Chapter 22

Question 0

Property that can be moved

Answer 0

Personal property

Question 1

Property permanently attached to land, such as buildings and fixtures

Answer 1

Real property

Question 2

A policy in which two or nicer coverages are combined into one insurance purchase that provides all generally needed coverages. Insureds must purchase at least two of the packages components, but they may purchase as many other coverage forms as they need

Answer 2

Commercial package policy

Question 3

Cover policy cancellation, assignment of the policy, and other legal rights and duties

Answer 3

Conditions

Question 4

Includes such items as machinery, furniture and inventory.

Answer 4

Business personal property

Question 5

Not owned by the business but in it’s care, custody, or control

Answer 5

Personal property

Question 6

Physical assets

Answer 6

Tangible property

Question 7

Intellectual property

Answer 7

Intangible property

Question 8

Covers 11 perils

Answer 8

Basic form

Question 9

Extends coverage by adding more perils to the 11, including falling objects and water damage

Answer 9

Broad form

Question 10

Provides open perils coverage

Answer 10

Special form

Question 11

Business income form of the CPP is used to cover these losses that typically occur after insured physical damage and are commonly referred to as business interruption losses

Answer 11

Indirect losses

Question 12

Loss of income, continuing expenses, extra expenses, leasehold interest

Answer 12

Types of indirect losses

Question 13

The trigger for BI coverage is the necessary suspension of operations caused by insured direct physical loss of if damage to property at the premises described by the declarations. Actual loss of BI consisting of net income and continuing operating expenses 72 hours after

Answer 13

Business income coverage

Question 14

In some cases, a business suffers no direct physical damage, but it’s operations still may be halted because other businesses or the transportation system sustain physical loss

Answer 14

Business income from dependent properties

Question 15

The cost per hundred dollars of exposed value

Answer 15

Rate

Question 16

Multiplying rate by number of hundreds if dollars of value of exposed property

Answer 16

Premium

Question 17

Operates by placing comparable units into a group then charging a class date reflecting the expected loss experience and expenses of the group. Ex: residential homes, small apartment buildings.

Answer 17

Class rating

Question 18

Construction of building, occupancy, protection class, exposure are used in class rating system

Answer 18

COPE

Question 19

Analyzes each property individually and is used primarily in rating commercial buildings. Begins with a base rate and and charges for more hazardous conditions and credits for less hazardous conditions

Answer 19

Schedule rating

Question 20

Four distinct types of loss exposure, hull, cargo, loss of freight, liability loss. Mostly dealing with transportation on the sea

Answer 20

Ocean marine

Question 21

Includes value of the ship and it’s equipment

Answer 21

Hull exposure

Question 22

Value of goods being shipped

Answer 22

Cargo exposure

Question 23

Loss of income that the shipowner would have earned if the cargo or passengers had been delivered rather than loss

Answer 23

Freight exposure

Question 24

The loss a shipowner would suffer if the ship were held legally responsible for negligently injuring other people or their property

Answer 24

Liability

Question 25

Losses are those borne by the owners of the ship or cargo due to direct damage to their property

Answer 25

Particular average

Question 26

The loss attributed to the owners of the property where there was not necessarily a loss to their property, but other property was thrown overboard to save the shop and the loss was borne proportionately by all who had property exposed to the loss during the voyage

Answer 26

General average

Question 27

Seaworthiness of the ship, experience rating and ability of captain and crew, the potential for loss of the cargo, the scheduled route and season of the year. The coverage provided by the policy

Answer 27

Ocean marine insurance rating

Question 28

Typically an open perils contract. Includes bailiees customers policies, instrumentalities of transportation polices, and personal and commercial property floaters. Ex: transporting blue jeans

Answer 28

Inland marine insurance

Question 29

A property belonging to one party (bailor) is temporarily in the possession of a second party (the bailee), but ultimate possession is to return to the first party

Answer 29

Bail ebt

Question 30

Will pay the bailee if the property is lost, not returned, or damaged

Answer 30

Bailees customers insurance policy

Question 31

Protects the interest of the shipper (bailor)

Answer 31

Annual transit policy

Question 32

Protects the interest of the trucking company (bailee)

Answer 32

Motor truck cargo insurance

Question 33

May cover a variety of different structures, including bridges, tunnels, piers, pipelines, wharves, dans, and traffic signals

Answer 33

Instrumentalities of transportation

Question 34

Cover property that is moved easily and frequently and is generally high value

Answer 34

Floater policies

Question 35

Covers valuable assets such as camera, jewelry, furs, guns, stamp and coin collections, and ailverware

Answer 35

Personal articles floaters

Question 36

Are used when property as a whole is valuable but no one item is of outstanding value

Answer 36

Blanket floaters

Question 37

Can cover items of significant individual value, such as medical equipment, salesperson samples, livestock, fine art, and other valuable commercial property that may be transported easily

Answer 37

Scheduled floaters

Question 38

Provides protection, either damage cause by specified perils or in an open-perils basis to and aircraft

Answer 38

Aircraft hull policy

Question 39

The come tidal auto component of CPP provides both liability and property coverage.

Answer 39

automobile property insurance

Question 40

The striking of an automobile with another object, as well as the damage resulting from the overturn of the vehicle

Answer 40

Collision

Question 41

Loss caused by the following is considered other than collision: missile or falling objects, fire, theft or larceny, explosion or earthquake, winds trim, hail, water, flood, malicious mischief or vandalism, riot or civil commotion, contact with bird or animal, or breakage of glass

Answer 41

Other than collision

Question 42

Protects from a wide rage of perils, including theft, forgery or alteration, robbery and safe burglary, computer fraud, funds transfer fraud, and money orders and counterfeit money coverage

Answer 42

Commercial crime coverage form

Question 43

Covered losses resulting from accidental breakdown of mechanical equipment

Answer 43

Equipment breakdown insurance