Cpcu 551 Chapter 4

Front 1

specific insurance

Back 1

insurance that covers each building for a specific limit of insurance and personal property at each building for a specific limit of insurance

Front 2

blanket insurance

Back 2

insurance that covers either of the following with one limit of insurance: 1. one type of property in one or more separatly rated buildings or 2. two or more types of property in one or more separately rated buildings

Front 3

blanket insurance and coinsurance requirements

Back 3

minimum coinsurance is 90%

Front 4

advantage of blanket insurance

Back 4

full blanket limit can be applied to one loss

Front 5

peak season limit of insurance endorsment

Back 5

endorsment that covers the fluctuating values of business personal property by providing differing amounts of insurance for certain time periods during the policy period

Front 6

value reporting form

Back 6

commercial property form that bases the insured's premium for business personal property on the values that the insured reports to the insurer periodically during the policy period

Front 7

insurer's payment

Back 7

(value reported / actual value) x loss - deductible

not to exceed limit

value has to be 75%

Front 8

business personal property limited international coverage - covered location

Back 8

property temporarily in or en rout to or from foreign county specified on schedule and must be located at business location insured owns

Front 9

business personal property limited international coverage - property in transit

Back 9

covered only while in care custody of insured

Front 10

business personal property limited international coverage - covered period

Back 10

limited to specified period listed on schedule

Front 11

property in process of manufacture by others - limited international coverage

Back 11

developed for insureds who contract with foreign manufacturers to produce their property

Front 12

additional covered property endorsment

Back 12

covers foundations, underground pipes, fences outside buildings and retaining walls that are not part of the building

Front 13

3 coverages available under green upgrade endorsement

Back 13

1. provides an additional limit of ins to cover the increased cost of replacing damaged property with more environmentally sound material

2. provides additional amount for expenses related to green updates including waste reduction and recycling expenses

3. applies only if bi coverage is included in policy. extends period of restoration for increased constuction for green upgrades. 30 days

Front 14

ordinance or law coverage

Back 14

endorsement that covers 3 types of losses resulting from enforcement of building ordinances or laws

Front 15

ordinance or law coverage A

Back 15

covers reduction in value of undamaged portion of building that mucst be demolished to comply

Front 16

ordinance or law coverage B

Back 16

covers cost to demolish undamaged portion of the stucture and remove debris

Front 17

ordinance or law coverage C

Back 17

covers increased cost to repaire or reconstruct damaged property

Front 18

utility services - direct damage endorsement

Back 18

commercial property endorsement that covers damage to covered property caused by interruption of utility services to the insured premises

Front 19

spoilage coverage endorsment

Back 19

endorsement that covers damage to perishable stock due to power outages, on premises breakdown, or contamination of the insured's refrigerating, cooling, or humidity control equipment. (no maximum limit of insurance)

Front 20

radioactive contamination endorsement

Back 20

commercial property endorsement for organizations that have a radioactive contamination exposure on their premises other than a nuclear reactor or fuel fro a nuclear reactor. covers physical loss to covered property caused by sudden and accidental radioactive contamination

Front 21

manufacturer's selling price endorsement (finished stock only)

Back 21

commercial property endorsement that values finished stock manufactured by the insured at selling price, less any discounts and expenses that the insured otherwise would have had

Front 22

functional building valuation endorsment

Back 22

commercial property endorsment that provides modified replacement cost coverage on buildings; may be appropriate when insuring a building with a replacement cost far in excess of market value

Front 23

functional personal property valuation

Back 23

appropriate on older machinery or equipment that is no longer available