Chapter 8 Flashcards
Identify the components of a Commercial Package Policy
Common Policy Declarations
Common Policy Conditions
Interline Endorsements
Coverage parts
Identify info. Included on on Common Policy Declarations
Part of each commercial policy
1. As expected it will list one or more Named Insureds, the mailing address, the policy period and the business description
2. First named insured is the first party listed on the National Insured Line
What are Common Policy Conditions?
Cancelation Changes Examination of your books and records Inspection and Surveys Premiums Transfer of your rights and duties under this policy
Identify the Farm Coverage Forms
Farm Property Coverage Form- FP 00 12
Farm Personal Property Coverage Form- FP 00 13
Livestock Coverage Form- FP 00 40
Mobile Agricultural Machinery & Equipment Form
Losses to livestock covered under the Broad Form that are not covered under the Basic Form
Electrocution Attack by dog or wild animal Accidental shooting Drowning Loading or Unloading
Define Livestock
Cattle, swine, sheep, goats, horses, mules and donkeys
Define Farming
The operation of an agricultural or aquacultural enterprise and includes operations of roadside stands on the named insured’s farm premises maintained solely for the sale of farm products produced principally by the named insured
How does the vacancy provision in the Farm Form differ from other policies?
If a building or structure is “unoccupied” or “vacant” greater 120 consecutive days, the limit of insurance applicable to buildings or structures
Review Farm Coverage
Coverage A- Dwelling
Coverage B- Other Private Structures
Coverage C- Household Personal Property
Coverage D- Loss of Use
Coverage E- Scheduled Farm Personal Property
Coverage F- Unscheduled Farm Personal Property
Coverage G- Barns, Outbuildings and Other Farm Structures
Identify Commercial Property Coverage Forms:
Building and Personal Property Coverage Form
1. Insure all types of commercial property with the exception of those classified as Builders Risk or Condominiums
2. Will pay if the loss is a direct physical loss of or damage to covered property at the premises described in the declarations caused by or resulting from and covered cause of loss
3. As listed on Dec. Page
Describe Property covered under Building
1.Completed additions
2.Fixtures
3.Permanently installed machinery and equipment
4. Personal property used to maintain or service the premises including
A. Fire extinguishing equipment
B. Outdoor furniture
C. Snow throwers
D. Lawn mowers
E. Floor coverings
5. Appliances used for refrigerating, ventilating, cooking, dish-washing, or laundering
Describe Property covered under Business Personal Property
- Furniture, fixtures, machinery and equipment
- Stock materials used for making the insured’s products or inventory
- All other personal property owned by the named insured and used in the insured’s business
- Labor, materials, or services furnished or arranged by the named insured on personal property of others
- Improvements and betterments added by an insured tenant
- Any leased personal property the insured has a contractual obligation to insure such as a lead copier or phone system
Identify the six additional coverages
Debris removal Preservation of property Fire department Service Charge Pollutant Cleanup and removal Increased Cost of Construction Electronic Data
What valuation method is used to pay claims under the Business Personal Property Coverage Form?
AVC
What coverage does the Business Income Form provide?
- The actual loss of income to a business when the loss results from a partial or total shutdown from the insured’s operations
- Period of restoration- Time that begins 72 hours after the direct loss and ends on the earlier of
a. The date the property at the described premises should have been repaired or replaced with reasonable speed and similar quality
b. When business is resumed at a new permanent location
Define Business Income
- The net income that would have been earned or incurred plus all continuing operating expenses including payroll. This coverage has a coinsurance requirement typically 50% unless waived or suspended by one of the following
a. Agreed Value
b. Monthly Limit of Indemnity
c. Maximum Period of Indemnity
Name three optional Business Income forms:
Business Income Coverage form
Extra Expense Coverage Form
Legal Liability Form
Describe the Legal Liability Coverage Form
Pays for the insured’s legal liability for loss or damage to property of others, rented, occupied or in the insured’s care, custody or control resulting from a covered cause of loss
List and explain the 3 Causes of Loss Forms
- Basic Cause of Loss Form
a. Includes 11 named perils( FL WHARVVVESSS)
b. Fire, Lightning, Windstorm or Hail, Aircraft, Riot, Vehicles, Vandalism, Volcanic eruption, Explosion, Smoke, Sprinkler, Sinkhole - Broad Causes of Loss Form
a. Same as Basic form but adds 3 additional coverage
b. Damage caused by falling objects\
c. Weight of snow, ice, or sleet
d. Water damage from leakage of appliances - Special Causes of Loss Form
a. Promises to cover any direct physical loss unless specifically excluded
Explain the following endorsements
- Ordinance and Law Coverage
a. Provides coverage for increased cost to comply with current codes and laws for both damaged and undamaged property, cost for demolition and debris removal of undamaged property, the loss of the value of the undamaged property and the loss of the value of the undamaged portion of the building - Spoilage
a. Will cover loss to “perishable stock”(meat, dairy, poultry, fruit, ice cream, etc.)
b. Breakdown or contamination
c. Power outage - Peak Season Limit of Insurance
a. Allows the insured to increase the limit for business personal property, including stock during a specified period of time - Value Reporting Form
Define Inland Marine
Written to provide coverage for virtually any type of risk that may be transported
What are the 5 specific groups for which Inland Marine insurance can be provided?
Imports Exports Domestic Shipments Bridges, tunnels Property Floater risk
Explain the two different kinds of conditions under the Commercial Inland Marine Conditions Form
- Loss Conditions
a. Abandonment, appraisal, Duties in the event of loss, Insurance under two or more coverage, loss payment, other insurance, pair, sets or parts, recoveries, reinstatement of limit after loss, transfer of rights of recovery against others to Us - General Conditions
a. Concealment, misrepresentation or fraud, legal action against us, no benefit to bailee, policy period, valuation
What is the difference between filed and unfiled Inland Marine Coverage Forms?
- Filed
a. The specific coverage form and/or premium rate must be filed with the state regulatory authorities - Unfilled
a. Tend to have greater variances in the exposures covered, thus making it difficult to provide uniformity related to coverage and pricing
Name and describe the six Filed Inland Marine Coverage Forms
- Accounts receivable Coverage form
a. This form will cover monies due to the insured from customers that become noncollectable due to the loss, damage or destruction of the accounts receivable records - Commercial Articles Coverage form
a. Covers cameras, projectors, films and related equipment as well as musical instruments - Jewelers Block Coverage form
a. Covers stock, property sold, and property of others - Sign Coverage form
a. All types of signs - Valuable Papers and Records Coverage form
a. Coverage for papers or records which are the Named insured’s or someone else’s property which is in the insured’s care, custody or control - Equipment Dealers Coverage form
a. Coverage for a dealers stock in trade, mobile agricultural equipment and construction equipment
Similar property of others while in the care, custody, and control of the insured
Give examples of unfiled Inland Marine Forms
Bailee’s Customer
Contractor’s equipment Floater
Electronic Data
Installation Floater
Explain the 3 different motor truck cargo forms and the two transportation policy forms
Trucker’s Form
Coverage that covers cargo of others being transported by trucker
Shipper’s Form
Coverage to cover owner’s good on other’s trucks
Owner’s Form
Coverage to cover owner’s goods on own truck
