CPCU 551 - Chapter 4 Questions & Answers
Blanket Insurance
Insurance that covers either of the following with one limit of insurance: (1) one type of property in one or more separately rated buildings or (2) two or more types of property in one or more separately rated buildings.
A disadva...
a disadvantage of blanket insurance is that the mi
Geschreven voor
CPCU - Chartered Property Casualty Underwriter
CPCU - Chartered Property Casualty Underwriter
Verkoper
Volgen
Pogba119
Ontvangen beoordelingen
Voorbeeld van de inhoud
CPCU 551 - Chapter 4 Questions &
Answers
Blanket Insurance - answer Insurance that covers either of the following with one
limit of insurance: (1) one type of property in one or more separately rated buildings or
(2) two or more types of property in one or more separately rated buildings.
A disadvantage of blanket insurance is that the minimum coinsurance percentage is
____% - answer 90%
Specific insurance provides a __% discount with 90% coinsurance - answer 5%
No discount is offered w/ blanket insurance
What are 2 advantages of blanket insurance? - answer 1) Insured with multiple
locations is fully insured for a loss at any one location
2)Additional debris removal coverage is available if the insured selects blanket
coverage
Risk managers prefer to combine Agreed Value with Blanket insurance, however risk
managers are often reluctant to combine these coverages without a
_______________________ - answer Margin clause - provides the insured's
recovery is limited to specified % above the value filed with the insurer.
Example: Margin clause: 20%
Filed value: $2M Agreed Value
Loss = 2M *.20
Max loss collected: $2.4M
Benefits of combining Agreed Value w/ Blanket:
-Insured and insurer agree on value up front
-Avoid coinsurance penalty
-Danger of underinsurance is greatly reduced
Name the 2 approaches for dealing with fluctuating personal property values - answer
1) Peak Season Limit of Insurance Endorsement - used when inventory values are
somewhat predictable
2) Value reporting - used when fluctuations are not as predictable
, Advantages of the Peak Season Limit of Insurance Endorsement? - answer 1)
Eliminates the need for extra transactions to change value based on fluctuating
inventory
2) Avoids risk the insured may overlook the need to increase its insurance
(Endorsement may be added mid-term - pro-rata increased premium is charged)
Value Reporting Form - answer A commercial property form that bases the insured's
premium for business personal property on the values that the insured reports to the
insurer periodically during the policy period.
Using this form avoids the costs of over or under insuring business personal property
With the Value Reporting form, as long as the insured reports the values
________________, insurer will pay the full amount of any loss - answer Accurately
Note that final premium is based on the values reported by the insured as exposed to
loss.
A limit of insurance is set high enough to cover the insured's maximum expected values
at any time during the policy period.
True or false:
With the Value Reporting Form, the insured must pay a premium based on the full value
even if it exceeds the limit of insurance. - answer True
Example:
$150K in insurance limits
$200K inventory
Insured must pay premium based on the $200K inventory
Value Reporting Form - insured must file required report within ____ days after the end
of each reporting period and ____ days for the initial report - answer 30-days
60-days
Value Reporting Form - Potential penalties
1) Initial report not filed - insurer pays no more than ___% of amount due
2) Subsequent report not filed - insurer will pay no more than ____________________
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Pogba119. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €13,18. Je zit daarna nergens aan vast.
