Caib 2 Commercial Insurance

Front 1

FIRE RESISTIVE

Back 1

Building which has met minimum standards in terms of hours it will withstand a specific, carefully controlled test fire

Front 2

NON-COMBUSTIBLE

Back 2

all structural members floors, roofs and supports constructed of steel, iron, concrete or non combustible materials, including exterior finish. Falls short of classifying as fire resistive

Front 3

COMMON HAZARD

Back 3

Conditions common to all buildings which influence their potential for loss

Front 4

DETACHMENT

Back 4

Proximity of the building insured or containing the property insured to other commercially rated buildings

Front 5

ADVERSE SELECTION

Back 5

Applicants for insurance are largely those most likely to suffer a loss

Front 6

RISK CLASSIFICATION

Back 6

Grouping or classifying risks according to established criteria mostly based on their possibility for loss

Front 7

SOFT MARKET

Back 7

Intense competition between insurers - rates tend to be low - high interest rates

Front 8

HARD MARKET

Back 8

Low profit margins force out some of the competition - harding underwriting approach - little or no rate discounts - high claim ration

Front 9

HAZARD

Back 9

A condition that may cause a peril to occur

Front 10

PHYSICAL HAZARD

Back 10

A condition relating to the use of tangible property which could cause a peril to occur

Front 11

MORAL HAZARD

Back 11

Characteristic of the applicant that could cause a peril to occur

Front 12

MORALE HAZARD

Back 12

Deals with the attitude of the client

Front 13

ACCOMMODATION BUSINESS

Back 13

Marginal or substandard business that the insurer agrees to accept as a favour or accommodation to the broker

Front 14

SUPPORTING BUSINESS

Back 14

Existance of other insurance policies the applicant has with the same insurer

Front 15

SCHEDULED COVERAGE

Back 15

Policy coverage is provided only on that property which is specifically identified or scheduled

Front 16

ALL PROPERTY

Back 16

Policy coverage used to insure building, stock and equipment under a single limit of insurance

Front 17

TENANTS IMPROVEMENTS

Back 17

Improvements, alterations and betterments by insured to building occupied by insured, not otherwise insured provided insured is not the actual owner of the building

Front 18

ACTUAL CASH VALUE

Back 18

Replacement or repair cost less depreciation

Front 19

REPLACEMENT VALUE

Back 19

Cost to repair, replace or rebuild lost or damaged property without deduction of depreciation

Front 20

REINSURANCE

Back 20

Insurer ceding part of the risk it has assumed to one or more other insurers. Original insurer would be lead insurer in handling policy and claims

Front 21

SUBSCRIPTION

Back 21

Group of insurers has agreed to participate in providing insurance coverage - all share in policy and claims.

Front 22

CONDITION

Back 22

Imposed by the insurer which requires the insured to do or not do something

Front 23

SUBROGATION

Back 23

Right of the insurer to "step into the shoes"of the insured and sue the party whom the insurer sees as responsible - as long as not a named insured

Front 24

WARRANTY

Back 24

Promise that certain facts are as they are represented to be and that they will remain so

Front 25

MATERIAL FACT

Back 25

Fact if communicated to the insurer, the insurer would either declined the insured altogether or not accept it unless a higher premium was paid

Front 26

FRAUDULENT

Back 26

To act wilfully, and with the specific intent to deceive or cheat

Front 27

VOID CONTRACT

Back 27

One which has no "legal or binding force"and as such ïs incapable of being enforced by law"- never to have existed

Front 28

Vacant

Back 28

Empty or normal occupant is absent and the contents have been removed

Front 29

Unoccupied

Back 29

Lack of habitual presence; Premises are complete with its contents except that person who normally occupies the premises is temporarily away

Front 30

Loading

Back 30

an additional rate charged over and above the fire rate

Front 31

centrifugal force

Back 31

the inertia of a body that tends to move it away from the centre around which it revolves

Front 32

mechanical breakdown

Back 32

failure in the working mechanism of the machinery .. a functional defect in the moving parts of the equipment which causes the latter to cease fundtionaing or to function improperly

Front 33

electrical breakdown

Back 33

a failure in the electrical mechanism of the machinery appliance or device

Front 34

trade losses

Back 34

types of losses which might be expected as part of the every day operation of a business

Front 35

wear and tear

Back 35

deterioration or depreciation ie value by ordinary and reasonable use of the subject matter

Front 36

gradual deterioration

Back 36

the deterioration of an object which arises naturally over time

Front 37

latent defect

Back 37

hidden or concealed defect - one which could no be discovered by reasonable and customary inspection - one not apparent in face of goods product document etc

Front 38

mysterious disappearance

Back 38

disappearance under circumstances which cannot be explained

Front 39

Endorsement

Back 39

changes the terms or conditions of the policy

Front 40

rider

Back 40

adds additional coverages to those already in place

Front 41

media

Back 41

CDs DVDs backup hard drives and cassettes upon which data is recorded

Front 42

data

Back 42

information stored on the media

Front 43

Temporary location

Back 43

a location not specified on the policy which is not owned, rented or controlled in whole or in part by the insured

Front 44

Newly Acquired Location

Back 44

location acquired (owned, rented controlled) by the insured - for a period of 30 days from acquisition

Front 45

replacement cost

Back 45

cost of repairing or replacing the property on the same site with new property of like kind and quality and for like occupancy without deduction for depreciation

Front 46

Bailee for Hire

Back 46

has temporary custody of the personal property of another for a purpose other than sale and who is compensated as a condition of such custody

Front 47

ordinary care

Back 47

legal duty imposed upon bailee which requires them to take the same care of the goods of others as would be taken by a prudent and diligent owner of such goods

Front 48

common carrier

Back 48

airlines, railroads, trucking companies and others that furnish transportation to any member of the public seeking their services

Front 49

Standard bill of lading

Back 49

bill of lading used to reflect the amount for which the bill of lading common carrier will be held legally liable under the tariff

Front 50

Valued bill of lading

Back 50

serves to increase carriers liability normally requested by the owner of goods when their value exceeds the value stated in the standard bill of lading

Front 51

released bill of lading

Back 51

bill of lading used to release a carrier from any liability for the goods being transported

Front 52

Contract Carrier

Back 52

one that carries, for pay, the goods of certain customers only as contrasted to a common carrier that carries the goods of the public in general

Front 53

private carrier

Back 53

one who hauls their own goods or goods entrusted to them as bailees or lessees and includes shippers who own or lease their vehicles and carry their own goods

Front 54

catastrophe limit

Back 54

the maximum amount an insurer will pay in only one disaster or occurance

Front 55

Physical Protection

Back 55

setting up physical barriers to restrict unauthorized access to property ie. bars, steel doors safes and vaults

Front 56

Electronic protection

Back 56

setting up electronic barriers to restrict unauthorized access to property ie motion detectors, alarms

Front 57

Perimeter protection

Back 57

methods used by owners to secure access to the premises when the business is closed ie windows doors etc - complete includes walls ceilings and floors

Front 58

Area Protection

Back 58

protection provided to areas within the building where valuable property is being stored ie pass cards, motion detectors and alarms

Front 59

Point Protection

Back 59

provides direct security for inidividual items such as safes, vaults. chests, filing cabinets, display cases, expensive equipment

Front 60

Line Security

Back 60

ability of a telephone line to withstand tampering

Front 61

Money

Back 61

currency and coins in current use and having a face value

Front 62

Securities

Back 62

negotiable and non negotiable instruments or contracts representing money or other property and includes revenue and other stamps in current use, tokens and tickets but does not include money

Front 63

Burglary
Insurance

Back 63

unlawful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forceable entry

Front 64

Robbery

Back 64

taking of insured property from a custodian by a person or persons who have:
- caused or threatened to cause custodian bodily harm
- committed an overt unlawful act witnessed by the custodian
- taken such property from a custodian who has been killed or rendered unconscious

Front 65

Custodian

Back 65

Insured, partner of insured, or any employee authorized by them to have the care and custody of insured property

Front 66

Theft

Back 66

all means of taking property without the owners consent

Front 67

Employee Dishonesty

Back 67

loss resulting directly from one or more fraudulent or dishonest acts committed by an employee, acting alone or in collusion with others

Front 68

Discovery Period

Back 68

timer permitted by an Insurer, commencing with the expiry date of the policy, in which a claim must be found by the insured if it is to be covered by the policy

Front 69

Messenger

Back 69

Insured or partner or any employee who is duly authorized by the insured to have the care and custody of the insured property outside the premises

Front 70

Forgery

Back 70

fraudulently alters any writing of another without his authority or makes, completes, executes, authenticates, issues or transfers any writing so it purports to be the act of another who did not authorize that act

Front 71

Income

Back 71

all monies from sales or services rendered by a business

Front 72

Fixed expense

Back 72

expenses that continue during the period of an interruption

Front 73

Semi variable expenses

Back 73

expenses which may or may not continue during the period of interruption

Front 74

Gross Profit

Back 74

sum produced by adding to the "net profit" the amount of the "insured standing charges"

Front 75

Net Profit

Back 75

Gross profit minus all other expenses earned by the business

Front 76

Actual Loss sustained

Back 76

Measure of recovery under the Gross Earnings form - amount the business would actually have earned had the loss not occurred

Front 77

Ordinary payroll expense

Back 77

Entire payroll expense for all employees insured except officers and executives, department managers, employees under contract and other important employees whose services would not be dispensed with should the business be intereferred or interrupted

Front 78

Contributing Properties

Back 78

manufacturer or supplier upon whom the insured depends for materials or goods

Front 79

Recipient Properties

Back 79

Costumer(s) who the insured depends upon to purchase its products

Front 80

Magnet Properties

Back 80

businesses which attract a large number of customers to an area