Commercial Insurance + Surety

Question 1

Commercial Lines insurance is also known as what

Answer 1

Business insurance

Question 2

Small - to medium-sized enterprises package is good for what types of businesses

Answer 2

Retail stores, realty, office, and salons. It’s a pre-set package policy.

Package covers: stock & equipment against fire and extended coverage (EC) for all risks.

Question 3

What categorizes into Commercial Building Forms in small-business package

Answer 3

Fixed structure pertaining to the building
additions and extensions
Permanent fixtures and fittings
Building maintenance supplies
Growing plants and trees inside the building

Question 4

What categorizes into Equipment Forms in small-business package

Answer 4

Furniture
fittings
fixtures
machinery
tools
utensils
appliances

Question 5

What categorizes into Stock Forms in small-business package

Answer 5

Merchandise
Packing & Wrapping
Advertising materials

Question 6

What does COPE represent

Answer 6

Construction
Occupancy
Protection
Exposure

Question 7

Underwriters are concerned with hazards, what are the inherent risks

Answer 7

Damageability, combustibility, and perishability of property

Question 8

What is Commercial Property Floater

Answer 8

All-risk policy that includes theft insurance and covers property at specified premises of the insured, at newly acquired premises, and while in transit within Canada and the US.

Question 9

What is Commercial Building Form

Answer 9

Essentially a combination of Commercial Property Floated with all-risks corresponding to insuring buildings

Question 10

What is Office Equipment Floater

Answer 10

Good for “office only” risks, like: accountants, lawyers, real estate agents, and others.

All-risk form and covers a designated office but insures for limited amounts at other premises or while in transit.

Question 11

Valuable Papers and Records covers:

Answer 11

The cost of reworking the information and reconstituting the records.

Question 12

Accounts Receivable is good for

Answer 12

all-risks policy that will pay collection costs in excess of normal costs and pay interest on loans when collections are delayed.

Question 13

Electronic Data Processing Equipment covers:

Answer 13

All-risk coverage on computers and associated equipment (hardware) and software.

Question 14

Builders Risk covers:

Answer 14

Building during construction, materials at the job site and in transit.

Question 15

Installation Floaters covers:

Answer 15

Machinery and equipment such as plumbing, heating, and electrical systems being installed in buildings under construction or during renovation.

Plumbing, electrician.

Question 16

Special Retail Store Policies are good for:

Answer 16

Jewellers block
Furriers block (cover manufacturers, wholesalers and retailers
Laundries/drycleaners

Question 17

Glass Insurance covers:

Answer 17

Glass breakage from any cause except fire, war, and nuclear damage

Question 18

What are the two main approaches to income replacement insurance

Answer 18

Gross Earnings or Business Income

Profits or Extended Business Income

Question 19

Gross Earnings Coverage is good for business who

Answer 19

Coverage ceases once repair of the property is completed. This form is most useful where customers will resume purchasing from the insured immediately upon reopening.

Question 20

Profits or Extended Business Income

Answer 20

Good for when customers can or must find other suppliers when the insured is out of operation. This offers continued supplementary financial assistance until the business resumed its usual flow of business or after 1 year.

Question 21

Contingent business interruption insurance covers

Answer 21

When a business is affected by a property loss at the premises of another business.

Question 22

What are the two crime coverages available under a commercial crime insurance policy

Answer 22

Comprehensive Dishonesty, Disappearance, and Destruction (3-D) Policy, and cyber risk insurance

Question 23

Commercial Crime Insurance Policy Declarations page includes the options between the following coverages:

Answer 23

Church Theft
Damage to building by burglary or robbery
Inside/outside robbery
Lessees' safe-deposit box burglary and robbery
Money and securities
Office/store burglary and robbery 
Safe burglary
Securities insurance
Stock burglary

Question 24

The 3-D policy form covers:

Answer 24

Employee dishonesty
Loss inside the premises
Loss outside the premises
Money orders and counterfeit paper currency
Depositor's forgery

Question 25

Cyber Risk Insurance risks fall into three categories

Answer 25

Deliberate and unauthorized breaches of security
Unintentional or accidental security breaches
Operational IT risk

Question 26

What are the 3 Construction Bonds

Answer 26

Bid bonds
Performance bonds
Labour and material payment bonds

Question 27

What are the 3 Miscellaneous bonds

Answer 27

Fiduciary bonds
Customs or excise bonds
Licence and permit bonds

Question 28

Who is involved in a Surety Contract

Answer 28

One party - surety
Second party - the principal
Third party - Obligee

Question 29

Commercial General Liability is good because it covers almost all liability coverages. Which are..

Answer 29

Bodily & property damage
personal injury
medical payments
tenants legal liability.

Question 30

What are the two coverages that can be added to CGM for additional cost

Answer 30

Umbrella, and excess coverage

Question 31

Self-Insured Retentions are the same as

Answer 31

Deductibles