CPCU 551 Full
Delay Clause 8-23
A clause that excludes coverage for loss caused by delay, such as loss of market, spoilage, and business interruption
Leasehold Interest Coverage Form 5-14
A commercial property coverage form for insuring a tenants financial loss resulting from the cancellation of the tenant's lease because of damage to the premises by a covered cause of loss."
Legal Liability Coverage Form 5-13
A commercial property coverage form that provides legal liability coverage on bulidings or personal property of others in the insured's care, custody, or control.
Radioactive Contamination Endorsement 4-10
A commercial property endorsement for organizations that have a radioactive contamination exposure on their premises, other than a nuclear reactor or fuel for a nuclear reactor; covers physical loss to covered property caused by sudden and accidental radioactive contamination
Utility Services - Direct Damage Endorsement 4-8
A commercial property endorsement that covers damage to covered property caused by the interruption of utility services (water, communications , or power) to the insured premises.
Functional Building Valuation Endorsement 4-2
A commercial property endorsement that provides modified replacement cost coverage on buildings; may be appropriate when insuring a building with a replacement cost far in excess of its market value
Manufacturer's Selling Price (Finished ""Stock"" Only) Endorsement 4-1
A commercial property endorsement that values finished stock manufactured by the insured at selling price, less any discounts and expenses that the insured would have otherwise had.
Value Reporting Form 4-6
A commercial property form that bases the insured's premium for business personal property on the values that the insured reports to the insurer periodically during the policy period
Standard Property Policy (SPP) 5-12
A commercial property policy form covering buildings and business personal property on restricted terms.
All-in Concept (additional installations coverage) 5-8
A concept of condo ownerhsip that is similar to the single-entity concept except that the all-in concept includes improvements made by the unit owner, not just the original installations or replacements of like kind and quality
Bare-Walls Concept 5-6
A concept of condo ownership in which the association has no ownership interest within the bare walls of each unit
Single-Entity Concept (original specifications coverage) 5-7
A concept of condo ownership in which the association is considered to be the owner fo all property contained in the unit as sold to the original purchaser or replacements of such property if the replacements are of like kind and quality.
Bill of Lading 8-13
A document acknowledging receipt of goods from the shipper, given by the carrier which includes the term of the contract of carriage for the goods.
Condominium Association Agreement 5-5
A document that describes what each condo owner has purchased, and clarifies the rights and responsibilies of the unit owners and the association
Cooperative Corporation 5-9
A form of real property ownership in which the real property is owned by a corporation whose shareholders are the tenants of the property.
Builders Risk Coverage Form 5-11
A form that covers buildings in the course of construction, including additions or alterations to existing buildings
Highly Protected Risk 6-9
A large property whose construction meets high standards of risk mitigation and control characteristics and whose management maintains best practices loss control and risk mitigation techniques for the specified occupancy
Agreed Value Method 8-6
A method of valuing property in which the insurer and the insured agree, at the time the policy is written, on the maximum amount that will be paid in the event of a total loss.
Act of God 8-11
A natural and unavoidable catastrophe that interrupts the expected course of events
Businessowners Policy (BOP) 1-2
A package policy that combines most of the property and liability coverages needed by small and medium-sized businesses
General Average 8-18
A partial loss that must, according to maratime law, be shared by all parties on a voyage (cargo owners and vessel owner)
Floater 8-4
A policy designed to cover property that floats, or moves, from location to location
Output Policy 1-3
A policy that combines, in one form and associated endorsements, all or most of the commercial property coverages that the insured organization needs, and uses a flexible rating plan
Write Your Own (WYO) 6-1
A program allowing private insurers to write flood insurance under the National Flood Insurance Program
Inherent Vice 8-12
A quality or condition within a particular type of property that tends to make the property destroy itself.
Condominium 5-1
A real estate development consisting of a group of units, in which the air space within the boundaries of each unit is owned by the unit owner, and all remaining real and personal property is owned jointly by all the unit owners.
Planned Unit Development (Homeowners Association) 5-10
A real estate development in which each occupant has exclusive ownership of its own unit, and the land that the structure occupies. A homeowners's association composed of all unit owners jointly owns the surrounding land and structures.
Commercial Property Conditions 1-4
A required component of the commercial property coverage part that contains conditions applicable to all commercial property coverage forms
Charter 8-14
A travel contract in which transportation is temporarily hired for a specific trip
Invoice Value 8-5
A valuation basis that values covered property at its invoice value, including freight
Residential Condominium Association Policy (RCBAP) 6-5
A version of the National Flood Insurance Program Standard Flood Insurance Policy that is used for insuring residential condominium buildings, as well as contents that are owned either by the unit owners in common or by the condominium association solely.
Strikes, Riots, and Civil Commotion (SR&CC) warranty 8-22
A warranty that excludes loss caused by strikes, labor distrubances, riots, vandalism, sabotage, or malicious acts
Free Capture and Seizure (FC&S) warranty 8-21
A warranty that excludes loss caused by war, piracy, virtually any lawful or unlawful taking of the vessel, a nuclear weapon, a mine, or a torpedo
Business Income Worksheet 7-10
A worksheet for calculating the amount of insurance necessary to comply with the Coinsurance condition of business income forms, for reporting business income values to the insurer, or for providing underwriters with information they need to evaluate an organizations business income loss exposure
Common Carrier 8-9
Airlines, railroads, or trucking companies that furnish transportation to any member of the public seeking their offered services
Improvements and Betterments 2-3
Alterations or additions made to the building at the expense of the insured who does not own the building and who cannot legally remove them
Civil Authority Additional Coverage 7-12
An additional coverage in business insurance form, coverint loss of business income and/or extra expense that results when access to the insured's premises is prohibited by civil authority because fo damage by a covered cause of loss to property other than the insured's
Discretionary Payroll Expense endorsement 7-20
An endorsement that extends business income forms to cover payroll expenses for specified job classifications or employees regardless of whether such expenses are nessary to resume operations.
Coinsurance 6-6
An insurance-to-value provision in many property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced.
Extended Period of Indemnity 7-14
An optional coverage that lengthens the duration of the extended business income additional coverage for up to 2 years.
Fixture 2-1
Any personal property affixed to real property in such a way as to become part of the real property
Policy Condition 1-5
Any provision that qualifies an otherwise enforceable promise made in the policy
Common Elements 5-4
Areas of a condominium that are jointly owned by all unit owners, including the land on which the building is located
Contract Carriers 8-10
Carriers that furnish transportation services to shippers with whom they have contracts.
Warehouse-to-Warehoue Coverage 8-20
Clause in open cargo policies that covers the insured cargo during the ordinary course of trainsit (including land transit) from the time cargo leaves the point of shipment until it is delivered to its final destination.
Sue and Labor Clause 8-19
Clause that covers the cost of reasonable measures that the insured is required to take to protect property from damage at the time of loss
Replacement Cost 1-7
Cost to repair or replace property using new materials of like kind and quality with no deduction for depreciation
Actual Cash Value (ACV) 1-6
Cost to replace property with new property of like kind and quality less depreciation
Extended Business Income (EBI) additional coverage 7-13
Coverage for business income losses that continue after the period of restoration ends. Coverage begins when the damaged property has been restored and ends when the insured's business returns to normal, subject to a maximum of 30 days.
Interruption of Computer Operations Additional Coverage 7-15
Coverage for loss of business income or extra expense due to a suspension of operations resulting from an interruption of computer operations caused by destruction or corruption of electonic data as a result of a covered cause of loss.
Replacement Cost Optional Coverage 2-7
Coverage for losses to most types of property on a replacement cost basis (with no deduction for depreciation or obsolescence) instead of an actual cash value basis
Inflation Guard Optional Coverage 2-6
Coverage for the effects of inflation that automatically increases the limit of insurance by the percentage of annual increase shown in the declarations
Business Income Premium Adjustment endorsement 7-22
Endorsement that bases the final policy premium earned by the insurer on the actual exposure as reported to the insured at 12-month intervals.
Spoilage Coverage Endorsement 4-9
Endorsement that covers damage to perishable stock due to power outages; on-premises breakdown; or contamination of the insured's refrigeration, cooling, or humidity control equipment
Ordinance or Law - Increased Period of Restoration endorsement 7-25
Endorsement that covers loss of business income during the additional time required to comply with building ordinances or laws.
Utility Services - Time Element endorsement 7-24
Endorsement that covers loss of business income or extra expense a the insured premises caused by interruption of utility services (water, communications, or power) to the insured premises.
Peak Season Limit of Insurance Endorsement 4-5
Endorsement that covers the fluctuating values of business in personal property by providing differing amounts of insurance for certain time periods during the policy period
Ordinance or Law Coverage Endorsement 4-7
Endorsement that covers three types of losses resulting from the enforcement of building ordinances or laws: 1) the value of the undamaged portion of a building that must be demolished 2) the cost to demolish the building's undamaged portion and remove its debris 3) the increase cost to rebuild the property
Power, Heat, and Refrigeration Deduction endorsement 7-21
Endorsement that eliminates power, heat, and refrigeration expenses from coverage and from the coinsurance calculation, allowing the insured to satisfy the coinsurance requirement with a lower limit of insurance.
Ordinary Payroll Limitation or Exclusion endorsement 7-19
Endorsement that limits coverage for ordinary payroll expenses to a limited number or days or excludes such expenses altogether, allowing the insured to satisfy coinsurance requirement with a lower amount of insurance
Business Income Changes - Educational Institutions endorsement 7-23
Endorsement that modifies business income coverage forms to make them more appropriate for covering the business income loss exposures for schools.
Continuing Expenses 7-5
Expenses that continue to be incurred during a business interruption
Noncontinuing Expenses 7-6
Expenses that will not continue during a business interruption
Extra Expenses 7-7
Expenses, in addition to ordinary expenses, that an organization incurrs to mitigate the effects of a business interruption
Trade Fixtures 2-2
Fixtures and equipment that may be attached to a building during a tenant's occupancy, with the intention that they be removed when the tenant leaves
Causes of Loss - Basic Form 3-1
Form that covers Fire, Lightning, Explosion, Windstorm, Hail, Smoke, Aircraft, Vehicles, Riot, Civil Commotion, Vandalism, Sprinkler Leakage, Sinkhole Collapse, and Volcanic Action
Causes of Loss - Broad Form 3-2
Form that covers basic form perils, plus Falling Objects; Weight of Snow, Ice, or sleet; Water Damage; and (as additional coverage) Collapse caused by certain perils
Assured 8-17
In ocean marine policies, the party named as the insured
Emergency Program 6-2
Initial phase of a community's participation in the National Flood Insurance Program in which property owners in flood areas can purchase limited amounts of insurance at subsidized rates.
Specific Insurance 4-3
Insurance that covers each building for a specific limit of insurance and personal property at each building for a specific limit of insurance
Blanket Insurance 4-4
Insurance that covers either of the following with one limit of insurance: 1) one type of property in one or more separately rated buildings, or 2) two or more types of property in one or more separately rated buildings"
Business Income Insurance 7-1
Insurance that covers the reduction in an organization's income when operations are interrupted by damage to property caused by a covered peril
Increased Cost of Compliance (ICC) 6-7
National Flood Insurance coverage that pays for compliance costs related to floodplain management for qualifying structures
Net Loss 7-4
Net Income that results when expenses exceed revenues
Profit 7-3
Net Income that results when revenue exceeds expenses
Monthly Limit of Indemnity 7-17
Option that deletes the coinsurance clause while limiting amount recoverable during any month of business interruption to a stipulated fraction (1/6, 1/4, or 1/3) of the insurance amount
Maximum Period of Indemnity 7-16
Option that deletes the coinsurance clause while limiting loss payment to the lesser of 1) the amount of loss sustained during the 120 days following the beginning of the period of restoration or 2) the policy limit.
Agreed Value Optional Coverage 2-5
Optional coverage that suspends the Coinsurance condition if the insured carries the amount of insurance agreed to by the insurer and the insured
Open Cargo Policy 8-16
Policy that covers all goods shipped or received by the insured during the policy's term; comparable to an inland marine annual trip transit policy, but without a policy expiration date
Annual Transit Policy 8-15
Policy that covers all shipments made or received by the insured throughout a one-year policy period
Difference in Conditions (DIC) policy, or (DIC) Insurance 6-8
Policy that covers on an "all-risks" basis to fill gaps in the insured's commercial property coverage, especially gaps in flood and earthquake coverage
Commercial Package Policy (CPP) 1-1
Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts
Regular Program 6-3
Second phase of the National Flood Insurance Program in which the community agrees to adopt flood-control and land-use restrictions and in which property owners purchase higher amounts of flood insurance than under the emergency program
Nationwide Marine Definition 8-1
Spefifies the types of property athat may be insured on inland marine and ocean marine insurance forms
Business Income 7-26
Sum of 1) Net Profit or loss that would have been earned if the suspension had not occurred and 2) Normal operating expenses, including payroll, that continue during the suspension
Nonfiled Classes (uncontrolled classes) 8-2
The classes of inland marine business for which neither foms nor rates must be filed with the state insurance department
Filed Classes (controlled classes) 8-3
The classes of inland marine business for which policy forms and/or rates must be filed with the state insurance department
Net Income 7-2
The difference between revenue and expenses
Attachment Point 6-11
The dollar amount above which the reinsurer responds to losses
Ordinary Payroll 7-18
The entire payroll expense (including employee benefits, FICA payments, union dues paid by the employer, and workers comp premiums) for all employees of the insured except officers, executives, department managers, and employees under contract
Condominium Association 5-3
The entity composed of the unit owners in a condominium to manage the condominium and to own the common elements
Period of Restoration 7-11
The period during which business income loss is covered under BIC forms. It begins 72 hours after the physical loss occurs, and ends when the property is (or should have been) restored to use with reasonable speed. (With regard to extra expense coverage, it begins immediately after the physical loss occurs).
Shipper 8-7
The person or organization shipping goods, often the seller of the goods
Consignee 8-8
The person or organization that receives property being transported by a carrier
Condominium Unit 5-2
The portion of a condominium that is owned solely by a unit owner
Dependent Property Exposure 7-8
The possibility of incurring business income loss because of physical loss occurring on the premises of an organization that the insured depends on for materials, products, or sales
Coinsurance Basis 7-9
The sum of the insured's estimated net income and operatying expenses for 12 months following policy inception, minus only those expenses listed in the form
Commercial Bailment 2-4
The temporary possession by one party (the bailee) of personal property of another party (the bailor) for a specific purpose beneficial to both parties
General Property Form 6-4
The version of the National Flood Insurance Program (NFIP) Standard Flood Insurance Policy that is used for insuring commercial buildings and contents
Layered Property Coverage 6-10
Two or more property policies arranged in levels of coverage; the policies in the second or higher tiers provide coverage only when the loss exceeds the coverage afforded by the lower-level policies.
