Commercial Property Flashcards
The amount of coverage for debris removal in the building and personal property coverage form is:
$10,000 dollars excess over limit policy
If someone steals employees personal effects from their place of business, a building and personal property coverage form would:
No coverage. No theft coverage of personal effects
Ace lawnmower sales since one of its floor model riding mowers to Acme lawnmower repair. While at Acme a cause of loss covered by aces building and personal property coverage for causes $4100 in damage to the mower. Is this policy will provide coverage in the amount of:
$4100
Sam’s shoe store has a value reporting endorsement, monthly option on his building and personal property coverage form. The provisional amount is $100,000 and is effective the day as march 1, 2014. Sam files his reports for March, April, May and June. The June value is $70,000. If Sam has a $60,000 loss in September and no more reports have been filed, the most he would recover is:
$60,000. The last value report because the limit
In the building and personal property coverage form, vacancy of more than 60 days suspends coverage for all of the following causes:
Sprinkler leakage, attempted theft, vandalism
Is it necessary to have replacement cost to determine the value of damaged improvements and betterment is under coverage in the building and personal property coverage form?
It is not necessary. However you will need to have the original cost, time. Of the lease, and the date loss
To receive a replacement cost adjustment of a covered loss under building and personal property coverage form, the insured must:
Rebuild Within a reasonable amount of time
Sam’s shoe store has a value reporting endorsement, monthly option on his building and personal property coverage form. The provisional amount is $100,000 and the effective date is 3/1/14. Sam has an $80,000 loss on 4/22/14 and no reports have been made. His recovery will be:
$80,000. Full coverage. No report is late. If losses after 4/30/14 and no report is Phil, Sam get 75% of the loss up to $75,000
General exclusions found in the commercial property cause of loss form include:
Cost resulting from building ordinances, waves, rising water, earth other than catastrophic groundcover collapse. Remember that power failure on premises is not included
Under additional coverages in the building and personal property coverage form can you include the cost of a watch person?
No, removal of debris, 30 day coverage at a new location, and $1000 fire department service charge are covered
Sally Smith has a covered loss under building and personal property coverage form. The cost to replace the damaged property is $2200 and the actual cash value is $1600. The loss will be paid, ignoring deductibles:
$2200 if Sally is in compliance with the coinsurance condition
The business income coverage form with extra expense will pay all of the following items of the insured has a covered loss:
Loss of profits, continually expenses,’s cost of staying in business even if no savings result
Business income coverage form option, maximum period of indemnity change the coverage form and all of the following ways:
Suspends the coinsurance condition, limits the period of restoration to 120 days, eliminates requirement for worksheet
Is the condominium association coverage form and the condominium unit owners coverage form applies to the same loss, the policy pays as follows
Association primary/unit – owners excess
What is the limit on personal property automatically covered a new location under CP 0010?
$100,000
The optional coverage under business income form that replaces the coinsurance condition with the value establishing the amount of insurance to be carried is called:
Agreed value
Under which of the following circumstances does the building and personal property coverage form provide coverage extensions?
80, 90 or 100% coinsurance applies
What business income coverage provides the insured with protection for loss of income due to a covered loss at location other than the insureds upon which the insured realize for materials or services?
Business income from dependent properties form
The suspension provision for certain parols under building and personal property coverage form applies after:
60 days vacancy
What is the standard deductible and the commercial property program?
$500 except hurricane – minimum $500, maximum 10% of policy limit for hurricanes
Business income forms have a waiting period of
72 hours
The business income coverage form optional coverage – maximum period Of indemnity provides:
Policy limit/120 days maximum time period
Which of the following are additional coverages in the business income coverage form without extra expense: A. Extra expense only to extend its reduce loss.
B. Exercise of civil authority.
C. Extended period of indemnity.
D. Extra expense weather and reduce his loss or not
D extra expense weather and reduces loss or not
What business income coverage form pays the extraordinary expenses incurred to maintain operations after the occurrence of a covered peril?
Extra expense coverage form
How does the value reporting form treat losses were no report has been made and the report is past due?
Company pays 75% of what would have been paid if it weren’t made
What endorsement provides a specific increased property limits for a period of time specified on the endorsement
Peak season
And the special cause of loss form, the additional coverage extension for transit coverage is:
$5000
All are optional coverages contained in the building and personal property coverage form:
Shinguard, replacement cost, agreed value
Under CP0010 coverage for valuable repapers and records is an amount of
2500
The provision and the builders risk coverage for the penalizes the insured for underinsurance is called
Need for adequate insurance clause
Under the building and personal property coverage form, tenants improvements and betterment not replaced after lost our value based on:
Original cost
James insurance agency has an extra expense coverage form with a $30,000 limit. James agency is damaged by a covered cause of loss and incurs the following extra expenses. First 30 days $14,000, second 30 days $11,000. How much will James recover under his extra expense coverage, of policy shows 40%, 80%, 100% as limits on loss payment?
$24,000 loss of them for 60 days is limited to 80% of the limit
And commercial property insurance, which exposures are covered by the leasehold interest coverage form?
Lots of remaining value on prepaid rents and loss of favorable sublease, remaining value and bonus paid to acquire lease, last remaining value of improvements and betterment
Does the building ordinance coverage for cover the cost to haul off debris from the damage portion?
Oh no
