Quiz 8 - Commercial Property Insurance

In the Commercial Property policy the additional coverage, Fire Department Service charge is covered up to $_____.

$1,000

The Commercial Property Insurance policy requires a _____ day notice for non-payment of premium.

10

The Commercial Property Insurance policy requires a _____ days' notice for non-payment of premium.

10 days'

Building coverage includes materials, equipment, and supplies within ______ feet of the premises.

100 feet

Building coverage includes materials, equipment, and supplies within _____ feet of the premises.

200 feet

In the Commercial Property policy "Debris Removal" is covered up to _____% of the amount paid for loss to covered property.

25%

In the Farm Policy, Coverage F - unscheduled farm personal property, covers farm personal property on a _________ basis.

Blanket

In the aftermath of September 11, 2001 the Federal Reserve Board created TRIA as the _________ insurers to underwrite terrorism was uncertain.

Capacity

The Subrogation condition _________ be waived. a) Can b) Cannot

a) Can

In the Farm Policy Coverage E covers? a) Scheduled Farm Personal Property b) Household Private Property c) Dwellings d) Crops

a) Scheduled Farm Personal Property

The Basic Form Cause of Loss perils include? a) Wind and Hail b) Flooding c) Fire d) Loss by Ordinance or Law

a) Wind and Hail c) Fire

The Broad Form Cause of Loss EXCLUDES Collapse if caused by or to: a) Hidden Decay b) Weight of people, property, or rain that collects on a roof c) Loss to outdoor and exterior property d) Insect or Vermin

c) Loss to outdoor and exterior property

The Basic Form Cause of Loss perils include: a) Fire b) Smoke c) Riot or Civil Commotion d) All of the above e) None of the above

d) All of the above

TRUE/FALSE: The Special Form Cause of Loss form insures on a "stated perils" basis.

False

The Commercial Builders Risk Coverage Form terminates? (select all that apply) a) 60 days after the building is occupied or put to its intended use b) When the property is sold, abandoned, or ownership is transferred c) 90 days after construction is completed d) At 12:01AM on the insured's next birthday

a) 60 days after the building is occupied or put to its intended use b) When the property is sold, abandoned, or ownership is transferred c) 90 days after construction is completed

Which of the following apply to the Business Income coverage form? a) Applies to the period of restoration b) Period of restoration starts 24 hours after direct physical damage occurs c) Both statements are correct d) Neither statement is correct

a) Applies to the period of restoration

Basic, Broad, and Special Forms Causes of Loss EXCLUDE which of the following: (select all that apply) a) Building Ordinance or Law b) Damage from Fire, Lightning, or Explosion c) Damage to Wiring or Devices caused by Artificially Generated Electrical d) Fungus, Wet Rot, Dry Rot, and Bacteria

a) Building Ordinance or Law c) Damage to Wiring or Devices caused by Artificially Generated Electrical d) Fungus, Wet Rot, Dry Rot, and Bacteria

In the Commercial Property policy personal property of others is covered: a) Only at the insured location b) Anywhere in the world c) Both answers are correct d) Neither is correct

a) Only at the insured location

The _________ Form causes of loss include the following specified perils: Fire and removal, Lightning, _________, Windstorm or Hail, Smoke, Aircraft and Vehicles, Riot or _________ Commotion, Vandalism, _________ Leakage, _________ Collapse, and _________ Action. a) Sprinkler b) Basic c) Volcanic d) Explosion e) Sinkhole e) Civil

b) Basic d) Explosion e) Civil a) Sprinkler e) Sinkhole c) Volcanic

The farm exposure covers? a) Geo-political exposure b) Both Individual and Business exposures

b) Both Individual and Business exposures

In the Farm Policy the Livestock Coverage form covers? a) Livestock b) Coverage is on a monoline basis c) Both statements are correct d) Neither is correct

c) Both statements are correct

TRUE/FALSE: The three Cause of Loss Forms are: (1) Basic, (2) Broad, or (3) General.

False (1) Basic, (2) Broad, or (3) Special.

TRUE/FALSE: The Broad Form Causes of Loss includes coverage for water damage from accident discharge or leakage of water or steam.

True

In the Commercial Property policy's Additional Coverage Extensions there is $_____ coverage for property in transit. a) 1,000 b) 2,500 c) 5,000 c) 10,000

a) $1,000

In the Commercial Property policy's Additional Coverage Extensions there is an annual limit of $_____ coverage for Fungus, Wet Rot, Dry Rot, and Bacteria. a) 15,000 b) 20,000 c) 50,000 d) 100,000

a) $15,000

Non-Payment of Premium - _____ days notice. Cancellation within the first 90 days a policy is in force - _____ days notice. Policy Renewal or policy non-renewal - _____ days notice. Policy Non-Renewal of a commercial residential property policy - _____ days notice. a) 10 b) 20 c) 45 d) 120

a) 10 b) 20 c) 45 d) 120

Legal Liability Coverage Form indemnifies the insured for their legal liability for: a) Property damage to an other's property b) Property damage to the insured's property c) Both statements are correct d) Neither is correct

a) Property damage to an other's property

Building coverage in the Commercial Property Insurance policy includes: a) Refrigeration b) Crops c) Cooking d) Outdoor Radio and TV Antennas

a) Refrigeration c) Cooking

The Special Form Cause of Loss form EXCLUDES? (select all that apply) a) Rust, decay, and deterioration b) Dishonesty of insured or employees c) Intentional or intended damage or injury by the insured d) Loss to property in the open from rain, snow, ice, or sleet

a) Rust, decay, and deterioration b) Dishonesty of insured or employees c) Intentional or intended damage or injury by the insured d) Loss to property in the open from rain, snow, ice, or sleet

In the aftermath of _________ the Federal Reserve Board created _________. This government created _________ terror related compensation was a _________ while the insurance industry came to terms with policy language and _________ of terror related events. a) September 11, 2001 b) Temporary c) Pricing d) TRIA e) Stop gap

a) September 11, 2001 d) TRIA b) Temporary e) Stop gap c) Pricing

In the Commercial Property policy form "Theft of Furs and Jewelry" is limited to $_____. a) 1,000 b) 2,500 c) 5,000 d) 10,000

b) $2,500

Subrogation _________ waived if; (a) written waiver is exercised _________ to loss; OR (b) if given after a loss if the waiver is given to another _________, tenant of the insured, related business of the insured. a) Prior b) Can be c) Cannot be d) Insured

b) Can be a) Prior d) Insured

Building coverage in the Commercial Property Insurance policy includes: a) Outdoor Radio and TV Antennas b) Cooking c) Refrigeration d) Crops

b) Cooking c) Refrigeration

In the Farm Policy, silos, barns, and fences are covered by coverage? a) Coverage A Dwelling b) Coverage G Other Farm Structures c) Coverage C Household Private Property d) Coverage D Loss of Use

b) Coverage G Other Farm Structures

The Business Income coverage option "Agreed Value": a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13) b) Eliminates coinsurance by agreeing to stated value of not income/loss and operating expense c) Up to 365 days of Additional Coverage beyond the 30-day extended period d) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income)

b) Eliminates coinsurance by agreeing to stated value of not income/ loss and operating expense

The Broad Form Causes of Loss perils include? a) Nuclear b) Falling Objects c) Collapse d) Inherent Vice

b) Falling Objects c) Collapse

The Cause of Loss Forms include which if any of the following: I. Basic II. Broad III. General a) II Broad is the only correct option b) I Basic and II Broad are the only correct options c) III General is the only correct option d) I Basic, II Broad, and III General are all correct options

b) I Basic and II Broad are only correct options

In the Farm Policy the Livestock Coverage form covers? a) Mobile Equipment only b) Livestock only c) Both are correct d) Neither is correct

b) Livestock only

Which Business Income Option Coverage replaces the Coinsurance condition with the condition that limits the period of indemnity to 120 days? a) Monthly Limit of Indemnity b) Maximum Period of Indemnity c) Agreed Value d) Extended Period of Indemnity

b) Maximum Period of Indemnity

In the Business Income policy the period of restoration begins how many hours after the date of direct damage? a) 24 b) 48 c) 72 d) 96

c) 72

The Commercial Property Coverage Form applies to which if any of the following? a) Condominium Unit-Owners b) Condominium Associations c) Both statements are correct d) Neither is correct

c) Both statements are correct

Which, if any, of the below captioned statements are correct? I. Subrogation can be waived if a written waiver is exercised prior to loss. II. Subrogation can be waived after a loss if given to another insured, tenant of the insured, related business of the insured. a) Statement I only b) Statement II only c) Both statements are correct d) Neither is correct

c) Both statements are correct

The Business Income coverage option "Maximum Period of Indemnity": a) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13) b) Up to 690 days of Additional Coverage beyond the 30-day extended period c) Eliminates coinsurance but limits the coverage to 120 days (applies to extra expense and business income) d) Enforces coinsurance by agreeing to stated value of net income/loss and operating expense

c) Eliminates coinsurance but limits the coverage to 120 days (applies to extra expense and business income)

The Business Income coverage option "Extended Period of Indemnity": a) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income) b) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13) c) Extends coverage up to 730 days of Additional Coverage beyond the 30-day extended period d) Eliminates coinsurance by agreeing to states value of net income/loss and operating expense

c) Extends coverage up to 730 days of Additional Coverage beyond the 30-day extended period

In the Extra Expenses Coverage Form the "Limits on Loss Payment" condition: a) Short-rates the insured's recovery over time and against the policy limit on a percentage basis over time c) There is no "Limits on Loss Payment" condition in the Extra Expense Form c) Prorates the insured's recovery over time and against the policy limit on a percentage basis over time d) Each of these are true

c) Prorates the insured's recovery over time and against the policy limit on a percentage basis over time

The Extra Expense Coverage Form: a) Reimburses the insured for net profit b) Reimburses the insured for ordinary expenses c) Reimburses the insured for extraordinary expenses incurred to maintain uninterrupted operations d) None of these are correct

c) Reimburses the insured for extraordinary expenses incurred to maintain uninterrupted operations

The Leasehold Interest Coverage Form covers the "remaining" financial loss associated with the destruction of the insured location which results in all BUT which of the following: a) Loss of the remaining value of improvements and betterments made by a tenant b) Loss of the remaining value of prepaid rents c) Total and entire cost of improvements and betterments made by a tenant d) Loss of the remaining value of a bonus paid to acquire a lease

c) Total and entire cost of improvements and betterments made by a tenant

In the Commercial Property policy form business personal property "off-premises" is covered up to what amount? a) $1,000 b) $2,500 c) $5,000 d) $10,000

d) $10,000

The Commercial Builders Risk Coverage Form insures buildings in the course of construction including? a) Foundations; fixtures and machinery b) Owned materials and supplies for construction c) Equipment to service the building d) All statements are correct

d) All statements are correct

The Special Form Cause of Loss form EXCLUDES: a) Wear and Tear b) Acts or decisions of a governmental body c) Temperature changes d) Each of these are correct

d) Each of these are correct

The Business Income coverage option "Monthly Limit of Indemnity": a) Up to 700 days of Additional Coverage beyond the 30-day extended period b) Eliminates coinsurance but limits the coverage to 100 days (applies to extra expense and business income) c) Enforces coinsurance by agreeing to stated value of net income/loss and operating expense d) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13)

d) Eliminates coinsurance but limits the recoverable amount during any 30 day period to a selected fraction (1/16, 1/14, 1/13)

The Broad Form Cause of Loss EXCLUDES Collapse if caused by or to: a) Hidden Decay b) Insect or Vermin c) Weight of people, property, or rain that collects on a roof d) Loss to outdoor and exterior property

d) Loss to outdoor and exterior property

EXCLUDED property includes all BUT which of the following: (select all that apply) a) Outdoor trees, shrubs, and plants b) Crops c) Wharves or Docks d) Materials, equipment, and supplies on the insured premises used to alter or repair the insured building

d) Materials, equipment, and supplies on the insured premises used to alter or repair the insured building

Which Business Income Option Coverage replaces the Coinsurance condition with the condition that limits the amount of recovery to a fraction fo the coverage limit each consecutive thirty days during the period of restoration? a) Agreed Value b) Extended Period of Indemnity c) Maximum Period of Indemnity d) Monthly Limit of Indemnity

d) Monthly Limit of Indemnity

In the Commercial Property policy the additional coverage, Increased Cost of Construction, covers increased building cost due to an enforced ordinance or law which affects repairs up to _____% of the limit of insurance or $_____ (whichever is less). a) 10% and $20,000 b) 30% and $40,000 c) 50% and $50,000 d) None of the above

d) None of the above

The Extra Expense Coverage Form has a _____ hour waiting period. a) 24 b) 48 c) 72 d) The Extra Expense Coverage Form does not have a waiting period

d) The Extra Expense Coverage Form does not have a waiting period