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28 Cards in this Set

  • Front
  • Back

Three components of commercial property loss exposure

Types of property /causes of loss to property /financialconsequences of property loss

Property

Any item with value

Two types of property

Real and Personal

Real property

Tangible Property consisting of land, all stracture permanently attached to the land and whatever is growing on the land

Personal property

All tangible and intangible property that is not real property

Four types of commercial Personal property

ContentProperty in transit Property in possession of othersFloating property

Content

Content of building (in Or out) business personal property of others

Floating property

tools equipment etc not always at a fixed site. Specialized inland marine insurancecalled floaters

Commencial property Coverage part

Commercial package policy coverage component that provides coverage for middle market or larger firms to insure buildings and business personal property

5 components of Commercial property Coverage part

-Declaration-One or more Commercial property coverage forms- One or more causes of loss forms- Commercial property conditions- applicable endorcements

Commercial package policy (CPP)

policy that covers two or more lines of business

Monoline Policy

policy that covers only one line of business

Typical contents of commercial Property Coverage form

- Insuring agreement- Delineation of properly covered and not covered .- additional coverage and coverage extension- Provisions and definition

BPP (Building and personal property coverage form)

Commonly used commercial property Coverage. Covers building, personal property, and property of others in insured's custody.

3 types of causes of loss form

Basic, broad and special

Endorsements

Adds specialised coverage or eliminates exposures that are not covered.

Six additional coverage in BPP

1. Debris removal2. Preservation of property3. Fire department service charge4. Pollutant cleanup and removal5. Increased cost of construction6. Electronic Data

6 BPP Coverage extension

1. Newly aquired or constructed property 2. Personal effects and property of others3. Valuable papers and records (excluding electronic data)4. Property 0ff premises5. Outdoor property6. Non-owned detachment trailers* Business personal property temporarily in storage units.

Basic form# (causes of loss)

CP 10 10

Broad form#(causes of loss)

CP 10 20

Special form#( causes of loss)

CP 10 30

3 Sections of basic and broad from

- Covered causes of loss - Exclusions- Additional coverages

3 additional causes of 'loss on broad form vs. basic

- Falling objects- Weight of ice , snow, or sleet- Water damage

Exclusions on basic and broad forms

-Ordinance or law- Earth movement-Government action- Nuclear hazard- Utility services-war and military action-water- Fungus, wet rot, dry rot or bacteria

Exclusions unique to Special form

-wear and tear- Rust, corrosion, decay , deterioration, or hidden or latent defect-smog- Settling, cracking, shrinking , or expansion- Infestation on waste products of insects , birds rodents or other animals- Mechanical breakdown- Dampness or dryness of atmosphere, changes or extremes in temperatures , or marring or scratching

Four optional coverage in BPP (optional averages section

-Agreed value /- Inflation Guard /-Replacement cost /-Extension of replacement cost to personal property of others

Agreed value optional coverage

optional coverage that suspend the coinsurance condition if the insuredcarries the amount of insuranceagreed to by the insurer and the insured.

Loss payment in agreed value when limit of insurance is less than agreed value