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
