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47 Cards in this Set
- Front
- Back
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What are some examples of real property? |
Buildings, driveways, sidewalks, underground piping, radio transmission towers, AND property that is permanently attached to a structure e.g. appliances, paneling, plumbing, wiring, AC/heat equipment. Elevators and hoists/platforms on high rise buildings are also considered part of the building. |
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What is a simple definition of property? |
Any item with value |
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What are some examples of personal property? |
Vehicles, merchandise, furniture, tools, clothing, oil while being transported.. |
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What are the classifications of personal property? |
Contents, Property in Transit, Property in the Possession of Others, "Floating Property" |
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What term is used to refers to the contents of a commercial building? |
Business personal property |
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What is floating property? |
Property that normally does not remain at a fixed work site or that is in transit between work sites - e.g. a wedding photog's cameras. |
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What is the insurance available for floating property called? |
Specialized inland marine policies called "floaters" |
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How is the reduction in value of a property that can be repaired or restored measured? |
It can be measured by the cost of the repair/restoration. |
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What are the three components used to analyze property loss exposures? |
1. Type of property 2. Cause of loss 3. Financial consequences |
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What are the five components of a commercial property coverage part? |
1. Commercial property declarations 2. One or more commercial property coverage forms 3. One or more causes of loss forms 4. Commercial Property Conditions 5. Any applicable endorsements |
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What does ISO stand for? |
Insurance Services Office |
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How are the premium discounts given by the CPP program justified? |
The greater efficiency of issuing a single package instead of several monoline policies |
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What information can be found on a commercial property declarations page? |
- description of property insured - kinds and amounts of coverage provided and the covered causes of loss (basic, broad, or special) - list of mortgagees, if any - deductible amount - list of the property coverage forms and endorsements attached to the policy - applicable coinsurance percentages - any optional coverages |
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What are the typical elements of a commercial property coverage form? |
- insuring agreement - delineation of the property covered and not covered - additional coverages and coverage extensions - provisions and definitions that apply ONLY TO THAT coverage form |
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T or F - A commercial property form often includes more than one commercial property coverage form. |
T - One coverage form insures the insured's buildings and/or personal property, another coverage form insures business income or extra expense. |
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What can the Building and Personal Property Coverage form be used to insure? |
Buildings, business personal property of the insured, and personal property of others in the insured's custody. |
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What are the three types of causes of loss forms? |
Basic, broad, and special |
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T or F - A commercial property coverage part may not contain more than one causes of loss form. |
F - One causes of loss form (e.g. special) may apply to buildings, while another (e.g. broad) may apply to personal property. |
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What element of a commercial property coverage part indicates which cause of loss form applies to which type of property at each location? |
The commercial property declarations page |
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What three broads categories of property does the BPP cover in any combination? |
1. Building 2. Your Business Personal Property 3. Personal Property of Others |
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Where is the insured's selection of property categories indicated and how is it indicated? |
It is indicated on the commercial property declarations page by entering a limit of insurance for each chosen category of covered property. |
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Where in a BPP is property that is NOT covered indicated? |
Both by omission on the declarations page -- even if insured owns property that fits the category -- and also specified on the Property Not Covered Section |
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What is included in the BPP's definition of Building? |
- completed additions to covered buildings - Fixtures (items attached to a building or to the land in such a way that they cannot be easily removed, including light/flagpoles -- considered real property) - permanently installed machinery/equipment - personal property owned by the insured and used to maintain or service the building or premises (e.g. fire extinguisher, outdoor furniture, floor coverings, appliances) |
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Within what distance of the described premises must WIP additions/alterations/repairs and/or materials be located? |
100ft |
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T or F - Your Business Personal Property does not include labor, materials, or services furnished by the insured on personal property of others. |
F |
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Coverage for improvements and betterments is provided under which type of property on the BPP coverage form? |
Your Business Personal Property |
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What are the six additional coverages in the BPP? |
- Debris removal - Preservation of Property - Fire Department Service Charge - Pollutant Cleanup and Removal - Increased Cost of Construction - Electronic Data |
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How long is property covered in its new location under Preservation of Property? |
Thirty days |
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T or F - preservation of property protects covered property while it is being moved to its new location. |
T |
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T or F - Preservation of property is not limited to either the covered causes of loss or locations stipulated in the coverage form. |
T |
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What does the Ordinance or Law exclusion exclude? |
Increased cost to comply with the ordinances or laws regulating the repair, rebuilding, or replacement of covered buildings. |
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What is the amount of insurance provided by the Increased Cost of Construction Coverage? |
5% of the amount of insruance or $10000, whichever is less and is paid in addition to the policy limit. Only applies if the Replacement Cost optional coverage has been selected. |
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What is not covered under the Increased Cost of Construction coverage? |
- loss to any undamaged portion of a building that law does not permit to remain in use - cost to demolish undamaged portion and remove its debris |
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What are the six BPP coverage extensions? |
- Newly Acquired or Constructed Property - Personal effects and Property of Others - Valuable Papers and Records (other than Electronic Data) - Property Off-premises - Outdoor property - Non-owned detached trailers - BPP temporarily in Portable storage units |
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When do BPP coverage extensions apply? |
ONLY if at least 80% coinsurance or a value reporting period symbol is shown in the declarations. |
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What is unique about the Outdoor Property extension's causes of loss? |
It has its own list of covered causes of loss - it covers only loss by fire, lightning, explosion, riot/civil commotion, and aircraft. |
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What purpose does the Loss Conditions section of the BPP serve? |
Stipulates the duties of the insured and the insurer after a loss has occurred and establishes procedures for adjusting claims. |
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What does the BPP's Additional Conditions deal with? |
Coinsurance and the interests of a mortgagee |
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What additional three coverages does the Broad form provide over the Basic? |
Falling objects, Weight of ice/snow/sleet, Water damage |
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What are covered forms of losses under the Basic form? |
Fire, lightning, explosion, windstorm, hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, volcanic action |
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How many people constitute a riot? |
3 or more persons |
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What three additional coverages does the Special Form contain? |
Property in transit, water damage, glass |
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What does COPE stand for? |
Construction, Occupancy, Protection, Exposure |
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What affects commercial property premiums? |
Commercial property premiums are affected by the limit of insurance, the causes of loss covered, the applicable coinsurance percentage, deductible amounts, the inclusion of optional coverages, and the building's COPE and location. |
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What does DICE stand for? |
Declarations, Insuring Agreement, Conditions, Exclusions |
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How can the reduction of a firm's net income be measured? |
Subtracting the amount of net income that a firm actually earned from the amount of net income that the firm could reasonably have expected to earn during the same period. |
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What are the four conditions that MUST be met for a loss of business income to be covered? |
1. Interruption of operations 2. Caused by property damage from a COVERED peril 3. To Property at locations or situations described in the policy 4. resulting in a loss of business income and/or extra expense |
