7279076
Description
Flashcards by Dylan Overstreet, updated more than 1 year ago
|
Created by Dylan Overstreet
over 7 years ago
|
|
| Question | Answer |
| Name the 5 coverage extensions for the Machine Shield | Brand and Labels Employee Tools are equipment Marring and Scratching Undamaged Stock Dependent Property |
| Brand and Labels -- Explain what it is and give an example | Some parts are made and then damaged, this coverage will cover the damage parts being stamped for salvage, remove the brand, or relabel the product Claim Example: Fire damages product the fee associated with stamping the product for salvage. |
| Employee Tools and equipment is normally covered under the Cp-F-113? True or False | False - normally excluded |
| Give an employee tool claim example | Overnight someone breaks in and steals property including employee tools, this coverage would pay for employee tools up to 25k. |
| Give a claim example of Marring and scratching | A plastic shop has a mold to make their products, as an employee is moving the mold through the shop it gets scratched and damaged and cant make the product. This coverage would pay to replace the mold. |
| Coverage for undamaged property covers what? | If part of the stock is damaged this coverage protects the undamaged portion and the loss of value resulting from losing the damaged portion. |
| What type of loss has to happen for dependent coverage to apply? | Covered cause of loss |
| Give two examples of dependent properties (basic terms)? Give a claim example. | Supplier or customer the shop relies on. Claim example: Covered cause at a dependent location (customer). The shop can no longer ship their parts to the customer, as a result there is a loss of income. This coverage would cover the loss of income. |
| What is the limit for dependent property | 100k |
| Machine Shield - Property off premise covers personal property when it is _________ away from the insured location. | Temporarily |
| Coverage for personal property in property off premise is extended to where? | Anywhere in the world Fairs Tradeshows |
| Does Federated cover parts for the selling cost or the cost to make them? | Selling cost |
| Temperature extension brings back coverage for what two(4) things? | Dampness or dryness Changes in or extreme temperature |
| Give an example of when the temperature extension is used. | A plastic shop has a tub of plastic pellets, and extreme change in temperature causing damage to the pellets. They become unusable, this coverage would provide for the damaged pellets. |
| Precious Alloys, and metals Dies, Mold, and Forms What is the most Federated will pay? | 25k |
| Precious Alloys, and metals Dies, Mold, and Forms Give an example of a type of claim (Theft) | Burglar breaks in and steals a bunch of platinum metal and dies, there would be coverage. |
| Property In Transit provided coverage for property in transit including ____borne and _____borne | Air and waterborne |
| Name a claim example for property in transit? | Customer is taking materials to another shop, the truck flips and the materials are completely damaged. Under this modification there would be coverage for the damaged materials. |
| Name the 4 modifications to the cause of loss form for the machine shield. | Temperature Extension Precious Alloys and Metals Patterns, dies, molds, forms Property in transit |
| PMVE stands for? | Production Machinery Valuation Endorsement |
| Explain how the PMVE breaks out FEDs property limits. | Split into two sections --Machinery and equipment on functional replacement cost basis (like, kind, quality) --All other contents including stock covered on replacement cost |
| How does the PMVE benefit the insured from a premium stand point? | 10% lower rate on the coverage Lower limit helps lower premium |
| What type of insured would the PMVE be good for? | A customer that does not necessarily need everything new in terms of equipment. |
| Errors and omission Machine Shield -What are the two limit options for E&O | 500k or 1million |
| Give an example of E&O? | The machine shop parts and job worth 100k sent it to a customer and the specs were wrong and they had to redo it. We will pay for the shop to redo the work at a rate of 80% and if another shop has to get involved we will pay 100%. |
| In regards to E&O if the defected product causes damage to a customer machine where does the coverage apply? | General Liability |
| Patent Infringement give $_____ within the limit. | 50k |
| Patent infringement provides coverage for liability and ________ cost | Defense |
| Name a claim example for Patent Infringement | If the customer provides the specs and the insured makes the part and later the insured gets wrapped into a lawsuit because the part was already patented, this coverage provides coverage for defense cost. |
| For product recall and expense coverage -- the insured is responsible to pay two things - name them. | 10% participation fee the deductible |
| Product recall covers the insured to remake the parts? True or False? | False |
| Name 3-4 recall expenses | Notification to those with the product Shipping to get the item back Overtime pay for employees Disposal of the incorrect parts Temporary Storage Facilities |
| Damage to work in process is endorsed in what form of coverage? | Property |
| Explain the premium load year by year for UL | 1st year - 10% 2nd year - 7.5% 3rd year and after - 5% |
| The premium load covers what? | Cost of insurance and other expenses |
| What is the current interest rate for Universal Life? What is the guaranteed rate? | Current 5% Guarenteed 3% |
| Surrender charge last for how long? | 10 years |
| The universal life policy lapses when? | There is not enough funding to pay the next months Cost of insurance |
| Explain the differences between option 1 and option 2 | Option 1 - Level death benefit - even though cash value grows the death benefit remains the same, cheaper than option 2 Option 2 - increasing death benefit - the cash value gets put on top of the death benefit - more expensive. |
| The loan interest rate is what? | 7% |
| The net interest rate for the loan is? | 4% |
| The interest rate for UL can change how often? | Quarterly |
| Explain the contestability for a univeral life insurance policy. | Contestability last for the first two years of the policy. UNderwriting can go back and make sure everything reported is accurate. If False information is found the policy can be voided and the premiums can be refunded. |
| What is the limit of insurance required to be elgible for preferred rates? | 100k in coverage |
| Know the options for taking a loan versus surrendering the policy | Loan is better if it is short term need and they intend to pay back the loan Surrender is a better option if they dont want to pay interest and they arent going to pay anything back. |
| Name the three Riders we are going to be quizzed over? | Children Rider Option to increase Rider Waiver of cost of insurance Rider |
| Brand and Labels includes expenses for what three things | Stamping Salvage Removing brand and labels Relabel |
Want to create your own Flashcards for free with GoConqr? Learn more.