Miscellaneous Commercial Lines Coverage Flashcards
Miscellaneous Commercial Lines Coverage
Equipment Breakdown Protection Coverage Form
Covered equipment includes those that are built to operate under internal pressure or vacuum, _______, and energy generation equipment.
communication and computer equipment
Covered equipment does not include electronic storage media, insulating or refractory material, _______, vehicles, diagnostic equipment, or equipment manufactured for sale.
supporting structures like foundations
Equipment breakdown coverages applies to a breakdown, which includes losses to covered equipment, but does not include _______, computer viruses, or leaking valves.
malfunction
All breakdowns on one premises that manifest at the same time from the same cause are considered _______.
One breakdown
The form provides coverage for property damage, expediting expenses, business income and extra expense, _______ to raw materials in storage, newly acquired premises, enforcement of ordinances or laws, errors and omissions, and brand and labels.
Spoilage damage
For business income and extra expense coverage, the insured must complete an _______ yearly.
Annual Report of Values form
This can be satisfied by the _______.
Business Income – Report of Values Endorsement
_______ from lack of power are excluded by the policy, as are damage by earthquake, certain instances of water damage, and radioactive contamination.
Indirect losses
_______ are generally excluded, though explosions of covered equipment itself would be covered.
Explosions within a furnace
Other exclusions include damage to covered equipment during _______ and breakdowns caused by windstorm or hail.
testing
If covered equipment is exposed to a dangerous condition, coverage may be suspended, as provided by the _______.
Suspension condition
A _______ sublimit applies separately to ammonia contamination losses and covered water damage losses. Coverage for expediting expenses has a limit equal to the same amount.
$25,000
Losses are usually valued at the cost to _______ damaged property.
repair, rebuild, or replace
The valuation basis can be changed to actual cash value basis using the _______.
Actual Cash Value Endorsement
_______ insurance helps fill in coverage gaps and provide coverage for particular circumstances.
Specialty
Most policies are written on a _______ basis, which requires that a claim be made during the policy period, and the claim can be reported as soon as practicable.
Claims-Made
Specialty policies may have provisions that affect the insurer’s _______, and insurers may not be responsible for provided a defense for covered claims.
duty to defend
Insurers may have to obtain the insured’s _______ a claim.
consent to settle
_______ insurance, for example, covers those in professions with high standards of care who may be particularly exposed to liability claims for damages not covered by standard policies.
Professional Liability
_______ insurance is obtained by insurance agents and accountants to protect against their legal liability for financial harm to a client.
Errors and Omissions
_______ insurance is obtained by surgeons, nurses, social workers, and beauticians whose negligent acts may harm patients.
Medical Malpractice
_______ policies protect these professionals from allegations of wrongful or torturous conduct related to handling money and other tangible and intellectual property.
Directors and Officers Liability
_______ policies protect professionals against allegations of any breach in their fiduciary duties as required by ERISA.
Fiduciary Liability
_______ insurance protects employers from allegations of employee rights violations, such as wrongful termination, discrimination, or wrongful retaliation.
Employment Practices Liability
Businesses that sell, serve, distribute, manufacture, or furnish alcoholic beverages should have _______ insurance to protect the businesses from liability claims related to dram shop liability.
Liquor Liability
_______ policies provide excess limits and broader coverage over underlying primary liability policies.
Commercial Umbrella Liability
These policies often require specific underlying coverage to be in place, including _______, Employers Liability, Commercial Auto liability, and Liquor Liability. The total limits applicable to these exposures provided by both primary and excess policies are considered uneven.
Commercial General Liability
Policies are not standardized, but usually apply coverage _______.
worldwide
A _______ applies when the policy drops down to act as primary insurance.
self-insured retention
_______ policies do not provide broader coverage, meaning if the underlying policy excludes a loss, the excess policy will also exclude the loss.
Commercial Excess Liability
Farm insurance offers multiple coverage forms to provide both personal and commercial lines coverage for farm operations. Coverage A–D are _______ coverages.
residential property
Farm Policies: Coverage B insures other, _______, most of which cannot be rented or used for farming purposes.
detached structures
Farm Policies: Coverage A insures residential dwellings and attached structures against _______.
direct physical loss
Farm Policies: Coverage D provides _______ coverage.
loss of use
Farm Policies: Coverage C insures _______.
household personal property
Farm Policies: Coverage E and F are used to insure farm personal property, such as equipment, supplies, and products used for farming and ranching operations.
farm personal property
Farm Policies: Coverage E is coverage for _______ farm personal property.
scheduled
Farm Policies: Covered property includes grain, hay, scheduled farm products, _______, computers used for farm management, livestock, and poultry.
certain farm equipment like farm vehicles
Farm Policies: _______ means cattle, sheep, swine, goats, horses, mules, and donkeys.
Livestock
Farm Policies: Coverage F is coverage for _______ farm personal property. Covered property includes grain, feed, fertilizer, livestock, and farm machinery and tools.
unscheduled
Farm Policies: Aircraft, _______, fences, windmills, and irrigation equipment are not covered by these coverages.
watercraft
Farm Policies: Coverage G is used to insure _______, outbuildings, and other farm structures.
barns
Farm Policies: This includes described _______, corrals, pens, chutes, and outdoor antennas.
silos
Farm Policies: The insured may choose between Basic, Broad, and Special Covered Causes of Loss options. Basic option perils include typical property perils, as well as collision damage to farm personal property and livestock, sinkhole collapse, and _______ to livestock.
earthquake and flood loss
Farm Policies: Under the Broad option, the perils include the Basic perils plus _______ of livestock; loading and unloading accidents; glass breakage; falling objects; weight of ice, snow, or sleet; sudden tearing apart of, accidental discharge of water from, or freezing of various systems and appliances; and sudden damage from electrical currents.
electrocution, accidental shooting, and drowning
Farm Policies: Under the _______ option, coverage is provided on an open perils basis.
Special
Farm Policies: The Farm Property policies contain a number of standard exclusions, including ordinance or law; earth movement, such as earthquake or _______, unless otherwise covered; water damage from flood, mudslide, or backup or overflow of sump pumps or sewers, unless otherwise covered; governmental action; intentional loss; off-premises power failure; and neglect.
landslide
Farm Policies: Farm Property Additional Coverages include debris removal, coverage for damage to property removed to protect it from a covered loss, _______, water damage, restoration of records, and extra expense.
pollutant clean-up and removal
Farm Policies: The _______ insures livestock separately, though coverage is not provided for livestock in the custody of a common or contract carrier, in sales yards, or in packing plants. Covered perils include the Basic Covered Causes of Loss.
Livestock Coverage Form
Farm Policies: The _______ insures mobile devices used for farm operations separately.
Mobile Agricultural Machinery and Equipment Coverage Form
Farm Policies: The _______ supplies the liability coverages relevant to farm residential and commercial operations.
Farm Liability Coverage Form
Farm Policies: Coverage H pays for the insured’s liability for bodily injury or property damage, including fire damage legal liability and _______.
products exposure
Farm Policies: A number of exclusions apply, such as the release of pollutants, _______, certain custom farming operations, transmission of communicable diseases, damages covered by Workers’ Compensation, and product recall.
crop dusting
Farm Policies: Coverage I provides coverage for the insured’s liability for _______ arising out of personal activities or farming operations.
personal and advertising injury
Farm Policies: Coverage J provides reasonable _______ to people who are not insureds.
medical expenses
