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What is the purpose of the cause of loss forms?
Specifies the peril that triggers coverage or ‘what must happen in order for coverage to be available’
What are the four cause of loss forms available?
Basic
Broad
Special
Earthquake
The mortgage holder gets ___ days notice for nonrenewal and cancellation due to nonpayment of premium
10 days
If a claim is denied due to the actions of the insured, can the mortgage holder still be entitled to claim payment?
YES
The majority of exclusions for commercial property are found where?
In the cause of loss forms
What forms cover windstorm as a peril?
Basic
Broad
Special
The peril of explosion excludes what?
Machinery and steam boiler explosion
What does the peril of riot/civil commotion also include?
Looting
Where is the peril of theft covered?
On the Special form
What is required if you want BI coverage?
An insured direct loss
Business Income can be purchase with / without what?
Extra Expense
What is BI coverage?
Covers the loss of income when operations are suspended due to damage to the property by an insured peril
Loss of income, rents, tuition are examples of?
BI loss
When does BI coverage start?
72 hours after the loss
BI payment is …
The pre-tax net profit or loss, continuing expenses, including payroll
The peril that triggers BI depends on what?
The cause of loss form listed on the declaration page
What is extra expense?
An indirect coverage that prevents suspension of business operations by paying the extra expenses needed to stay open
Extended BI will continue coverage up to how many days after REOPENING?
30 Days
What is Extended Period of Indemnity?
Extends BI beyond the 30 days after reopening, up to the number of days stated on the declaration page
Net incomes = ?
NI = Revenue - Expenses
What are indirect forms forms listed on the declaration page?
Business Income and Extra Expense
EE can also include _____ expenses
expediting expenses
What are expediting expenses?
Expenses such as overnight shipping, overtime so that repairs speed up
Increased cost of repairs, reconstruction, or demolition that occur due o building code changes and upgrades pertain to?
Ordinance or Law
Ordinance and law is excluded or included in a policy?
Excluded and must be ENDORSED to cover those expenses
What does builders risk cover?
Buildings under construction
Which of the following is NOT covered in builder’s risk?
a) the building
b) materials within 100 feet
c) contractors tools
Contractors tools
Which of the following is NOT a requirement for the termination of Builders Risk coverage?
a) policy expires/cancelled
b) property accepted as is
c) 90 days after construction is complete
d) a claim is made within 30 days
e) 60 days after building is occupied
f) insured’s interest in property ceases
What perils are excluded with property under construction?
Theft and CANNOT be declared vacant
What coverage forms does Commercial General Liability (CGL) consist of?
Occurrence
Claims-made
What is the major difference between an occurrence form and a claims made form?
The coverage trigger
What is the coverage trigger in an occurrence form?
The policy that was in force when the occurrence happened
What is the coverage trigger in a claims-made form?
When the claim was filed
What can be used instead of a retroactive date in a claims-made form?
A laser beam endorsement
What is the endorsement used to eliminate coverage for certain exposures, projects etc.?
Laser beam endorsement
An undendorsed CGL claims made contains a BERP which is a?
Basic Extended Reporting Period
What is a BERP?
Basic Extended Reporting Period - the insured has up to 60 days after the policy expires to report an incident that happened and have it covered
A claims made CGL can be endorsed with a ________ to extend the reporting period indefinitely
SERP: Supplemental Extended Reporting Period
CGL extends coverage to which loss exposures?
Premises and operation
Product
Completed operations
Contractual
Contingent
Premises & Operations pertains to?
The exposure for the insured’s location and activities
The CGL has how many limits in which Section?
6 limits in Section III
What are the two CGL’s aggregate limits called?
General aggregate
Product & completed operations aggregate
All claims are deducted from the ___________ aggregate except ______ ________ claims
General aggregate; except product & completed operations claims
What does Section I of CGI pertain to?
A: Bodily injury and property damage
B: Personal & advertising injury
C: Medical payments
Supplementary payments are provided for Coverage __ &__ and paid in addition to policy limits
Coverage A & B
In Coverage C: Medical payments pays all expenses within ___ year/s
Within 1 year only, NOT 3 years
Unauthorized release of confidential information would be covered under?
Personal injury
What is the difference between personal injury and bodily injury?
Personal injury can include an unauthorized release of confidential information while bodily injury cannot
Should a bodily injury occur during a false arrest or wrongful eviction, it would be included in the?
‘Offense’ category and be covered as a personal injury
The insured contracts/incidentals include?
Lease
Agreement to indemnify a municipality
Sidetrack (railroad) agreement
Elevator maintenance
Which of the following are NOT mobile equipment?
Forklifts
Earth movers
Automobiles
Automobiles
CGL defines an automobile as?
NOT licensed for public roads
CGL defines mobile equipments as
Licensed for public roads
Which of the following is NOT covered under the CGL?
Host liquor
Forklifts
Automobiles
Mobile equipment
Automobiles
What is the requirement for host liquor to NOT be excluded under the CGL?
If the insured is a alcoholic business
Which of the following are EXCLUDED under the CGL?
Injuries to customers/patrons
Pollution
Injuries to employees
Pollution & injuries to employees (this is worker’s comp)
Who is insured under the CGL?
Named insured and spouse
Officers, directors, stockholders
Employees
Real estate
Volunteer workers
Named insured legal rep upon their death
“Everything is covered unless it’s excluded” is which form?
Special Form
Which form would you buy if you wanted to buy a Contingent Business Interruption form?
Business income from Dependent Properties
Breakage, ornamentation, chemical damage are all covered perils under the Glass Coverage form but NOT FIRE, why?
Fire damage is already covered under all three Causes of Loss forms on the CPP
What is the limit for glas coverage under the Glass Coverage form/endorsement?
Coverage provided without limitation but is settled on an ACV basis
Aggregate limit refers to?
The most an insurer will pay in any one policy period
Which are NOT exclusions under the CGL policy - why?
Products and completed operations coverage
Auto liability coverage
Professional liability coverage
Liquor liability coverage
Products and completed operations coverage because it is a necessary coverage for someone like a contractor
The Commercial Broad Form Causes of Loss include all of the following EXCEPT:
Collapse
All of these are included
Ordinance or Law
Breakage of glass
Ordinance or Law is a common exclusion in all 3 Causes of Loss forms
In the Definitions Section of a CGL policy, “occurrence” means:
An event that is not discovered until years later
A one time event
An accident involving continuous or repeated exposure to the same general harmful conditions
Coverage A of the CGL policy covers:
Bodily Injury and Property Damage Liability
What form could cover tenants for financial loss resulting from the cancellation of a lease due to property damage?
Leasehold Interest Coverage Form
The peril that trigger coverage under the BI form are found:
On the declarations page
Glass Breakage under a broad Form Cause of Loss is covered for up to:
$500 per occurrence
What Commercial Property cause of loss form has the broadest coverage?
Special Causes of Loss
Not subject to the per occurrence limit on the CGL would be:
Personal & Advertising
This form covers risk of direct physical loss subject to exclusions pertains to?
Special form
A cause of loss form that doesn’t list the covered losses is named all of the following except:
All risk
Special
Open peril
Broad form
Broad form
The Glass Coverage form pays:
ACV without limitation per plate or pane, unless stated as replacement cost on the policy
All of the following are exclusions on the Commercial Causes of Loss Special form policy EXCEPT:
Wear and tear
Faulty workmanship
Insects, birds, rodents
Sinkhole collapse
Sinkhole collapse - it is covered on all 3 Causes of Loss forms
Which of the following is NOT a covered peril under the Specified Cause of Loss form?
Water damage from accidental discharge of water or steam
Leaking from fire extinguishers and equipment
Volcanic Action
Falling objects
Leaking from fire extinguishers and equipment
An exclusion section that limits the application of covered perils is found in:
All causes of loss forms: special, broad and basic
