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AINS 103 Chapter 2 questions with correct answers
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AINS 103 Chapter 2 questions with correct answers
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AINS 103 Chapter 2 questions withcorrect answers
Commercial property coverage components: - .......🔷ANSWERS🔶......✔✔ Commercial
property declarations, one or more commercial property coverage forms, one or more causes
of loss forms, commercial property conditions form, and any applicable endorsements.
Commercial property declarations: - .......🔷ANSWERS🔶......✔✔ The declaration page
contains information such as a description of the property insured, the kinds and amounts
of coverage provided, and any optional coverages.
Commercial property coverage forms: - .......🔷ANSWERS🔶......✔✔ Contain descriptions of
the specific coverages being provided to the business. Typically, one coverage form insures
the insured's buildings and/or personal property, and another coverage form insures
business income and/or extra expense.
What are the three types of causes of loss forms and what do they allow the insured to
select? - .......🔷ANSWERS🔶......✔✔ Basic, Broad, Special. These allow the insured to select,
or the underwriter to offer, a range of covered perils.
Commercial property conditions form: - .......🔷ANSWERS🔶......✔✔ Contains conditions
applicable to all coverage forms included in a commercial property coverage part unless a
coverage form contains a condition to the contrary.
What does the commercial property coverage conditions list? - .......🔷ANSWERS🔶......✔✔
Each obligation of the insured. This also includes various provisions, and rules to which the
insurer must adhere to.
, (Y/N) Leah is a claims rep for a commercial client who has experiences a property loss. The
client wants to know whether they have to hold up their end of the insuring agreement if
their policy covers the loss. How should Leah respond? - .......🔷ANSWERS🔶......✔✔ Yes.
What can the Insurance Services, Inc. (ISO) Building and Personal Property Coverage Form,
also known as the BPP, cover? - .......🔷ANSWERS🔶......✔✔ Damage to a business's
physical structures, the property inside, and other items that it owns.
The BBP's Basic and Broad Forms: - .......🔷ANSWERS🔶......✔✔ The Basic and Broad forms
are nearly identical. They use the named perils approach, which means they explicitly state
the policy's covered causes of loss, which can include: fire, lightning, explosion, windstorm
or hail, smoke, and sprinkler leakage.
What perils are covered by the Broad form that are not covered under the Basic form?
- .......🔷ANSWERS🔶......✔✔ Falling objects, weight of ice, snow or sleet, and water
damage, so it is slightly more expensive.
The Special Form: - .......🔷ANSWERS🔶......✔✔ Insures on an open peril basis, which
means that it covers anything that the policy doesn't specifically list as being excluded. This
allows for broader coverage, so it is preferred by most businesses.
(Y/N) Lite Incorporated insures its building under a commercial property policy that
includes the Causes of Loss-Broad Form. A windstorm came into town and damages the
company's roof. Would the loss be covered under the policy? - .......🔷ANSWERS🔶......✔✔
Yes.
How does the BPP supplement its core coverages? - .......🔷ANSWERS🔶......✔✔ Through
additional coverage, coverage extensions, and optional coverages detailed in the policy.
Amy owns an IT business and insures her building and personal property under a BPP
coverage form. She leases all of her equipment, and according to the lease agreement, she is
responsible for the replacement cost of the leased equipment in the event that it's damaged.
How can Amy ensure that her insurance coverage meets the obligations of her lease
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