Chapter 7 Flashcards
(25 cards)
Commercial Package Policy
They can get Liability and Property policies.
Business excluded from a Commercial Package Policy
Vacant at Inception, petroleum businesses, and residential risks
Commercial Package Policy changes have to be made with an
Endorsement
Interline Endorsement
Allows the flexibility in choosing certain enhancements or limits to the policyholder
Commercial General Liability Policy (CGL) 3 coverages
A - BI and PD
B - Personal and Advertising Injury
C - Medical Payments
CGL liability exposures (4)
Premises - slip and fall
Operations - Injuring a passerby
Products - Food
Completed Operations - Repairs
Who is Insured
Sole ownership - insured and spouse
Partnership - Insured, all members, partners, and spouses
Corporation - Insured, officers, directors, stockholders
Employeess
Real estatre manager
Temporary custodian
Person driving mobile equipment
Commercial General Liability provides for 6 separate limits
Occurrence - Maximum payable for all claims
General Aggregate - Maximum payable for the policy period for all claims
Products and completed operations aggregate - Maximum payable for all policy period for all claims arising out of products
Personal and advertising injury - Maximum payable under coverage B for one occurrence
Fire damage legal liability = sub limit for fire damage in coverage A (min $50,000)
Medical expense limit - Maximum payable under coverage C for any one person
Difference between “Claims Made” vs “Occurrence”
Difference between these two forms is what initiates, or triggers the liability coverage
Pollution Liability (3)
Pollution Liability Coverage Form (Standard Pollution Policy) - Clean up cost is covered only when obligated by the government
Pollution Liability Limited Coverage Form - Does not cover clean up cost
Pollution Liability Coverage Extended Endorsement - Deletes the pollution exclusion pertaining to BI and PD. Does not cover clean up cost
Commercial Property Policy is composed of at least 2 coverages parts
Object being insured. There are 7 coverage forms to identify object
Cause of loss form identifies the perils that are insured against.
There are 4 variations in a Commercial Property Policy cause of loos forms
Basic
Broad
Special
Earthquake
Commercial Property Policy do they have a deductible
All losses have a basic deductible of $250
Coverage Forms (7)
Building and Personal Property
Business Income
Extra Expense - Necessary to stay open
Builders Risk
Legal Liability - Bailee
Condominium Association - Building and personal property for condominiums
Condominium Commercial Unit Owners - Commercial Condominiums
Selected Endorsements (4)
Ordinance or law coverage - Covers loss for the undamaged parts of the building, demolition cost coverage, and increased cost of construction coverage.
Peak season - seasonal fluctuations in inventory
Spoilage - spoils due to breakdowns
Value reporting form - reporting personal property values monthly
Commercial Crimes (4)
Theft
Burglary
Robbery
Mysterious Disappearance
Crime Coverage Forms (8)
Employee Dishonesty (Fidelity Bond)
Name schedule
Position Schedule
Blanket Coverage
Forgery or Alteration
Computer Fraud - Hacking
Outside the Premises
Inside the Premises - Theft of money and securities (money)
Inside the Premises - robbery and safe burglary (other than money)
Funds transfer fraud - Transfer money to another country
Money orders and counterfeit paper currency
Commercial Inland Marine (Floater Policy)
Covers property that is subject to movement
Usually insured as replacement coverage and all risk basis
Worldwide
Floater policy conditions (8)
Abandonment
Appraisal
Policyholders duty after a loss - 91 days to report loss
Other insurance
Loss to pair or set
Salvage
Transfer of right of recovery - subrogation
Policy period
Floater Policy Coverage Forms (9)
Accounts Receivable - Debt, protects from the destruction of accounts receivable records.
Commercial Article - cameras, instruments
Contractors Equipment Floater - Covers mobile equipment
Equipment Dealers - dealers property of mobile equipment
Installation Floater - Materials and supplies installed by the insured
Jewelers Block - Stocks of merchandise for retail jewelers.
Signs
Valuable Papers and records - Blue prints, legal documents
Transportation Coverage - pg 146
Boiler and Machinery
Covers for explosions, mechanical breakdown, and artificially generated electrical current.
Boiler and Machinery definitions (3)
Covered property - What could be damaged
Accident - all risk
Object - equipment
Boiler and Machinery forms (3)
Scheduled - List machinery individual
Basic - Blanket coverage for all machines included on the basic list as objects
Broad - Basic plus additional machines
Boiler and Machinery Objects definitions (6)
Pressure and Refrigeration Objects
Mechanical Objects
Electrical Objects
Turbine Objects
Comprehensive Coverage
Comprehensive Coverage
