a builders risk coverage form can be written to provide an amount of insurance
c. based on with a or b
-based on the anticipated completed value of the building
-which increased gradually as the value of the building under construction increases
the primary purpose of business income coverage is to reimburse the insured for
loss of income resulting from property damage at the insured property
which one of the following is a coverage extension under the building and personal property form
c. property off premises
the purpose of extra expense coverage is to provide
c. coverage which will permit the insured to continue in business without interruption following a property damage or loss
under the commercial property coverage form, breakage of glass is covered under what form
b. broad and specific
a building was covered by insurance for such perils as fire and loss due to vehicles but not for earthquake damage. the commercial property form has a provision in it which excluded concurrent loses. a man who had auto insurance lost control of his car du
50%
a building that had never been vacant for 60 consecutive days burned. how much will be paid by the fire policy
d. nothing
builders risk insurance It to cover
b. loss to building under construction, temporary structures and building material and supples
in a business income coverage form, business interruption is covered only if the loss is due to a peril insured against in the cause of loss form
a. true
business income insurance covers
a. net income, condition expenses, and payroll
which of the following is a correct definition of coinsurance
b.a requirement that the insured carry insurance equal to a specified percentage of the property value, to be fully indemnified under to policy.
what is the function of the coinsurance clause in fire policies
a. to require the insured to carry insurance to value
property is valued at 500,000. it is insured for 300,000 with an 80% coinsurance clause. if there is a 200,000 loss, the insurer will pay
b. 150,000
which of the following forms is needed to make a commercial property policy complete
a. cause of loss form
on commercial property policies, basic coverage insures abasing loss by all of the following perils except:
falling objects
under the commercial property basic form, what would be covered?`
d. sprinkler leakage
operations at abc company depend on a steady flow of supplies from XYZ inc. what coverage would protect ABC abasing income losses due to damage at XYZ, which prevents shipment of supplies
a. coverage for contributing locations.
in a business income coverage form, loss of income is covered while repairs are being made and for the subsequent 30 days after the business is resumed.
a. true
who may cancel a commercial property policy as long as it is no contrary to law
d. first names insured and the insurer
a tenant is in the middle of a ten year lease. he has spent 50,000 in provident for such things such as lighting fixtures, shelves, and carpeting, which of the following types of coverage would best suit his needs in the even of a claim
a. improvement or betterment
a building insured under a commercial property policy was left vacant for a period of 90 days. the owner notified the insurer of this prior to the vacancy. in the event of a 50% loss, how much will the insurer pay?
d. 85%
a commercial plan designed expressly to protect against losses during construction is
builders risk
a policy that has a single limit of insurance for all priory at multiple locations is know as
blanket insurance
under a commercial property policy if there are two or more policies covering the same property under the same plan, terms, and conditions how will the claim be handled?
a. each policy shall contribute pro rata to the payment of such whole or partial loss
a policy which provides an amount of insurance for specific types of property at a specific location is known as
c. specific coverage
in commercial property in the building and personal property coverage form, coverage a, b, and c refer to
a. building, business personal property of the insured, and personal property of others
the coverages under form policy as compared to a homeowners policy is similar to comparing a commercial property policy to a
b. bussinesowners policy
in making sure a client has the prior coverage on a commercial property, there are three loss exposures to consider. the loss exposures are:
a. the building to be covered/ the perils to be covered/ potential financial loss
all of the following are categories of inland marine insurance except:
c. furniture and fixtures
inland marine insurance commonly provides __________ coverage
open peril
in commercial package inland marine policy, which of the following would not be covered ?
b. an automobile being kept for an individual in a parking lot
a provision commonly found in liability insurance, thus creating a need for inland marine would be?....
c. a care, control, and custody exclusion
why would someone be in need of adding a boiler and machinery coverage part to a commercial package policy?
a. a operate coverage form is need as most lines of insurance exclude boiler and machinery risks
the majority of the premium paid for boiler and machinery coverage is used for
b. inspection
an important loss control feature of the boiler and machinery insurance program is
b. inspection
a boiler and machinery policy wold exclude all of the following except
c. boiler explosion
all of the following are true about boiler and machinery except
c. it is written on a replacement cost basis except if change to actual cash value
under the commercial general liability policy, a separate aggregate limit applies to
a. products completed operations hazard
under a farm property coverage plan, what would be covered?
d. liability and property
under the commercial liability coverage form liability assumed under contract is
b. excluded, except for contracts specifically defined as insured
under the commercial general liabilty coverage form personal injury is
injury other than bodily injury, arising out of such things as slander, libel, and invasion of privacy
under the commercial general liability coverage form , the term personal injury is defined as
b. false
under the claims made commercial general liability coverage form, the first date that an even may occur and still be covered under the policy is called
a. retroactive date
commercial general liability would cover and injury to
c. a customer on the premises
who would be in need of purchasing a liquor liability form
d.. a company whose business is the selling and serving of alch beverages
in a commercial general liability form the term your means
b. any insured
a commercial general liability policy would cover which of the following situations
an employee working in a customers home does damage to the sutlers property (causes an injury to the customer)
which of the following would be true under a commercial general liability policy if you switched from the claims made form to the occurrence form
b. there may be a gap in the coverage
which is true about the CGL general aggregate limit
d. it does not apply to the products completed operations hazard
the liability exposure arising out of a business location or actives is known as
a. premises and operations hazard
the medical payment of a commercial general liability policy will cover
c. injury cause by an employee while working
the retroactive date in a claims made commercial general liability policy is
c. the first date that an event may occur and be covered by the policy
in commercial general liability what do coverage A,B, and C represent?
a. (a) bodily unjust and prop damage
(b) personal and advertising injury
(c)medical payments
under commercial crime coverage part, loss resulting from employee dishonesty is
c. excluded unless an employee dishonestly coverage is attached
which of the following is a commercial crime coverage form that provides virtually all risks coverage for money and securities
theft, disappearance and destruction coverage form
a person has a commercial business policy with an employee dishonestly endorsement. which of these is covered under the policy
b. theft of inventory
when would the insured collect under the employee dishonestly section of the commercial crime policy
theft of money, property and securities
under commercial crime, the loss sustained during prior insurance clause covers the crime loss subject to
c. 1 yr
which of the following offers the broadest crime coverage
a. theft
under the commercial crime coverage, employee dishonestly does not cover
shortages of inventory
employers that wish to cover employees use their own cars in the employers business should opt to have business auto liability coverage apply to which of the following groups of autos
d. non owned autos
employees are using their own cars for business purposes. the employer is concentred about liability exposure. what should the agent advise
d. have the employer add non owned autos to his business auto coverage
AN insured whose business is earth moving want to cover his equipment while it is being transferred from location to location . the insured would probably need
b. floater coverage
an owner of a parking lot want coverage for her liability for damage to vehicles left in her custody. she needs
garagekeepers coverage
the type of insurance that an auto repair ship should carry
a. garage keepers insurance
general liability policies and business auto places define the word auto and. libel equipment
a. the same to avoid confusion
business autos are identified by nine symbols in the declarations
symbol #4 referes to
b. owned autos other than private passenger autos
a business auto policy (bap) has for coverage under physical damage. which can be written together?
c. comprehensive, collision and towing and labor
commercial auto
d. allows the insured to tailor the policy by deciding what coverage should be applied to different vehicles
which of the following would have a need for a commercial automobile policy
a. owner of a trucking fleet
all are mobile equipment under a commercial auto policy except
street sweeper which Is self propelled
and insurer cannot rate a commercial auto policy based on the personal driving record of a hired dirver while using his own while
a. true
what cannot be covered under commercial auto policy
physical damage to mobile equipment
business autos are identified by nine symbols in the declarations
symbol number 7 refers to
c. specifically described autos only
under a commercial auto policy reimbursement for towing expenses
b. provided only for private passenger type autos
which of the following is not available under the commercial package policy
ocean marine
commercial packages ponies may have a number of coverage forms. which would not be covered under a commercial package policy
b. dwelling property
under the commercial package policy , who may cancel the policy writing , is authorized to make changed to the policy with the consent of the insurer and is responsible for paying premiums
a. the first named insured
according to the common conditions of a commercial package policy the insurer can do an audit of an insureds books and record any time during the policy period and during the three months following the expiration date of the policy
b. false
according to the common conditions of a commercial package policy the insurer can do an audit of an insured books records, any time during the policy period and for a specified amount of time after the policy expired
a. true
all of the following are part of the common conditions in a commercial package policy except
d. named perils
a monoline policy
b. is any insurance written as a single line policy
what is an advantage to having a commercial package policy instead of several monoline policies
b. convenience of having coverage under one policy
what are the advantages of having a commercial package policy compared to having a moonlike policies
d. convieneicne of having coverage under one policy
cost.
no gaps in coverage
no duplication of coverage
commercial package ponies must include
d. all of the following
-common delcarations
-common conditions
-two or more coverage forms
commercial package policies must include
common conditions
ina commercial package policy under common policy conditions "changes", it states that a policy can be amended or waived
a. only by endorsements from the insurer and made part of the policy
in commercial policies the use of a value reporting form
a. allows values for commercial property policies to be modified
according to the common conditions of a commercial package policy, the insurer can do an audit of an insureds books and records
c. during the policy period and for three yeARS AFTER EXPIRATION DATE