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29 Cards in this Set
- Front
- Back
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Notice of Cancellation |
1st named insured is entitled to cancel the policy -If insurer cancels policy, they are only required to notify 1st named insured -1st named insured is responsible for premium |
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Changes |
-1st named insured is authorized to request change to the commercial package policy |
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Examination of Records |
-This condition gives the insurer the right to audit the insured's books and records anytime during the policy period, and for 3 years following the policy. |
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Inspections and Surveys |
-insurer has the right to inspect the risk and make loss recommendations -Inspections are used to help determine the rate to be charged -NOT safety inspections -Will not warrant that the insured is compliant with safety laws and regulations |
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Commercial Package Policies |
-ISO developed series of specialized forms -ea form fulfills specific policy function -right combo of forms creates complete custom made policy -Any of the avail coverage forms could also be issued as part of a monoline policy |
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CPP must contain: |
-Common policy declarations -Common policy conditions -two or more coverage parts |
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Advantages of having a CPP |
-package discounts are available -fewer gaps in coverage -no duplication of coverage -convenience of having all the coverage in one policy |
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CPPs use conversational tone, including... |
You=insured We=insurance company |
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Commercial Property Forms |
1. Builders Risk 2. Business Income 3. Glass Coverage 4. Building and Personal Property |
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Builders Risk |
Commercial prop. coverage for bldgs or bldg alterations during the course of construction -Coinsurance requirement on builders risk is 100% of completed value |
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Business Income |
Covers loss of business income during period of restoration if it's necessary to suspend operations because of direct physical loss cause by a covered cause of loss -Net income, PAYROLL |
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Glass Coverage |
-This is needed because there's limited coverage for vandalism on broad and special forms |
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Building and Personal Property |
-Most common -This form describes the types of property coverage that apply, and establishes the conditions for coverage |
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Coverage Parts A, B, and C for Building and Personal Property Coverages |
Coverage A- Building Coverage B- Business Personal Property of Insured Coverage C- Business Personal Property of Others |
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Coverage A- Building |
-Valued under ACV unless otherwise indicated -More than one bldg or structure may be described in declarations -More than just the bldg itself, includes bldg additions, permanently installed fixtures, and equipment, property used to service the bldg or premises |
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Coverage B- Personal Property of Insured |
-All BPP is covered at ACV unless otherwise noted -BPP includes most types of commercial property owned by businesses which are not considered part of the bldg., i.e. furniture, machinery, equipment, etc. -If you are a tenant, this coverage also applies to your interest in improvements and betterments made at your expense. |
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Coverage C-Personal Property of Others |
-property of others in your care, custody or control -designed to reimburse the owner for the loss -payment will not be made to the named insured under any circumstances -payment would not be made if the owner had other insurance and was able to recover under that policy -Stock: if item was sold but not delivered yet, item will be valued at selling price |
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Additional Coverages |
-Debris Removal (must report debris removal within 180 days or 6 months for coverage -Preservation of Property -Fire Department Charges -Pollution |
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Extensions of Coverage |
1. Newly acquired or constructed property ( if you haven't had time to add it to your policy you're automatically covered up to $250,000) 2. Personal effects and property of others, i.e. employees' belongings 3. Property off-premises |
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Commercial Causes of Loss Forms Basic |
Fire, lightening, extended coverages, vandalism, sinkhole collapse, sprinkler leakage, volcanic action, windstorm |
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Commercial Causes of Loss Forms Broad |
All perils listed in the Basic Form plus... Weight of ice, snow, sleet Falling objects --on test, what does broad cover that basic doesn't |
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Commercial Causes of Loss Forms Special |
All perils listed in the basic and broad forms, plus -risk of direct physical loss -theft -Special form is the only form that covers theft |
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Common Exclusions |
-Earth movement -Government actions -Ordinance or Law (i.e. cost necessary to make a restroom ADA compliant) -Nuclear Hazard |
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Vacancy Clause |
-Applies to loss or damage at a bldg which has been vacant for more than 60 days at time of loss -Considered vacant when it does not contain enough BPP for conducting customary business operations -and/or 70% of the total sq footage is not rented or used to conduct business |
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In Vacancy Clause, losses are not covered if cause by... |
-Vandalism -Theft -Water Damage -Building Glass Breakage -Sprinkler Leakage -All other covered causes of loss occurring after 60 days of vacancy will be reduced by 15% |
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Vacancy Permit Endorsement
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If you know that your property is going to be vacant for more than 60 days and you want vandalism, theft, water damage, bldg glass breakage and sprinkler leakage covered |
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Value Reporting Form Endorsement |
Allows the level of coverage to float with changing values. Premiums are adjusted at the end of the policy period based on average values reported. |
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Coverage parts available |
property
GL auto crime farm inland marine boiler and machinery |
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NOt available for CPP |
Ocean Marine, BOP, WC -these are self contained packages |
