Study #9: Commercial Property Insurance Flashcards
1
Q
Inherent Vice
A
A quality within an object that makes it tend to destroy itself.
2
Q
Replacement Cost Value (RCV)
A
The current market value of the cost to replace the lost or damages insured property.
3
Q
Coinsurance Clause
A
A distinct section or provision in an insurance policy that requires an insured (property owner) to carry separate insurance for a specified amount stated in the policy to be eligible for full coverage. If there is insufficient coverage, the insured must pay part of the loss.
4
Q
Statement of Values
A
The information required when a single rat is to cover more than one item or building. To determine a correct average, the rating bureau requires the policyholder to give the value of each separate risk and its contents.
