Under which of the following circumstances would the Personal Auto policy provide coverage?
1. the named insured's teenage son has a summer job at a parking garage. He dented a fender on a customers car while attempting to park it
2. the named insured works for a service station. he uses his own auto on an errand for his employer and hits anothe
Automobile medical payments coverage:
pays regardless of who caused the accident & covers all reasonable medical expenses within the specified period, up to the policy limit
Personal auto policy territory include;
Canada, US, Puerto Rico
Uninsured motorist coverage
Insurance that protects drivers from those with no insurance or inadequate insurance.
If an individual has uninsured motorists protection:
any amount collected under medical expenses or workers comp coverage will be subtracted from his or her recovery from UM
Under comprehensive automobile coverage which of the following causes of loss (if any) is covered?
A. Upset
B. Freezing
C. Theft
D. None of the above
answer: C
The owner of a parking lot wants coverage for her liability for damages to a vehicle left in her custody. She needs:
Garage Keepers coverage
The Insuring Agreement
the company's commitment to protect the insured and includes a description of the perils.
The insuring agreement of a policy contains
the perils insured against
All of the following are insured against basic extended coverage EXCEPT:
A. Falling objects
B. Explosion
C. Hail
D. Damage done by vehicles
answer: A
The purpose of an Automobile Insurance Assigned risk plan is to:
Make automobile liability insurance available to motorists who are unable to secure it by ordinary methods.
under the business auto coverage form, a non-owned business auto:
Is not leased, hired, rented or barrowed. It is covered for liability only.
Is an auto owned by an employee that is used in the business.
Garagekeepers Coverage
Would cover a vehicle dented by an employee while it is being stored with the dealer.
Basic Fire Policy with no endorsements insures a vacation home for:
Direct loss
The newly acquired or constructed property coverage extension applies to:
Coverage A & B
For newly acquired or constructed property, up to how much for each new building may be extended for up to 30 days to cover new buildings being constructed at that same location?
$250,000
Personal effects and property of others provides up to ------- of coverage for personal effects of the named insured, partners and employee's (excluding those from theft) and personal property of other's.
$2500
There are certain coverage extensions that apply, but only if the insured has agreed to meet an ----- or higher coinsurance requirement or has purchased a reporting form.
80%
For newly acquired or constructed property the maximum amount payable is:
$100,000
Property off-premesis extends up to:
$10,000
Outdoor property extends a limited amount of coverages to fences, antennas, satellite dishes, signs, trees, plants, and shrubs. The maximum amount payable is:
$1,000 with a $250 limit applying to any 1 tree, plant or shrub
An insured has ----- days to send a signed, sworn statement of loss of the insureds request
60 days
Loss payment
States that the insurance company will give the insured notice of how it intends to settle the loss within 30 days after it receives the insureds sworn statement of loss.
Valuation condition
describes how losses will be settled.
If the coinsurance conditions are met and costs are ------ or less, the policy will pay the cost of a buildings repair or the replacement without taking depreciation into account
$2,500
Glass is valued at:
the cost of replacement with safety glazing material if this is required by law
Agreed Value Coverage
suspends the coinsurance requirement for the covered property designated and substitutes an agreement to cover any loss in the same proportion that the limit of insurance carried bears to the stated value.
builders risk coverage form
This form covers commercial, residential, or farm buildings that are under construction.
Builders risk coverage begins
on the date construction begins if the building does not have a basement; or on the date construction begins above the lowest basement floor if there is a basement
Builders risk coverage is written for:
one year
Builders risk coverage ceases when:
the property is accepted by the purchaser (sold)
90 days have elapsed since construction was completed
the building is occupied or put to its intended use.
the insured's interest in the property ceases
the insured abandons the construction with no intenti
Business Income coverage form
pays for loss of income that the insured sustains due to a direct physical loss from a peril insured against that forces the insured to suspend operations during period of restoration.
Suspension means:
a slowdown or cessation of the insured's business activity
Time element coverage:
Provides coverage for the loss of business income over a period that results from direct physical loss
extra expense coverage
is a coverage that reimburses the insured for expenses incurred to keep a business going after a loss caused by a covered peril.
Leader Location
another business that attracts customers to their own business
All Earthquake and volcanic eruptions that occur within any ----- period constitute a single earthquake or volcanic eruption
168 hours
Value reporting form
is used to provide coverage based on actual cash values at certain locations at Specific times. the insured purchases a somewhat higher amount of insurance then he thinks will be needed, then reports on actual cash value reports at the end of the policy p
Ordinance of law endorsement
provides coverage when an insureds loss increased because of other laws
Ocean Marine Insurance
covers vessels and their cargo from loss or damage over sea
Hull insurance
insuring the vessel
Running down clause
protects the owner if he is held liable for negligent operation of the vessel in damaging another ship
cargo insurance covers
merchandise being shipped
warehouse to warehouse clause
coverage that is also extended to include coverage from propertys point of oringination to its point of destination.
Open Cargo
an insured who frequently ships cargo, such as an importer or exporter.
Freight insurance
protects against the insured against the loss of shipping cost.
Protection and Indemnity
provides marine liability insurance
Inland Marine Insurance
Covers goods moved by trains, trucks, and airplanes
instrumentalities of transportation or communication include forms that cover property related to:
transportation or communication, such as bridges, pipelines, and television towers
RADIUM
is not covered
Acts of God
tornados & floods
Bailee
think of them as the employee
Bailor
think of them as the employer
Bill of landing
standardized contract of carriage issued by common carriers to the business for which it is shipping goods