Property & Casualty Terms

Standard Deductible for CCP

$500

Symbols designations

1-9,19 describe the types of autos covered under the Business Auto Coverage form

Trailers being towed

Business Auto form provides liability coverage but not automatic coverage for physical damage

4 Components of Commercial Package Policy (CPP)

Common Policy Declarations Page; Common Policy Conditions; Interline Endorsements; Coverage Parts

Endorsement Available for CPP

Endorsements include: Ordinance or Law Coverage, Peak Season Limit of Insurance, Value Reporting Form, Spoilage, Earthquake and Volcanic Eruption Endorsement and Vacancy Permit

loss

Reduction, decrease, or disappearance of value.

Coverage Extensions for Business Auto Coverage Form

Supplementary Payments and Out-of State Coverage

Government Crime Coverage Form

Written on either Loss-Sustained or Discovery Form for gov. entities; contains separate theft loss limit that applies to each employee or contain own loss limit for all theft due to one employee

Premises and Operations Exposure (of CGL)

applies to an insured business that conducts its operations both at it own premises and elsewhere ex. accountant in office and at clients home

Section III-Garagekeepers Coverage

is physical damage insurance for amounts the insured is legally obligated to pay for loss or damage to a customer's vehicle while in insured's care

Speculative Risk

lose or gain , like gambling

insurance

transfer of risk

Builders Risk Coverage Form

Covers building under constructions, foundations,attached fixtures/machinery, equipment used to service buildings, building materials and supplies on premises or within 100 feet that will be permanently located in or on covered building

Insured Contract

LEASE Lease of premises Easement An obligation to indemnify a municipality Sidetrack Agreement-bet RR & bus. it services Elevator Maintenance Agreements or that part of the contract pertaining to insured's business

SPECIAL Causes of Loss Form

Which Commercial Property Causes of Loss form has the broadest coverage? Provides insurance for losses caused by risks of direct physical loss except those perils that are specifically limited or excluded; this form provides Open Perils Coverage

Handling Risk

(STARR) Sharing (doing insurance between people you know, not a company) , Transfer (actual insurance, transf. risk to ins. comp. ) , Avoidance (avoid any potential claim, i.e. not buying a car so you dont crash), Reduction (take steps to reduce risk), Retention (retaining ALL the risk by self insurance, or some of the risk like a deductible where you "retain" first $500)

Three Forms of Business Income Coverage

1. Business Income and Extra Expense Coverage Form 2.Business Income Without Extra Expense Coverage Form 3. Extra Expense Coverage Form

Commercial General Liability Coverage 4 Legal Liability exposures

1.Premises and Operations Exposure 2. Products Exposure 3. Completed Operations exposure 4. Contingent Liability Exposure

# of Crime coverage optional insuring agreements

8- may choose one or several

Exposure

A unit of measurement used to determine rates charged for insurance coverage based on how risky they are.

Commercial Package Policy

Common Policy declarations and Common Policy Conditions form which apply to the entire policy regardless of types of coverage written

Contents of Common Policy Conditions

Contains the legal obligations & duties of the insured and insurer, including cancellations, changes, examination of books, inspections& surveys, premiums, and transfer of rights and duties

Interline Endorsements of Commercial Policy Package

Coordinate the coverage in multiple coverage parts of the policy to prevent redundancy

CPP (Commercial Package Policy) Coverage Extension if coinsurance is 80%in Declaration

Coverage Extension fr newly acquiredd or constructed property, personal effects and property of others; valuable papers and records, property off premises, outdoor property and Non-Owned detached trailers.

Building and Personal Property Coverage Form of CCP

Covers buildings, business personal property such as furniture, machinery and stock and personal property of others. Does not provid liability coverage

BASIC Causes Loss Form for Commercial Package Policy

Covers fire, lightning windstorm, hail, aircraft, riot, vehicles, explosion, smoke, vandalism, sprinkler leakage, sinkhole collapse and volcanic action. Limited coverage for fungus, wet rot dry rot bacteria. Limit of insurance is up to $15,000 for all losses occurring in 12 month period

Business Auto Coverage Form

Covers owned, leased, hired, rented or borrowed private passenger autos, trucks, trailers and semitrailers that are owned and used by the insured

BROAD causes of Loss Form

Form includes perils listed in BASIC causes of loss form, PLUS perils of falling objects, weight of ice and water damage caused by accidental discharge.

Section III-Physical Damage Coverage for Business Auto Coverage Form

Include comprehensive, specified causes of loss and collision coverages, towing, glass breakage and coverage extenssions including transportation expenses and loss of use expenses

Building & Personal Property Coverage Form Additional Coverages

Includes debris removal, preservation of property, fire dept service charge, pollutant clean up, increased cost of construction and electronic data

Extra Expense (definition)

Necessary expenses incurred by the insured during the period of restoration that would not have been incurred had the covered loss not occurred.

Agreement

Offer and Acceptance When an offer made by one party has been accepted by the other, with mutual understanding by both.

Two types of risk

Pure risk and speculative risk

Contents of Common Policy Declarations Page

Shows the who, what, when, where and how much of entire policy, each of the coverage parts included and a Declarations page for each coverage part

Legal Liability Coverage Form

Written for a commercial tenant who, under the terms of a lease, is responsible for damage to the building. It covers the insured's legal liability for loss or damage to real or personal property of others that is in the insured's care and is caused by a covered peril.

Common carrier

a business individual or organization that carries the general public or property owned by general public for a fee, from one place to another and may use either of the overage forms

Collision

a covered vehicle's impact with another vehicle or object or overturn

Theft

any act of stealing and includes robbery or buglary

Products Exposure of CGL

applies to bodily injury or property damage caused by any goods or products that are manufactured sold, handled, distributed or disposed by the insured and others conducting business under insured's name

Completed Operations Exposure of CGL

applies to occurrences that occur after insured's operations have been completed and result from improper or defective workmanship, installation, construction or repair

Contingent Liability Exposure of CGL

applies when liability of others caused the insured to be legally liable for the actions of or failures of other parties such as sub-contractors or independent contractors

General Conditions

apply in addition to the Common Policy Conditions and covers bankruptcy, concealment, misrepresentation, fraud, premium audit, policy period and include territory

Loss Conditions under Business Auto coverage

apply in addition to the Common Policy Conditions and include appraisal, duties in event of an accident, legal action against the insurer, loss payment and trasfer of rights of recover.

Transportation Expenses under Business Auto Coverage

begin 48 hours after total thefts and pays $20 per day, max. $600

Coverage C- Medical Expense Exclusions

bodily injury sustained during athletic event, covered under products completed operations hazard, covered by workers comp excluded under Coverage A or by any insured, emploee or tenant of the described location

Contract Carrier

business or individual that carries persons or property from one place to another for a fee and may refuse to carry persons or property; may only user Motor Carrier Coverage Form

peril

cause of loss like a fire or hail (in health insurance perils would be sickness or accidental injury, in life ins. it would be death) causes you to file claim, not every peril is covered, (in homeowners, flood is always excluded)

Products liability claimes

covered worldwide if the insured's products are made or sold in the coverage territoy and lawsuit is brought in coverage territory

Motor Carrier Coverage Form

covers business exposures of a firm transporting the goods of others for hire and transporting their own property

Truckers Coverage Form

covers business exposures of motor carriers for hire that transport the goods of others

Money Orders and Counterfeit Money

covers insured's acceptance in good faith of money orders and counterfeit money received in exchange for services or merchandise

Employee Theft or Dishonesty

covers loss of money, securities

Computer Fraud

covers losses when computer is used to transfer funds fraudulently; not computer insurance

Inside the Premises: Robbery or Safe Burglary - of other Property

covers most types of tangible property from loss resulting from actual or attempted robbery of custodian

Comprehensive Coverage

covers physical damage to a covered auto or its equipment on open perils bassis. Coverage is not provided for loss by collision.

Inside the Premises: Theft of Money and Securities

covers theft or deconstruction of money and securities inside insured premises including damage to premise, exterior, safe, cash register from actual or attempted entry

Motor Carrier Act of 1980

deregulated trucking industry;requires certain vehicles carry specific minimum limits of liability for protection of public depending upon merchandise being transported

Liability Exclusions for Business Auto Coverage Form

expected or intended injury, contractual, workers comp, employee indemnification and employer's liability, fellow employee, care, custody and control, handling of property, movement of property by mechanical device, operations, completed operations, pollution, war, racing

Commercial General Liability Conditions

include Bankruptcy; Duties in the Event of Occurrence, Claim or Suit; Legal Action against the Insurer; Other Insurance; Premium; Audit; Representations; Severability; Subrogation; Insurer Does Not Renew; and Insured's Right to Claim Information

CGL Coverage A Exclusions

include Expected or intended Injury, Contractual Liability,Liquor Liability, Workers Comp, Employer's Liability, Pollution, Aircraft, auto, watercraft, transportation of mobile Equipment and War. Also damage to property, damage to Insured's product, damage to insured's work, damage to impaired property, product recall, personal and advertising injury and electronic data

Accident

includes continuous or repeated exposure to the same conditions that results in bodily injury or property damage

Advertising Injury under Coverage B CGL

includes used of another's idea in insured's advertisement ; infringement of copyrit, trade dress or slogan

Hazards

increase the chance of the risk occurring, potential dangers

Custodian

insured or employee, while having care and custody of covered property while inside premises, excluding any person while acting as a watchperson or janitor

CGL's Coverage A Insuring Agreement

insurer will pay if insured is legally obligated to pay for covered bodily injury or property damage

Forgery or Alteration

insures against forgery or alteration of checks, etc regarding payment of a sum of money

CPP Time Element (Business Income) Form

insures indirect losses such as loss of income and extra expenses

Outside the Premises

insures money and securities in hands of messenger

Personal Injury under Coverage B CGL

libel;slander;false arrest;detention;imprisonment;malicious prosecution; wrongul entry; wronful eviction and invasion of privacy

Discovery Form

like Claims-made form, requires use of a retroactive date, provides coverage for losses discovered during policy period but din not necessary occur during policy period

Standard builders risk coverage form is on Completed Value Basis

limit of coverage reflects anticipated replacement value of covered building when construction is completed

Loss-Sustained Form

line Occurrence form, provides coverage for losses that took place and were discoverd during policy period or were discovered within one year of termination of policy

moral hazard

lying on purpose, i.e. lying on insurance application

extortion

may be added by endorsement to Commercial Crime to insure loss due to threat of bodily harm or damage to premises

General Aggregate Limit

most insurer will pay during policy period

Business income definition

net income (net profit or loss before income taxes) that would have been earned had loss not occurred plus normal , ongoing operating expenses, including payroll

Mysterious disappearance

not considered theft, burglary or robbery; it is loss of property when cause of loss is unknown

Exclusions under Business Auto Coverage

nuclear hazard, war, racing, stunt, wear and tear, freezing, mechanical or electrical breakdown, blowouts electronic equipment

Insured's work

operations performed by named insured includes materials, parts, equipment, warranties etc

Supplementary Payments for CGL Coverage A and B

paid in addition to limit of liability include all claim-related expenses- up to $250 bail, court costs etc

CGL Coverage C- Medical Expenses

pays for medical expenses for bodily injuy incurred inthe covered territory and during policy period caused by accident on insured premises or because of insured's operations

Truckers Coverage Form and Motor Carrier Coverage Form

provide insurance for unique exposure of common carriers and contract carriers

Section I- Covered Autos (Garage coverage Form)

provides a schedule of covered auto designation symbols and adds two unique symbols for Garage Coverage Form

Garage Coverage Form

provides auto liability and physical damage coverage as well as General Liability coverage for an insured that is engaged in sale, service, repair, parking or storage of autos; eliminates the coverage gaps and overlaps found when other commercial lines policies are comined to provide Premises liability, products liability Auto liability, Auto physical damage and Garagekeepers coverage

Section II- Liability Coverage (for Garage Coverage Form)

provides bodily injury and property damage liability coverage for losses resulting from garage operations, products liability and completed operations liability

Claims-Made Form Trigger

provides coverage for losses that take place after the retroactive date and befor the end of the policy period, and for which claims are made during policy period or extended reporting period.

Occurrence Form Trigger

provides coverage for losses that take place during the policy period, regardless of when loss is reported

Specified Causes of Loss for Business Auto Coverage

provides coverage for the perils of fire, lightning, explosion, theft, wind, hail, eartquake, flood, vandalism, sinking, collision or derailment of the conveying vehicle.

Endorsement for Motor Carrier Policies of Insurance for Public Liability (form mcs-90)

provides evidence of financial responsibility meeting the DOT financial responsibility requirements, on behalf of the motor carrier to the ICC

Business Auto Physical Damage Coverage Form

provides physical damage coverage for covered autos that meet any of five symbols designations; this form may be included on commercial package policy

Section IV-Physical Damage Coverage

provides physical damage coverage for covered autos the insured owns, hires, rents, leases or borrows and is the same Physical Damage Coverage under Business Auto Coverage Form

Coverage B of CGL- Personal and Advertising Injury

provides protection for liability arising from person and advertising injury offense

Law of Large Numbers

says the more data you have on exposures, the more predictable the losses will be

Morale Hazard

sense of carelessness or indifference to a loss because of the existence of insurance

Robbery

taking of property from custody of a person by threatening bodily harm, includes taking of property in presence of an employee

Burglary

taking of property from inside the premises or from locked safe by person committing forcible entry while trespassing

Messenger

the insured, or employee while having care of covered property while outside the premises

Condominium Association Coverage Form

used in place of Building and Personal Property Coverage Form when insuring building and fixtures that are part of building insured by condo association. Includes items such as appliance, ac

Garagekeepers limit of liability for customer vehicles

usually express as a Blanket Limit covering the total of all customer vehicles in insured's care

Commercial Crime Coverage Form

written on either a Loss-Sustained or Discovery Form, designed for private businesses and insuring agreement contains one limit of insurance for all types of employee theft