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Insurance > unit11 > Flashcards

unit11 Flashcards

1
Q

a commercial property policy must include what forms

A

commercial property declarations and conditions form,

one or more commercial property coverage form,

the causes of loss form and

other mandatory endorsements

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2
Q

the commercial property declarations form provide additional information about what

A

the premises to be insured

the specific property forms that will apply

name and addresses or any mortgage or lien holders

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3
Q

what is in the commercial property coverage forms

A

defines what property is covered

what property is not covered

how the limits and deductible apply

what special conditions apply

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4
Q

causes of loss forms and types

A

list the perils the property is insured against

basic, broad, special (open)

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5
Q

what is in the conditions form of the commercial property policy

A

policy provisions

it’s attached to every commercial property policy

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6
Q

what is the control of property

A

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

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7
Q

legal action against us

A

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

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8
Q

what is other insurance

A

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

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9
Q

policy period, coverage territory condition state

A

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

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10
Q

transfer of rights of recovery against others to us

A

gives the insurance company subrogation rights

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11
Q

subrogation

A

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

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12
Q

no benefit to bailee

A

bailee is not reimbursed by insured’s commercial property insurance

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13
Q

liberalization

A

more coverage without more premium

45 days of policy’s effective date

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14
Q

what is stock

A

insured’s merchandise

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15
Q

improvements and betterments

A

fixtures, alterations, additions

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16
Q

newly acquired or constructed property coverage

A

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

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17
Q

personal effects and property of others

A

2,500

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18
Q

valuable paper

A

2,500

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19
Q

property off premises

A

10,000

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20
Q

outdoor property

A

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

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21
Q

non owned detached trailer

A

5,000

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22
Q

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

A

the builder risk coverage form

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23
Q

meaning of suspension

A

a slowdown or cessation of the insureds business activates

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24
Q

what is time element coverage

A

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

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25
Q

extra expense

A

coverage to avoid closure for businesses that must remain open

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26
Q

extended period of indemnity

A

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

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27
Q

max period of indemnity

A

last for first 120 days following direct loss

28
Q

monthly limit of indemnity

A

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

29
Q

when is coinsurance waived

A

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

30
Q

agreed value

A

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

31
Q

3 types of business income from dependent properties

A

contributing location, recipient (buyer) , and manufacturing location

32
Q

contributing location

A

provides raw materials to the insured

33
Q

recipient location

A

primary buyer of the insured’s goods

34
Q

manufacturing location

A

provides manufactured goods to the insured

35
Q

business that can’t close need what type of insurance

A

extra expense coverage form which is a time element coverage

36
Q

limits applied to recovery of restoration

A

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

37
Q

legal liability coverage form

A

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

38
Q

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

A

extended business income coverage

39
Q

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

A

time element coverage

40
Q

collapse additional coverage

A
  1. breakage of glass
  2. hidden decay,
  3. hidden insect, 4. weight of people, 5. weight of rain, 6. defective material
41
Q

airborne volcanic blast is describe as

A

volcanic action

42
Q

value reporting form is used by who

A

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

43
Q

ordinance or law coverage endorsement

A

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

44
Q

spoilage endorsement

A

insure perishable stock

45
Q

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

A

business income without extra expense coverage

46
Q

business income with extra expense coverage form

A

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

47
Q

business income without extra expense

A

used to cover expenses related to reducing a loss

48
Q

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

A

the condominium commercial unit owners form

49
Q

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

A

$25,000

50
Q

money must be insured under what type of form

A

crime coverage form

it is excluded from the building and personal property coverage form

51
Q

outdoor furniture is covered under what

A

the building and personal property coverage form

automobiles held for sale, currency, and patios or other paved surfaces are excluded

52
Q

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

A

60

53
Q

in the building and personal property coverage form what is covered

A
  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
54
Q

business personal property covers

A
  1. furniture
  2. fixtures
  3. machinery
  4. equipment
  5. stock (merchandise)
  6. value of labor
  7. improvements
  8. leased personal property
55
Q

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

A

the building coverage of the Building and Personal property coverage form

56
Q

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

A

60

57
Q

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

A

personal property

58
Q

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

A

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

59
Q

money is insured under what type of form

A

crime coverage form

60
Q

what is excluded under the building and personal property coverage form

A 
accounts
bills 
currency
deeds
evidences of debt
money 
notes or securities
automobiles held for sale
bridges
roadways
walks
patios
13. other paved surfaces
61
Q

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

A

actual cash value of the building under construction

this is a 100% coinsurance requirement

62
Q

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

A

builder risk form

the building and personal property form

the extra expense form

not the declarations form

63
Q

what is the maximum period of indemnity

A

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

64
Q

the extra expense coverage is what type of form

A

time element coverage

65
Q

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

A

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

66
Q

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

A

personal effects and property of others

67
Q

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

A

automatically included

Insurance (16 decks)

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