unit11

Question 1

a commercial property policy must include what forms

Answer 1

commercial property declarations and conditions form,

one or more commercial property coverage form,

the causes of loss form and

other mandatory endorsements

Question 2

the commercial property declarations form provide additional information about what

Answer 2

the premises to be insured

the specific property forms that will apply

name and addresses or any mortgage or lien holders

Question 3

what is in the commercial property coverage forms

Answer 3

defines what property is covered

what property is not covered

how the limits and deductible apply

what special conditions apply

Question 4

causes of loss forms and types

Answer 4

list the perils the property is insured against

basic, broad, special (open)

Question 5

what is in the conditions form of the commercial property policy

Answer 5

policy provisions

it’s attached to every commercial property policy

Question 6

what is the control of property

Answer 6

this condition states that an act of neglect of a person beyond the insured’s direction or control will not affect the insurance.

Question 7

legal action against us

Answer 7

this is a condition that gives the insured two years from the date that direct physical loss occurred to bring an action against the insurer

Question 8

what is other insurance

Answer 8

condition that states when there is other insurance written on the same basis, the policy pro rates with the other policies

no loss, no gain

Question 9

policy period, coverage territory condition state

Answer 9

a loss must occur during the policy period and in the coverage territory to be covered

Question 10

transfer of rights of recovery against others to us

Answer 10

gives the insurance company subrogation rights

Question 11

subrogation

Answer 11

a legal right that allows one party (your insurance company) to make a payment owed by another party then collect from the debt

Question 12

no benefit to bailee

Answer 12

bailee is not reimbursed by insured’s commercial property insurance

Question 13

liberalization

Answer 13

more coverage without more premium

45 days of policy’s effective date

Question 14

what is stock

Answer 14

insured’s merchandise

Question 15

improvements and betterments

Answer 15

fixtures, alterations, additions

Question 16

newly acquired or constructed property coverage

Answer 16

building coverage 250,000 at each location business personal property 100,000

Question 17

personal effects and property of others

Answer 17

2,500

Question 18

valuable paper

Answer 18

2,500

Question 19

property off premises

Answer 19

10,000

Question 20

outdoor property

Answer 20

max 1,000 with 250 limit applying to any one tree

Question 21

non owned detached trailer

Answer 21

5,000

Question 22

the form that covers commercial, residential, or farm building that are under construction is calledhe

Answer 22

the builder risk coverage form

Question 23

meaning of suspension

Answer 23

a slowdown or cessation of the insureds business activates

Question 24

what is time element coverage

Answer 24

provides coverage for the loss of business income over a period of time that resulted from direct physical loss

Question 25

extra expense

Answer 25

coverage to avoid closure for businesses that must remain open

Question 26

extended period of indemnity

Answer 26

coverage extended to days stated in the declarations rather than the 60 days in the extended business income

Question 27

max period of indemnity

Answer 27

last for first 120 days following direct loss

Question 28

monthly limit of indemnity

Answer 28

restricts how much the insured can collect in a single month to a specified percentage of the policy limit insured establishes amount for 30 day period fraction multiplied by limit to be paid for max of each 60 days

Question 29

when is coinsurance waived

Answer 29

when either the max period of indemnity of monthly limit of indemnity is selected

Question 30

agreed value

Answer 30

submit 12 month business income report/worksheet. this removes the coinsurance clause. yearly amount of agreed coverage

Question 31

3 types of business income from dependent properties

Answer 31

contributing location, recipient (buyer) , and manufacturing location

Question 32

contributing location

Answer 32

provides raw materials to the insured

Question 33

recipient location

Answer 33

primary buyer of the insured's goods

Question 34

manufacturing location

Answer 34

provides manufactured goods to the insured

Question 35

business that can't close need what type of insurance

Answer 35

extra expense coverage form which is a time element coverage

Question 36

limits applied to recovery of restoration

Answer 36

30 days or less = 40% of insurance paid 31-60 = 80% >60= 100%

Question 37

legal liability coverage form

Answer 37

covers damage to property of others while in the insured's control but only if the insured is legally liable for the damage

Question 38

what additional coverage pays for the loss of business income, even after operations have been resumed until the business has been restored but for no more than 60 days from the date the business is resumed

Answer 38

extended business income coverage

Question 39

coverage for the loss of business income over a period of time that results from a direct physical loss is also know as?

Answer 39

time element coverage

Question 40

collapse additional coverage

Answer 40

1. breakage of glass 2. hidden decay, 3. hidden insect, 4. weight of people, 5. weight of rain, 6. defective material

Question 41

airborne volcanic blast is describe as

Answer 41

volcanic action

Question 42

value reporting form is used by who

Answer 42

businesses for property with fluctuating values and that move from one location to another

Question 43

ordinance or law coverage endorsement

Answer 43

prohibits payment for increased cost due to the enforcement of building regulations or demolition laws

Question 44

spoilage endorsement

Answer 44

insure perishable stock

Question 45

which business income coverage form covers expenses that the insured incurs to reduce loss

Answer 45

business income without extra expense coverage

Question 46

business income with extra expense coverage form

Answer 46

reimburses the insured for money spent to avoid or minimize a business shutdown

Question 47

business income without extra expense

Answer 47

used to cover expenses related to reducing a loss

Question 48

what form covers the individual needs of commercial (not residential) condominium unit owners

Answer 48

the condominium commercial unit owners form

Question 49

if coverage has been exhausted how much additional coverage is available for debris removal

Answer 49

$25,000

Question 50

money must be insured under what type of form

Answer 50

crime coverage form it is excluded from the building and personal property coverage form

Question 51

outdoor furniture is covered under what

Answer 51

the building and personal property coverage form automobiles held for sale, currency, and patios or other paved surfaces are excluded

Question 52

the insured must send a signed statement of loss to the insurance company within how many day

Answer 52

60

Question 53

in the building and personal property coverage form what is covered

Answer 53

1. completed additions 2. fixtures inside and outside 3. permanently installed machinery and equipment 4. personal property used to maintain premises 5. outdoor furniture 6. additions under construction and alterations or repairs including materials

Question 54

business personal property covers

Answer 54

1. furniture 2. fixtures 3. machinery 4. equipment 5. stock (merchandise) 6. value of labor 7. improvements 8. leased personal property

Question 55

personal property used to service the premises, permanently installed fixtures, and floor covering are covered under what

Answer 55

the building coverage of the Building and Personal property coverage form

Question 56

the insured must send a signed statement of loss to the insurance company within how many days

Answer 56

60

Question 57

desk and office equipment come under the heading of what within the building and personal property coverage form

Answer 57

personal property

Question 58

extensions of coverage are available under the business and personal property form if

Answer 58

the policy indicates that 80% or higher coinsurance applies or the insured has purchased a reporting form

Question 59

money is insured under what type of form

Answer 59

crime coverage form

Question 60

what is excluded under the building and personal property coverage form

Answer 60

``` accounts bills currency deeds evidences of debt money notes or securities automobiles held for sale bridges roadways walks patios 13. other paved surfaces ```

Question 61

the builders risk coverage form requires that the insured has limits equal to

Answer 61

actual cash value of the building under construction this is a 100% coinsurance requirement

Question 62

3 coverage forms that may be found in a commercial property coverage policy

Answer 62

builder risk form the building and personal property form the extra expense form not the declarations form

Question 63

what is the maximum period of indemnity

Answer 63

limits reimbursement for extra expenses of loss of business income to no more than the amount of loss incurred during the first 120 days following the direct loss coinsurance condition that applies to the business income coverage forms is waived

Question 64

the extra expense coverage is what type of form

Answer 64

time element coverage

Question 65

outdoor property extends a limited amount of coverage to fences, antennas, satellite dishes, trees, plants and shrubs in the amount of

Answer 65

max payable is 1,000 with a 250 limit applying to any one tree or plant or shrub

Question 66

what covers the named insured, partners, employees and personal property of others

Answer 66

personal effects and property of others

Question 67

additional coverages found in the business and personal property coverage forms are

Answer 67

automatically included