Unit Eleven Commercial Property Insurance

Question 1

In a commercial property policy what must it include?

Answer 1

•commercial property declarations
•commercial property conditions
•One or more property forms
•Cause of loss form(basic,broad,special)

Question 2

What is the conditions form attached to?

Answer 2

EVERY commercial property policy

Question 3

What does the Control of Property condition state?

Answer 3

That an act of neglect of a person beyond the insured’s direction or control will not affect the insurance

Question 4

What does the legal action against us condition give the insured?

Answer 4

2 years from the date that direct physical loss occurred to bring an action against the insurer.

Question 5

What is subrogation?

Answer 5

The transfer of rights of recovery against others to us condition gives the insurance company subrogation rights.

Question 6

What happens if there is concealment or fraud?

Answer 6

The commercial property coverage is void if intentional

Question 7

What does the liberalization condition state?

Answer 7

More coverage without more premium, 45 days of policy’s effective date

Question 8

How many days until a lot is considered vacant?

Answer 8

60 days

Question 9

How is Constance calculated?

Answer 9

Loss x did carry/should carry

Question 10

What does builders risk cover?

Answer 10

•building under construction
•materials and equipment on premises or within 100ft
•foundation
•written for one year but can be terminated

Question 11

What does the builders risk reporting form provide?

Answer 11

Another option with regard to the amount of insurance that must be carried