Chapter 25 Commercial Property Insurance Risk - RMIN Test 4

Monoline policy

contains only one type of coverage

package policy

combines two or more coverages into a single policy

Cause of Loss - Basic Form

certain basic causes of loss are covered, such as fire, lightning, wind, hail and explosion

Cause of Loss - Broad Form

Causes of loss covered by basic + falling objects, weight of snow, ice, sleet, water damage

Cause of Loss - Special Form

all direct physical damage losses are covered unless specifically excluded.

Reporting Forms

the insured underreports the value of the business personal property, recovery is limited to the proportion that the last value reported bears to the true value that should have been reported

Reporting Form Value

used to insure fluctuations in business personal property

Reporting Forms - Premiums

based on actual value of the covered property

Peak season endorsement

increases the amount of insurance during a specified period to reflect higher inventory values

Business Income Coverage Form

covers net profit of loss (BEFORE TAXES) & continue normal operation expenses (including payroll)

Extra Expense Coverage Form

covers extra expenses incurred by firm to continue operations following a loss