributed to the owners of the property where there was not necessarily a loss to their property, but other property was thrown overboard to save the shop and the loss was borne proportionately by all who had property exposed to the loss during the voyage
General average
Seaworthiness of the ship, experience rating and ability of captain and crew, the potential for loss of the cargo, the scheduled route and season of the year. The coverage provided by the policy
Ocean marine insurance rating
Typically an open perils contract. Includes bailiees customers policies, instrumentalities of transportation polices, and personal and commercial property floaters. Ex: transporting blue jeans
Inland marine insurance
A property belonging to one party (bailor) is temporarily in the possession of a second party (the bailee), but ultimate possession is to return to the first party
Bail ebt
Will pay the bailee if the property is lost, not returned, or damaged
Bailees customers insurance policy
Protects the interest of the shipper (bailor)
Annual transit policy
Protects the interest of the trucking company (bailee)
Motor truck cargo insurance
May cover a variety of different structures, including bridges, tunnels, piers, pipelines, wharves, dans, and traffic signals
Instrumentalities of transportation
Cover property that is moved easily and frequently and is generally high value
Floater policies
Covers valuable assets such as camera, jewelry, furs, guns, stamp and coin collections, and ailverware
Personal articles floaters
Are used when property as a whole is valuable but no one item is of outstanding value
Blanket floaters
Can cover items of significant individual value, such as medical equipment, salesperson samples, livestock, fine art, and other valuable commercial property that may be transported easily
Scheduled floaters
Provides protection, either damage cause by specified perils or in an open-perils basis to and aircraft
Aircraft hull policy
The come tidal auto component of CPP provides both liability and property coverage.
automobile property insurance
The striking of an automobile with another object, as well as the damage resulting from the overturn of the vehicle
Collision
Loss caused by the following is considered other than collision: missile or falling objects, fire, theft or larceny, explosion or earthquake, winds trim, hail, water, flood, malicious mischief or vandalism, riot or civil commotion, contact with bird or animal, or breakage of glass
Other than collision
Protects from a wide rage of perils, including theft, forgery or alteration, robbery and safe burglary, computer fraud, funds transfer fraud, and money orders and counterfeit money coverage
Commercial crime coverage form
Covered losses resulting from accidental breakdown of mechanical equipment
Equipment breakdown insurance
