4427561
Description
Flashcards by Alexandra Clark, updated more than 1 year ago
|
Created by Alexandra Clark
about 8 years ago
|
|
| Question | Answer |
| Endorsement | Changes the terms or conditions of the policy |
| Data | The info stored on the media |
| Media | Is the CD's, DVD's, backup hard drives and cassettes upon which data is recorded |
| Rider | Adds additional coverage's to those already in place |
| Newly Acquired Location | A location acquired by the insured. Such location is newly acquired location for a period of 30 days from acquisition |
| Temporary Location | A location not specified on the policy which is not owned, rented or controlled in whole or in part by the insured |
| Valued Bill of Lading | Serves to increase carriers liability normally requested by the owner of goods when their value exceeds the value stated in the standard Bill of lading |
| Bailee for Hire | One who has temporary custody of the personal property of another for a purpose other than sale and who is compensated as a condition of such custody |
| Ordinary Care | The legal duty imposed upon bailees which require them to take the same care of the goods of others as would be taken by a diligent owner of such goods |
| Common Carrier | Includes airlines, railroads, trucking companies and others that furnish transportation to any member of the public seeking their services |
| Standard Bill of Lading | Bill of lading used to reflect the amount for which the bill of lading common carrier will be held legally liable under the tariff |
| Released Bill of Lading | Bill of lading used to release a carrier from any liability for the goods being transported |
| Contract Carrier | One that carries, for pay, the goods of certain customers only as contrasted to a common carrier that caries the goods of the public in general |
| Private Carrier | Ones who haul their own goods or goods entrusted to them as bailee's or lessee's and includes shippers who own/lease their vehicles and carry their own goods |
| Catastrophe Limit | The max amount an Insurer will pay in only one disaster or occurrence |
| Physical Protection | Setting up physical barriers to restrict unauthorized access to property |
| Electronic Protection | The setting up of electronic barriers to restrict unauthorized access to property |
| Line Security | Refers to the ability of a telephone line to withstand tampering |
| Point Protection | Provides direct security for individual items such as safes, vaults, filing cabinets, display cases and expensive equipment |
| Area Protection | The protection provided to areas within the building where valuable property is being stored |
| Perimeter Protection | The methods used by owners to secure access to the premises when the business is closed |
| Identify the 3 exposures insured by the By-Laws Endorsement | -Increase in cost of construction -Loss of value of the undamaged portion of the building -cost of the demolition of the undamaged portion of the building and debris removal costs |
| The insurance Acts of the common law provinces require that every policy insuring against the peril of fire also insure: | Explosion of natural, coal or manufactured gas |
| All of the following are methods used by common carriers to limit liability except one: a) Standard Bill of Lading b) Valued Bill of Lading c) Enhanced Bill of Lading d) Released Bill of Lading | c) Enhanced Bill of Lading |
| Insurance policies define certain terms as they relate to coverage. The broadest meaning is given to: a) Burglary b) Theft c) Robbery d) Hold-up | b) Theft |
| Loss due to war or arising out of the nuclear energy hazard is exclude under the Commercial Building/Stock/Equipment-Broad form why? | To exclude losses which are generally considered to be uninsurable |
| Loss due to flood/earthquake is excluded under the Commercial Building/Stock/Equipment-Broad formwhy? | To exclude losses which have the potential to be catastrophic |
| Automobiles/Aircraft coverage is excluded under the Commercial Building/Stock/Equipment-Broad form why? | To exclude losses for which more specialized coverage forms have been developed |
| By-Laws regulating rebuilding after an insured loss should be discussed with insured. Identify the types of changes which might be required by such By-Laws | -use of improved construction materials -installation of automatic fire extinguishing systems -installation of wheelchair ramps for handicapped -observing of minimum/maximums ex. height and floor area |
| Sources of Business Interruption Losses | -failure or breakdown of public utilities -transportation-realated accidents -physical damage to property -loss caused to property of major supplier/customer -actions of regulatory authorities -ancillary causes ex. strikes -physical damage to neighbouring premises |
| Money | Currency and coins in current use and having face value |
| Custodian | The insured, their partner or any employee authorized by them to have the care and custody of insured property |
| Theft | All means of taking property without the owners consent |
| Burglary | The unlawful taking of property by a person unlawfully entering or leaving the premises as evidenced by marks of forceable entry/exit |
| Securities | All negotiable and non-negotiable instruments/contracts representing money or other property, including revenue and other stamps in current use, tokens/tickets but doesn't include money |
| Robbery | The taking of insured property from a custodian by a person who has caused/threatened bodily harm, committed an overt unlawful act witnessed by custodian or taken property from a custodian who has been killed or unconscious |
| Messenger | The insured or a partner/employee who is duly authorized but he insured to have the care/custody of the insured property outside the premises |
| Discovery period | The time permitted by an insurer commencing with the expiry date of the policy, in which a claim must be discovered by the insured if it is to be covered by the policy |
| Employee Dishonesty | Loss which the insured shall sustain resulting directly from one or more fraudulent or dishonest acts committed by an employee, acting alone or in collusion w/ others |
| Forgery | Fraudulently altering any writing of another without his authority or making, completing, executing, authenticating, issues or transfers any writing so it is deemed to be the act of another who didn't authorize it |
| Income | All money from sales/services rendered by a business |
| Semi-Variable Expenses | Expenses which may/may not continue during the period of interruption |
| Net Profit | The gross profit minus all other expenses earned by the business |
| Fixed Expense | Expenses that continue during the period of an interruption |
| Gross profit | The sum produced by adding to the net profit the amount of the "insured standing charges" |
| Actual Loss Sustained | The measure of recovery under the Gross Earnings Form and refers to the amount the business would actually have earned had the loss not occurred |
| Ordinary Payroll Expense | The entire payroll expense for all employees of the insured, except officers, executives, department managers, employees under contract and other important employees whose services would not be dispensed with should the business be interrupted/interfered |
| Contributing Properties | The manufacturer or supplier upon whom the insured depends for the material or goods |
| Recipient Properties | The customer who the insured depends upon to purchase its products |
| Magnet Properties | Businesses which attract a large number of customers to an area |
| Identify 4 categories that buildings may fall into | -Residential(Home) -Mercantile(Library) -Non-mercantile(Hospital) -Manufacturing/Industrial(Bakery) |
| Identify the 2 bases that coverage can be provided on? | -Scheduled coverage -All Property |
| Identify 3 ways which property can be valued | -ACV -replacement cost -book value |
| What are four provisions contained in the Premium Adjustment Clause? | -Application for adjustment must be made w/in 12 months -When insurer has made pymnt premium is fully earned -when coverage is on 50% coinsurance basis, max refund is 25% of annual premium -when on 80% cosinurance, max refund is 50% of annual premium |
| What two factors are the type of business interruption coverage required based on? | Nature of business and types of perils most likely to cause interruption |
| Gross Earnings | Covers the reduction in gross earnings less charges and expenses which don't necessarily continue during the interruption of business |
| What arguments can be made for insuring ordinary payroll expense on limited basis | Insurer may not recognize the continuation of these salaries as a necessary continuing expense. May decide to reduce premium by deleting ordinary payroll coverage |
| What are 3 advantages of the Profits form over the Gross Earnings Form | -Indemnity Period Longer -By-laws coverage included -Due diligence/dispatch provision requires that only the insured do whatever they can do to prevent delays in reinstating |
| What kind of businesses would purchase the Extra Expense Insurance | Businesses which need to resume operations as soon as possible after a loss or face permanent loss of customer |
| What is the "period of restoration" | The time needed to resume normal operations |
| Identify two miscellaneous forms to assist with costs in calculating the amount of their business interruption claim | Auditors Fees Professional Fees |
| Identify 3 factors to consider when selecting a limit of insurance under the Rent or Rental Value Endorsement | -Actual annual rents -Estimated annual rental value of unoccupied portions -Fair rental value of portions of building occupied by insured |
| Insured's who purchase Gross Earnings Form and Profits Form don't need to purchase the Extra Expense Endorsement? | False |
| What are the 5 methods used to determine ACV? | -Formula Cost Approach -Market Value/Direct Sales -Broad Evidence Rule -True Value to Owner -Income Approach |
| What are the 5 extensions of a building? | -Fixed Structures(Yard lights) -Additions/Extensions(Enclosed walkway) -Permanent fittings/fixtures(plumbing/heating) -Materials on premises for installation/repair(shingles/lumber) -Growing plants, trees, shrubs in building for decoration |
| Package Policy | Combine under one form a variety of coverages needed by the majority of offices and small mercantile operations |
| Manuscript Policies | Designed for risks having a specialized exposure and for which no standard coverage form exists |
| What is the purpose of the stated amount co-insurance clause? | Provides for removal of the standard co-insurance penalty for under-insurance |
Want to create your own Flashcards for free with GoConqr? Learn more.