Chapter 5 Flashcards
What coverages must be purchased to be eligible for Farm Package Policies?
- Dwelling building and personal property
- Major outbuildings and contents
- Machinery and equipment
- General Liability
Describe Fire Department Charges coverage.
The coverage will pay amounts billed by neighbouring fire departments when called to fight a fire that is damaging an insured property
What conditions are found in Farm Machinery Loss of Use coverage?
When insured machinery is damaged by an insured peril, up to $1000 may be used to rent similar machines to complete work all ready underway
Identify farm employees insured by Farm Liability coverage.
Farm employees are those who perform their duties outside the insured’s dwelling
Describe coverage for owned and non-owned recreational vehicles.
Non-owned recreational vehicles are insured whether operated on or off the premises of insured
Owned recreational vehicles are insured only when operated on insured premises and not subject to motor vehicle registration. Owned golf carts are insured while being used off premises
When should brokers recommend Employers Liability coverage?
When employees are nor insured by worker’s compensation laws. This coverage will respond to legal actions when employees are injured through the negligence of insured
Describe Voluntary Compensation Rider.
This coverage will provide benefits to employees injured while performing duties when the insured is not legally liable
What are the conditions regarding replacement cost for farm outbuildings?
Farm outbuilding may be eligible for replacement cost when:
- They are less than 15 years old
- They are constructed principally of new materials
- They are on permanent foundation
- They are being used for originally intended purpose
Describe the Deferred Loss Settlement Clause.
When there is damage to insured building, 50% of the loss will initially be paid to insured. The remaining 50%, plus interest, will be paid when client complies with the following provisions:
- Building is repaired or replaced with building designed for the same purpose
- Repair or replacement is completed within 9 months of date of loss - Building is repaired or replaced within 200 feet of original building
Describe the Environmental Exclusion.
Generally all losses resulting from pollution are excluded.
However, coverage will be provided for:
- Losses caused by smoke from hostile fires
- Chemical drift damage to third party’s property from ground spraying operations when damage is detected within 120 hours of spraying operations
Define Farming
Farming =
Define Custom Farming
Custom Farming =
When insuring farm building contents, what is included in the main coverage form?
When insuring farm building contents, what requires a separate coverage form?
Identify three types of farm buildings/structures that would not normally be provided with windstorm and hail coverage?
Identify two requirements which must be shown before an insurer will provide replacement cost on a farm building
Identify the three components of the Deferred Lost Settlement Clause
Identify four coverages that must be purchased in order to qualify for Farm Package policies
Identify three types of farm building contents that may require specialized coverage forms
Other than the named insured, identify two others who would be protected by coverage provided by General Liability coverages found on Farm Package Policies
