Define Insurance
Insurance is a tool that protects people from overwhelming financial losses.
Explain how Insurance works
Under an insurance contract, the insured pays a scheduled fee called a premium.
In return, the insurer promises to pay for specified losses if they occur.
Previou...
ADJUSTER PRO MS SECTION 4A
- 4B WITH COMPLETE
SOLUTIONS
Commercial Property Insurance provides coverage against
direct and
indirect losses related to business property,
Commercial property Insurance doesn't cover what?
cover farms
or one-to-four family dwellings.
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Commercial policies insure on ACV or RC?
ACV
What are the four sections in a standard commercial insurnace policy?
1. Declarations Page
2. Conditions
3. Coverage Forms
4. Causes of Loss Forms
Commercial property conditions:
,● Cancellation / Non Renewal
● Vacancy
● Changes in Policy
● Concealment, Misrepresentation, and Fraud
● Control of Property
● Other Insurance
● Legal Action Against an Insurer
● Subrogation
● Liberalization
● No Benefit to Bailee
Other Insurance :
concerns property that is insured by more than one policy.
Subrogation :
allows insurer to sue third parties for damages to the insured
Liberalization :
when an insurer increases its coverage without raising the
premium, current insureds may adopt the increased coverage within a 45
day
time frame.
Acme Insurance is trying to attract new commercial clients, so they decide
to broaden coverage for business personal property items without
increasing the premium. Which condition would allow the current clients
of Acme Insurance to benefit from the newly expanded coverage?
A. Policy Period
B. Changes in Policy
C. Liberalization
D. Control of Property
C. Liberalization
No Benefit to Bailee :
coverage does not apply to a company's property when
it is being used by a third party even with the insured's permission.
William owns a paint store and employs Brent. One day, while Brent is
decorating the window display, he gets carried away dancing to the music
in his headphones, falls off his ladder, and smashes through the glass.
What policy condition allows William to collect for the loss on his
insurance contract?
A. Subrogation
,B. Other Insurance
C. Liberalization
D. Control of Property
D. Control of Property
protects the property from the negligent acts of persons
other than the policyholder.
Conditions specific to commercial properties:
Conditions specific to commercial properties:
Insurer should inform the policyholder at least _______ days before
cancellation
45 days and the penalty is if not given: must offer 30 more days of
coverage at same rates
Vacancy
Jim receives a letter in the mail from his insurer notifying him that his
commercial policy will not be renewed thirty days from now. Jim protests,
saying he needs at least two months time to find a new policy. Jim ends up
receiving an additional 30 days' coverage at the same premium as before,
because:
A. Jim prepays his insurance two months at a time.
B. Jim’s insurer did not notify him by phone.
C. Jim is an exceptional negotiator.
D. Jim’s insurer did not provide him with 45 days' notice.
D. Jim’s insurer did not provide him with 45 days' notice.
Vacancy for commericla property:
building is closed for 60 days or less than 31% of the building's available
floor is occupied for 60 days
What are the types of commerical property coverage forms available?
*The coverage forms serve to define, limit, and explain what property or
property interest is covered in the policies. Each coverage form has its
own
set of conditions and exclusions separate from the conditions and
exclusions listed in the general policy.
● Building and Personal Property Coverage Form
● Business Income Coverage Form
● Contingent Business Interruption Coverage Form
, ● Builders Risk Coverage Form
● Condominium Coverage Form
● Leasehold Interest Coverage Form
● Legal Liability Coverage Form
● Differences in Conditions Coverage Form
● Other Coverage Forms and Popular Endorsements
Building and Personal Property Coverage Form : The basis of all
Commercial
Property Policies has 3 main coverages and 6 common additional
coverages
● Coverage A - Buildings and Structures
● Coverage B - Business Personal Property
● Coverage C - Personal Property of Others
Common Additional Coverages :
● Debris Removal
● Pollution Clean-Up and Removal
● Preservation of Property
● Fire Department Service Charge
● Increased Construction Costs
● Electronic Data
In the Business and Personal Property Form of a commercial property
policy, Coverage A - Buildings and Structures coverage would apply to
which of the following features of a commercial enterprise?
A. A small copy machine in the break room
B. A 40-ton printing machine affixed to a factory floor
C. A briefcase left in the lunchroom by a client
D. A leased mainframe computer
B. A 40-ton printing machine affixed to a factory floor
Coverage A refers to the buildings and structures listed on the
declarations
page of a policy. It also includes any additions, additions under
construction, and any construction equipment and building materials
within
100 feet of the insured property.
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