Property and Casualty Chapter 9

The first module of the Commercial Package Policy (CPP), which covers your building and business personal property, is called the _____.

Commercial Property Policy

The Commercial Property Policy is comprised of thirteen possible sub-parts to cover about any kind of property you could own, including ______, Business Income, _____, Glass, Builder's Risk and Tobacco Sales Warehouse.

Building and Business Personal Property, Extra Expense

The Commercial Property Policy, just like the Homeowners policy, offers three levels of peril power, which are Basic, ____ and ____.

Broad and special

The eleven Basic perils include Windstorm, ___, _____, ____, ____, _____, Volcano and Vehicles or Aircraft.

Riot, Explosion, Lightning, Fire, Smoke

Broad Form peril power adds ____ more perils for a total of ____.

Three, 14

_____ perils cover all perils not specifically excluded.

Special Form

The peril of _____ can be added to any of the three peril power forms and also covers Volcanic Eruption.

Earthquake

Earthquake coverage has a _____ deductible with a minimum of $ _____.

Percentage, $250

Earthquake tremors felt within a ____hour period ( ______ ) are treated as a single occurrence.

168, seven days

For the sake of simplicity, the information that is common to all thirteen of the property coverage sub-forms is included in two mandatory pages called the Commercial Property Declarations and the ________.

Commercial Property Conditions

The Standard Deductible on the Commercial Property Declarations page is $ ______.

$500

Settlement under the Commercial Property Policy is on an ______ basis unless upgraded to Replacement Cost basis by endorsement.

Actual Cash Value (ACV)

If there are two or more insurance companies insuring a commercial building, then losses will be settled on a_____ basis.

Pro rata

A situation in which two insurance policies insure the same property but use different levels of peril power is called _____.

non concurrency

The Commercial Property Policy coverage territory is the U.S. and its possessions, Canada and _____.

Puerto Rico.

The Building and Personal Property Coverage form defines a building to include permanently installed fixtures and equipment, outdoor fixtures, such as swimming pools and flag poles, plus personal property that is _______, such as a snow blower or lawn mower.

Used in the maintenance of the building

The contents in a commercial building, such as the desks, chairs and computers, are referred to as _______.

Business Personal Property

The personal belongings of employees, such as photos, radios and hand bags, are called ______.

Personal Effects

To be covered, Business Personal Property must be in the insured building or within ____ of the building.

Feet

The Personal Property of Others section of the Commercial Property Policy provides a Bailee-like coverage for _____ property that is in your care, custody or control.

The Other Guy's

The Additional Coverage's are ____ and do not cost extra. But Coverage Extensions must be _____ by purchasing coverage of at least __ percent of the building's replacement cost.

Automatic, earned, 80

The Additional Coverage's include Debris Removal, Fire Department Service Charges, ______ and Preservation of Property.

Pollutant Clean-up And Removal

The Coverage Extensions include Newly Acquired or Constructed Property, coverage for ____ and Property of Others.

Personal Effects

The insurance company will only pay losses up to the _____.

Policy limits

If the Insurer and the Insured disagree over the value of lost property, then either party can request an ____, which is binding on both parties.

Appraisal

After a loss, it is the First Named Insured's duty to ____ notify the Insurer.

Promptly

The Insured must also _____ from further damage.

Protect the property

If required by the company, the First Named Insured must submit written _____.

Proof of Loss

A premises which has been stripped so it can no longer be used for its declared function is considered to be _____.

Vacant

Even though property losses under the CPP are paid on an ACV basis, losses under $2500 are automatically paid on a _____ basis.

Replacement Cost

The key thing to remember about the Rights of Mortgage Holders is that _____! The Insured can be a crook, but the bank will still collect from the Insurer.

They never lose

If a business experiences significant seasonal inventory fluctuations, then it may be required to notify the company on a _____.

Reporting Form

Business Interruption Insurance is also referred to as _____ Coverage's.

Time Element

Under a Business Interruption policy Business Income is defined as net income plus ______.

Continuing operating expenses

A Period of Restoration starts on the ______ and runs until the building is or should be ____.

Day of the loss, repaired

To avoid the coinsurance requirement in a Business Income coverage you could select the ______ option in which you agree to a maximum total benefit to be paid out, but that there will also be a limit to the {$alias_2} benefit that will not exceed a fraction of the total limit, such as 1/6, 1/4 or 1/3.

Monthly Limit of Indemnity

An Agreed Value contract is also referred to as a ____ contract.

Valued

If you cannot shut down your business following a loss, such as a fire, then you need to purchase ______ coverage.

Extra Expense

The peril of Windstorm also covers the peril of ____.

Hail

The Additional Coverage called Collapse covers the collapse of an insured building as the result of any one of the ______, plus collapse due to other losses, such as Hidden Decay, Hidden Insect or Vermin Damage or the Weight of People or Personal Property.

Broad Form perils

The peril of Fire also covers losses due to _____, _____, and _____ as the result of the fire.

firefighter damage, water damage, and smoke damage

Earthquake deductibles are written as a ______of the loss.

Percentage