A tornado severely damages one of Major Manufacturing's plants. As a result of the damage, Major Manufacturing is forced to curtail its operations during t... [Show More] he 6 months needed to complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to as - correct answer a time element loss.
Which of the following describes a feature of standard commercial property policies? - correct answer Several different forms must be combined to make up a policy.
The president of Handy Corner Grocery has just learned that its accounting clerk has been embezzling money from the company for the past 6 months. Handy has a standard commercial property policy, a standard commercial general liability policy, and a workers compensation and employers liability policy. Which of these policies covers this loss? - correct answer None of these policies cover the loss
An insurance company that specializes in coverage for religious institutions publishes its own policy forms that provide broader coverage than the ISO forms. This insurer's forms would not be referred to as - correct answer standard forms.
Duffy's Tavern is currently insured under a commercial package policy that includes only commercial property coverage and commercial general liability coverage. Duffy would like to add coverage for equipment breakdown. This can be done by - correct answer adding either a separate equipment breakdown policy or an equipment breakdown coverage endorsement to Duffy's commercial property policy.
A small fire in the Dalton Hotel basement damaged the computerized system that controls all elevators in the hotel. It will be necessary-and costly-to completely reprogram the system to replace the lost data. Dalton has a commercial property policy that - correct answer covers this loss because electronic data that is integrated with the elevator system is not excluded.
A building owned by Mega Properties has been continuously vacant for 6 months. In the seventh month, a lightning strike starts a fire which destroys the building. Assuming that Mega's commercial property policy is written on standard forms, how much would the insurer reduce the loss payment because of the vacancy of the building? - correct answer The insurer would discount the loss payment by 15 percent because the building was vacant.
Ad Men Advertising Agency is located on the 25th floor of a high-rise building, and the declarations of its commercial property policy list its location as "Suite 2500, 1271 Madison Avenue, New York, NY." Ad Men's valuable laser printer is stolen from the building's outdoor ground-floor loading dock when an employee leaves it unattended while fetching his car. Ad Men's policy includes the special causes of loss form. Ad Men's insurance - correct answer covers this loss because the property was within 100 feet of the building.
Executive Dry Cleaning wants to have coverage for personal property of its customers in its commercial property policy. What must be done to activate this coverage under the standard building and personal property coverage form? - correct answer A limit of insurance for personal property of others must be shown on the policy declarations page.
Handy's Corner Grocery has a standard commercial property policy covering its retail store. An explosion destroys $15,000 of grocery inventory and $5,000 in cash. Is the loss of the cash covered under Handy's commercial property policy? - correct answer No, because money and securities are excluded from coverage.
What coverage is provided under the building and personal property coverage form for the cost of replacing or restoring lost information on valuable papers and records? - correct answer Valuable papers and records are covered for up to $2,500 (or a higher limit, if shown in the declarations) for loss from certain perils.
The roof of the Green Building is partially covered with live grass. Green's building and personal property coverage form covers these plants, because this living roof is what the form refers to as a(n) - correct answer vegetated roof.
After high winds severely damage the roof of its building, Keepsake Fine Art and Collectibles moves its inventory to a temporary location to protect it from damage from the elements. Unfortunately, the temporary location suffers a flood only 3 days after the move, and Keepsake's inventory is damaged. Assuming that Keepsake has an unendorsed standard commercial property, does the policy provide coverage for this loss? - correct answer Yes. The preservation of property additional coverage covers loss to property that has been moved from a covered location to protect it from damage by a covered cause of loss.
The crew demolishing a taller building next to the SA Store accidentally knocked over a masonry wall that toppled onto the roof of the SA Store. This, in turn, caused the SA Store roof to collapse, damaging the SA Store building and its contents and injuring patrons inside the store. A substantial amount of debris must be removed before repairs to the SA Store building can begin. Subject to dollar limitations, SA Store's building and personal property coverage policy (2012 edition), which covers broad form causes of loss, will cover - correct answer removing debris of the store building and contents and debris of the adjacent building's wall.
Your client, Mega Properties, has a standard commercial property policy. One morning, its risk manager telephones you with the news that Mega purchased an office building last week and it was badly damaged by a fire over the weekend. The amount of the damage is estimated at $3 million. Mega's risk manager wants to know how much Mega will be able to collect for this loss. Your reply is: - correct answer Newly acquired buildings are covered for up to 30 days, subject to a maximum of $250,000.
Bernard's Bowling and Billiards decides to offer a Fourth of July package that includes viewing nearby fireworks from the rooftop of the building. During preparations for the event, the roof collapses from the added weight of the tables, chairs, bar, and other items moved there for the fireworks viewing. Bernard's maintains a standard commercial property policy with the basic causes of loss form. Does the policy provide coverage for this collapse loss? - correct answer No, because the basic causes of loss form does not include the collapse additional coverage.
Which one of the following causes of loss is covered by the broad causes of loss form but not by the basic causes of loss form? - correct answer Water damage
Carpets in the lower level of the Fowler Building had to be replaced after raw sewage backed up from a clogged sewer. Fowler's building and personal property coverage policy, which includes broad causes of loss coverage, - correct answer excludes this loss under the water exclusion.
City College holds classes in a building that was constructed in 1875. The building is still heated by means of a huge boiler in the basement. Although the boiler is well maintained, the college is still concerned that the old boiler could overheat and explode. How should City College insure that risk? - correct answer It should purchase an equipment breakdown policy or add the equipment breakdown coverage endorsement to its commercial property policy.
Your client, Major Manufacturing, has a commercial property policy with the basic causes of loss form. One night, vandals enter the premises, break all the windows, paint graffiti on the interior walls, smash some shelving, and steal some electronic parts from inventory. When Major calls to ask what coverage it has for this loss, you reply: - correct answer All the damage done by the vandals is covered, but there is no coverage for the theft portion of the loss.
Which of the following is a true statement about exclusions and limitations in the special causes of loss form? - correct answer The special causes of loss form contains significantly more exclusions and limitations than the basic and broad causes of loss forms do. [Show Less]
