Exam 2
custodian
"care or custody," inside premises, not watchperson. EX. Store clerk
messengers
"care or custody," of insured property, outside premises
Commercial General Liability Crime Form
(CGL) policy issued to business organizations to protect them against liability claims for bodily injury (BI), and property damage (PD), arising out of premises, operations, products and completed operations, and advertising and personal liability (PL)
seaworthiness
(of a vessel) in a good enough condition to sail on the sea.
occurrence
1 act, the total of multiple acts, or a series of acts an employee commits during the policy period. the acts are not required to be related, but they may be. employee may commit them alone or in collusion with others.
filed classes
1. great similarity of individual risks within each class 2. large enough homogeneous classes for the law of large numbers to be applicable
role of judgment rating in ocean marine insurance:
1. underwriters develop their own ocean marine rates 2. not subject to rate-filing laws 3. considers past loss experience, product being shipped, type of packaging, trade route, and time of year
non-filed classes
1. unique or unusual individual risk features 2. unique or unusual insurance coverage requirements 3. few homogeneous risks, making the law of large numbers inapplicable
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the following statements about custodians or messengers is true? A. An employee taking the day's receipts to the bank is an example of a messenger, but not a custodian. B. A watchperson or janitor can be either a messenger or a custodian, but not both. C. A messenger has care and custody of property inside the premises. D. A custodian has care and custody of property outside the premises.
A. An employee taking the day's receipts to the bank is an example of a messenger, but not a custodian.
Which one of the following best describes a reason why insureds purchase the filed inland marine Accounts Receivable Coverage Form? A. An insured can use the inland marine form to obtain a higher coverage limit than the insurer is willing to include in a package policy. B. Many businesses would be unable to collect their accounts receivable if their records were destroyed, and commercial package policies exclude coverage for accounts receivable. C. The accounts receivable insurer keeps backup copies of all the insured's computer records, including records of accounts receivable, at a secure off-premises location. D. Irreplaceable records can be scheduled on the form with an agreed value for each item.
A. An insured can use the inland marine form to obtain a higher coverage limit than the insurer is willing to include in a package policy.
The Indirect Loss exclusion of the ISO Commercial Crime Coverage Form eliminates coverage for indirect losses, including expenses incurred in establishing either the existence of or the amount of loss, payment of damages for which the insured is legally liable, and A. Business income losses. B. Legal fees. C. Inventory shortages. D. Trading.
A. Business income losses.
In the ISO Commercial Crime Coverage Form, the insuring agreement that provides employee theft coverage covers money, securities, and other property. Which one of the following would be considered covered "other property" under this insuring agreement? A. Company supplies B. Computer programs C. Electronic data D. Company patents
A. Company supplies
Which one of these is an example of a loss that would be covered under the Commercial Crime Coverage Form? A. Compensatory damages arising directly from a loss covered by the policy B. Fees related to any legal action C. Expenses incurred in establishing the existence of loss under the policy D. Business income losses
A. Compensatory damages arising directly from a loss covered by the policy
James is in the process of forming his own brokerage company which will include several employees. James will be best protected by purchasing which one of the following to cover the crime loss exposures of his company? A. Financial Institution Bond. B. Commercial Crime Insurance. C. Surety Bond. D. Fidelity Bond.
A. Financial Institution Bond.
Which one of the following filed inland marine policies covers merchandise that is being held for sale and can be used to cover the dealer's interest and/or a lender's interest? A. Floor Plan Coverage Form B. Equipment Dealers Coverage Form C. Camera and Musical Instrument Dealers Coverage Form D. Financed Merchandise Coverage Form
A. Floor Plan Coverage Form
Rates for the traditionally nonfiled classes of inland marine insurance A. Have become standardized to an extent for policies that are widely written. B. Are typically unaffected by market conditions. C. Are published in the ISO Commercial Lines Manual (CLM). D. Are provided by state insurance regulators.
A. Have become standardized to an extent for policies that are widely written.
What ocean marine insurance policy or clause covers the damage to an insured's ship if the insured ship collides with an object in the harbor? A. Hull insurance policy B. Collision liability clause C. Protection and indemnity (P&I) insurance D. Open cargo policy
A. Hull insurance policy
What ocean marine insurance policy or clause, if any, covers damage to the insured vessel caused by serious misconduct by the members of the crew contrary to the owner's interest? A. Hull insurance policy B. No coverage provided by any policy or clause C. Protection and indemnity (P&I) clause D. Collision liability clause
A. Hull insurance policy
Inland marine insurance is insurance that covers A. Many different classes of property that typically involve an element of transportation. B. Businesses that own or operate watercraft, or import or export goods. C. Miscellaneous lines such as burglary, glass, and steam boilers. D. Companies that ship goods by commercial vessel on inland waterways.
A. Many different classes of property that typically involve an element of transportation.
In 1933, the National Association of Insurance Commissioners adopted a Nationwide Marine Definition to A. Restrict the underwriting powers of marine insurers to specified types of property. B. Differentiate between the coverages offered under ocean marine policies and inland marine policies. C. Serve as a glossary of nautical terminology for the general reference of marine underwriters. D. Standardize marine insurance policy forms and rating across all states.
A. Restrict the underwriting powers of marine insurers to specified types of property.
Which one of these would not be subject to a special limit of $5,000 per occurrence under the Inside the Premises-Robbery or Safe Burglary of Other Property coverage under the Commercial Crime Coverage Form? A. Securities B. Furs C. Semiprecious stones D. Precious metals
A. Securities
When freight is guaranteed, the party primarily exposed to the loss of freight is the A. Shipper. B. Insurer. C. Consignee. D. Carrier.
A. Shipper.
The most widely used financial institution bond is A. Standard Form No. 24. B. The Insurance Services Office Financial Institution Crime Policy for Banks and Saving Institutions. C. The fidelity bond. D. The commercial general liability fiduciary bond.
A. Standard Form No. 24.
Crime loss exposures of financial institutions are covered by financial institution bonds. These policies were developed by A. The Surety and Fidelity Association of America (SFAA). B. The Internal Revenue Service (IRS). C. The Federal Deposit Insurance Corporation (FDIC). D. The National Council on Compensation Insurance (NCCI).
A. The Surety and Fidelity Association of America (SFAA).
An employee of Argot Architects is taking expensive $20,000 drawings to a client's location 30 miles away. While on the way to the company vehicle, a stranger accosts the employee and takes the drawings. How would the limit of insurance apply to this loss under the Outside the Premises insuring agreement of the ISO Commercial Crime Coverage Form? A. There is a per occurrence limit of $5,000. B. There is a per occurrence limit of $20,000. C. There is no coverage as the insuring agreement covers only money and securities. D. There is coverage and no special limits apply.
A. There is a per occurrence limit of $5,000.
Which one of the following would be covered under the filed inland marine Valuable Papers and Records Coverage Form? A. Securities and other negotiable instruments while in transit through specified types of mail B. An architect's blueprints and plans C. The cost to reconstruct accounts receivable records D. Books of physicians, surgeons, and dentists
B. An architect's blueprints and plans
Which one of these sections of the Commercial Crime Coverage Form contains the limit of insurance? A. Insuring agreement B. Declarations C. Exclusions D. Conditions
B. Declarations
The filed classes of inland marine business are characterized by a A. Small number of potential insureds and reasonably homogenous loss exposures. B. Large number of potential insureds and reasonably homogenous loss exposures. C. Small number of potential insureds and reasonably diverse loss exposures. D. Large number of potential insureds and many diverse loss exposures.
B. Large number of potential insureds and reasonably homogenous loss exposures.
The basic types of ocean marine insurance include which one of the following? A. Ocean carrier insurance B. Protection and indemnity (P&I) insurance C. Seaworthiness insurance D. Fleet insurance
B. Protection and indemnity (P&I) insurance
What ocean marine insurance policy or clause covers an insured shipowner's liability for damage to cargo of others being transported by the insured on the ship? A. Collision liability clause B. Protection and indemnity (P&I) insurance C. Hull insurance policy D. Open cargo policy
B. Protection and indemnity (P&I) insurance
Package modification factors for the Commercial Package Policy (CPP) often A. Provide a method for the insured to transfer rights and duties under the policy. B. Provide a premium discount for the insured. C. Specify the endorsements that modify coverage parts in the policy. D. Specify that the policy can be changed only by a written endorsement.
B. Provide a premium discount for the insured.
Ocean marine hull insurance policies usually cover on a specified perils basis rather than an "all-risks" basis. One of the specified causes of loss is "barratry." Which one of the following best describes the meaning of the term "barratry"? A. Electrical breakdown, bursting of boilers, breakage of shafts, and latent defects B. Serious misconduct by the vessel's master or crew that is contrary to the owner's interest, such as a fraudulent or criminal act that causes damage to the vessel C. War, piracy, strikes, riots, and virtually any situation in which the vessel is taken by another party D. Accidental causes of loss peculiar to the sea and other bodies of water, including abnormally high winds and rough seas, strandings, groundings, and collisions with other vessels or objects
B. Serious misconduct by the vessel's master or crew that is contrary to the owner's interest, such as a fraudulent or criminal act that causes damage to the vessel
Which one of the following best describes the purpose served by transit insurance? A. It extends the coverage territory for shipments beyond the continental U.S., Alaska, and Canada, to include air or water shipments to or from overseas locations. B. Shippers use it because their property may be damaged in circumstances under which a carrier has no legal obligation to pay the shipper's loss. C. Carriers use this kind of policy to cover their liability for damage to property in their care, custody, or control and for which they are therefore liable. D. It provides transit coverage for items typically excluded under other property forms such as precious metals, furs, jewelry, and money and securities.
B. Shippers use it because their property may be damaged in circumstances under which a carrier has no legal obligation to pay the shipper's loss.
A filed jewelers block coverage form is designed to meet the needs of A. Jewelry wholesalers. B. Small retail jewelers. C. Jewelry manufacturers. D. Individuals with a large jewelry collection.
B. Small retail jewelers.
Which one of the following statements is correct with respect to motor truck cargo liability insurance? A. It provides direct property insurance for the benefit of the cargo owner. B. Some policies limit coverage to losses caused by specified perils. C. It provides coverage for cargo losses resulting from an "act of God", such as a hurricane. D. Any property accepted by the motor carrier for delivery is covered by the insurance.
B. Some policies limit coverage to losses caused by specified perils.
A clause included in ocean marine cargo insurance that covers the cost of reasonable measures that the insured is required to take to protect property from damage at the time of loss is referred to as the A. Salvage clause. B. Sue and labor clause. C. General average clause. D. Protection of property clause.
B. Sue and labor clause.
A carrier that is prevented by an accident from delivering the cargo aboard its ship may face an exposure called loss of freight, which is A. A penalty the carrier pays the shipper for nondelivery. B. The compensation the carrier receives for transporting cargo. C. The cost of disposing of undeliverable goods. D. The liability for loss or damage to the cargo entrusted to it.
B. The compensation the carrier receives for transporting cargo.
A small retail store, which carries a $20,000 limit for Robbery of Safe Burglary of Other Property under an ISO Commercial Crime Coverage Form, discovered its building window was damaged and the safe door was missing on Monday morning when an employee arrived at work. The storeowner immediately reported this incident to its insurance carrier. The theft consisted of precious and semiprecious gemstones that totaled $19,000 in value. How much should the retail store's insurer pay for this loss? A. The insurer should pay nothing because precious and semiprecious stones are excluded from Inside the Premises-Robbery or Safe Burglary of Other Property coverage. B. The insurer should pay $5,000, the special limit for this type of property under Inside the Premises-Robbery or Safe Burglary of Other Property. C. The insurer should pay $19,000, since it is falls within the limit of liability under Inside the Premises-Safe Burglary of Other Property. D. The insurer should pay $20,000, the limit of liability under Inside the Premises-Safe Burglary of Other Property.
B. The insurer should pay $5,000, the special limit for this type of property under Inside the Premises-Robbery or Safe Burglary of Other Property.
Coverage is provided for which one of the following losses under the Inside The Premises-Theft of Money and Securities insuring agreement of the ISO Commercial Crime Coverage Form? A. Money stolen by an officer of the company B. Unexplained disappearance of securities from the insured's office C. Business income losses that are the result of a covered theft D. Confidential financial information that is disclosed by the insured to a competitor
B. Unexplained disappearance of securities from the insured's office
Which one of these is not an element of the Commercial Crime Coverage Form's definition of occurrence? A. An individual act B. The combined total of all separate acts C. An act committed by only one person D. A series of acts
C. An act committed by only one person
The Recoveries condition of the ISO Commercial Crime Coverage Form specifies how A. The transfer of rights among insurable interests functions. B. Other insurance will affect the insured's recoveries under the coverage form. C. Any subrogation or salvage recoveries will be divided between the insurer and the insured. D. Salvage and property recoveries will be valued.
C. Any subrogation or salvage recoveries will be divided between the insurer and the insured.
Which one of the following inland marine forms is designed to cover photographic equipment and musical instruments used commercially by photographers, motion picture producers, professional musicians, and others? A. Theatrical Property Coverage Form B. Equipment Dealers Coverage Form C. Commercial Articles Coverage Form D. Camera and Musical Instrument Dealers Coverage Form
C. Commercial Articles Coverage Form
A general exclusion of the ISO Commercial Crime Coverage Form applies to acts of employees. However, an exception is made for A. Acts committed by the insured. B. Unauthorized use or disclosure of confidential nonpublic information. C. Coverage provided by the Employee Theft insuring agreement. D. Acts of employees learned of by you prior to the policy period.
C. Coverage provided by the Employee Theft insuring agreement.
Which one of the following is a policy that covers the crime loss exposures of financial institutions such as banks, savings and loan institutions, and insurance companies? A. Standard Form number 381 B. Commercial General Liability Crime Form C. Financial institution bond D. Fidelity bond
C. Financial institution bond
Which one of the following statements is correct with respect to ocean marine loss exposures? A. A vessel owner is financially responsible for damage to cargo regardless of whether the vessel owner is legally liable for the damage. B. Vessel owners cannot be held legally liable for bodily injury to crewmembers or passengers. C. For cargo owners, the possibility of loss to the cargo exists either on board a vessel or on land between the vessel and the cargo's point of origin or destination. D. Typically, the carrier requires that shipping charges be paid regardless of whether the carrier is responsible for any failure to deliver the cargo.
C. For cargo owners, the possibility of loss to the cargo exists either on board a vessel or on land between the vessel and the cargo's point of origin or destination.
17. Which one of the following statements is correct with respect to electronic data processing equipment floaters? A. They are required because such equipment is specifically excluded by the Building and Personal Property (BPP) Coverage Form and other commercial property forms. B. Coverage is limited to equipment, data, and media owned by the insured; the form does not cover similar property of others in the insured's care, custody, or control. C. Many cover special perils such as mechanical or electrical breakdown, and they may also insure covered property while it is in transit or at unlisted locations. D. The policy definition of "equipment" is usually limited to mainframe computers, servers, printers, disk drives and laptops.
C. Many cover special perils such as mechanical or electrical breakdown, and they may also insure covered property while it is in transit or at unlisted locations. also covers similar property of others in the insured's care, custody, or control.
For which one of the following must coverage be added by endorsement to the filed inland marine Physicians and Surgeons Equipment Coverage Form? A. The insured's office equipment B. The insured's professional equipment C. Personal effects of the insured or others while on premises D. Improvements and betterments that the insured has made to the building if the insured is a tenant
C. Personal effects of the insured or others while on premises
Which one of the following ocean marine insurance policies or clauses covers an insured shipowner's liability for injuries to the passengers on board a ship into which the insured ship collided? A. Collision liability clause B. Hull insurance policy C. Protection and indemnity (P&I) insurance D. Open cargo policy
C. Protection and indemnity (P&I) insurance
Which one of the following ocean marine policies or clauses covers an insured shipowner's liability for damage to a docking pier struck by the insured vessel? A. Collision liability clause B. Transit insurance C. Protection and indemnity (P&I) insurance D. Hull insurance policy
C. Protection and indemnity (P&I) insurance
Which one of the following describes property that can be covered under the filed inland marine Theatrical Property Coverage Form? A. Neon, fluorescent, automatic, or mechanical signs attached to the exterior of the theatre and scheduled on the policy with a limit of insurance shown for each sign B. The cost of reshooting or rerecording exposed motion picture film and magnetic tapes or videotapes, including soundtracks, if the film or tape is lost or damaged C. Stage scenery, costumes, and other similar personal property, including property of others in the insured's care, that insured has used or intends to use in a production stated in the declarations D. Photographic equipment and musical instruments used commercially by photographers, motion picture producers, professional musicians, and others
C. Stage scenery, costumes, and other similar personal property, including property of others in the insured's care, that insured has used or intends to use in a production stated in the declarations
Which one of the following best describes the property covered by the filed inland marine Equipment Dealers Coverage Form? A. The stock in trade of office equipment dealers, including furniture and business machines such as calculators and office supplies B. The stock in trade of dealers in "computer equipment" including medical equipment, robotics, and computerized gaming equipment C. The stock in trade of dealers that sell agricultural or construction equipment and customers' equipment in the insured's care, custody, or control D. The stock in trade of camera dealers or musical instrument dealers and similar property of others in the insured's care, custody, or control
C. The stock in trade of dealers that sell agricultural or construction equipment and customers' equipment in the insured's care, custody, or control
Which one of the following is a common example of a bailee's coverage form that covers loss to customers' goods only if the insured bailee is legally liable for the loss? A. Motor truck cargo liability policy B. Bailee's special risks coverage form C. Warehouse operator's legal liability policy D. Bailees customers' policy
C. Warehouse operator's legal liability policy
Lumber Company owns several large pieces of mobile equipment used in its lumbering operations. What type of inland marine coverage form would best be used to insure Lumber's equipment? A. Transit (transportation) B. Builders risk C. Motor truck cargo D. Contractors equipment
D. Contractors equipment
The WB Bank (WBB) uses several outside companies to help process a large number of credit card transactions on a daily basis. WBB carries an ISO Commercial Crime Form with a Computer and Funds Transfer Fraud insuring agreement selected. After a recent audit, WBB becomes aware that a significant number of credit card transactions have somehow disappeared from the computer system. Which one of the following is most likely true regarding coverage under the Computer and Funds Transfer Fraud insuring agreement? A. Coverage is likely to apply since it is computer transactions causing the loss. B. Coverage would not apply since outside companies were involved. C. Coverage would not apply if the loss was caused by a nonemployee using his or her personal computer. D. Coverage is excluded for credit or debit card transactions.
D. Coverage is excluded for credit or debit card transactions
Which one of the following statements is true about judgment rating in ocean marine insurance? A. Ocean marine insurers generally use judgment rates because the filed rates are usually inadequate. B. Ocean marine insurers generally only use judgment rates when they believe the filed rates to be either inadequate or not reflective of the particular insured's loss exposures. C. Ocean marine insurers lack the underwriting expertise to properly classify and rate ocean marine loss exposures. D. Each insurer writing ocean marine insurance develops its own ocean marine rates, guided by the judgment of its underwriters.
D. Each insurer writing ocean marine insurance develops its own ocean marine rates, guided by the judgment of its underwriters.
Which one of the following is a policy that covers the crime loss exposures of financial institutions such as banks, savings and loan institutions, and insurance companies? A. Commercial General Liability Crime Form B. Standard Form number 381 C. Fidelity bond D. Financial institution bond
D. Financial institution bond
The exclusion for loss due to Acts Committed by You, Your Partners or Your Members in the ISO Commercial Crime Coverage Form would be considered a(n) A. Exclusion that only applies to Inside the Premises and Outside the premises insuring agreements. B. Exclusion applicable to indirect losses as the result of crime losses. C. Exclusion that only applies to the Employee Theft insuring agreement. D. General exclusion applying to all crime insuring agreements.
D. General exclusion applying to all crime insuring agreements
Which one of the following best describes nonfiled inland marine builders risk insurance? A. It covers liability that arises from the property owner's use of subcontractors. B. It covers a contractor's interest in building supplies or fixtures that the contractor has been hired to install but does not cover the building itself. C. It can be added to an ISO Builders Risk Coverage Form to add coverage for incidental expenses that might result from a physical loss to a building project, such as additional interest, advertising expenses, or real estate taxes. D. It covers the structure under construction, temporary structures at the building site, and building materials that have not yet become part of the building.
D. It covers the structure under construction, temporary structures at the building site, and building materials that have not yet become part of the building.
Which one of the following statements about the collision liability clause of an ocean marine hull insurance policy is true? A. It excludes liability for collision damage to other ships and their cargoes. B. It covers the insured's liability for causes other than collision. C. It covers liability for bodily injury to crew and passengers. D. It is a separate amount of insurance ordinarily equal to the amount of insurance on the hull.
D. It is a separate amount of insurance ordinarily equal to the amount of insurance on the hull.
Which one of the following best describes the bailees' customers policy? A. It is purchased by bailees to cover their legal liability for damage to the property of others while in the bailee's possession. B. It is purchased by property owners to cover damage to their property while in the care, custody, or control of a bailee and for which the bailee is not liable. C. It is purchased by property owners to cover their liability for damage to a bailee's premises caused by the property they have entrusted to the bailee. D. It is purchased by bailees to cover damage to customers' goods while in the possession of the bailee, regardless of whether the bailee is legally liable for the damage.
D. It is purchased by bailees to cover damage to customers' goods while in the possession of the bailee, regardless of whether the bailee is legally liable for the damage.
Which one of the following ocean marine insurance policies or clauses covers the insured shipowner's liability for injuries to crew members of the insured ship in the event it collides with another vessel? A. Hull insurance policy B. Open cargo policy C. Collision liability clause D. Protection and indemnity (P&I) policy
D. Protection and indemnity (P&I) policy
Which one of the following is a type of covered property under employee theft coverage? A. Intangible property B. Computer programs C. Electronic data D. Securities
D. Securities
Which one of the following can be added to a builders risk policy to cover various incidental expenses that might result from a physical loss to a building project, such as additional interest, advertising expenses, or real estate taxes? A. Contingent loss coverage B. Incidental expense coverage C. Extra expense coverage D. Soft costs coverage
D. Soft costs coverage
Which one of the following best explains why, in the 1900s, marine insurers were willing to provide broad perils or "all-risks" coverage on the types of property that fire insurers avoided covering? A. As a relatively new type of insurance company, marine insurers were looking for opportunities to grow and increase their market share. B. Marine insurers wanted to encroach on what was traditionally the territory of fire insurers and saw this as a good strategy for doing so. C. While fire insures were restricted to providing insurance only against the peril fire, marine insurers were not subject to regulatory restriction of the perils they could cover. D. They were accustomed to covering ocean cargoes of all types against many different causes of loss, including theft, while the property was either at sea or ashore.
D. They were accustomed to covering ocean cargoes of all types against many different causes of loss, including theft, while the property was either at sea or ashore.
sue and labor clause
a clause in marine insurance contracts by which the insured agrees to take steps necessary to safeguard the covered property from loss or to minimize losses that occur and the insurer agrees to pay for the reasonable costs of such steps
collision liability clause
an ocean marine hull policy clause adding legal liability coverage for damage done to another ship or its cargo resulting from a collision with, and caused by the insured vessel
loss exposure
any possibility of financial loss due to loss of use, damage, or financial claim
surety
assures the obligee, that the principal can perform the task, provides line of credit in case the principal fails to fulfill the obligation
fleet insurance
bulk buying your insurance from a single supplier - in turn can be awarded a discount. covers both large and small fleet of commercial vehicles
extra expense coverage
commercial property insurance that pays for additional costs in excess of normal operating expenses that an organization incurs to continue operations while its suffering a loss
surety bond
contract among at least 3 parties. a promise by surety to pay obligee a certain amount if principal fails
fiduciary bond.
cover losses from theft and fraud. these bonds are a form of insurance that covers losses from an employee plan resulting from illegal acts such as theft and fraud
soft costs coverage
coverage for loss incurred as a result of the delay in construction. should include all construction overhead costs
hull insurance policy
covers ship damage expenses. policy insures against perils: - destruction of hull (vessel) - damage to machinery - disbursement losses (paying out money) - ship-breaking losses - fittings and freight - losses/damages caused by your vessel to other vessels or injuries to workers
physicians and surgeons equipment coverage form
covers your medical and dental equipment, materials, supplies and books usual to the medical or dental profession, your office equipment, including furniture and fixtures while at your premises, your interest in improvements and betterments meaning fixtures, alterations, installations, or additions to the premises ONLY if you do not own the building where your office is located
fidelity bond
form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. usually insures a business for losses caused by the dishonest acts of its employees
Protection and indemnity (P&I) insurance
form of mutual maritime insurance. coverage includes: - a carrier's 3rd party risks for damage caused to cargo during carriage - war risks - risks of environmental damage such as oil spills and pollution
Declarations
front page(s) of a policy that specified the named insured, address, policy period, location of premises, policy limits, and other key information that varies from insured to insured. also known as the information page
salvage clause
gives insurance company the ability to accept the abandoned property
general average clause
in oncean marine insurance obligates the insurers of various interests to share the cost of losses incurred voluntarily to save the voyage from complete destruction. such sacrifices must be made voluntarily, must be necessary, must be successful.
transit insurance
inland marine coverage on the insured's property while in transit over land from one location to another. covers insured's business goods or personal belongings, while being transported by land. DIFFERENT FROM MARINE CARGO INSURANCE
jewelers block coverage
inland marine insurance designed to provide coverage for loss or damage to jewelry that is the STOCK of jewelry retailers, wholesalers, manufacturers, and pawn brokers
floor plan coverage
insurance that covers financed merchandise, goods meant for sale that are in the possession of a retailer and have been accepted as collateral for a loan. if the goods are damaged or destroyed, the lender is covered
homogeneous
of the same kind, alike
Conditions
part of insurance policy that relates cancellation, changes in coverage, audits, inspections, premiums, and assignment of the policy
obligee
party is recipient of an obligation. they require the bond. they are typically govt agencies that regulate industries and reduce likelihood of financial loss. Can also be state and local govt., business entity, individual, or general public.
theatrical property coverage form
pays for direct loss or damage to your scenery, costumes, and theatrical properties, and similar property of others in your care, custody, or control, or on which you have made partial payment
commercial articles coverage form
pays for direct physical loss or damage to cameras, projection machines, films, and related equipment and accessories, musical instruments and related equipment and accessories, and similar property of others that is in your care, custody, or control
camera and musical instrument dealers coverage
pays for direct physical loss or damage to your cameras, musical instruments, and related equipment and accessories STOCK IN TRADE
valuable papers and records coverage
pays the cost to reconstruct damaged or destroyed valuable papers and records. usually is defined to include almost all forms of printed documents or records EXCEPT: - money or securities - data processing programs - media
bailee
person or organizations that has temporary possession of someone else's personal property (pet groomer, dry cleaner, valet, repairers)
Marine cargo insurance
policy that covers the cost of damage to goods that are imported/exported to and from the nation as well within the national boundaries through any means of transport
contingent loss coverage
policy that is contingent on the absence of other insurance
Insuring agreement
portion of insurance policy in which the insurer promises to make a payment to, or on behalf of the insured. usually contained in a coverage form from which a policy is constructed
principal
primary party of the surety bond, performs the contractual obligation. this is the person purchasing the bond. they must cover any losses as a result of a claim
motor truck cargo liability insurance
provides insurance on freight or commodity hauled by a hirable trucker. covers your liability for cargo that is lost or damaged due to a fire, collision, or striking of a load
Exclusions
provision in an insurance policy that eliminates coverage for certain acts, property, types of damage, or location
commercial crime insurance
typically provides several different types of crime coverage, such as employee dishonesty, forgery or alteration coverage, computer fraud coverage, funds transfer coverage, kidnap, ransom, extortion coverage, money and securities coverage, and money orders and counterfeit
equipment dealers coverage form
used to cover dealer of mobile equipment and construction equipment. it covers the dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. also covers property of others in the dealer's care, custody, or control. Doesn't cover: - automobiles, trucks, motorcycles, aircrafts, watercrafts - money, securities, bills, accounts - property in the course of manufacture
financial institution bond
used to insure banks and other financial institutions against employee dishonesty, burglary, robbery, forgery, and similar crime exposures
