Equipment breakdown coverage is written with a single limit of insurance per accident. What is the sublimit for hazardous substance cleanup or repair or replacement of contaminated property?
$25,000
Which of the following is NOT covered under Coverage E- Scheduled Farm Personal Property?
A. FishB. TurkeysC. Portable structuresD. Livestock B. Turkeys
The commercial property declarations page contains which of the following information?
Description of the property insured
The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage?
Time element
Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners?
Bailee's customer policy
Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss?
Privilege to adjust with the owner
Which of the following statements is NOT true regarding mobile agricultural machinery and equipment coverage?
A. This coverage must be written as part of farm coverageB. It relates to devices used in the everyday farm operation C. It covers detached parts and accessories of mobile devicesD. It insures eligible equipment for open perilsA. This coverage must be written as part of farm coverage
A farmer is remodeling his 100-year-old farmhouse. He is in the process of painting the porch and hanging shutters. He keeps his ladder, paint, and other materials used to remodel his home under the porch. Which of the following provides coverage for his remodeling materials?
Coverage A (covers materials and supplies used to construct, alter, or repair the dwelling.)
An insured's accounts receivable records have been damaged. The loss may be covered with
The accounts receivable coverage form
Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises?
$1,500
Which of the following is NOT an optional coverage built into the condominium association coverage form?
A. Inflation guardB. Replacement cost C. Real estate tax liability D. Agree valueC. Real estate tax liability
What is not a consideration when paying an inland marine claim?
Market value when the property was first purchased
All of the following are excluded in the equipment breakdown basic policy EXCEPT
A. Ordinance or law coverageB. Business interruptionC. Loss of power, lights, heat, steam, or refrigerationD. Explosion of steam boilersD. Explosion of steam boilers
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?
$10,000 for all expenses incurred during a 12-month period
All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT
A. Falling objectsB. Weight of ice, snow, or sleetC. Water damage D. Replacement costD. Replacement cost
Professional photographers and musicians may insure their equipment with
A commercial articles floater
Under businessowners policy Section I, if an insurer wants to nonrenew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgageholder?
10 days
Personal business property out in the open is covered under commercial property policy only while
Within 100 feet of the described premises
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?
$175,000
Which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in case of a total loss on a scheduled item?
Reinstatement of limit
A business using its own trucks to move its own cargo would insure the cargo using
Motor truck cargo- Owners form
If a farm building or structure is vacant or unoccupied, which is true?
If for 120 consecutive days, the limits applicable to the building and its contents are reduced by 15%
Which of the following would the livestock coverage form insure?
Mules and donkeys
A loss has occurred before the first report has been filed on a value reporting coverage form. Which is NOT true?
Never more than 75% of the loss is paid
Which of the following may be covered by electronic data processing coverage form under an inland marine policy?
A. Computer hardware that specifically scheduledB. Extra expense the insured incurs to continue the business following a loss C. Data processing media, including magnetic tapes or paper tapes, punch cards and discsD. All of these are covered D. All of these are covered
Individuals in the business of selling construction equipment and mobile equipment should insure with a/an
Equipment dealers coverage form
The major portion of the premium for an equipment breakdown policy pays
For inspections and examinations
The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?
The first name insured may cancel the policy at any time by giving written notice to the insurer
A commercial property special form covers property in transit up to
$5,000
Who will transport the property of anyone who hires them?
Common carriers
Which of the following is NOT one of the available additional coverages in the builders risk form?
Vandalism
Which item would NOT be covered under building coverage in a building and personal property policy?
The bulldozer being used as part of a business addition under construction that is parked 500 feet from the building
Which of the following statements concerning the builders risk coverage form is correct?
It may be written on a reporting form for the completed value of the structure
Coverage under the Builders Risk form will end in all of the following situations EXCEPT
A. Construction has been abandoned.B. 60 days after the building became occupied.C. The insured has sold the property.D. 60 days after the construction has ended.D. 60 days after the construction has ended
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts
The type of insurance used to cover goods for one specific trip is called
Trip transit
Coverage F - Unscheduled Farm Personal Property is subject to coinsurance clause of
80%
Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT
Prepackaged software
All of the following are classes of inland marine risks EXCEPT
Common carrier cargo liability
A builder's risk form is most often written as which of the following?
Completed value form
An endorsement added to a businessowners policy that provides coverage for direct damage caused utility service disruption stemming from a covered peril is called
Utility services-Direct damage
A businessowners policy is
A self-contained prepackaged policy
Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy
During the policy period and for up to 3 years after the termination of the policy
All of the statements are true regarding fire department service coverage under the Businessowners policy (BOP) EXCEPT
This coverage limit pays in place of the limit of insurance shown in the declarations
After a loss, an insured covered by a business property coverage is NOT required to
Reconstruct for the insurer a timeline of activities leading up to the loss for use in an investigation
Which of the following businessowners (BOP) endorsements provides coverage for the inability to collect monies due from customers as the result of a covered cause of loss?
Accounts receivable
Under a businessowners policy, an insured can cancel the policy
At any time by mailing a written notice of cancellation
A policy condition that states if a policy is broadened with no additional premium, then the expanded coverage will be automatically applied to all policies of the same type is known as
Liberalization clause
A small restaurant was forced to close for 10 days in August when the power company's transformer was destroyed by lightening, and the restaurant was without electricity. Which of the following endorsements could be added to the businessowners policy that would provide protection against loss of income
Utility services-Time element