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RIBO > RIBO - Commercial Insurance > Flashcards

RIBO - Commercial Insurance Flashcards

1
Q

What three perils does the Basic Fire Policy cover?

A

Explosion, lighting and fire

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2
Q

How is the peril of lighting broadened in the Named Perils Form?

A

Includes damage to appliances

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3
Q

How is the peril of explosions broadened in the Named Perils Form?

A

Includes other types of explosions

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4
Q

What perils does the Broad Form cover?

A

All risks subject to policy conditions and exclusions

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5
Q

What is the Professional Liability Insurance we use in our field as brokers?

A

Errors and Omissions

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6
Q

What is included under the definition of Building?

A

Building(s), additions, fixtures and fittings, maintenance supplies and growing plants

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7
Q

What is included under the definition of Equipment?

A

Equipment, contents, and tenants improvements

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8
Q

What is included under the definition of Stock?

A

Stock, merchandise, and packaging, wrapping, and advertising materials

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9
Q

What is the coverage amount based on for a Builder’s Risk?

A

Completed value of the building

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10
Q

What are the three exclusions under Glass Insurance?

A

Fire, war, and nuclear

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11
Q

What signs can be covered under a Sign Floater?

A

Exterior Signs

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12
Q

What does the by-law exclusion do?

A

Excludes additional cost to rebuild in compliance with by-laws

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13
Q

What are the two requirements that must be met before the Farm Rebuilding Clause will pay the full amount of the farm buildings?

A

Rebuild within 9 months and 200 feet from the original site

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14
Q

How many months worth of the Rental Value Endorsement should be insured?

A

12 months

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15
Q

What form would be used to cover stock where the stock values are fairly consistent?

A

Premium Adjustment Clause

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16
Q

What form would be best used to cover stock where sales vary substantially from month to month?

A

Peak Season Endorsement

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17
Q

What coverage does the Consequential Loss Assumption Clause provide?

A

Covers losses due to failure of a cold storage unit

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18
Q

What does the Gross Earnings Form cover in the event of a loss?

A

Loss of earnings from the date of loss to the date the business reopens

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19
Q

What does the Profits Form cover?

A

Loss of earnings from the date of loss to the date the profits return to what they were prior to the loss

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20
Q

What does Extra Expense cover?

A

Costs associated with keeping business open at another location

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21
Q

What is the major difference between the Gross Earnings Form and the Profits Form?

A

Period of indemnity

22
Q

What does the Contractors Equipment Floater cover?

A

Moveable equipment from site to site

23
Q

What does a Tool Floater cover?

A

Moveable tools from site to site

24
Q

What does the Boiler and Machinery Policy cover?

A

Explosion and rupture of boilers and breakdown of machinery

25
Q

What does the term Floater mean?

A

A type of insurance that covers property that is easily moveable

26
Q

What does the Supplementary Payments section of the CGL cover?

A

Defense costs, post-judgement interest, and other litigation expenses

27
Q

What is included in Theft?

A

Burglary and Robbery

28
Q

Does Burglary and Robbery include Theft?

A

No

29
Q

What does the 3D Policy cover?

A

Employee dishonesty, disappearance, and destruction of property

30
Q

Does the 3D Policy cover safe burglary and robbery on the premises?

A

Yes

31
Q

What kind of losses does the Co-insurance Clause concern itself with?

A

Partial losses

32
Q

Who are the three parties to a bond contract?

A

Principal, Surety, and Obligee

33
Q

What do Fidelity Bonds cover?

A

Dishonesty of employess

34
Q

What does Products Liability cover?

A

Lawsuits resulting from goods that cause injury or damage to the purchaser like defective or dangerous products

35
Q

What does Garage Liability pay for?

A

Garage Liability covers lawsuits resulting from the premises

36
Q

What does Stated Amount Co-Insurance Clause base the amount of insurance required on?

A

Appraisal of the property’s rebuilding cost

37
Q

What is the Co-Insurance Clause formula?

A

DID over (should x %) x loss

38
Q

What are the criteria set out in the 2% Waiver of Co-Insurance?

A

Loss must be less than $5,000 and less than 2% of the DID

39
Q

Why would Contingent Employers Liability be required?

A

When the employees are not covered by workers compensation

40
Q

Why would Owner and Contractors Protective Liability be required?

A

Protects against a lawsuit resulting from the negligent work of sub-contractors

41
Q

Why would Blanket Contractual Liability required?

A

When your business assumes the liability of others in a contract

42
Q

What coverage does By-Law Endorsement provide?

A

It removes the exclusion and allows the insurer to pay the increased cost to rebuild made necessary due to by-laws

43
Q

How does States Amount Co-Insurance Clause differ from the traditional Co-Insurance Clause?

A

Based on appraisal and a specified value as opposed to percentage of rebuild

44
Q

What does Completed Operations Liability cover?

A

Liability arising from faulty workmanship

45
Q

What is a Manuscript Policy?

A

Policy written to cover a unique risk?

46
Q

What is a Subscription Policy?

A

Policy where more than one insurer provides coverage?

47
Q

What does Burglary require?

A

Forcible entry

48
Q

What does the care, custody and control exclusion of the CGL policy not cover?

A

Damage to property the insured is in the care, custody, and control of, see Tenants Legal Liability

49
Q

When does the Self-Insured Retention (liability deductible) come into play under an Umbrella Liability Policy?

A

When the policy covers something the underlying policy does not

50
Q

What is the territorial limit of the Umbrella Liability Policy?

A

Worldwide

RIBO (5 decks)

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