Miscellaneous Commercial Policies

Question 1

Inland marine policies

Answer 1

• Imports, which may be insured at any location and must be segregated from other prop so it can be easily identified
• exports, which may be insured at any location and acquires its character when being prepared for export and must retain that character unless divirted for domestic trade
• domestic shipments and prop in transit, which involves shipments on consignment, for sale or distrubution, for approval or auction, while in transit,while in the custody of others,and while being returned

Question 2

Inland marine policies (continued)

Answer 2

• instrumentalities of transportation or communication, which covers items that are often at a fixed location because they play an important role in the transportation and communication industries. (Bridges ,tunnels, transmission towers including radio and television transmitting equipment,etc)
• commercial property floater risks ensure property pertaining to a business, profession, or occupation (contractors equipment floater and installation floater)

Question 3

Filed and nonfiled forms

Answer 3

• Filed or standardized forms are those that are created by an advisory organization and filed with the department of insurance and approved for use by the insurance commissioner
• Non-filed or non-standardized forms are not filed with or through any advisory organization. They are developed by individual insurance, and consequently the forms generally differ from insurer to insurer.

Question 4

Covered perils

Answer 4

Inland marine policy are frequently written on an open perils basis, covering all risks other than those specifically excluded. Exclusions and non-filed forms are often tailored to risks considered catastrophic by the insurer or are of such frequency that the volume of claims would not provide the insurer with the reasonable profit

Question 5

Commercial inland marine coverage forms and floaters

Answer 5

• accounts receivable coverage form: this form covers amount due to the insured, which are uncollectible from customers, because of the direct physical loss or destruction of records of the accounts receivable from a covered cause of loss, such as collapse of the building damaged by a fire.
• commercial articles coverage form: this form covers cameras, projection machines, films and related equipment and accessories musical instruments and similar property of others that is in the insureds care, custody, or control.

Question 6

Commercial inland marine coverage form and floaters (continued)

Answer 6

• Contractors equipment floater: this form covers Mobile equipment tools, and construction machinery owned by contractors. Coverage is typically written on an open peril basis
• electronic data processing floater: this form is to insure computers and other electronic data processing equipment, data and media, including hardware, software, extra expense and business interruption.

Question 7

Bill of lading : common carriers are required to issue uniform bill of lading to the shipper of the goods being transported. The bill of lading is a receipt for the goods, and sets forth the agreement between the carrier and the shipper. The two types of billing of lading are:

Answer 7

Straight (regular): use one payment has been made to the carrier and advance of the shipping and requires the carrier to deliver the merchandise to the appropriate party.
Release: used in cases where the shipper has decided in advance to release their hold on the cargo immediately, whether payment has been made to the shipper or not.

Question 8

Motor truck cargo forms

Answer 8

Truckers form: this form insurance public truckers for legal liability arising out of loss or damage to cargo belonging to others in their possession.
 shippers form: This form uses the same basic policy as a truckers form, however, the coverage is fundamentally different because it covers the shipper own goods. The form provides property coverage, protecting the owner of goods that have been shipped by a truck are operating as a common or contract carrier for the loss of goods.
Owners form: this form is designed to provide transportation coverage for a business firm that owns trucks with it which transports its own goods. Own trucks are scheduled on the form, as is a limit for each truck.

Question 9

Transit coverage forms

Answer 9

Annual transit: this form is designed for business firms that want to protect all kinds of property that is either being shipped to others or being received from other shippers during the year via any common carrier.
Trip transit: this form is used by those who do not make regular shipments, but wish to insure a single shipment.

Question 10

Cargo insurance

Answer 10

Covers goods being shipped while in transit.

Question 11

Freight insurance

Answer 11

Is an indirect laws coverage that protects the shipper, who is required to pre-pay freight charges and/or import duties, in the event that the voyage is not completed or the goods have sustained partial damage and the shipper is not able to secure a refund of the duty on the damaged goods.

Question 12

Protection and indemnity

Answer 12

Liability coverage is called protection indemnity. Protection and indemnity covers legal liability imposed on the insured for damages arising out of operation of the insured vessel.

Question 13

A professional liability policy would cover which of the following?

Answer 13

Professional liability policies will cover perils like errors and omissions, malpractice, breach of contract, and conflict of interest. Losses covered by other policies will be excluded.

Question 14

Who is insured in professional liability

Answer 14

Executive officers and directors, stockholders and trustees, and volunteer workers and employees

Question 15

Professional liability policies typically employ

Answer 15

Claims made(cm) are claims made and reported form(cmr)

Question 16

Directors and officers liability

Answer 16

A side coverage – provides direct coverage for directors and officers for claims made against them for wrongful acts committed in their capacity as a Director officer.
B side coverage – reimburses the company for amount as spends identifying directors and officers for claims against them. However, this coverage does not apply to companies
own liability.
C side coverage-insures loss of sustained by the company itself, regardless of any losses suffered by it’s directors and officers.

Question 17

 malpractice insurance

Answer 17

Medical providers such as physicians and nurses

Question 18

Errors and omissions insurance

Answer 18

Service providers such as insurance agents, attorneys, and architects

Question 19

Directors and officers insurance

Answer 19

Directors and officers of corporations

Question 20

Equipment breakdown coverage

Answer 20

Insures accidental losses that result from mechanical breakdown
machinery, refrigeration, air conditioning systems, electrical equipment

Question 21

On a boiler in machinery policy, the period of restoration after breakdown lasts how many days following the day of repair or replacement?

Answer 21

5

Question 22

Farm insurance

Answer 22

Can we written as a monoline or part of a package policy

Question 23

Farm prop coverage form

Answer 23

Coverage A(dwellings)
Coverage B(other priv structures)
Coverage C(household personal prop)
Coverage D( loss of use)
Coverage E(Scheduled farm personal prop)
Coverage f(blanket farm machinery tools equipment etc)
Coverage g (Farm buildings and other structures)
Coverage H(bodily injury and property damage)
Coverage I(personal and advertising injury liability)
Coverage J(medical payments)

Question 24

Multiperil crop insurance

Answer 24

Insured against the risk of farms reduced crop yield

Question 25

Typically, and ensure that issues commercial umbrella policies requires whay amount of underlying coverage to be in place?

Answer 25

1 million$

Question 26

All the following underlying coverage must be purchased in order to qualify for umbrella and excess liability policy

Answer 26

CGL, liquor liability, employers liability