Unit 12

Business floaters: Installation Floater:

-Covers property in transit -Awaiting installation -Coverage ends when installed

Inland Marine insurance: -Nationwide definition-

-Imports -Exports -personal property floaters

There are six categories of eligible marine risks:

-Imports -Exports -personal floaters -domestic shipments- cover property being transported -Instrumentalities of transportation or communication- cover property related to transportation/communication like bridges, pipelines, tv and towers -Commercial property floater risks- includes bailee's customer forms, equipment forms, and business floaters

the property that is insured under inland marine coverage is typically one of the following:

-actually in transit -Held by bailee -At a fixed location that is an instrument of transportation -A movable type of goods that is often at different locations

Domestic shipments: Trip transit

-covers a single shipment- one time, one way

Bailee Liability

-covers damage to customers property -pays customer

If the insurance company requests a proof of loss on a commercial inland marine claim, the insured must submit it within ____ days

60 days

Which of the following is NOT excluded under business auto liability coverage? A) liability assumed under a contract that is considered an insured contract B) Liability for property in the insured's custody C) Damage to the insured's own auto D) Injury to employees covered by workers' compensation laws

A) liability assumed under a contract that is considered an insured contract is NOT excluded under business auto liability coverage

Who of the following would NOT be considered an insured under business auto liability coverage? A) the owner of a borrowed auto B) others while using a covered auto with permission C) the named insured D) Others who become liable for the conduct of an insured.

A) the owner of a borrowed auto

who may need 'Valuable papers and records coverage form?

Architects, engineering businesses, or movie production companies may need this coverage. this coverage: replacing damaged items, such as manuscripts, films, maps, drawings, deeds, and books that belong to the insured or are in the insured's care, custody, or control

Which of the following commercial auto coverage forms can be purchased by most businesses to provide very broad coverage for losses arising from owned and nonowned autos? A) motor carrier B) Business auto C) Business auto physical damage D) Truckers

B) Business auto can be purchased by most businesses to provide very broad coverage for losses arising from owned and nonowned autos

Which inland marine transportation form protects the truck carrier for liability arising out of the transportation of cargo? A) annual transit policy B) Motor truck cargo policy C) Trip transit policy D) Motor truck cargo- shipper's policy

B) Motor truck cargo policy protects the truck carrier for liability arising out of the transportation of cargo

What is the inland marine transpiration form the protects all of the insured's incoming or outgoing shipments during the year against loss while in transit. A) motor truck cargo policy B) Annual transit policy C) Motor truck cargo- shipper's policy D) Trip transit policy

B) annual transit policy protects the shipper or receiver of goods against loss to goods in transit. coverage is available on a named-peril basis, protecting against such losses as fire, windstorm, collision, and theft, or on an open-peril basis. The policy covers all of the insured's incoming or outgoing shipments during the year.

Which of the following commercial inland marine coverage forms CANNOT be included in the commercial package policy? A) Film B) physician's and surgeon's equipment C) Bailee's customer D) Accounts receivable

C) Bailee's customer

Which of the following perils is NOT included in the business auto coverage form's specified causes of loss coverage? A) flood B) earthquake C) Collision D) Theft

C) Collision

Which of the following businesses would NOT be covered under a garage coverage form? A) auto body shop B) used car dealer C) catering company D) semi-truck dealership

C) catering company would NOT be covered under a garage coverage form

Which of the following is NOT an example of a category of risk in commercial inland marine insurance? A) Domestic shipments B) commercial floater risks C) Personal inland marine insurance D) instrumentalities

C) personal inland marine insurance Is NOT an example of a category of risk in commercial inland marine insurance

Which of the following coverages is included in an unendorsed garage coverage form? A) Medical payments B)Uninsured motorists C) physical damage D) Underinsured motorist

C) physical damage

Which of the following coverage extensions is NOT provided by business auto physical damage coverage? A) towing and labor costs B) loss of use C) transportation expenses D) Electrical breakdown

D) Electrical breakdown is NOT provided by business auto physical damage coverage

Which of the following is NOT a category that represents eligible risks for commercial inland (home; USA) marine insurance? A) instrumentalities of transportation or communication B) Commercial floater risk C) Domestic shipments D) Exports

D) Exprots

Which of these losses would NOT be covered under the signs coverage form? A) the insured neon sign is damaged when vandals throw rocks at it B) the electric sign above the insured's business is destroyed In a thunderstorm C) a sign attached to a building is damaged when a tree falls during a thunderstorm D) During installation, several tubes in the insured's fluorescent sign are damaged

D) during installation, several tubes in the insured's fluorescent sign are damaged.

Sally left her fur coat at a dry cleaner to have it cleaned and returned to her. This is an example of bailment. In this example which of the following is the bailee? A) the insurance company B) Sally C) the fur coat D) the dry cleaner

D) the dry cleaner

Which portion of the garage coverage form covers liability for damage to property of others in the insured's care, custody, or control?

Garagekeepers

Which commercial auto endorsement extends personal auto coverage to immediate family members of the named insured?

Individual named insured extends personal auto coverage to immediate family members of the named insured

The domestic shipments category of the nationwide definition includes

a number of inland marine transportation forms that provide coverage for shipments traveling by truck, air, or mail.

inland marine insurance coverage usually do not require the property to be

at a specific location when a loss occurs

the one who owns the property (customer) is called the

bailor

Inland marine also covers instrumentalities of transportation and communication, including forms that cover such property as

bridges, tunnels, oil pipelines, loading docks, and radio and TV towers

The equipment dealers coverage form is used to cover

dealers of mobile equipment and construction equipment. Covers the dealer's stock in trade, consisting primarily of mobile agriculture equipment and construction equipment -Mobile equipment -Construction equipment -Property of others -Doesn't cover automobiles

An accounts receivable is a

debt owed a business by its customers because of goods and services that were provided.

Domestic shipments: Bill of lading (loading a ship)-

identifies carrier's responsibilities

Marine insurance provides coverage against

loss or damage to a ship. It also covers in-transit cargo losses or damages over waterways, air, or land

The bailee (computer repair shop) is the one who

receives the property;

The 'Valuable papers and records coverage form' reimburses the insured for

the cost of replacing damaged items, such as manuscripts, films, maps, drawings, deeds, and books that belong to the insured or are in the insured's care, custody, or control. -Cost to replace -requires receptacles

A bailee's customer policy covers

the customer for loss to customers' property, regardless of liability

The contractor's equipment floater covers

the heavy machinery, equipment, and tools a contractor needs to conduct business.

inland marine insurance coverage are often called floaters because

the insurance moves with the property as it moves

The jewelry's block coverage form does not cover property:

-exhibited in showcases or show windows away from the premises -While being worn by the insured, an employee, or a family member of either; or -in transit by mail (unless sent by registered mail)

The Jewelers block coverage form covers:

-insured stock in trade, which includes jewelry, precious and semiprecious stones, precious metals and alloys, and other stock used in the business; the property that is sold but not delivered; and -show window which covers theft of stock from a show window when the window is cut or smashed -money coverage covers theft of money form locked safes or vaults on the insured's premises

The insured's 'duties in the event of loss' are similar to what is found in other property forms. The insured must:

-notify the police if a law may have been broken -give the insurer prompt notice of the loss and describe the property involved -give insurer a description of how, when, and where the loss occurred as soon as possible -take reasonable steps to protect the property from further damage -make no statement that assumes any obligation or admits any liability without the insurer's consent - Permit the insurer to inspect the property and records proving loss -submit under oath to questioning if requested -send a signed, sworn statement of loss within 60 days after it is requested -promptly send the insurer any legal papers or notices concerning the loss; and -cooperate with the investigation or settlement of the claim

Business floaters: Electronic Data Processing:

-software -Hardware -Data -Includes extra expense coverage and lost income

Domestic shipments: Motor truck cargo

-trucker's form covers the insured's bailee responsibility -Owner's form covers insured's own goods in own trucks -combo form- covers bailee responsibility and own goods

which of the following losses would be paid under the business auto coverage form's comprehensive coverage? A) theft of a covered auto B) gradual corrosion of the grillwork on a covered auto due to continuous exposure to salt air C) overturn of a covered auto D) collision damage to a covered auto

A) theft of a covered auto would be paid under the business auto coverage form's comprehensive coverage

In the commercial articles coverage form, additional acquired property is automatically covered if it is a type of property already covered by the form for up to A) 45 days B) 90 days C) 30 days D) 60 days

C) 30 days

Which of the following is NOT covered in the jewelers block coverage form? A) Precious metals and alloys B) stock in trade C) Property sold but not delivered D) Property worn by the insured

D) Property worn by the insured 'jewelers block coverage form' covers: -the insured's stock in trade, which includes jewelry, precious and semiprecious stones, precious metals and alloys, and other stock used in business; -property that is sold but not delivered; and -also contains 'show window coverage' and 'money coverage'

The insured's accounting recordings are destroyed in a fire. Which of the following losses would NOT be covered under the insured's accounts receivables coverage form? A) Bill payments the insured cannot collect from customers because of damage to the records B) Interest on a short-term loan the insured obtains to stay in business while collections are impaired C) Fees charged by the collection agency the insured hired to collect payments D) A loss that required an audit of records to prove its existence

D) a loss that required an audit (inspection) of records to prove its existence

All of the following are examples of instrumentalities of communication EXCEPT A) cell phone towers B) bridges C) tunnels D) bailment

D) bailment (delivering goods to a bailee(custody or repair) )

Which of the following is covered in the equipment dealers coverage form? A) automobiles B) Furniture C) motorcycles D) Construction equipment

D) construction equipment

Inland Marine insurance: 'Commercial' property floater risks embrace

a number of subcategories of inland marine forms, including bailee's customer forms, equipment forms, and business floaters. -Domestic shipments -Instrumentalities of transportation or communication -Commercial property floater risks

Domestic shipments inland marine transportation forms cover shipments traveling by all of the following EXCEPT: A) car B) air C) mail D) train

a) car

The 'accounts receivable coverage form' reimburses the insured for

amounts that can't be collected from customers because of damage to the company's accounts receivable records. -loss caused by damage or destruction -Requires receptacles

Commercial Inland Marine Common Conditions: Losses are valued on

an actual cash value basis or the cost to restore or replace the property, whichever is less. -The property's value is determined at the time of the loss

An inland marine coverage that insures against loss to machinery, equipment, building materials, and supplies in transit to or being used with or during the course of installation, testing, building, renovating, or repair is also known as

an installation policy

The 'Commercial Articles Coverage Form' defines covered property as

cameras, projection machines, films, musical instruments and related equipment, and accessories that are in the insured's care, custody, or control. -newly acquired covered for 30 days up to $10,000

Domestic Shipments: Annual Transit

covers all shipments during the year

The bailee policy pays the

customer

Bailment is the

delivery of property by the owner to someone else to be held for a special purpose, and then to be returned to the owner. -ex: leaving your computer at the repair shop to have a virus removed.

Inland marine insurance covers

exposures that involve property and merchandise while in transit or "floating"

Instrumentalities of transportation or communication include

forms that cover property related to transportation or communication, such as bridges, pipelines, and television towers.

Commercial Inland Marine Common Conidtions: Other insurance condition states that

if the insured has other insurance that is written on the same basis as the commercial inland marine form, the commercial inland marine form pays on pro rata basis. -IF the other coverage is not written on the same basis, commercial inland marine coverage is excess over any other insurance that applies to the loss, regardless of whether the insured can collect under the insurance company.

Which of the following policies became known as a "floater" since the property to which coverage was originally extended was literally "floating"?

inland marine insurance

Domestic (homeland) shipments are covered through a variety of

inland marine transportation forms that cover property being 'transported'

The 'trip transit policy' is similar to the annual transit policy. However, it is used to

insured single shipments of goods for companies that have only 'occasional' shipments to insure.

Installation policy is an inland marine coverage that

insures against loss to machinery, equipment, building materials, and supplies in transit to, being used with, or during the course of installation, testing, building, renovating, or repair

Inland marine insurance indemnifies

loss to movable or specialized types of property, historically developing as an outgrowth of ocean marine insurance.

A loss is covered under a commercial inland marine form and another policy. Both policies are written on the same basis. The commercial inland marine form will pay

on a pro rata basis (in proportion)

inland marine insurance coverage are usually written

open peril (coverage for any reason, not excluded) instead of named peril (only perils listed)

The electronic data processing equipment floater provides

open-peril coverage for computer hardware, software, and data that is owned by the insured or the insured's care, custody, or control.

Commercial property insurance only covers

outdoor signs attached to the building and is subject to a $2,5000 per sign limit. -covers attached and detached signs -Damage during shipping or installation is not covered

The bailee's customer policy reimburses

the insured for damage to a customer's property that is in the insured's care, regardless of whether the insured is liable for the damage, as long as the damage resulted from a covered peril.

Inland marine policies became known as "floaters" since

the property to which coverage was extend was essentially "floating"

The 'annual transit policy' protects

the shipper or receiver of goods against loss to goods in transit.