Commercial Property Flashcards
___ made possible for most businesses to include most of their insurance coverage under one package policy for both commercial property and liability
Commercial Package Policy
What are the essential elements of a commercial package policy?
Common Policy Declarations PAge
Common Policy Conditions
Interline Endorsements (if required)
Coverage Parts
What will a commercial package policy include?
Commercial Property Commercial General Liability Crime Coverage Commercial Inland Marine Equipment Breakdown Coverage Auto Coverage Farm Coverage
What are the components of a Commercial Property Package Policy?
- Policy Cover
- Common Policy Declaration
- Interlines Endorsements
- Lines of Insurance Declaration
- Lines of Insurance Coverage
- Common Policy Conditions
- Lines of Insurance Conditions
- Causes of Loss Forms: basic, broad, special
- Mandatory Endorsements
What is included in the Common Policy Declarations for Commercial Package Policy?
Insurance company's name Policy period Business Description Coverage Parts Premium Policy forms
What are the Common Policy Conditions in Commercial Package Policy?
Cancellation Changes Examination of books & records Inspections & surveys Premiums Transfer of rights & duties
___ contains the list of 7 coverage parts followed by the appropriate premium if there is coverage for the parts.
Common Policy Declarations
Who has the right to cancel the policy & receive a premium refund?
First named insured
How many days must the insurer allow for cancellation or nonrenewal of policy?
30
How many days must the insurer allow for cancellation of a policy for nonpayment?
10
Who may ask for changes to a policy?
First named insured
How long can an insurer examine books & records after a policy is cancelled?
Up to 5 years
___ can be made by the insurer at any time regarding insurabilit in the proper amounts of premiums.
Inspections & Surveys
___ other responsibility of the first named insured.
Premiums
___ a periodic payment to the insurance company to keep the policy in force.
Premium
___ can only be done with the permission of the insured except in the death of a named insured.
Transfer of Rights and Duties
___ apply to more than one coverage part and are included in one page.
Interline Endorsements
Under Interline Endorsements, what are the “one or more coverage parts”?
Commercial Property Insurance
Commercial Inland Marine Insurance
Boiler & Machinery Insurance (Equipment Breakdwn Coverage)
Casualty Coverage
Under Interline Endorsements, what is included in each of the coverage parts that apply only to that part?
Declarations & Conditions
All of the individual coverage forms
Endorsements
What are the conditions usually found in Commercial Property Conditions (CPC) Forms?
Concealment, Misrepresentation, or Fraufd Coverage Control of Property Insurance Under 2 or more coverages Legal Action against the insurer Liberalization No benefit to bailee Other insurance Policy Period, coverage territory Transfer of rights of recovery against others (subrogation)
What do all business need to cover risk of liability?
Commercial General Liability
___ can be written alone or as a part of a commercial package.
Commercial General Liability
___ can be written as a claims made form or occurence form.
Commercial General Liability
What are the 3 major liability coverages in Commercial General Liability?
Coverage A; Bodily Injury & Property Damage Liability
Coverage B: Personal & Advertising Injury Liability
Coverage C: Medical Payments
___ Provides protection for injury, sickness, disease, or death suffered by 3rd parties or property damage because of the insured’s business activities. Premises, operations, products, and completed operations hazard.
Coverage A: Bodily Injury & Property Damage Liability
___ Covers pecific acts that result in injury to another, OTHER THAN physical injury
Coverage B: Personal & Advertising Injury Liability
What coverage is Personal Injury under?
Coverage B: Personal & Advertising Injury Liability
___ includes injuries caused by your business activities that do not involve bodily injury as libel, slander, or invasion of privacy
Personal Injury
___ involves no physical injury but occurs when the insured inadvertently injures another during advertising their product or service
Advertising Injury
Insures building while under construction.
Builder’s Risk Form
When does coverage begin in a Builder’s Risk Form?
On the date construction begins and ends.
Defines how much will be paid in the event the insurance limits do not meet the policy coinsurance requirements.
Coinsurance
What is covered under Builder’s Risk Form?
Debris Removal
Preservation of Property
Fire Department Service Charge
Pollutant Clean-Up and Removal
Covers the consequential loss of business income that occurs when a business must suspend operations because of a direct loss.
Business Income Coverage Form
What is a time element form?
a form with direct relation of the time a business is unable to operate to the amount of the loss.
___ means net income that would have been earned or incurred, and continuing normal operating expenses incurred, including payroll.
Business Income
___ amounts the insurer will pay “in addition” to that stated policy limits.
Supplementary Payments
___ covers property in the insured’s care, custody, or control.
Legal Liability Coverage Form
What are the 2 types of liability claim forms?
Claims-Made
Occurence
___ losses that occur during the policy period even if the loss was not discovered or reported for years after the policy expired
Occurence form
___ losses reported during the policy period so long as the loss occurred in or after the retroactive date.
Claims-made form
___ protects against insuring occurrences and before the policy was written.
Retroactive Date
___ often the original date the policy with the insurance company was written.
Retroactive Date
___ is what makes a policy respond to a claim.
Coverage Trigger
___ requires property to be insured for 80% of its replacement cost to have replacement cost coverage and for the coverage extensions to apply.
Coinsurance
___ taking property from inside the premises by a person illegally entering.
Burglary
___ taking property from a locked safe or vault by a person illegally entering the safe.
Safe Burglary
___ taking property from the care of a person by a threat to cause bodily harm.
Robbery
___ unlawful taking or property including burglary or robbery.
Theft
___ custody of property inside the premises including the insured or employee, but not including a watchperson or janitor.
Custodian
___ custody of property outside the premises including the insured, a relative, or an employee.
Messenger
___ job is in custody of property inside the premises.
Watchperson
___ an inland marine policy designed to cover movable commercial property, wherever it may be located.
Commercial Floater
