Term
| Identify five insurance coverages provided by the Broad Form policy that are not provided by the Named Perils Form. |
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Definition
1) Vehicle impact damage to insured's buildings even when caused by insureds.
2) All sources of smoke damage, excluding agricultural smudging or industrial operations.
3) Water damage due to freezing or rupture of water lines.
4)Theft
5) Collapse, excluding earthquakes and repairs of faulty materials workmanship, and design. |
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Term
| Identify five factors used by insurers in establishing the base rate to be charged for insuring commercial property. |
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Definition
1) Construction
2) Protection
3) Occupancy
4) Location
5) Claims History |
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Term
| Define "Building", and identify property which might be insured under it. |
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Definition
Buildings described on the Declarations Page and includes:
- Fixed structures
- Additions and extensions
- Permanent fittings and fixtures
iv) Materials, equipment and supplies on premises for regular maintenance.
v) Growing plants, tree, shrubs or flowers inside the building used for decorative purposes when the insured is the owner of the building. |
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Term
| Identify property which might be insured under "stock". |
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Definition
- Merchandise of every description usual to the insured's business.
- Packing, wrapping & wrapping materials. |
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Term
| Identify property which might be insured under "equipment". |
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Definition
- Generally all contents usual to the owner's business other than building stock. e.g. furniture, tools, appliances, machinery.
- Similar property belonging to others for which insureds may be held legally liable.
- Building improvements, alterations & betterments made/puchased by tenants. |
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Term
| Identify the types of losses to which the Co-Insurance Clause applies. |
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Definition
| Partial losses when insureds pay less insurance than specified by the insurer. |
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Term
| Summarize the solution devised by insurers to discourage people from deliberately under-insuring. |
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Definition
| When insureds fail to meet the percentage of insurance required by the insurer, those insureds will be paid less than the amount of their loss. |
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Term
| State the formula for the calculation of the settlement amount on policies containing a Co-insurance Clause. |
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Definition
| Did/Should x Amount of Loss |
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Term
| Explain the coverages provided for "Debris Removal" |
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Definition
If limits of insurance have not been fully used, remaining amounts may be used to pay for debris removal.
Coverage is also provided for debris blown onto premises by a windstorm. |
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Term
| Summarize the provisions of the "Reinstatement Clause" |
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Definition
| Insureds will have as much insurance on property after an insured loss as they had immediately prior to it. |
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Term
| When would an insurer agree not to subrogate against a party responsible for a loss? |
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Definition
| When the responsible party has an insurable interest in the property insured, such as a business partner or a payee. |
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Term
| Identify three obligations placed upon insureds by the "Property Protection Systems" clause. |
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Definition
They must notify the insurer immediately when:
1. They know of an interruption to, or flaw in the system.
2. Contract with monitoring/maintenance services has been cancelled or not renewed.
3. They have received notification of suspension of police service in response to any such system. |
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Term
| Summarize the provisions of the "Locked Vehicle Warranty" |
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Definition
| Insurer is only liable for theft of property in transit if said property was in a fully enclosed and locked space and there are visible signs of forced entry. |
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Term
| Identify the evidence required before the insurer will agree to maky payment under a Burglary insurance policy. |
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Definition
| Insurer needs evidence that force was used to take insured property. |
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Term
| Identify the evidence required before the insurer will agree to maky payment under a Robbery insurance policy. |
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Definition
There must be evidence that:
-Actual or threatened force was used to take insured property from a person having control of it.
-Insured property taken from custodian whi is killed or rendered unconscious.
-Custodian witnessed the taking of insured property by an unauthorized person. |
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Term
| Identify the evidence required before the insurer will agree to maky payment under a Theft insurance policy. |
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Definition
| Evidence must be shown that property was taken without the owner's consent. |
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Term
| Identify two key coverages provided by a Boiler and Machinery Policy. |
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Definition
1) Loss/Damage from explosion of boilers/ pressure vessels operating in excess of 15 lbs/square inch
2) Electrical or mechanical breakdown of objects such as boilers/ pressure vessels, misc electrical apparatus, compressors and pumps. |
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Term
| Identify three different types of property items insured by the Builders Risk - Broad Form (IBC 4042). |
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Definition
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Term
| Identify four characteristics common to Business Interruption policies. |
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Definition
1) Contract of Indemnity
2) Insures Same Perils as Property Policy
3) Coverage Not Limited to Policy Period
4)Pay Expenses When They Reduce Amount of Loss |
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Term
| State the basic difference between the Earning Form and the Profits Form. |
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Definition
For the Earnings Form, coverage ends when property has been rebuilt, repaired or replaced.
For the Profits Form, coverage ends when the business's income is restored to the level would have been had the loss not occurred. |
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Term
i) State the purpose of Extra Expenses coverage.
ii) Provide three examples of extra costs insured by this policy. |
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Definition
i) Extra Expenses Insurance covers all necessary extra expenses incurred in continuing normal business hours after a loss.
ii)
1 - Renting temporary premises
2 - Installing telephones
3 - Paying overtime salaries |
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