Chapter 4 Flashcards
Define Endorsement
Endorsements change terms of existing policies.
Define Rider
Riders add coverages to those already on the policy.
Indicate covered or not covered on Sign coverage: Mechanical Breakdown.
Not Covered
Indicate covered or not covered on Sign coverage: Damage caused by power surge.
Not Covered
Indicate covered or not covered on Sign coverage: Damage caused when dropped during installation.
Not Covered
Indicate covered or not covered on Sign coverage: Damage caused by freezing.
Not Covered
Indicate covered or not covered on Sign coverage: Damage caused by striking employees.
Not Covered
What values are insured on a Glass Rider?
i) Glass
ii) Artwork on glass
iii) Tape and foil on glass
When would tenants require Glass Riders?
Tenants may require glass coverage when they have assumed responsibility for damage to glass in their lease.
What type of information is required by underwriters when insuring glass on a scheduled basis?
i) Type, size, and number of glass units
ii) Location of glass
iii) Information of any lettering, tape, foil, or ornamentation
What are two factors relating to location which may influence Glass Rider premiums?
i) Interior or exterior
ii) Level located on building, i.e. first floor or second floor.
List three examples of losses insured by Glass Riders:
i) Employee breaks glass while carrying lumber into store
ii) Customer breaks glass with floor lamp they just purchased while leaving the store
iii) Glass breaks as a result of settling of building’s foundation
Indicate covered or not covered by Glass Rider coverage: Glass broken during construction.
Not Covered
Indicate covered or not covered by Glass Rider coverage: Glass broken during repairs to window frame.
Not Covered
Indicate covered or not covered by Glass Rider coverage: Glass damage when building is vacant, unoccupied, or shut down for more than 30 consecutive days.
Not Covered
What are four coverages provided by the Accounts Receivable Form and provide and example of each.
i) Amounts which cannot be collected due to loss of accounts receivable records.
Example: Client cannot remember entire list of customers who have an outstanding amount due to your client.
ii) Interest on loans or lines of credit your client needs to utilize to pay current liabilities
Example: Money owed to suppliers must be paid prior to settlement with insurer.
iii) Extra costs in the collection of accounts receivable.
Example: Amounts paid to collection agencies or overtime.
What is the requirement of insurers when accounts receivable records are not in use and the premises are closed?
When records are not in use, or when premises is closed, accounts receivable records must be stored in described receptacle.
What are two factors which will influence premiums to be charged on Accounts Receivable
i) Availability of duplicates
ii) Quality of described receptacle
What are two factors which will influence premiums to be charged on Valuable Papers and Records coverage?
i) Availability of duplicates
ii) Quality of described receptacle
When can coverage be extended to insure Valuable Papers and Records while off premises?
i) When being transported outside the premises
ii) When at other premises on a temporary basis
What limit of coverage is available to insure Valuable Papers and Records while off premises?
10% of amount of insurance or $5,000, whichever is less
What type of electrical disturbance is insured by Valuable Papers and Records Insurance?
When electrical disturbance, caused by lightning, damages valuable papers, coverage is provided.
