Insurance Cpp

Front 1

Additional Coverages

Back 1

Coverage for indirect losses that would not otherwise be covered by the CP policy.

Front 2

Agreed Value

Back 2

Optional coverage that provides a predetermined amount in case of a total loss.

Front 3

Bailee

Back 3

One who is charged with the care of the property of another. For example, a garage is bailee of a customer’s (bailor’s) car (the bailment) and a jeweler is a bailee of customer’s jewelry while in for repair or appraisal. There are various standards of care that a bailee must meet, depending upon whether the bailment is gratuitous or a bailment for hire (paid).

Front 4

Building

Back 4

The building or structure described. A building must have a roof and four walls

Front 5

Business Personal Property

Back 5

Personal property owned and used in the business of the named insured, including personal property of others in the care, custody or control of the named insured.

Front 6

Collapse

Back 6

“An abrupt falling down or caving in.” This falling down or caving in may be of a building or any part of a building.

Front 7

Commercial Property Policy

Back 7

The principal contract for insuring the building and business personal property exposures of commercial insureds. Generally referred to in this course as the “CP policy.”

Front 8

Computer Virus

Back 8

An unauthorized code into a computer.

Front 9

Concurrent Causation

Back 9

To avoid unintended insurance recovery in situations that involve an excluded peril and a non-excluded peril, current forms contain concurrent causation exclusions; concurrent causation is a legal theory finding coverage for loss or damage to property if such loss or damage is caused by more than one peril, one of which is excluded under the terms of the policy and one of which is not excluded.

Front 10

Concurrent Causation Doctrine

Back 10

Holds that losses are covered if caused jointly by an excluded peril, such as flooding or earth movement, and some other peril not excluded by the policy, such as negligent construction.

Front 11

Concurrent Causation Exclusions

Back 11

Exclusions added to modern property policies in response to litigation activity involving the concurrent causation doctrine. They are designed to avoid unintended insurance recovery in situations that involve damage that can be said to be caused by both an excluded peril and a nonexcluded peril. Concurrent causation is a legal theory finding coverage for loss or damage to property if such loss or damage is caused by more than one peril, one of which is excluded under the terms of the policy and one of which is not excluded.

Front 12

Consequential Loss

Back 12

Indirect loss arising out of direct damage to property, such as spoilage of food following lighting damage to a freezer unit.

Front 13

Coverage Extensions

Back 13

Additional insurance for things already covered under the CP policy.

Front 14

Debris Removal

Back 14

Coverage for the expense of removing debris of covered property that has been damaged by a covered cause of loss.

Front 15

Delay; Loss Of Use; Loss Of Market

Back 15

Indirect losses that are the result of a covered loss, such as a restaurant losing customers, with the attendant revenue, while rebuilding after a fire.

Front 16

Direct Damage

Back 16

Damage directly caused by a covered cause of loss.

Front 17

Endorsement

Back 17

An attachment to a basic policy that becomes part of the policy and modifies coverage. Endorsements can add, delete, or modify provisions in the basic policy.

Front 18

Functional Valuation

Back 18

An alternative valuation method that provides for the replacement of a scheduled building with similar property that performs the same function but is less costly.

Front 19

Increased Cost Of Construction

Back 19

Coverage for the additional costs of complying with enforcement of an ordinance or law regulating the construction or repair of buildings after a loss.

Front 20

Indirect Or Consequential Damage

Back 20

Damage that arises as a result of a direct loss – such as loss of income when a business must shut down due to a fire.

Front 21

Inflation Guard

Back 21

A provision by which the limits of coverage are increased on a regular basis by a designated percentage in order to offset increasing building costs associated with inflation.

Front 22

Intangible Property

Back 22

Property that cannot be seen or felt – such as customer records, patents, and trademarks.

Front 23

Liberalization

Back 23

A broadening of coverage without an added charge to the insured.

Front 24

Named Perils

Back 24

A specific list of covered causes of loss, such as fire, lightning, or wind, contrasted to open perils, which provides coverage for any damage not otherwise excluded.

Front 25

Open Perils

Back 25

Property coverage that applies to risks of loss on a general basis, in contrast to policies that cover specifically identified (named) perils. Formerly known as “all risks” coverage.

Front 26

Permanently Installed

Back 26

A piece of property that is set up for use and intended to remain in the same place without fundamental change.

Front 27

Personal Effects

Back 27

Items usually worn or carried on a person.

Front 28

Personal Property

Back 28

All property other than real estate.

Front 29

Physical Damage

Back 29

What’s covered by property insurance policies.

Front 30

Prosecution Or Abatement Policies

Back 30

Insurance policy that pays for offensive litigation against a patent infringer.

Front 31

Revenue Stream

Back 31

What is protected by e-policies.

Front 32

Separation Of Coverage

Back 32

The various categories of business personal property (stock, machinery and equipment, furniture, fixtures, tenant’s improvements and betterments) may be assigned individual limits of insurance through the use of this endorsement.

Front 33

Sinkhole

Back 33

A hole in the ground created when water wears upon limestone or dolomite.

Front 34

Structure

Back 34

A broader term than building. Anything that is constructed.

Front 35

Subrogation

Back 35

The insurer’s right to collect payment from the ultimate wrongdoer.

Front 36

Valuation

Back 36

The method used to place a value on damaged property. What is the value of e-Property and Intellectual Property?

Front 37

Vandalism

Back 37

The willful and malicious damage to or destruction of covered property.

Front 38

The commercial property policy covers business personal
property (BPP) in the following locations:

Back 38

• In or on the building described in the declarations; or
• In the open (or in a vehicle) within 100 feet of the
described premises.

Front 39

The CPP defines seven classes of BPP as covered:

Back 39

1. Furniture and fixtures.
2. Machinery and equipment.
3. Stock.
4. All other personal property owned by you and used in
your business.
5. Labor, materials or services furnished or arranged by the
named insured on personal property of others.
6. Use interest as tenant in improvements and betterments.
7. Leased personal property for which the insured has a
contractual responsibility to insure.

Front 40

Personal Property of Others

Back 40

The final category of covered property is personal property
of others in the insured’s care, custody, or control. The property
must be on, in, or within 100 feet of the premises. Any loss to
property of others is adjusted for the account of the owner of the
property.

Front 41

Common policy conditions form IL 00 17 contains six conditions that must be incorporated into any CP policy.

Back 41

These conditions are:
A. Cancellation,
B. Changes,
C. Examination of your Books and Records,
D. Inspection and Surveys,
E. Premiums, and
F. Transfer of Your Rights and Duties Under This Policy.

Front 42

The Insured’s Duties in the Event of Loss condition lists eight things that an insured must do in the event of loss or damage under the policy. The policy specifies that the insured must:

Back 42

1. Notify police if a law was broken.
2. Send the insurance company a prompt notice of loss, including a description of the property.
3. Provide a description of how, when, and where the loss or damage took place as soon as possible.
4. Protect the covered property from any further damage and keep track of the expenses necessary to protect the covered property for consideration in the settlement of the claim.
5. Compile an inventory of damaged and undamaged property if the insurer so requests.
6. Allow the insurer to inspect the property, including the insured’s books and records.
7. Submit a signed, sworn proof of loss if requested within sixty days after the insurer’s request.
8. Cooperate with the insurer in the investigation or settlement of the claim.

Front 43

The loss payment condition gives the insurer four options for paying for a covered loss:

Back 43

1. The value of the property. The insurer will determine the value of the damaged property “in accordance with the Valuation Condition” (to be discussed shortly).
2. The cost to repair or replace the damaged property. Any insurance recovery for any extra costs due to the operation of building or zoning laws is excluded.
3. The insurer may take the property at an agreed or appraised value.
4. The insurer may repair, rebuild or replace the property with “like kind and quality.” This option also excludes any extra costs due to the operation of building laws.