Caib 2 Definitions

Front 1

scheduled coverage

Back 1

refers to policy on which coverage is provided

only on that property which is specifically

identified or scheduled

Front 2

all property

Back 2

refers to policy used to insure building, stock

and equipment under a single limit of insurance

Front 3

tenants improvements

Back 3

building improvements, alterations and

betterments made at the expense of or

purchased by the insured to a building occupied

by the insured and which are not otherwise

insured, provided the insured is not the actual

owner of such building

Front 4

actual cash value

Back 4

the replacement or repair cost less depreciation

Front 5

replacement value

Back 5

represents the costs to repair, replace or rebuild

the lost or damaged property without deduction

for depreciation

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reinsurance

Back 6

involves an insurer ceding part of the risk it has assumed to one or more other insurers

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subscription

Back 7

an insurance policy under which a group of insurers has agreed to participate in providing policy insurance coverages

Front 8

condition

Back 8

is something imposed by the Insurer which requires the Insured to do or not to do something

Front 9

subrogation

Back 9

refers to the right of the insurer to "step into the shoes" of the party whom it has compensated and sue any party whom the compensated party could have sued

Front 10

warranty

Back 10

is a promise that certain facts are as they are represented to be and that they will remain so

Front 11

material fact

Back 11

a fact which if communicated to the Insurer would induce it either to decline the insurance altogether, or not accept it unless a higher premium is paid

Front 12

fraudulent

Back 12

to act wilfully, and with the specific intent to deceive or cheat ...

Front 13

void contract

Back 13

a void contract is one which has no "legal or binding force" and as such, "is incapable of being enforced by law."

Front 14

fire resistive

Back 14

building which has met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire

Front 15

non-combustible

Back 15

all structural members including floors, roofs and their supports are constructed of steel, iron, concrete or other non-combustible materials. Exterior also required to be of non-combustible construction. Falls just short of classifying

as fire resistive

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common hazards

Back 16

conditions common to all buildings which influence their potential for loss

Front 17

detachment

Back 17

refers to the proximity of the building insured or containing the property insured to other commercially rated buildings

Front 18

adverse selection

Back 18

occurs when the applicants for insurance are

largely those most likely to suffer a loss

Front 19

risk classification

Back 19

refers to the grouping or classifying of risks

according to established criteria which, in large

part, is based on their probability for loss as a

class

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soft market

Back 20

characterized by intense competition between

insurers. As a result, rates tend to be low

Front 21

hard market

Back 21

occurs when low profit margins force out some

of the competition. As a result, insurers use a

more disciplined underwriting approach. The

insured normally receives little or nothing in the

way of rate discounts

Front 22

hazard

Back 22

is a condition which may cause a peril to occur

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physical hazard

Back 23

a condition relating to the use of tangible

property which could cause a peril to occur

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moral hazard

Back 24

subjective characteristics of the applicant that

could cause a peril to occur

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morale hazard

Back 25

deal with the attitude of the client

Front 26

accommodation business

Back 26

business which is marginal or substandard but

which the insurer agrees to accept as a favour

or accommodation to the broker

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supporting business

Back 27

the existence of other insurance policies the

applicant has with the same insurer

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vacant

Back 28

-"Empty"; or

- When the normal occupant is absent and the contents have been removed

Front 29

unoccupied

Back 29

- Lack of habitual presence of human beings; or

- When premises are complete with its contents, except that such person who normally occupies the premises is temporarily away

Front 30

loading

Back 30

an additional rate charged over and above the fire rate

Front 31

centrifugal

Back 31

the inertia of a body that tends to move it away

from the centre around which it revolves

Front 32

mechanical breakdown

Back 32

"a failure in the working mechanism of the

machinery...a functional defect in the moving

parts of the equipment which causes the latter

to cease functioning or to function improperly

Front 33

electrical breakdown

Back 33

a failure in the electrical mechanism of the

machinery, appliance or device

Front 34

trade losses

Back 34

the types of losses which might be expected as

a part of the every day operation of a business

Front 35

wear & tear

Back 35

"..deterioration or depreciation (i.e. value by

ordinary and reasonable use of the subject

matter.)

Front 36

gradual deterioration

Back 36

the deterioration of an object which arises

naturally over time

Front 37

latent defect

Back 37

a hidden or concealed defect. One which could

not be discovered by reasonable and customary

inspection; one not apparent in face of goods,

product, document, etc

Front 38

mysterious disappearance

Back 38

disappearance under circumstances which

cannot be explained

Front 39

endorsement

Back 39

changes the terms or conditions of the policy

Front 40

rider

Back 40

adds additional coverages to those already in place

Front 41

media

Back 41

is the CDs, DVDs, backup hard drives and cassettes, upon which data is recorded

Front 42

data

Back 42

the information stored on the media

Front 43

temporary location

Back 43

a location not specified on the policy which is

not owned, rented or controlled in whole or in

part by the insured

Front 44

newly acquired location

Back 44

a location acquired (owned, rented or

controlled) by the Insured. Such location is a

newly acquired location for a period of 30 days

from acquisition

Front 45

replacement cost

Back 45

the cost of repairing or replacing the property

on the same site with new property of like kind

and quality and for like occupancy without

deduction for depreciation

Front 46

bailee for hire

Back 46

is one who has temporary custody of the

personal property of another for a purpose

other than sale and who is compensated as a

condition of such custody

Front 47

ordinary care

Back 47

the legal duty imposed upon bailees which

requires them to take the same care of the

goods of others as would be taken by a prudent

and diligent owner of such goods

Front 48

common carrier

Back 48

includes airlines, railroads, trucking companies

and others that furnish transportation to any

member of the public seeking their services

Front 49

standard (ordinary)

Back 49

bill of lading used to reflect the amount for which

the bill of lading common carrier will be held

legally liable under the tariff

Front 50

valued bill of lading

Back 50

serves to increase carrier's liability - normally

requested by the owner of goods when their

value exceeds the value stated in the Standard

Bill of Lading

Front 51

released bill of lading

Back 51

bill of lading used to release a carrier from any

liability for the goods being transported

Front 52

contract carrier

Back 52

one that carries, for pay, the goods of certain

customers only as contrasted to a common

carrier that carries the goods of the public in

general

Front 53

private carrier

Back 53

ones who haul their own goods or goods

entrusted to them as bailees or lessees and

includes shippers who own or lease their

vehicles and carry their own goods

Front 54

catastrophe limit

Back 54

the maximum amount an Insurer will pay in

only one disaster or occurrence

Front 55

physical protection

Back 55

is concerned with setting up physical barriers to

restrict unauthorized access to property

Front 56

electronic protection

Back 56

is concerned with settling up electronic barriers to

restrict unauthorized access to property

Front 57

perimeter protection

Back 57

refers to the methods used by owners to secure access to the premises when the business is

closed

Front 58

area protection

Back 58

refers to the protection provided to areas within the

building where valuable property is being stored

Front 59

point protection

Back 59

provides direct security for individual items such as

safes, vaults, chests, filing cabinets, display cases,

expensive equipment

Front 60

line security

Back 60

refers to the ability of a telephone line to withstand

tampering

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money

Back 61

Currency and coins in current use and having a face value

Front 62

securities

Back 62

Means all negotiable and non negotiable instruments or contracts representing money or other property and includes revenue and other stamps in current use, tokens and tickets but does not include money

Front 63

burglary (insurance meaning)

Back 63

The unlawful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forceable entry or exit

Front 64

robbery (insurance meaning)

Back 64

Robbery means the taking of insured property from a custodian by a person or persons who have:

- caused or threatened to cause the custodian bodily harm; or

- committed an overt unlawful act witnessed by the custodian; or

- taken such property from a custodian who has been killed or rendered unconscious

Front 65

custodian

Back 65

Includes the Insured(s), their partner(s) or any

employee authorized by them to have the care and

custody of insured property

Front 66

theft (insurance meaning)

Back 66

Includes all means of taking property without the

owner's consent

Front 67

employee dishonesty

Back 67

Loss which the Insured shall sustain resulting directly from one or more fraudulent or dishonest acts committed by an employee, acting alone or in

collusion with others

Front 68

discovery period

Back 68

The time permitted by an Insurer, commencing with the expiry date of the policy, in which a claim must be discovered by the Insured if it is to be covered by the policy

Front 69

messenger

Back 69

The Insured or a partner of the Insured or any employee who is duly authorized by the Insured to have the care and custody of the Insured property outside the premises

Front 70

forgery

Back 70

A person is guilt of forgery if he fraudulently alters any writing of another without his authority or makes completes, executes authenticates issues or transfers any writing so it purports to be the act of another who did not authorize that act

Front 71

income

Back 71

includes all monies from sales or services

rendered by a business

Front 72

fixed expenses

Back 72

are those expenses that continue during the

period of an interruption

Front 73

semi-variable expenses

Back 73

are those expenses which may or may not

continue during the period of interruption

Front 74

gross profit

Back 74

is the sum produced by adding to the "net

profit" the amount of the "insured standing

charges"; see Profits Endorsement Form, IBC

4030, Definitions, item 4(a).

Note: Technically, "gross earnings" under the

Gross Earnings Endorsement Form (IBC 4029)

has its own definition and is not the same as the

"gross profit" amount insured by the Profits

Form. Under the Gross Earnings Form, "gross

earnings" is the amount arrived at after

subtracting the cost of merchandise and other

allowable deductions from the business's total

net sales

Front 75

net profit

Back 75

is the gross profit minus all other expenses

earned by the business

Front 76

actual loss sustained

Back 76

The measure of recovery under the Gross

Earnings Form - refers to the amount the

business would actually have earned had the

loss not occurred

Front 77

ordinary payroll expense

Back 77

Is the entire payroll expense for all employees

of the Insured, except officers, executives,

department managers, employees under

contract and other important employees whose

services would no be dispensed with should the

business be interfered or interrupted

Front 78

contributing properties

Back 78

The manufacturer or supplier upon whom the

Insured depends for materials or goods

Front 79

recipient properties

Back 79

The customer(s) who the insured depends upon

to purchase its products

Front 80

magnet properties

Back 80

Businesses which attract a large number of

customers to an area

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