unit11 Flashcards
a commercial property policy must include what forms
commercial property declarations and conditions form,
one or more commercial property coverage form,
the causes of loss form and
other mandatory endorsements
the commercial property declarations form provide additional information about what
the premises to be insured
the specific property forms that will apply
name and addresses or any mortgage or lien holders
what is in the commercial property coverage forms
defines what property is covered
what property is not covered
how the limits and deductible apply
what special conditions apply
causes of loss forms and types
list the perils the property is insured against
basic, broad, special (open)
what is in the conditions form of the commercial property policy
policy provisions
it’s attached to every commercial property policy
what is the control of property
this condition states that an act of neglect of a person beyond the insured’s direction or control will not affect the insurance.
legal action against us
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
what is other insurance
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
policy period, coverage territory condition state
a loss must occur during the policy period and in the coverage territory to be covered
transfer of rights of recovery against others to us
gives the insurance company subrogation rights
subrogation
a legal right that allows one party (your insurance company) to make a payment owed by another party then collect from the debt
no benefit to bailee
bailee is not reimbursed by insured’s commercial property insurance
liberalization
more coverage without more premium
45 days of policy’s effective date
what is stock
insured’s merchandise
improvements and betterments
fixtures, alterations, additions
newly acquired or constructed property coverage
building coverage 250,000 at each location business personal property 100,000
personal effects and property of others
2,500
valuable paper
2,500
property off premises
10,000
outdoor property
max 1,000 with 250 limit applying to any one tree
non owned detached trailer
5,000
the form that covers commercial, residential, or farm building that are under construction is calledhe
the builder risk coverage form
meaning of suspension
a slowdown or cessation of the insureds business activates
what is time element coverage
provides coverage for the loss of business income over a period of time that resulted from direct physical loss
extra expense
coverage to avoid closure for businesses that must remain open
extended period of indemnity
coverage extended to days stated in the declarations rather than the 60 days in the extended business income
max period of indemnity
last for first 120 days following direct loss
monthly limit of indemnity
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
when is coinsurance waived
when either the max period of indemnity of monthly limit of indemnity is selected
agreed value
submit 12 month business income report/worksheet. this removes the coinsurance clause. yearly amount of agreed coverage
3 types of business income from dependent properties
contributing location, recipient (buyer) , and manufacturing location
contributing location
provides raw materials to the insured
recipient location
primary buyer of the insured’s goods
manufacturing location
provides manufactured goods to the insured
business that can’t close need what type of insurance
extra expense coverage form which is a time element coverage
limits applied to recovery of restoration
30 days or less = 40% of insurance paid
31-60 = 80%
>60= 100%
legal liability coverage form
covers damage to property of others while in the insured’s control but only if the insured is legally liable for the damage
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
extended business income coverage
coverage for the loss of business income over a period of time that results from a direct physical loss is also know as?
time element coverage
collapse additional coverage
- breakage of glass
- hidden decay,
- hidden insect, 4. weight of people, 5. weight of rain, 6. defective material
airborne volcanic blast is describe as
volcanic action
value reporting form is used by who
businesses for property with fluctuating values and that move from one location to another
ordinance or law coverage endorsement
prohibits payment for increased cost due to the enforcement of building regulations or demolition laws
spoilage endorsement
insure perishable stock
which business income coverage form covers expenses that the insured incurs to reduce loss
business income without extra expense coverage
business income with extra expense coverage form
reimburses the insured for money spent to avoid or minimize a business shutdown
business income without extra expense
used to cover expenses related to reducing a loss
what form covers the individual needs of commercial (not residential) condominium unit owners
the condominium commercial unit owners form
if coverage has been exhausted how much additional coverage is available for debris removal
$25,000
money must be insured under what type of form
crime coverage form
it is excluded from the building and personal property coverage form
outdoor furniture is covered under what
the building and personal property coverage form
automobiles held for sale, currency, and patios or other paved surfaces are excluded
the insured must send a signed statement of loss to the insurance company within how many day
60
in the building and personal property coverage form what is covered
- completed additions
- fixtures inside and outside
- permanently installed machinery and equipment
- personal property used to maintain premises
- outdoor furniture
- additions under construction and alterations or repairs including materials
business personal property covers
- furniture
- fixtures
- machinery
- equipment
- stock (merchandise)
- value of labor
- improvements
- leased personal property
personal property used to service the premises, permanently installed fixtures, and floor covering are covered under what
the building coverage of the Building and Personal property coverage form
the insured must send a signed statement of loss to the insurance company within how many days
60
desk and office equipment come under the heading of what within the building and personal property coverage form
personal property
extensions of coverage are available under the business and personal property form if
the policy indicates that 80% or higher coinsurance applies or the insured has purchased a reporting form
money is insured under what type of form
crime coverage form
what is excluded under the building and personal property coverage form
accounts bills currency deeds evidences of debt money notes or securities automobiles held for sale bridges roadways walks patios 13. other paved surfaces
the builders risk coverage form requires that the insured has limits equal to
actual cash value of the building under construction
this is a 100% coinsurance requirement
3 coverage forms that may be found in a commercial property coverage policy
builder risk form
the building and personal property form
the extra expense form
not the declarations form
what is the maximum period of indemnity
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
the extra expense coverage is what type of form
time element coverage
outdoor property extends a limited amount of coverage to fences, antennas, satellite dishes, trees, plants and shrubs in the amount of
max payable is 1,000 with a 250 limit applying to any one tree or plant or shrub
what covers the named insured, partners, employees and personal property of others
personal effects and property of others
additional coverages found in the business and personal property coverage forms are
automatically included
