Caib 2- Chapter 5

Front 1

3 types of bailees

Back 1

1. Repair of personal property (tv repair shop)

2. Storage of personal property (public storage)

3. Delivery of personal property (fed ex)

Front 2

When could bailees be responsible for damage to customers property?

Back 2

When negligent in common law or contract

Front 3

Other than stock coverage found on Bailees commercial property policies, 2 other policies that could be used to insure customer property

Back 3

1. Separate policy covering legal liability

2. Specialized policy insuring customers property which ignore requirements for legal liability

Front 4

By knowing answers to certain questions, brokers should understand whether the carrier or the owner of the property should purchase insurance when selling Inland Transportation Insurance

Back 4

1. Who is responsible for loss to property

2. What is the extent of responsibility

Front 5

What is general rule regarding the responsibility of common carriers?

Back 5

Common carriers are responsible for the safe delivery of property in their care

Front 6

Common carriers will not be held responsible for all losses to goods in their possession when :

Back 6

1. Acts of God reasonably foreseable

2. Acts of public enemies

3. Acts of public authority (highway shutdown by police)

4. Neglect or default of shipper (badly packaged)

5. Inherent vice of property transported

Front 7

What documents are used by common carriers to limit their liability to owners?

Back 7

Bills of Lading

Front 8

Describe release bill of Lading

Back 8

Removes carrier from any responsibility for the shipment

Front 9

When property is insured by a Transportation Floater Broad Form, when does coverage begin and when does coverage end?

Back 9

Begins when it leaves the premises continues until property is uploaded at destination

Front 10

When would insureds purchase a Trip Transit policy?

Back 10

Clients require coverage for one single shipment

Front 11

What are catastrophe limit and why is it used?

Back 11

Most insurers will pay in one occurence loss. The insurers, to limit coverage in large losses, use catastrophe limits

Front 12

4 problems which could occur when owners rely on carriers insurance

Back 12

1. Carriers may not have amounts of coverage needed to properly insure customers property

2. May have limited perils insured

3. May have violated policy conditions which negates coverage

4. May not have renewed policy or have cancelled policy

Front 13

4 advantages for owners when they purchase their own insurance on goods being transported

Back 13

1. Owners are able to claim from own insurers which speeds claims settlements

2. Owners policy will insure actual cash value of shipment, not amount carrier is responsible by law or bill of lading

3. Owners policy may insure more perils

4. Lower premiums than carriers insurance

Front 14

2 key exclusions in Tool Floater

Back 14

1. Loss or damage to electrical apparatus caused by artificial electricity

2. Loss caused by mysterious disappearance

Front 15

Types of property insured by Contractors Equipment Floaters?

Back 15

Insure all kinds of move able equipment owned, rented or leased by client

Front 16

Why would insurers impose a catastrophe limit of contractors equipment

Back 16

Worried about large losses because of high values insured

Front 17

What guidance should brokers provide when catastrophe limits used on Contractors Equipment policy

Back 17

Advise not to store all of their equipment in ways that may expose all equipment to one occurence

Front 18

3 conditions of coverage on Newly Acquired Equipment found on Contractors Equipment Floaters

Back 18

1. Equipment insured by this extension must be similar to what is insured on policy

2. Insured only for 30 days from date of acquisition

3. Amount of coverage limited as to amount

Front 19

3 types of properties insured by Builders Risk policies?

Back 19

1. All materials which will enter and Form part of the completed project

2. All landscaping including growing trees, plants or shrubs which will Form part of completed project

3. Temporary buildings and structures required to complete project to the extent these temporary buildings and structures are needed for project competition

Front 20

2 key exclusions found in Builders Risk policies

Back 20

1. No coverage for contractors tools and equipment

2. Cost of making good for faulty or improper material workmanship or design. Resultant damage is insured

Front 21

When does coverage normally cease on Builders Risk policies

Back 21

Coverage ends when project comes into use or occupied

Front 22

What limit of insurance must be purchased when buying Builders Risk policies

Back 22

Completed value

Front 23

When is coverage provided by Installation Floaters

Back 23

1. While in transit

2. While awaiting installation

3. During installation until work accepted or until clients interest end (general contractor signs off) , whichever is first

Front 24

How are premiums calculated on Installation Floaters

Back 24

Gross annual receipts of client