Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
3 ways commercial insurance is issued |
1. Scheduled Basis (only property on list or scheduled on the policy is insured) 2. Property of every description (building, stock, and equipment are insured under single limit of insurance) 3. All property basis (all property owned by the insured under a single limit of insurance) |
|
|
6 components found in the definition of building |
1. Building described on declarations page 2. Fixed structures pertaining to the building and located on the premises 3. Additions and extensions communicating and in contact with the building 4. Permanent fittings and fixtures attached to and forming the part of building 5. Materials, equipment and supplies on premises for maintenance, of normal repairs and minor alterations to the building or for the building services 6. Growing plants, trees, shrubs or flowers inside the building used for decorative purposes |
|
|
3 components found in stock |
1. Merchandise of every description usual to the insureds business 2. Packing, wrapping, and advertising materials 3. Similar property belonging to others which the insured is obligated to keep insured or for which he is legally liable |
|
|
3 components of equipment |
1. All contents other than building or stock 2. Similar property belonging to others which insured is obligated to keep insured 3. Tenant improvements which are defined as building improvements |
|
|
3 ways property may he valued |
1. Acv 2. Replacement value 3. Book value |
|
|
2 methods use to determine depreciation using Formula/cost Approach Method |
1. Straight line depreciation (based on the normal life expectancy of buildings) 2. Plateau accelerated depreciation (applies large amounts of depreciation during first few years) |
|
|
Which method used to value property is the least appropriate for insurance? |
Book value because the it is based on accounting functions |
|
|
3 considerations used when determining amounts of indemnity |
1. ACV property prior to loss 2. The interest of the insured in the property 3. Amount of insurance shown on the policy |
|
|
Why do Co-insurance clause contain waiver provisions? |
To waive application of the coinsurance clause when the Loss is less than amounts indicated in the waiver. These waivers are applied because to determine amounts of Coinsurance clause would cause too much work and expense for the insured given the size of loss |
|
|
What are the provisions of waiver of Co-insurance clause? |
When losses are less than 2% of the amount of insurance and less than $5000, the provisions of Coinsurance clauses will not be applied |
|
|
All policies contain exclusions,list 5 |
1. Commercially uninsurable (war and nuclear accidents) 2. Catastrophic (flood and earthquakes) 3. Other forms of insurance may be available (automobile and valuable papers) 4. Might be expected by insurer (wear and tear and mechanical breakdown) 5. Not exposures common to most insureds (outside communication towers and buildings in course of construction) |
|
|
Insurers will not exercise its right to subrogation against certain parties when: |
When persons of loss have an interest in proceeds of the policy |
|
|
3 requirements placed upon clients by Property Protection Systems clause |
1. Notify insurer forthwith any interruption, flaw, defect in any property protection system that comes to their knowledge 2. Notify insurer forthwith any lapse, cancellation or nonrenewal of any maintenance or monitoring contracts of any property protection system 3. Notify insurer forthwith when notification of suspension of police service is received regarding response to any property protection systems |
|
|
2 types of property receiving Special Basis of settlement |
1. Tenants improvements 2. Records |
|
|
4 elements of Locked Vehicle Warranties |
1. All property must be in vehicle or in fully enclosed metal compartments 2. All doors and windows of the vehicle containing the property insured are securely closed and locked 3. Force was used to gain access to vehicle containing the property insured 4. Visible signs of force are present on the vehicle containing the property insured |
|
|
Material facts include matters concerning the property being covered and personal information about the client. What are the four facts which are material concerning the personal information of clients? |
1. Previous claims 2. Number of loss payables 3. Previous declination or cancellation from other insurers 4. Fear of persons harbouring I'll will |
