Ains 23 Ch 1-2

Front 1

5 components of Commercial Property Coverage Part

Back 1

Commercial Property Declarations

Coverage Forms

COL Forms

Conditions

Endorsements

Front 2

4 elements of Commercial Property Coverage Forms

Back 2

IDeA cPDonly:

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

Front 3

Building and Personal Property Coverage Form (BPP)

Back 3

Insures:

Buildings;

Business personal Property of the insured;

Personal property of others in the insured's custody

Front 4

3 types of COL forms

Back 4

Basic, Broad, Special

Front 5

3 broad categories BBP covers

Back 5

Building;

Your Business Personal Property;

Personal Property of Others

Front 6

Limit of BPP coverage extension for personal property of others

Back 6

$2500 at each insured location

Front 7

6 additional coverages in the BPP

Back 7

Debris Removal;

Preservation of Property;

Fire Department Service Charge;

Pollutant Cleanup and Removal;

Increased Cost of Construction;

Electronic Data

Hint 7

FDP PEC:

Fire Debris Pollutes; Preserve property Electronic data at all Costs

Front 8

Increased Cost of Construction BPP) limit

Back 8

Lessor of:

5% of amount of insurance;

$10,000

Paid in addition to policy limit

Front 9

Electronic Data additional coverage (BPP)

Back 9

Most an insurer will pay per policy year regardless of # occurrences or locations)

Too low to provide meaningful coverage

Front 10

When do BPP coverage extensions apply?

Back 10

80% coinsurance or a value reporting period is shown in declarations

Front 11

6 BPP Coverage Extensions

Back 11

Newly Acquired or Constructed Property;

Personal Effects and Property of Others;

Valuable Papers and Records (other than electronic data);

Property Off-Premises;

Non-owned Detached Trailers;

Business Personal Property Temporarily in Portable Storage Units

Front 12

When does coverage under Newly Acquired or Constructed Property terminate?

Back 12

Earliest of:

Expiration date of policy;

30 days after acquisition/start of construction;

Date insured notifies the insurer of new location/ building

Front 13

Coverage under Valuable Papers and Records extension (BPP)

Back 13

Cost of blank records and labor to transcribe/copy duplicate information

Front 14

COL covered under Outdoor Property

Back 14

FLERCA:

Fire

Lightning

Explosion

Riot or Civil Commotion

Aircraft

Front 15

Coverage under Business Personal Property Temporarily in Portable Storage Units

Back 15

$10,000 regardless of #of units

Ends 90 days after property is placed in unit

Front 16

Limit of Limited Coverage for Fungus, Wet Rot, Dry Rot, & Bacteria

Back 16

$15,000 in aggregate of any 12-month policy period

Front 17

Limit of Property in Transit extension (special form)

Back 17

Additional $5,000

Front 18

When insurer is require to notify if they will pay for the loss or not

Back 18

30 days after receipt of a satisfactory Proof of Loss

Front 19

When the actual payment from a loss is due

Back 19

30 days after the parties have agreed on the amount of loss or an appraisal has been completed

Front 20

Payment when building has been vacant for more than 60 days (amount per peril)

Back 20

Nothing:

Vandalism, sprinkler leakage, breakage of building glass, water damage, theft/attempted theft

Usual amount, reduced by 15%:

Any other covered peril

Front 21

Definition of a "vacant" building

Back 21

Building that does not contain enough business personal property to conduct customary operations

Front 22

Valuation condition

Back 22

Sets forth rules for establishing value of insured property.

Default: ACV

Front 23

Duties in Event of Loss/Damage

Back 23

Notify police if necessary,

Prompt notice of loss,

How/when/where loss occurred,

Protect from further loss,

Provide inventories if requested,

Examination under oath if requested,

Cooperate with insurer,

Sign Proof of Loss

Front 24

4 Loss Payment Options

Back 24

Pay amount of the loss/damage,

Pay cost to repair/replace property,

Take over all or any part of the property and pay its agreed value,

Repair/rebuild/replace damaged property with other property of like kind/quality*

*Seldom used; may cause insurer become guarantor

Front 25

Coinsurance Condition

Back 25

Requires insured to carry insurance equal to a specified percentage of the ACV

Front 26

4 Optional Coverages of BPP

Back 26

Agreed Value,

Inflation Guard,

Replacement Cost

Extension of Replacement Cost to Personal Property of Others

Front 27

"Stock" in regards to BPP

Back 27

Merchandise, raw materials, goods in process, and finished goods

Front 28

What 2 conditions must be met before the insured can bring legal action against the insurer?

Back 28

1. Insured had complied to all policy conditions

2. Action must be brought within 2 years after the date of the direct physical loss

Front 29

6 Common Policy Conditions for every CPP

Back 29

CC ExIsPT:

Cancellation,

Changes,

Examination of Books and Records,

Inspections and Surveys,

Premiums,

Transfer of Rights and Duties Under This Policy

Front 30

Amount of Notice Insurer must Provide for Cancellation

Back 30

10 days before cancellation date if for non-payment

Else, 30 days before cancellation date

Front 31

NFIP Commercial Limits

Back 31

$500,000 per building

$500,000 for contents of a building

Front 32

How does NFIP work?

Back 32

Sold through private insurers/agents and is back by the US government

Front 33

Specific Rating

Back 33

Bases a building's property insurance rate on inspecting and evaluating that particular building

Less common than Class Rating

Front 34

5 main aspects of coverage that affect the premium

Back 34

LICcPOD

Limit of Insurance,

Covered COL,

Coinsurance Percentage,

Optional Coverages,

Deductible

Front 35

5 Other Factors Affecting Premiums

Back 35

COPEL:

Construction of building,

Occupancy,

Protection,

External Exposure,

Location

Front 36

Occupancy

Back 36

The type of activity conducted inside the building

Front 37

Preservation of Property

Back 37

Protects against any direct physical loss or damage and is not limited to the covered COL or locations stipulated in the coverage form

Front 38

Non-Owned Detatched Trailers coverage extension

Back 38

Permits the insured to extend "your business personal property" to include trailers leased to expand office space or provide additional storage

Front 39

If a building and business personal property both sustain losses in a single occurrence, how many times is the deductible applied?

Back 39

Once