Commercial Inland Marine 7.5

Chapter 18

Nationwide definition of marine

Eligible risk under marine insurance:

a. imports

b. exports

c. domestic shipments

d. instrumentalities of transportation or communication

d. personal property floater risks

e. commercial property floater risks

Commercial Inland marine conditions form

Loss conditions

a.) no abandoment of insured property to the insurer

b.) appraisal condition: if insured & insurer disagree on value of property or amount of loss either may make a written demand for an appraisal and both will select an umpire. if no umpire is found within 15 days either party can request a judge to make selection

c.) Insureds duties in the event of a loss: notify police, give insurer prompt notice, take reasonable steps to protect property from further loss, permit insurer to inspect property, cooperate w/ investigation

Commercial Inland marine conditions form

Loss conditions continued

-insurance under 2 or more coverages: insurer will not pay more than the actual amount of loss. loss payment will be paid within 30 days after reaching agreement

-if loss involves any pair, set or parts: insurer may repair any part to restore the pair.

-property of others in the care, custody or control of the insured: insurer has privilege to adjust w/ the owner

-Recovery or salvage: on a loss will accure entirely to benefit the insurer

-Reinstatement of limit after a loss: limit of insurance will not be reduced by payment of any claim

Commercial Inland marine conditions form

General conditions

a. coverage will be void in any case of fraud, concealment, misrepresentation by the insured relating to the insurance.

b. no one may take legal action against the insurer under the inland marine coverage part unless there has been full compliance w/ all terms of the coverage part and the action is brought within 2 yrs & 1 day after the insured first has knowledge of loss

c. coverage provides no benefit to a bailee

d. coverage only applies to loss commencing during policy period.

a.) Accounts Receivable coveage: controlled form which covers sums due the insured from customers that are not collectible due to loss, damage, or destruction.

b.) Bailess forms: if property is damaged while in the custody of the bailee, bailee will be held for liable damages.

c.) Commercial articles: may be used to insure the interests of the owner of commercial cameras, instruments, & related equipment.

d.) Contractors equipment floater: designed to insure various types of construction equipment used by contractors.

Inland Marine Coverage Forms

continued

e.) Electronic data processing: coverages hardware & software. usually coverage is "open perils"

f.) Equipment dealers:

g.) Installation floater:

h.) Jewelers Block: insureds stock in trade, property that is sold but not delivered,

Inland Marine Coverage Forms

continued

i.) Signs: insures value of signs.

j.) Valuable paper and records: provides coverage for written, printed documents, manuscripts, records, books.

k.) Motor truck cargo forms: covers cargo while it is being transported in a truck. protects carrier for liability loss to domestic shipments in transit

m.) Transit coverage forms: protect single shipments of specific property. coverage aplies while goods are in transit

l.) common carrier cargo liability:

Equipment Breakdown 7.6

Ch 12

Equipment breakdown protection coverage form

-designed to cover loss to insured's property and loss to property of others.

-pays for direct damage to covered property by a covered cause cause of loss.

-insured must repair or replace the damaged property within 24 months after the date of the breakdown.

Equipment Breakdown

Selected Endorsements

Actual cash value: replaces property damage valuation condition in the equipment breakdown coverage form. Covered property damaged by a breakdown will be repaired or replaced based on the loss of:

a. cost to repair or replace damaged property with property of same kind, capacity, size or quality

b. actual cash value of damaged property

Farm Coverage 7.7

Ch 5

Farm Property Coverage form

1.) Coverage A: dwellings

2.) Coverage B: other private structures appurtenant & pertaining to residence premises (10% of coverage A limit)

3.) Coverage C: household personal property

4.) Coverage D: loss of use

5.) Coverage E: schedule farm personal property for the limit shown in the declarations EX: grain, farm products, poultry, livestock, machinery

6.) Coverage F: unschedule farm personal property covers farm personal property on a blanket basis both on & off insured premises

7.) Coverage G: barns, outbuildings, other farm structures coverage form covers barns, silos, fences, radio equpiment, & other farm buildings

Coverage H: BI & PD liability

Coverage I: personal & advertising injry liability

Coverage J: medical payments

-Mobile agriculture machinery & equipment coverage form

-Lifestock floater

- form provides for the scheduling of mobile equipment separately from other farm property. Coverage may also be provided on a blanket basis for most items except cotton pickers & combnes which must be specifically scheduled. Coverage is written on an "open peril" basis with few exlcusions

- allows livestock to be covered on a scheduled or blanket basis. this is a named peril & covers certain types of livestock including cattle, sheep, swine, goats, horses, mules, donkeys. requires that stock be insured for 80% of its value. **Poultry not covered under this form**

Farm Causes of loss

Basic

-Covers fire, lightning, windstorm/hail, explosion, riot, civil commotion, aircraft, smoke, vandalism, theft, volcanic action, sinkhole collapse, earthquake or flood loss to livestock.

-Property insured under the Farm Property & farm structures is also covered for collision that results in:

a. damage to covered farm machinery or other farm personal property

b. death of covered livestock

Farm Causes of loss

Broad

adds additional perils, some that are unique to the farm risk include:

-electrocution of covered livestock

-attacks on covered livestock by dogs or wild animals

- drowning of covered livestock

-accidents involving loading or unloading

-accidental shooting of covered livestock

Farm Causes of loss

Special

- coverage is open perils

-Exclusions:

a. dishonest or criminal acts

b. pollutants or contaminants

c. transfer of property due to unauthorized instructions

d. voluntary parting w/ property

e. failure to save & preserve property from loss

Liability Exclusions

No coverage for losses arising out of:

a. pollutants

b. injury to farm employees

c. motor veh

d. insured's performance of or failure to perform custom farming operations for others

e. damage to the insured's own products

f. aircraft spraying

Limits for Farm Coverage

$200 on gold other than goldware

$1,500 letters of credit, manuscripts, passports, securities

$1,500 watercraft including their furnishings, outboard engines or motors, and trailers

$1,500 trailers not used w/ watercraft or farming operations

$2,500 on business personal property on "insured" premises

$500 on business personal property off insured location

$1,500 certain electronic apparatus & accessories in or upon a motor veh

$1,500 eletronic apparatus & accessories used primarily in connection w/ operation of farm or a business

$2,500 on furs, jewerly

$2,500 on goldware, silverware, gold or silver plated ware, platinum plated ware

$3,000 on firearms & related equipment

if limit of insurance on damaged structure is at least 80% of its full replacement cost as of the time of loss, insurer will settle the loss on the basis of repair or replacement cost that will equal the smallest of the following amounts:

a. cost to replace the damaged part of the structure w/ equivalent construction for use on the same premises

b. amount actually & necessarily spent to repair or replace structure

c. applicable limit of insurance

if limit of insurance on damaged structure is less than 80% of its full replacement cost as of the time of loss, the company will settle on the basis of whichever is larger:

a. ACV of damaged part of structure

b. proportion fo cost to repair or replace damaged part of the structure w/o deduction for depreciation. proportion will equal the ratio of the applicable limit of insurance to 80% of the cost of repair or replacement

Commercial Crime 7.4

Ch 16

General Definitions

1.) Premises Burglary: requires signs of forcible entry or exit. Also includes a watchman who is forced to open locked premises

2.) Theft: unlawful taking of money, securities, or other property to the deprivation of the insured

3.) Robbery: requires forced stealing, a threat of violence or injry

1.) Commercial Crime coverage forms

a. loss sustained formed

b. discovery form

2.) Government crime coverage forms

1.) Employee Theft: pays for loss of or damage to money, securities, and other propety resulting directly from theft by employees whether acting alone or in collusion w/ others.

2.) Forgery or alteration: pays for loss resulting directly from forgery or alteration of checks, drafts, promissory notes or similar written promissory notes or similar written promises , orders or directions to pay a sum certain in money that are:

-made or drawn by or drawn upon the insured

-made or drawn by one acting as the insureds agent

3.) Inside the premises theft of money & securities: covers loss of money & securities inside the premises or banking premises directly from theft, disapperance or destruction.

4.) Inside the premises robbery or safe burglary of other property: loss of other property (not $) while inside the premies from actual or attempted robbery of a custodian, loss of other propety from a safe or vault inside the premises from actual or attempted safe burglary, damage done by burglars to the premises or safes is also included if insured owns premises

5.) Outside the premises: theft, disappearance or destruction of $ and securities while outside the premises and in the care and study of a messenger or an armoed car company AND loss of other property by actual or attempted robbery while outside the premises & in the care and custody of a messenger or an armored car company.

6.) Computer fraud: coverage provides loss of or damage to money, securities, and other property due to the use of a computer to fraudulently transfer that property from inside the premises to a place or person.

7.) Money orders & counterfeit paper currency: coverage covers losses that result when the insured accepts invaild money orders or counterfeit paper currency in good faith.

8.) Funds transfer fraud: coverage will pay for loss of funds resulting directly from a fraudulent instruction directing a financial instiution to transfer, pay or deliver funds from the insured's account.

Commercial Property 7.3

Ch 11

Commercial Property Conditions form

1.) Control of Property: states that any act of negligence on the part of a person who is beyond the insured's direction or control will not affect the insurance.

2.) Legal Action against the insurer: before legal action may be taken against the insurer, an insured must have complied w/ all terms of the policy. suit must begin within 2 yrs following a loss.

3.) Other Insurance: if there is other insurance written on the same basis, recovery is pro rated with the other policies.

4.) Liberalization: if insurer provides more legal coverage by a revision that is introduced during the policy period or in the 45 days preceding the inception date, revision applies immediately as long as there is no extra premium involved

5.) Policy Period, coverage territory: only losses that occur during the policy period shown in the dec. are covered.

6.) Transfer of rights of recovery against others to us: defines subrogation rights under the policy when the insurer makes a payment to or for any person or org. the named insured or any other. if payment is made under the policy and there is a right to recover damages from a 3rd party, that right is transfered to the insurer to the extent payment has been made.

7.) Concealment, misrepresentation, or fraud: coverage will be void in case of concealment, misrepresentation, fraud

8.) No benefit to bailee: no person or organization other than the insured havng custody of the property will beenfit from this insurance

Building & Personal property Coverage Forms

Coverage A

-provides building coverage which includes:

a. permanently installed fixtures

b. machinery & equipment (drive on scales)

c. outdoor fixtures (light, flag poles)

d. personal property used to maintain or service the premises (fire extinguishers)

e. outdoor furniture, floor coverings, certain appliances

f. additions, alterations, repairs in progress,

Building & Personal property Coverage Forms

Coverage B

-describes business personal property covered while located in the building in the open or in a veh within 100 ft. of the premises. Includes:

a. furniture, fixtures, machinery, equipment

b. stock, other owned personal property used in the business

c. labor, materials, or services furnished or arranged on personal property of others

d. tenant's use interest in improvements & betterments.

e. leased personal property when there is a contractual responsibility to insure, unless it is oherwise covered under the personal property of others

Building & Personal property Coverage Forms

Coverage C

Coverage Forms

Builders Risk

Coverage forms

Condominium Assocation form

this forms covers a condo assocation against direct physical loss or damage to:

a. buildings

b. business personal property

c. on-premises personal property of others in the care of assocation

included is permanently installed machinery, outdoor fixtures that are part of the building

Coverage forms

Condo commercial unit owners form

Coverage forms

Business Income

Coverage forms

Legal Liability

Coverage forms

Extra Expense coverage form

Cause of loss forms

Basic

Cause of loss

Broad Form

- all basic perils

-breakage of glass

- falling objects

- weight of ice, sleet, snow

-water damage

-collapse as an additional coverage covers collapse of a building caused by: any perils listed in policy, hidden decay, insect or vermin damage, weight of people/property, weight of rain on the roof, defective materials

Cause of loss

Special Form

- covers against direct physical loss that is not excluded or limited elsewhere in the policy. Open perils coverage.

Exclusions: loss of market, earth movement, wear/tear, war, nuclear hazard, settling, cracking, shrinking, rust, corrosion, fungus, decay, deterioration, damage caused by insects, birds, rodents, explosions of steam boilers, pipes, and engines, dishonest or criminal acts of insured employees, voluntary parting with property, rain snow sleet damage to personal property, full list ch 11 pg 11

Special Endorsements

1.) Ordinance or law: provides additional limit of coverage for the increase in the cost of construction following a covered loss due to ordinance or law regulations.

2.) Spoilage: provides coverage for perishable stock due to power outage, mechanical breakdown, or contamination. applies to losses resulting from a change in temp. or humidity or contamination resulting from a power outage either on or off the premises.

3.) Peak season limit of insurance: allows insured to increase his/hers contacts amount for specified periods of time when his/her inventory may be higher than usual. EX: department store inventory at holidays

4.) Value reporting form: allows an insured w/ property that fluctuates in value to be protected at all times & to pay a premium based on the values actually at risk.