Chapter 3

Question 1

Vacant

Answer 1

“Empty” ; or When the normal occupant is absent and the contents have been removed

Question 2

Unoccupied

Answer 2

-Lack of habitual presence of human beings; or
-When premises are complete with its contents, except that such person who normally occupies the premises is temporarily away

Question 3

Loading

Answer 3

An additional rate charged over and above the fire rate

Question 4

Centrifugal Force

Answer 4

The inertia of a body that tends to move it away from the centre around which it revolves.

Question 5

Mechanical Breakdown

Answer 5

A failure in the working mechanism of the machinery…a functional defect in the moving parts of the equipment which causes the latter to cease functioning or to function improperly.

Question 6

Electrical Breakdown

Answer 6

A failure in the electrical mechanism of the machinery, appliance or device

Question 7

Trade Losses

Answer 7

The types of losses which might be expected as a part of the every day operation of a business

Question 8

Wear & Tear

Answer 8

Deterioration or depreciation (i.e. value by ordinary and reasonable use of the subject matter)

Question 9

Gradual Deterioration

Answer 9

The deterioration of an object which arises naturally over time.

Question 10

Latent Defect

Answer 10

A hidden or concealed defect. One which could not be discovered by reasonable and customary inspection; one not apparent in face of good, product, document, etc.

Question 11

Mysterious Disappearance

Answer 11

Disappearance under circumstances which cannot be explained

Question 12

Endorsement

Answer 12

Changes the terms or conditions of the policy

Question 13

Rider

Answer 13

Adds additional coverages to those already in place

Question 14

Media

Answer 14

is CDs, DVDs backup hard drivers and cassettes, upon which data is recorded.

Question 15

Data

Answer 15

The information stored on the media

Question 16

Temporary Location

Answer 16

A location acquired (owned, rented or controlled) by the Insured. Such location is a newly acquired location for a period of 30 days from acquisition.

Question 17

Replacement Cost

Answer 17

The cost of repairing or replacing the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation.