Commercial Property Policies

Question 1

A commercial package policy (CPP) allows the insured to select the coverage need to meet the business needs. In a CPP what are they unable to select?

Answer 1

Workers Compensation

Question 2

What is the sublimit for hazardous substance cleanup or repair or replacement of contaminated property?

Answer 2

$25,000

Question 3

Under the commercial property coverage program, the basic causes of loss form insures against loss caused by?

Answer 3

Sprinkler leakage

Question 4

What are the 4 classes of Inland Marine risks?

Answer 4

1. Domestic Shipments & Transportation Risk
2. Bridges, Tunnels & other Transportation
3. Commercial Property Floater Risks
4. Personal Property Floater Risks

Question 5

Farm fences (except field and pasture fences) are covered by which farm coverage form?

Answer 5

Coverage G

Question 6

True or False: If a farm building or structure is vacant or unoccupied for 120 consecutive days, the limits applicable to the building and it’s contents are reduced by 50%.

Answer 6

True

Question 7

What does an installation floater insure?

Answer 7

Appliances intended to become a permanent part of the building.

Question 8

Who will transport the property of anyone who hires them?

Answer 8

Common Carriers

Question 9

True or False: The fire department service charge is included under the builders risk form.

Answer 9

False - It is an additional coverage.

Question 10

True or False: Explosion of steam boilers is excluded in the equipment breakdown basic policy.

Answer 10

False

Question 11

True or False: The commercial property declarations page contains the description of the property insured.

Answer 11

True

Question 12

Under Coverage C of a farm policy what is the limit payable on business property located away from the premises?

Answer 12

$500

Question 13

True or False: Tools 50 feet away from the building is considered property covered by a standard builders risk form.

Answer 13

False

Question 14

Professional photographers and musicians may insure their equipment with what?

Answer 14

Commercial Articles Floater

Question 15

True or False: The livestock coverage form covers named peril coverage for death of livestock.

Answer 15

True - Coverage is for death or destruction of livestock by basic causes of loss EXCEPT by vehicles.

Question 16

What does the Motor Truck cargo policy (truckers form) cover?

Answer 16

Liability for loss to cargo while it is being transported in a truck.

Question 17

Farm fences (except field & pasture fences) are covered by which farm coverage form?

Answer 17

Coverage G which is Other Farm Structure.

Question 18

An Insured’s accounts receivable records have been damaged. What form would cover the loss?

Answer 18

The Accounts Receivable coverage form.

Question 19

Which policy consists of declarations, conditions, endorsements and other attachments, applicable to a single line of insurance?

Answer 19

A Monoline policy.

Question 20

The legal liability coverage form provides coverage for damages for which the insure is legally liable arising from what?

Answer 20

Direct physical damage to property of others in the insured’s care.

Question 21

True or False: Common carrier cargo liability is a class of inland marine.

Answer 21

False

Question 22

A commercial property special form covers property in transit up to what dollar amount?

Answer 22

$5,000

Question 23

True or False: Mobile agricultural machinery and equipment coverage must be written as part of farm coverage.

Answer 23

False

Question 24

In a farm policy which coverage form would reimburse the insured for loss of rental income following damage to the insured dwelling by an insured peril?

Answer 24

Coverage D

Question 25

True or False: Bodily injury to a residence employee would be included in the farm liability coverage forms?

Answer 25

True

Question 26

True or False: A unique feature in a bailee form is that it covers customer’s property whether or not the insured has been negligent.

Answer 26

True

Question 27

True or False: Collapse is an additional coverage that is covered by the broad causes of loss form.

Answer 27

True

Question 28

True or False: Turkeys while in the open are covered under Coverage E - Scheduled Farm Personal Property.

Answer 28

False

Question 29

True or False: Explosion of steam boilers are included in the equipment breakdown basic policy.

Answer 29

False