Exam 15: Multirisk Management Contracts: Business

The extended coverages in building and personal property coverage form primarily offer protection for properties included in the definition of covered buildings and personal property.

This type of causes of loss form is an open perils or all risk coverage option for the commercial property policy, that is, it provides protection for all causes of loss not specifically excluded.Most of the additional exclusions found in this form relate either to catastrophic potentials or to nonfortuitous events.Identify this type of causes of loss form.

The _____ coverage form provides coverage for direct physical loss to buildings and/or contents as described in commercial property policies.

In addition to covering an insured's liability due to bodily injury or property damage, the insurer promises to defend against suits claiming such injuries.The insurer's obligation to defend against liability ends when:

If the business is a proprietorship and the all the vehicles used are private passenger automobiles, a personal auto policy does not cover the automobile exposure and other forms of automobile insurance must be purchased if the exposure is to be insured.

Normal operating expenses are those costs associated with the activity of the business, not the materials that may be consumed by the business.

Instead of listing those perils that are covered, the special causes of loss form provides protection for all causes of loss not specifically excluded.

If the insured chooses this basis of property insurance payment in building and personal property coverage form, this optional coverage must be designated in the declarations and the insured must actually repair or replace the covered property.Identify this basis of payment.

In a commercial general liability policy, the medical payments coverage is intended to provide health insurance to the insured and to any employees of the insured.

Injury arising out of strikes and lockouts are not covered by the employment-related practices liability program.

Explain inland marine insurance coverage.

In a business income coverage policy, coinsurance applies to:

The _____ provision of the business income coverage is one of the more confusing parts of any insurance policy.Its purpose is to maintain equity in pricing.

The _____ causes of loss form is an open perils or all risk coverage option for the commercial property policy.

In a building and personal property policy, the basic causes of loss form is an open-perils option of the commercial property policy.

In a commercial general liability policy, claims for injuries that occurred thirty years ago can be covered if coverage is available on a claims-made basis.

Describe the different types of causes of loss form in a commercial package policy.

The agreed value option does not ensure that the policyholder will have sufficient limits of insurance to cover a total loss, especially in times of high inflation.

If the insured chooses replacement cost new basis of property insurance payment in building and personal property coverage form, then the provision 7 valuation of section E, loss conditions, applies.

Identify the provision that is found under section F, additional conditions of the building and personal property coverage form.