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45 Cards in this Set
- Front
- Back
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What are the forms that are required to construct coverage under the BPP? |
Property Declarations Business and personal property coverage forms Cause of loss form Property Exclusion |
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What information is included on the property declarations form |
Policy info: Effective date, Policy number Insured's name, address, description, occupancy Coverage limits Cause of loss form Coinsurance requirement Deductible |
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The Three main categories under the BPP |
Building Personal Property Personal property of others |
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What are the three broad categories of property NOT covered under the BPP |
Real Property Outdoor Property Other Property |
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What are the five elements described as part of the building |
Completed additions to building Fixtures Permanently install machinery and equipment Equipment used to maintain business premises Additions under construction plus the supplies |
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What are the seven categories of business personal property described in the BPP? Which of these are jointly owned by you and others |
Owned by insured Furniture Machinery and equipment Stock (inventory) All other Personal Property Jointly Owned Value added in other people personal prop use interest as tenant in improvements leased property with contractual responsibility to insure |
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Six additional coverage's? |
Debris Removal 25% + $25,000 Preservation of property fire department service charge pollutant cleanup increased cost of construction Electronic Data |
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seven coverage extensions? |
Newly constructed property (30 days) Personal effects and property of others Cost of reconstructing valuable papers Property Off premises outdoor property (FLARE perils only) non owned detached trailers personal property temporarily in storage units for 90 days |
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Valuation Basis |
Actual Cash Value = Replacement cost - Depreciation
Replacement - (depreciation % x replacement) ` |
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Special valuation conditions |
Small building losses are paid at replacement cost Sold stock that hasn't been delivered is valued at selling price glazing on glass is required by law Tenants use pro rate for improvements and betterments |
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How are deductibles applied in the BPP? |
Deductibles are paid per occurrence, it is applied to the loss not the policy limits |
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Which coverage's have annual limits |
Debris removal $2500 for outdoor sign 10,000 pollutant cleanup |
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How is coinsurance penalty determined and applied under the BPP |
If coinsurance is not met policy holder shares in loss if there are separate coverage limits, coinsurance is applied to each category of property (have/should) * loss = payment |
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Four optional coverage's available under BPP |
Agreed Value - Replaces coinsurance req. Inflation guard - increase in limits based on inflation Replacement coverage cost - no deduction for depreciation and changes coinsurance req. Extension of replacement cost to personal property of other |
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Improvement and Betterment |
additions made by a tenant that become part of the building and cannot be legally removed |
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FLARE perils |
Fire, Lightning, Aircraft or vehicles, Riot or Civil Commotion, Explosion |
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Fixtures |
Any personal property affixed to real property in such a way as to become part of the real property |
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Trade Fixtures |
Fixtures and equipment that are attached during the tenant's occupancy, but with the intention that they will be removed upon termination of the lease |
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Commercial Bailment |
The temporary possession by one party of personal property of another party for a specific purpose beneficial to both parties |
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Three standard cause of loss forms |
Basic- 11 common perils Broad - Adds three perils to basic form Special - covers risk of direct physical loss |
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Basic 11 perils |
Fire, Lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, volcanic action Additional coverage : fungus $15,000 |
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Broad perils |
Falling objects Weight of Snow, Ice, or Sleet Limited water damage Additional : collapse if the building cannot be used for its intended purpose |
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Fire (Limitations) |
Must be a hostile firs. uncontrollable, left ts intended location |
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Lightning (Limitations) |
Cannot be artificially generated current |
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Explosion (limitations) |
Excludes rupture/collapse due to expansion of building contents if caused by water |
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Windstorm (limitations) |
Excludes damage from ice, snow, sleet even if wind driven wind driven water damage is not covered interior only covered if wind/hail causes external damage Excludes hail damage to plants on vegetated roof |
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Smoke (limitations) |
excludes industrial operations and agricultural smudging extends fire peril to smoke damage of friendly fires or no glow/flame |
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Aircraft and Vehicles (limitations) |
Excludes damage caused by insured's owned vehicles |
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Vandalism (limitations) |
Stolen materials will not be covered but damaged materials will be |
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Sinkhole collapse (limitations) |
excludes sinkholes caused by man made cavities |
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Volcanic Action (limitations) |
excludes damage caused by accompanying earth movement |
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Falling objects (limitations) |
does not cover interior damage unless exterior is damaged |
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Weight of snow, ice, or sleet (limitations) |
Excludes personal property outside buildings and damage to plants on vegetated roof |
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Water damage (limitations) |
Excludes sump pumps, gutters, and continuous leakage for more than 14 days Some restrictions on freezing of plumbing |
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Concurrent Causation |
A chain of events leads to a loss If two perils are involved in a loss and one is clearly excluded, courts have said that the loss is still covered |
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Anti Concurrent |
Used to avoid paying for concurrent losses clarify that a loss involving a chain of events will generally not be paid |
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Eight Anti Concurrent exclusions |
Ordinance or Law earth movement such as earthquakes, volcanic eruption, or landslides destruction as a rest of government action nuclear hazard Damaged cause by failure of utility service war or military action Flood, mudslide, underground water, and backup Fungus or mold |
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Four other Exclusions |
Damage to appliances or equipment caused by artificially generated electricity explosion of steam boilers Mechanical breakdown neglect after a loss |
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Theft Exclusions (Special Form) |
Employee theft, voluntary parting is hanging over property of fraudulent scheme, inventory disappearance is not enough evidence of theft, theft of building materials not yet attached, internal limits for items that are targets for thieves |
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Other Exclusions (Special form) |
Weather conditions that led to excluded losses such as flood plants on vegetated roofs third party negligence pollutant damage loss property due to production errors |
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Additional Coverage Extensions (special form) |
Personal property in transit in a vehicle owned, leased, or operated by the insured Water damage, other liquids, power, or molten material damage, Glass extension covers temporary coverings |
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Friendly fire |
Remains inside intended location and is controlled |
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Voluntary parting |
you gave them the property being tricked out of it Handing keys to valet that steals your car |
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9. Which of the following is NOT indicated on the property declarations page?
1. Coverage limits 2. The categories of property covered under the BPP 3. Loss conditions 4. Address of premises covered |
Loss conditions |
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10. Which of the following NOT excluded property under the BPP?
0. Cash and vehicles that are licensed for public roads 1. Outdoor property such as fences and satellite dishes 2. Real property including bridges and piers 3. Personal property of others in the care, custody, or control of insured |
Personal property of others in the care, custody, or control of insured. |
