Term
| Building and Personal Property Coverage Form |
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Definition
| The primary coverage form of the Commercial Package policy's Commercial Property Coverage part. Covers a business's buildings, business personal property and the personal property of others. |
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Term
| Builder's Risk Coverage Form |
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Definition
| Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package Policy. |
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Term
| Extra Expense Coverage Form |
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Definition
| Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy. (p.68) |
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Term
| Legal Liability Coverage Form |
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Definition
| This form belongs to the Commercial Property Coverage part of the Commercial Package Policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control. |
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Term
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Definition
A form, which is a part of the Commercial
Property Coverage Part of the Commercial Package Policy. It specifies
what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to Special. An earthquake form is also available. |
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Term
| What must the basic commercial property contract contain? |
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Definition
| " The commercial property contract must contain a declarations page, common policy conditions, commercial property conditions, a coverage form, and causes of loss form. " is the correct response to: |
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Term
| May endorsements be attached to the commercial property contract? |
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Definition
| Yes, to restrict or expand the coverage provisions of the basic forms. |
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Term
| What does the declarations identify in a commercial property contract? |
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Definition
| " The declarations identifies the insured and property covered, states the limits of insurance, deductible, inception and expiration dates of coverage, identify the forms and endorsements that apply, and may contain certain other information relevant to the risk, such as identification of mortgage holders. " is the correct response to: |
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Term
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Definition
| A form containing conditions that apply to all coverages issued under the Commercial Package Policy program. |
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Term
| What does the Coverage Form describe in a commercial property contract? |
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Definition
| The coverage form describes the subject of the insurance and provides for added conditions relating to that subject. |
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Term
| What does the causes of loss form describe in a commercial property contract? |
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Definition
| The causes of loss form states the perils for which insurance is provided (fire, windstorm, etc.) with exclusions that limit application of coverage. |
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Term
| What is the cancellation/nonrenewal condition in a commercial property contract? |
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Definition
| " The insurer is required to give 20 days notice of cancellation for cancellations within the first 90 days the policy is enforced. After the first 90 days, the insurer must give 45 days written notice of cancellation except for cancellation for nonpayment of premium, which is 10 days. The insurer must give at least 45 days written notice of non-renewal. The notice of non-renewal or cancellation must state the reason for cancellation or non-renewal unless the insurer is canceling for material misrepresentation or misstatement or failure to comply with the underwriting requirements of the insurer. " is the correct response to: |
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Term
| What is the liberalization condition in a commercial property contract? |
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Definition
| " The commercial property policy contains a liberalization clause which states that if an insurer changes the policy form to broaden coverage and does not charge an additional premium for the broadened coverage, either before the start of the policy period (usually 45 days) or during the policy period, the insured will automatically (without additional premium) receive the broadened coverage on the new form. With the liberalization clause in the policy, the insurer does not have to cancel and rewrite policies to give the insured the broadened coverage. The liberalization clause only applies to broadened coverage. If the insurer restricts coverage in a new policy form, the insured will not be subject to the restricted coverage during the policy period. " is the correct response to: |
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Term
| What are the standard deductibles in a commercial property contract? |
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Definition
| The standard deductible is $500 for all loss or damage in any one occurrence for all perils other than hurricanes. Optional higher deductibles such as $1,000, $5,000, $10,000, or higher can be purchased. |
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Term
| How are deductibles applied for hurricane losses in a commercial property contract? |
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Definition
| " For hurricanes, a separate minimum deductible of $500 or a maximum of 10% of the limit shown for coverage applies. The insurer must offer the insured the option of having the deductible apply either on a per event or an annual basis. Optional higher deductibles of $1,000, $5,000, $10,000 or higher may be purchased. " is the correct response to: |
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Term
| The insured's covered building, with a value of $125,000, insured for $100,000, was a total loss from a covered cause of loss. Cost of removing debris, after loss, was $7,000. The policy deductible is $5,000. With no other coverage issues, how much is payable to the insured? |
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Definition
| $107,000. The deductible applies to the loss ($125,000), not to the amount of insurance. |
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Term
| What does the building and personal property coverage form define? |
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Definition
| " The building and personal property coverage form defines what property is covered not covered, and what is excluded. The form also defines how limits and deductibles apply, adds conditions; and provides for certain optional coverages. " is the correct response to: |
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Term
| Name the three general types of properties that may be covered by the property coverage form? |
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Definition
| "Personal property of others", "your personal property" and "building" are the types of property that may be covered. |
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Term
| What is covered under the term "building"? |
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Definition
| " Building" means a structure described on the declarations page of the policy. Building may include completed additions, outdoor fixtures, installed fixtures, permanently installed machinery and equipment, personal property used to service the premises (fire extinguishers), outdoor equipment, floor coverings, refrigeration, ventilating, cooking, dish washing, and laundering appliances. If not otherwise covered by a separate policy, "building" may also included additions under construction, alterations and repairs including materials, equipment, supplies and temporary structures on or within 100 feet of the premises. " is the correct response to: |
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Term
| What is covered under the term "your business personal property"? |
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Definition
| " Your business personal property" includes business contents such as furniture, fixtures, machinery, equipment, stock and other contents used in the business. If the insured is a tenant, personal property includes improvements and betterments. Improvements and betterments are fixtures, alterations, installations, or additions to the building, which are not removable and made or acquired at the tenant's expense. All such property is covered while in the building or within 100 feet of the premises if in the open or in a vehicle. " is the correct response to: |
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Term
| What is covered under the term "your business personal property"? |
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Definition
| " Your business personal property" includes business contents such as furniture, fixtures, machinery, equipment, stock and other contents used in the business. If the insured is a tenant, personal property includes improvements and betterments. Improvements and betterments are fixtures, alterations, installations, or additions to the building, which are not removable and made or acquired at the tenant's expense. All such property is covered while in the building or within 100 feet of the premises if in the open or in a vehicle. " is the correct response to: |
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Term
| Improvements and Betterments |
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Definition
| Permanent alterations which a tenant makes to the rented property, which will not be removed when the tenant leaves. |
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Term
| What is covered under the term "personal property of others"? |
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Definition
| Personal property of others provides coverage for property owned by others and in the insured's care, custody or control. Personal property of others must be located in the premises described on the policy. |
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Term
| What property is not covered on the building and personal property coverage form? |
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Definition
| " Property not covered" identifies several types of property not covered by the policy including accounts, bills, currency, deeds, evidence of debt, money or securities, and unless specifically provided for bullion or manuscripts, animals (unless boarded or held for sale), autos for sale, paved surfaces, cost of ground preparation, property below basement or ground level, land, crops, bulkheads, pilings, piers, wharves or docks, retaining walls that are not part of the building itself, self propelled machines other than those that are held as stock for sale or which are licensed for road use or operated principally away from the premises, fences, outdoor radio or TV antennas (including, satellite dishes), wiring, masts, outdoor signs that are not attached to the building (if attached, they are covered up to $1,000 per occurrence), and outdoor trees, shrubs, and plants. " is the correct response to: |
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Term
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Definition
| A coverage provided in many property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a peril insured against. |
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Term
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Definition
| This is a Property insurance coverage, sometimes known as a removal, which provides coverage for property that has been removed from the premises following a covered loss. |
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Term
| Fire Department Service Charge |
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Definition
| The policy will pay up to $1,000 for a fire department service call to protect the covered property from a covered loss if the service call was based on a contractual agreement with the fire department or required by ordinance. The $1,000 fire department service charge is covered as an additional amount of insurance. |
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Term
| Pollution Clean Up and Removal |
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Definition
| Pays a maximum of $10,000 total for losses during any 12 month period only if reported to the insurer within 180 days of the date of the covered loss. This coverage pays for the cost of extracting pollutants from the ground or water if the pollution is created by a covered cause of loss. |
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Term
| Pollution Clean Up and Removal |
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Definition
| Pays a maximum of $10,000 total for losses during any 12 month period only if reported to the insurer within 180 days of the date of the covered loss. This coverage pays for the cost of extracting pollutants from the ground or water if the pollution is created by a covered cause of loss. |
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Term
| Increased Cost of Construction |
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Definition
| Some counties or municipalities have laws or ordinances that require a damaged dwelling or building to be brought up to the current building codes when being repaired after a loss. There may be additional construction cost when these buildings are brought up to the current building code. This coverage covers this increased cost of construction. The new ordinance or law must been in effect at the time the loss occurs. Replacement cost must be selected for the loss. There is no coverage for ordinances or laws the insured should have complied with prior to the loss but did not. |
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Term
| What coverage is provided for debris removal? |
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Definition
| " The cost to remove debris following property damage by a covered loss is paid up to 25 percent of the amount paid for the loss plus the deductible. If the limit of coverage has been exhausted, debris removal expense will pay an additional $10,000 toward each occurrence and each location. " is the correct response to: |
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Term
| What coverage is provided for preservation of property? |
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Definition
| When covered property is taken from the premises at the time of loss to protect it from loss, coverage for a covered peril will include any damage caused during the moving of the property or while it is any temporary location for up to 30 days. |
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Term
| What coverage is provided for fire department service charges? |
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Definition
| The policy will pay up to $1,000 for a fire department service call to protect the covered property from a covered loss if the service call was based on a contractual agreement with the fire department or required by ordinance. The $1,000 fire department service charge is covered as an additional amount of insurance. |
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Term
| What coverage is provided by pollution clean up and removal? |
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Definition
| Pays a maximum of $10,000 total for losses during any 12 month period only if reported to the insurer within 180 days of the date of the covered loss. This coverage pays for the cost of extracting pollutants from the ground or water if the pollution is created by a covered cause of loss. |
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Term
| What coverage is provided by increased cost of construction? |
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Definition
| " Some counties or municipalities have laws or ordinances that require a damaged dwelling or building to be brought up to the current building codes when being repaired after a loss. There may be additional construction cost when these buildings are brought up to the current building code. This coverage covers this increased cost of construction. The new ordinance or law must been in effect at the time the loss occurs. Replacement cost must be selected for the loss. There is no coverage for ordinances or laws the insured should have complied with prior to the loss but did not. " is the correct response to: |
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Term
| What coverage is provided under the extension for automatic coverage? |
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Definition
| Thirty-day automatic coverage (the insured does not need to notify the insurer) is provided for (1) new buildings under construction at the insured's premises or buildings acquired at other premises for up to $250,000 per buildings, and (2) personal property at newly acquired locations up to $100,000 in each building. |
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Term
| What coverage is provided under the extension for personal effects and property of others? |
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Definition
| Your business personal property may be covered up to $2,500 at each premises to cover personal effects owned by the named insured's partners and employees (excluding loss by theft) and for personal property of others in the care, custody or control of the insured. |
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Term
| What coverage is provided under the extension for valuable papers and records? |
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Definition
| If the policy includes your business personal property, the policy will pay the cost of research up to $2,500 at each premises for the cost to research, replace or restore lost information from papers and records. |
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Term
| An insured with a building and personal property form, which covers a building for $500,000 and personal property for $150,000, purchases a building and its furniture at another location. What coverage, if any, is provided by the policy for this new purchase? |
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Definition
| $250,000 on the building and $100,000 on its contents is automatically covered for a 30-day period. |
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Term
| What coverage is provided under the extension for property off premises? |
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Definition
| " Covered property other than stock held for sale while temporarily at a location not owned, leased or operated by the insured is covered up to $10,000. Property in or on vehicles, in the custody of salespersons or at a fair or exhibition is not covered. " is the correct response to: |
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Term
| What coverage is provided under the extension for outdoor property? |
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Definition
| Fences, radio or TV antennas and trees, shrubs and plants are covered up to $1,000 (not more than $250 on any one tree, shrub or plant) for the perils of fire, lightning, explosion, riot or civil commotion or aircraft. Detached signs are limited to $2,500 and the perils covered are governed by the Causes of Loss form attached to the policy. Cost of debris removal is included. |
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Term
| What coverage is provided under the extension for non-owned detached trailers? |
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Definition
| Coverage may be provided for detached trailers the insured does not own provided there is a written agreement whereby the insured agrees to provide coverage, the trailer is used in the insured's business, and the trailer is located on the premises described in the declaration page. The insured can purchase a limit of $5,000 or more and coverage is excess over any other insurance provided for the trailer. |
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Term
| What are the limitations for the vacancy condition? |
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Definition
| " If the insured building has been vacant for more than 60 consecutive days prior to a loss, a loss from vandalism, sprinkler leakage (unless protected steps against freezing have been taken), building glass breakage, water damage, theft or attempted theft, will not be covered. For any other covered perils, the amount payable for the claim is reduced by 15 percent. These limitations and suspensions may be eliminated by the attachment of the vacancy permit endorsement to the policy. " is the correct response to: |
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Term
| What are the limitations for the valuation condition? |
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Definition
| " Payment for loss or damage to covered property is made on actual cash value (deduction for depreciation) basis, subject to several exceptions. If the replacement value of a building loss is less than $2,500, and the insured is in compliance with the coinsurance clause, full replacement cost is paid. This provision does not apply to awnings, floor coverings, appliances, or outdoor equipment or furniture. Stock, which has been sold but not delivered, is covered for its net selling price (the selling price less any discounts allowed). If required by law, glass replacement includes the cost of safety glazing material. Valuable papers and records are covered for the cost of blank materials used to reproduce the papers or records including labor costs to transcribe or copy duplicate records. " is the correct response to: |
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Term
| What are the coverages for the mortgagee under the mortgage clause? |
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Definition
| " The mortgagee clause in the building and personal property coverage form provides that a loss will be paid to a mortgage company shown on the declarations page of policy. The protection of the mortgagee, in the event of loss, is not impaired by omissions of the insured. The mortgagee is allowed to pay premiums and submit a proof of loss after the insured has failed to do so. The mortgagee clause also guarantees the mortgage holder advance notice of cancellation or non-renewal of policy. " is the correct response to: |
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Term
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Definition
| Written with property insurance policies. It waives the Coinsurance clause and requires the insured to carry insurance equal to at least 80% of a signed statement of values filed with the company. |
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Term
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Definition
| A property insurance option, which provides that the policy limits will increase a certain percentage at regular intervals, for instance, annually. |
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Term
| Optional Coverage: Replacement Cost |
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Definition
| The replacement cost endorsement changes the policy to pay for building or personal property losses on a replacement cost basis without deduction for depreciation. This endorsement is not usually available for property of others, residential contents, manuscripts, or property such as works of art and antiques. The insured must cover the property for at least 80 percent of the replacement cost. Unless the insured actually repairs or replaces the damage property within a reasonable time, the insurer will pay the loss on an actual cash value adjustment basis. Even if the replacement cost endorsement applies, the insured can notify the insurer within 180 days after a loss of the insured's option to take actual cash value settlement. |
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Term
| What coverage is provided by the agreed value optional coverage? |
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Definition
| " If agreed value is provided, the coinsurance condition is waived by the insurer (the insured will not have to pay a coinsurance penalty). The agreed value endorsement is added to the policy after the insured signs a statement of values and files the statement with the insurer. The declarations page of the policy normally states an expiration date for the agreed value option. If the policy continues passed the expiration date for the agreed value option without renewal of the option, the coinsurance condition will be reinstated. " is the correct response to: |
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Term
| What coverage is provided by the inflation guard optional coverage? |
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Definition
| The inflation guard endorsement states an annual rate increase by which the building or contents limits will be increased during the policy term. These limits are increased pro rata during the policy term without a separate endorsement being issued by the insurer. |
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Term
| What coverage is provided by the replacement costs optional coverage? |
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Definition
| " The replacement cost endorsement changes the policy to pay for building or personal property losses on a replacement cost basis without deduction for depreciation. This endorsement is not usually available for property of others, residential contents, manuscripts, or property such as works of art and antiques. The insured must insure the property for at least 80 percent of the replacement costs. Unless the insured actually repairs or replaces the damage property within a reasonable time, the insurer will pay the loss on an actual cash value adjustment basis. Even if the replacement cost endorsement applies, the insured can notify the insurer within 180 days after a loss of the insured's option to take actual cash value settlement. " is the correct response to: |
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Term
| Value Reporting Endorsement |
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Definition
| An endorsement that can be added to Commercial Property policies which sets the limit of insurance somewhat higher than expected peak values and then requires the insured to make periodic reports of actual values. These reports are averaged and the premium is then adjusted to reflect the average exposure. |
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Term
| What coverage is provided by the value reporting optional coverage? |
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Definition
| " When a business's personal property values fluctuate, the insured can purchase a value reporting endorsement. The insured purchases a provisional amount of coverage, which is a limit of their peak values. This is the maximum amount of coverage that will apply to each location in the event of a loss. The insured makes periodic reports of actual values. The value reporting form requires that values be reported timely and accurately. After the policy has expired, the insurer will average values on reports and adjust the premium to charge for the average values reported. " is the correct response to: |
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Term
| What coverage is provided by the peak season optional coverage? |
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Definition
| The peak season endorsement is used for insureds that have larger amounts of personal property at certain times of the year. The peak season endorsement is commonly used for retail insureds that have higher inventories during the Christmas season. This endorsement allows a different limit of insurance during a stated time period other than the limit shown on the declarations page of the policy. |
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Term
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Definition
| A Commercial Property endorsement which provides for higher limits to apply during specific periods of the year when inventory is at a peak. |
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Term
| What coverage is provided by the building ordinance coverage optional coverage? |
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Definition
| " The building ordinance coverage endorsement covers the insured for the additional cost caused by enforcement of laws which require demolition of undamaged portions of buildings (covering of the value of the undamaged portion and the costs to demolish) and/or higher cost of repair or reconstruction based on upgraded building, zoning or land use laws. An 80 percent or higher coinsurance clause and replacement cost coverage are prerequisites. " is the correct response to: |
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Term
| Builder's Risk Coverage Form |
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Definition
| Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package Policy. |
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Term
| What is covered by the builder's risk coverage form? |
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Definition
| The builder's risk coverage form covers buildings in the course of construction. |
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Term
| Define "covered property" in the builder's risk coverage form? |
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Definition
| " Covered property includes the structure being built, including foundations; fixtures and machinery; equipment to service the building; and owned material and supplies used for construction, including temporary structures built or assembled on site. " is the correct response to: |
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Term
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Definition
| "Business income" means net profit or loss before income taxes, which would have resulted from continuing normal operations following a direct loss. Rental value covers the insured's indirect loss of rents following a direct loss; rental value may be included in the definition of business income. Extra expense coverage reimburses the insured for additional expenses incurred after a physical damage loss. The extra expenses are above and beyond the normal expenses incurred by the business. |
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Term
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Definition
| A coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package Policy. |
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Term
| Maximum Period Of Indemnity |
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Definition
| This option replaces the coinsurance condition with a condition that limits the period of indemnity to 120 days following the 72-hour deductible period. |
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Term
| Monthly Limit of Indemnity |
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Definition
| This option replaces the coinsurance condition with a provision that limits the amount of recovery to a fraction of the coverage limit during each consecutive thirty days following the loss. The fractions available are 1/3, ΒΌ, and 1/6. |
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Term
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Definition
| his option replaces the coinsurance condition with an agreed value. The insured submits financial data for both the prior and the next 12 months. The insurer then agrees to the value set forth in the policy. The policy shows an expiration date for the agreed value. If the agreed value expiration date expires, the policy again becomes subject to a coinsurance provision. |
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Term
| Extended Period of Indemnity |
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Definition
| The normal thirty-day extended period of indemnity may be increased to any longer period up to 730 days. |
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Term
| Business Income From Dependent Properties coverage |
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Definition
| Business Income From Dependent Properties coverage is also available. This coverage provides loss of income coverage should a supplier, customer, or a dependent location be damaged by a covered peril. |
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Term
| What is the difference between the two business income coverage forms? |
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Definition
| " The study guide details two business income forms; business income with or without extra expense. The difference between the business income forms lies in how extraordinary expenses are handled. The business income and extra expense coverage form pays extra expenses which avoid or minimize the suspension of business or allow the insured to continue operations at the described premises or at another location (only to the extent that they reduce the loss: such expenses must be incurred to shorten the period of interruption at the damaged premises), extra expenses to expedite the reopening (paid without regard to whether or not they actually result in a reduction of the business income loss), and to repair or replace property, or to research, replace or restore the lost information on damaged valuable papers and records (covered only to the extent that such expenses reduce the amount that otherwise would have been paid). " is the correct response to: |
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Term
| Is coinsurance required in the business income coverage form? |
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Definition
| Yes. In its basic form, it contains a coinsurance condition and contemplates entry of a coinsurance percentage in the declarations. Optional coinsurance percentages begin at 50% through 125%. |
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Term
| What is compliance with the coinsurance condition in the business income form? |
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Definition
| " The amount of insurance must be equal to the coinsurance percentage times the total of net pre-tax profit or loss and all operating expenses that would have been earned for the 12 months following inception or the last anniversary date of the policy. If, at the time of the loss, the coverage amount is found to be less, the company is responsible only for the proportion of loss which the limit carried bears to the required limit. " is the correct response to: |
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Term
| Are there coverage options in the business income form? |
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Definition
| Yes, there are four: maximum period if indemnity, monthly limit of indemnity, agreed value and extended period of indemnity. |
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Term
| Describe the extra expense coverage form? |
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Definition
| Coverage, which reimburses the insured for extraordinary expenses, incurred to maintain uninterrupted operations, during the period of restoration. |
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Term
| Extra Expense Coverage Form |
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Definition
| Covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against. One of the Commercial Property Coverage forms that can be included in a Commercial Package Policy. (p.68) |
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Term
| What are the recoverable limits of the extra expense coverage form? |
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Definition
| The form provides for a percentage of recoverable limits, which may be recovered in thirty-day periods. |
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Term
| What is the leasehold interest form? |
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Definition
| " An available form to cover the following exposures resulting in loss after damage to premises from a covered peril; tenant loss of a favorable lease; tenant loss of a favorable sublease; loss of the remaining value of a bonus paid to acquire a lease; loss of the remaining value of improvements by a tenant; loss of remaining value of prepaid rents. " Is the correct response to: |
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Term
| Legal Liability Coverage Form |
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Definition
| This form belongs to the Commercial Property Coverage part of the Commercial Package Policy. It covers the insured for negligently damaging property owned by others, but in the insured's care, custody or control. |
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Term
| Describe the legal liability coverage form? |
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Definition
| A legal liability form to cover the insured for negligently damaging property owned by others but in the insured's care, custody or control. |
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Term
| Condominium Association Coverage Form |
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Definition
| A part of the Commercial Property Coverage part of the Commercial Package Policy, which covers the buildings in a condominium complex (not the unit-owner's personal property). |
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Term
| Condominium Unit Owners Form |
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Definition
| The condominium unit owner's form provides coverage for a commercial unit owner's business personal property and can include personal property of others in the insured's care, custody or control. |
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Term
| What are the condominium coverage forms? |
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Definition
| There are two condominium forms available, the condominium association form and the condominium unit owners form. |
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Term
| Describe the condominium association form? |
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Definition
| It insures a condominium association against direct physical loss of damage to buildings, and business personal property of others in the care, custody or control of the association and located at the premises. |
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Term
| Describe the condominium unit-owners form? |
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Definition
| It is designed for the unit owner of a condominium. It is used only for commercial, not residential, condominiums. It covers the unit-owner's business personal property and the personal property of others in the insured's care, custody or control. |
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Term
| What are the exclusions for all cause of loss forms? |
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Definition
| " (1) Loss resulting from enforcement of building ordinances, which regulate construction, use or repair of property, or demolition. While excluded on the causes of loss form, coverage is available by endorsement; (2) Earth movement except for damage caused by resulting fire or explosion. Sinkhole collapse is covered on all property policy as mandated by Florida Statute; (3) Seizure or destruction by government authority, except destruction to prevent spread of fire; (4) Nuclear reaction, radiation or radioactive contamination except for damage caused by resulting fire; (5) Loss from utility service failure where the utility failure occurs anywhere outside the building; (6) War and related incidents such as insurrection and rebellion; (7) Flood, rising waters, mudslides, backing up of water through sewers or drains, and underground water seepage. Resultant damage by fire, explosion or sprinkler leakage from one of these perils is covered; (8) "Fungus", wet rot, dry rot, and bacteria unless resulting from a specified cause of loss; (9) Damage to wiring or devices caused by artificially generated electrical current. Resultant damage from fire is covered; and (10) Explosion of steam boilers, pipes, engines or turbines. Resultant damage by fire or combustion explosion is covered. " is the correct response to: |
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Term
| What are the exclusions for business income and extra expense coverages? |
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Definition
| " As to business income and extra expense coverages, all causes of loss forms exclude loss from damage to antenna equipment, delays in property restoration caused by strikers or other persons, loss of any license, loss of a lease or contract (unless cause by the suspension of operations, in which case the loss of business income during the period of restoration is covered). For Business Income, loss from damage to stock manufactured by the insured, or the time required to reproduce such stock is also excluded. " is the correct response to: |
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Term
| What perils are covered in the causes of loss-basic form? |
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Definition
| " Eleven (11) basic perils are covered, fire, lightning, explosion, windstorm or hail, smoke, aircraft and vehicle damage, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. " is the correct response to: |
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Term
| What perils are covered in the causes of loss-broad form? |
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Definition
| " Four specified perils, falling objects, weight of ice, snow or sleet, water damage, and collapse in addition to the 11 specific perils in the Basic Form. " is the correct response to: |
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Term
| What coverage is provided for collapse? |
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Definition
| " The collapsed must be caused by one of the previously specified causes of loss, hidden decay, insect or vermin damage, weight of people, weight of personal property, or rain that collects on the roof, occur during construction, or occur during remodeling or renovation if caused by the use of defective materials or methods. " is the correct response to: |
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Term
| What perils are covered by the causes of loss-special form? |
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Definition
| What perils are covered by the causes of loss-special form? |
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Term
| What are the primary examples of exclusions found in the special form? |
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Definition
| " These exclusions are: wear and tear, rust, decay, deterioration, smog, release of contaminants or pollutants, settling, cracking, nesting, infestation or discharge/release of waste products or secretions by insects, birds, rodents or other animals, breakdown, temperature changes, marring or scratching, prolonged leakage or seepage of water, dishonesty of the insured or their employees, voluntary parting with property through trick or device, loss to property in the open from rain, snow, ice or sleet, acts or decisions of a governmental body, errors in planning, zoning, development, surveying, sitting, design, workmanship, materials or maintenance. " is the correct response to: |
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Term
| What are the coverage limitations contained In the special form? |
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Definition
| " The Special form does not cover damage to boilers caused by a condition inside the equipment, damage to the interior of buildings from rain, sand, etc. unless there is first damage to the exterior of the building, theft of detached building materials and supplies, mysterious disappearance of property, damage to gutters and downspouts from the weight of snow, ice or sleet, damage to valuable papers and records, damage to the animals, damage to fragile articles, or damage to builders' machinery, tools and equipment. " is the correct response to: |
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Term
| What are the dollar limitations listed in the special form? |
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Definition
| The special form contains several dollar limitations: A $2,500 limit applies to the theft of fur and fur garments; a $2,500 limit applies to the theft of jewelry or similar property; a $2,500 limit applies for theft of patterns, dies, molds and forms; a $250 limit applies for stamps, tickets and letters of credit; a $5,000 limit applies to property in transit. |
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Term
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Definition
| Part of the Commercial Package policy, the Farm Coverage Part provides both property and liability forms that can be used to provide farm coverage on either a monoline or package basis. |
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Term
| What property may be covered by the farm coverage form? |
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Definition
| " Coverage A Dwellings; Coverage B Other private structures appurtenant to the dwelling; Coverage C Household private property; Coverage D Loss of use including coverage for additional living expense (the increase in costs to maintain the insured's normal standard of living, if a covered loss causes the dwelling to become uninhabitable) and fair rental value (the loss of rents or rental value the insured sustains because a covered loss renders any portion of a residence premises rented or held for rental uninhabitable); Coverage E Scheduled farm personal property which includes property for which a limit is shown in the declarations page, including such property as grain, farm produce, poultry, livestock, machinery, and vehicles and equipment incidental to farm use; Coverage F Unscheduled farm personal property which covers farm personal property on a blanket basis both on and off premises; Coverage G Other farm structures. The structures include farm buildings and structures other than the dwelling including barns, silos, fences and outdoor radio and equipment as well as other farm structures. " is the correct response to: |
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Term
| What perils may be covered on the farm coverage form? |
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Definition
| The farm property form offers coverage on a basic, broad or special basis. The same form includes all three coverages. The declarations page indicates which coverage the insured has selected for each individual coverage part. Earthquake coverage may be purchased separately. |
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