Ch 6 - Commercial Package Policy (CPP) - 16% of exam Flashcards
Characteristics of a CPP?
Looks like an HO Policy, has Declarations page, reduces Admin costs. (DID I MISS A PIECE OF INFO?)
Coverage A is for..
The Building
Coverage B is for..
The Business’ personal property
When insured wants to put in a claim and they live in a Condo Building, what must they do?
Go to the Condo Assn and get denied first. Then we can help them with their claim on their own policy.
What is Business Interuption Insurance for?
It covers say an 8 week period where a business will be closed for repairs. If they will lose $240,000 during that period, the policy will reimburse them for that loss.
What determines how quickly business interuption insurance claims are reimbursed?
The premium amt. Higher premium = quicker payout.
Test: Commercial Inland Marine Coverage - What originated it?
Grew out of demand to insure property, such as cargo, that was being moved from ocean vessels to destinations inland within a country. (IS THAT ALL, FOR EXAM?)
Read Ch 6 Pg 13 on Inland Marine
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What are Common Carriers legally liable for?
Damage to property they are transporting. And safe delivery of goods and thus own a high degree of care.
What are exceptions that apply to losses related to Common Carriers responsibilities?
Acts of God (earthquakes, floods, etc), Acts of public enemy (war), exercise of public authority (confiscated cargo), shipper’s fault (negligent packing), and inherent vice (perishables).
What is a Bill of Lading?
Issued by a Common Carrier, evidences receipt of property for shipment and title of property.
How might a Common Carrier limit its liability in relation to Bill of Lading?
It can issue a Released Bill of Lading, limiting its liability to a specified maximum dollar amt, per shipment or per pound in the event of a claim.
Boiler & Machinery Insurance is..
Equipment Breakdown Insurance
Today what is Boiler & Machinery Insurance part of within a company?
It’s a key part of a company’s Risk Mgt Program, centered around minimizing loss through prevention.
What are examples of eligible equipment covered under Bolier & Machinery Coverage Part?
AC/Refrigeration units, boilers & pressure vessels, computer-controlled machinery, electrical equip, elevators, escalators, fans, motors & pumps, med equip, security/fire detection systems, washers/laundry equip.
