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68 Cards in this Set
- Front
- Back
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Basic Fire Policy: What 3 perils does the Standard or Basic Fire Policy cover? |
Fire Lightening (except to appliances) Explosion (of coal natural and manufactured gas) ELF. |
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How is the peril of lightening broadened in the Extended Coverages? |
It includes damage to appliances` |
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How is the peril of explosion broadened in the Extended Coverages? |
It includes other types of explosions |
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What perils does the commercial broad form policy cover? |
All perils subject to exclusions |
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What does Blanket form coverage provide? |
One amount of insurance on building, stock, and equipment |
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What is included under the definition of building? |
Building, attachments to building, fixtures, fittings, & potted plants |
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What is included under the definition of stock? |
Goods for sale, inventory, advertising, packing and wrapping |
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What is included under the definition of equipment? |
Contents, equipment, tenants improvements |
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What is the coverage amount based on for a Builders risk? |
Completed value of the building |
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What are the three exclusions on the Glass Insurance policy? |
Fire War Nuclear damage |
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What signs can be covered under a sign floater? |
Covers exterior signs |
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What does the Bylaw Exclusion endorsement do? |
It deletes the bylaw exclusion on the building policy |
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What are the two requirements that must be met before the Farm Rebuilding Clause will pay the full amount of the farm buildings? |
1. Must be rebuilt within 9 months 2. Rebuilt within 200 feet from original site |
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How many months worth of rental Value should be insured? |
12 months as the policy will pay for loss of rental income for up to 12 months |
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What form would be used to cover stock in a business like a convenience store where the stock values are fairly consistent? |
Premium Adjustment Clause |
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What form would be best used to cover stock in a business like a flower store where the sales vary substantially from month to month? |
Peak Season Endorsement |
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What coverage does the Consequential Loss Assumption Clause provide? |
Losses due to failure of a cold storage unit |
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What does the Gross Earnings Coverage form cover in the event of a loss? |
Pays for loss of earnings from the date of the loss to the date the business re-opens for business |
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What does the Extra Expense business interruption form cover? |
Extra expenses to re-establish the business at another location |
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What does the Profits form cover? |
Loss of earnings until profits return to what they were prior to the loss |
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What is the major difference between the earnings form and the profits form? |
The period of indemnity |
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What does the Contractor's Equipment Floater cover? |
Covers large equipment at different job sites. Example: forklifts, concrete mixers etc. |
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What does a Tool Floater cover? |
Covers tools at different job sites. Example: nail guns, power drills. |
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What does boiler and machinery cover? |
Explosion and rupture of pressure vessels and electrical breakdown of machinery |
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Who is a custodian in regards to Crime coverage? |
Insured, partner, or other person in the regular employ of the insured and who is authorized to be in care, custody and control of someone else's property |
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Who is a guard? |
Someone under 65, and over 17 who accompanies a messenger at the direction of the insured |
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What is included in theft coverage? |
Burglary and Robbery |
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Does burglary and robbery include theft? |
No |
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What does the 3D policy cover? |
1. Employee dishonesty 2. Disappearance and; 3. Destruction of money and securities |
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Does the 3D policy cover safe burglary and robbery on the premises? |
Yes |
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What does the seven point policy cover? |
1. Inside and outside robbery 2. Safe burglary 3. damages to the premises by burglary or attempted burglary 4. Kidnapping 5. Theft from custodian's house 6. Stock burglary 7. Theft of office equipment
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Who are the 3 parties to a bond contract? |
1. The principal: person who takes out the bond 2. The oblige: the party to whom the obligation is owed 3. The surety: the insurance company |
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What do Fidelity Bonds cover? |
Guarantee honesty of employees |
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What are the prime coverages of the Commercial General Liability Policy? |
Bodily Injury Property damage Personal injury Premises and operations liability Products and completed operations Personal advertising injury Supplementary payments (defense and legal costs) Tenants legal liability |
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What coverages can be added to the CGL by endorsement? |
- Non owned auto: protects employer if employees use their vehicles on company business - Pollution liability - Contingent employers liability: protects employer against liability arising from bodily injury to employees not eligible for Workers Compensation and who which the employer is liable - Contractors and Owned Protective: protects either a contractor when he hires the subtrades or an owner when he hires a contractor - for liability arising from work done by them - Contractual liability: protects against liability assumed under contract that he would not normally be liable for - Garage liability -Employee benefits - Professional liability or errors and omissions - Directors and officers liability - Umbrella liability policy |
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What does Stated Amount Co-Insurance base the amount of insurance required on? |
Statement of values - which is an appraisal on the property setting out it's rebuilding cost |
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What is the co-insurance formula? |
DID over SHOULD (times co-insurance %) times the LOSS |
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What is the criteria set out in the 2% Waiver of Co-Insurance Clause? |
The loss will be paid in full if the loss is less than 2% of the amount of insurance (DID) and also less than $5000 |
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Who is a bailee? |
Someone in care, custody and control of another's property usually for compensation |
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Who is a bailor? |
Someone who leaves their property in the care of a bailee |
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Who is a lessee? |
The person leasing the vehicle from the leasing company |
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Who is the lessor? |
The company or landlord who is leasing property to another person |
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Who is the mortgagee? |
The bank who holds the mortgage |
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Who is the mortgagor? |
The person who owes the bank money |
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What is a manuscript policy? |
A policy that is written to cover a unique, specific risk |
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What is a subscription policy? |
A policy that more than one insurance company provides insurance for, with the first company to accept a piece of the business and being the lead company - issuing the policy, setting the rate, paying the claim and collecting or reimbursing other subscribing companies for their share of a loss or the premium |
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What does burglary coverage require? |
Forcible entry |
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What does the care, custody and control exclusion of the property damage section of the CGL policy not cover? |
Excludes damage to property that the insured is in the care, custody and control of |
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What are the requirements of the farm rebuilding clause in order to get full replacement cost? |
If damaged 2/3 of its value the insurer pays 50% of the rebuilding cost and only receives the balance if the building is rebuilt within 9 months and within 200 feet from the original location |
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What basis is used to determine the amount of insurance required on a Builder's Risk policy? |
The completed value of the building |
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What is Premium Adjustment Clause? |
When a store has +/- the same amount of stock the whole year. This clause would be used to insure the stock levels. |
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What are the exclusions for glass insurance? |
War Nuclear damage Fire |
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Contractual liability covers |
Liability of others assumed under contract |
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Additional Commercial Property Coverages |
Boiler and machinery policy Builder’s risk By-law endorsement Consequential loss assumption clause Farm rebuilding clause Floaters Glass insurance Rental value endorsement Business interruption insurance Crime insurance Bonds |
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What is Named Perils Form? |
Covers 8 Perils: Fire, smoke, windsorm, impact, lightning, leakage, explosion and riot. - SWILLER |
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what are the two stock options to insure stock? |
1. Premium Adjustment Clause : use for businesses that have fairly consistant stock values such as convenience store. 2. Peak Season Endorecemnt : If a business has stock values that vary depending on the month or season, this is used to cover the investory during those peak months. |
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What is Broad Form? |
Insures against all risks subject to policy conditions and exclusions. |
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What does Glass Insurance Exclude? |
- War - Nuclear Damage - Fire ( already covered ) |
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What is Rental Value Endorcement? |
This endorcement protects a landlord when a fire or other peril damages the property so bad that the tenants can't occupy it. The endorcement endemnifies for up to one year. |
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What is a named perils form ? |
Covers 8 perils: Fire, smoke, windstorm, impact, lightning, leakage, leakich, explosion and my explosion and riot. Nicknamed swiller And fire policy |
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When will burglary insurance pay? |
Will pay only when there is evidence of forcible entry |
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When will robbery insurance pay? |
Will pay only when violence or threat of violence is used |
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Does theft include burglary and robbery? |
Yes |
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Does burglary and robbery include theft? |
No |
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What does the 3-D policy stand for? |
Dishonesty, disappearance, and destruction |
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What peril is covered under glass insurance |
Riot |
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Contractual liability covers: |
Liability of others assumed under contract |
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Who is not party to a bond contract? |
Custodian |
