CAIB 2 - CHAPTER 1 QUESTIONS AND ANSWERS ALREADY PASSED

CAIB 2 - CHAPTER 1 QUESTIONS AND ANSWERS ALREADY PASSED Scheduled coverage. Only the property specifically listed or scheduled on the policy is insured. Property of Every Description (POED) coverage. Building, Stock and Equipment are insured under a single limit of insurance. All Property (Blanket) coverage. All property owned by the insured is covered or "blanketed" by a single limit of insurance. (May insure property at more than one location.) The three classes of property insured by commercial property insurance policies. 1) Building 2) Equipment 3) Stock. Regarding stock coverage, why it's important to provide a proper description of the business to the insurer. It sets the stock coverage to items that are USUAL to the insured's business. "Similar property belonging to others" is automatically covered under the amounts of insurance for stock and equipment if... - The lost or damaged property is similar to that insured by the policy; - The insured was under an obligation to insure that property; - The insured was legally liable for it. The five components found in the definition of "building" in commercial property policies. 1) Fixed structures located on the premises; 2) Additions and extensions communicating and in contact with the building; 3) Permanent fitting and fixtures attached to and forming part of the building; 4) Materials, equipment and supplies on the premises for maintenance of, and normal repairs and minor alterations to the building, or for building services; 5) Growing plants, trees, shrubs or flowers inside the building used for decorative purposes, when the insured owns the building. "Premises." The entire area within the property lines and areas and areas under adjoining sidewalks and driveways at the location described on the Declarations Page, and in or on vehicles within 100 meters (328 feet) of such locations. The three components found in the definition of "stock" in commercial policies. 1) Merchandise of every description usual to the insured's business; 2) Packing, wrapping and advertising materials; 3) Similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable. The three components of "equipment" found in commercial policies. 1) All contents usual to the insured's business (including furniture, fittings, fixtures, machinery, tools, etc.) other than "building" or "stock"; 2) Similar property belonging to others which the insured is under obligation to keep insured or for which he is legally liable; 3) Tenant's improvements, which are defined as building improvements, alterations, and betterments made at the expense of the insured to a "building" occupied but not owned by the insured, and which are not otherwise insured. The three ways property may be valued. 1) Actual Cash Value 2) Replacement Value 3) Book Value.