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LA Property & Casualty Insurance > Commercial Property > Flashcards

Commercial Property Flashcards

1
Q

___ made possible for most businesses to include most of their insurance coverage under one package policy for both commercial property and liability

A

Commercial Package Policy

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2
Q

What are the essential elements of a commercial package policy?

A

Common Policy Declarations PAge
Common Policy Conditions
Interline Endorsements (if required)
Coverage Parts

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3
Q

What will a commercial package policy include?

A 
Commercial Property
Commercial General Liability
Crime Coverage
Commercial Inland Marine
Equipment Breakdown Coverage
Auto Coverage
Farm Coverage
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4
Q

What are the components of a Commercial Property Package Policy?

A
  1. Policy Cover
  2. Common Policy Declaration
  3. Interlines Endorsements
  4. Lines of Insurance Declaration
  5. Lines of Insurance Coverage
  6. Common Policy Conditions
  7. Lines of Insurance Conditions
  8. Causes of Loss Forms: basic, broad, special
  9. Mandatory Endorsements
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5
Q

What is included in the Common Policy Declarations for Commercial Package Policy?

A 
Insurance company's name
Policy period
Business Description
Coverage Parts
Premium
Policy forms
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6
Q

What are the Common Policy Conditions in Commercial Package Policy?

A 
Cancellation
Changes
Examination of books & records
Inspections & surveys
Premiums
Transfer of rights & duties
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7
Q

___ contains the list of 7 coverage parts followed by the appropriate premium if there is coverage for the parts.

A

Common Policy Declarations

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8
Q

Who has the right to cancel the policy & receive a premium refund?

A

First named insured

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9
Q

How many days must the insurer allow for cancellation or nonrenewal of policy?

A

30

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10
Q

How many days must the insurer allow for cancellation of a policy for nonpayment?

A

10

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11
Q

Who may ask for changes to a policy?

A

First named insured

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12
Q

How long can an insurer examine books & records after a policy is cancelled?

A

Up to 5 years

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13
Q

___ can be made by the insurer at any time regarding insurabilit in the proper amounts of premiums.

A

Inspections & Surveys

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14
Q

___ other responsibility of the first named insured.

A

Premiums

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15
Q

___ a periodic payment to the insurance company to keep the policy in force.

A

Premium

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16
Q

___ can only be done with the permission of the insured except in the death of a named insured.

A

Transfer of Rights and Duties

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17
Q

___ apply to more than one coverage part and are included in one page.

A

Interline Endorsements

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18
Q

Under Interline Endorsements, what are the “one or more coverage parts”?

A

Commercial Property Insurance
Commercial Inland Marine Insurance
Boiler & Machinery Insurance (Equipment Breakdwn Coverage)
Casualty Coverage

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19
Q

Under Interline Endorsements, what is included in each of the coverage parts that apply only to that part?

A

Declarations & Conditions
All of the individual coverage forms
Endorsements

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20
Q

What are the conditions usually found in Commercial Property Conditions (CPC) Forms?

A 
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)
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21
Q

What do all business need to cover risk of liability?

A

Commercial General Liability

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22
Q

___ can be written alone or as a part of a commercial package.

A

Commercial General Liability

23
Q

___ can be written as a claims made form or occurence form.

A

Commercial General Liability

24
Q

What are the 3 major liability coverages in Commercial General Liability?

A

Coverage A; Bodily Injury & Property Damage Liability
Coverage B: Personal & Advertising Injury Liability
Coverage C: Medical Payments

25
Q

___ 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.

A

Coverage A: Bodily Injury & Property Damage Liability

26
Q

___ Covers pecific acts that result in injury to another, OTHER THAN physical injury

A

Coverage B: Personal & Advertising Injury Liability

27
Q

What coverage is Personal Injury under?

A

Coverage B: Personal & Advertising Injury Liability

28
Q

___ includes injuries caused by your business activities that do not involve bodily injury as libel, slander, or invasion of privacy

A

Personal Injury

29
Q

___ involves no physical injury but occurs when the insured inadvertently injures another during advertising their product or service

A

Advertising Injury

30
Q

Insures building while under construction.

A

Builder’s Risk Form

31
Q

When does coverage begin in a Builder’s Risk Form?

A

On the date construction begins and ends.

32
Q

Defines how much will be paid in the event the insurance limits do not meet the policy coinsurance requirements.

A

Coinsurance

33
Q

What is covered under Builder’s Risk Form?

A

Debris Removal
Preservation of Property
Fire Department Service Charge
Pollutant Clean-Up and Removal

34
Q

Covers the consequential loss of business income that occurs when a business must suspend operations because of a direct loss.

A

Business Income Coverage Form

35
Q

What is a time element form?

A

a form with direct relation of the time a business is unable to operate to the amount of the loss.

36
Q

___ means net income that would have been earned or incurred, and continuing normal operating expenses incurred, including payroll.

A

Business Income

37
Q

___ amounts the insurer will pay “in addition” to that stated policy limits.

A

Supplementary Payments

38
Q

___ covers property in the insured’s care, custody, or control.

A

Legal Liability Coverage Form

39
Q

What are the 2 types of liability claim forms?

A

Claims-Made

Occurence

40
Q

___ losses that occur during the policy period even if the loss was not discovered or reported for years after the policy expired

A

Occurence form

41
Q

___ losses reported during the policy period so long as the loss occurred in or after the retroactive date.

A

Claims-made form

42
Q

___ protects against insuring occurrences and before the policy was written.

A

Retroactive Date

43
Q

___ often the original date the policy with the insurance company was written.

A

Retroactive Date

44
Q

___ is what makes a policy respond to a claim.

A

Coverage Trigger

45
Q

___ requires property to be insured for 80% of its replacement cost to have replacement cost coverage and for the coverage extensions to apply.

A

Coinsurance

46
Q

___ taking property from inside the premises by a person illegally entering.

A

Burglary

47
Q

___ taking property from a locked safe or vault by a person illegally entering the safe.

A

Safe Burglary

48
Q

___ taking property from the care of a person by a threat to cause bodily harm.

A

Robbery

49
Q

___ unlawful taking or property including burglary or robbery.

A

Theft

50
Q

___ custody of property inside the premises including the insured or employee, but not including a watchperson or janitor.

A

Custodian

51
Q

___ custody of property outside the premises including the insured, a relative, or an employee.

A

Messenger

52
Q

___ job is in custody of property inside the premises.

A

Watchperson

53
Q

___ an inland marine policy designed to cover movable commercial property, wherever it may be located.

A

Commercial Floater

LA Property & Casualty Insurance (11 decks)

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