Farm Policy

In a Farm Property Policy Coverage F, Unscheduled Farm Personal Property, covers all of the following property items against loss, EXCEPT:

  1. Farm Machinery.

  2. Feed Racks.

  3. Farm Tools.

  4. Livestock.

"The correct answer is "Feed Racks." Feed racks and many other items like corrals, pens, chutes, etc., are covered under Coverage G, Other Farm Structures.

Special cause of loss form version of a Farm coverage will cover

rain damage to personal property in the open

Lightning strikes the insured's combine

fire used to cure tobacco on a barn stored with tobacco

windstorm damage to the tractor left outside

The correct answer is "Lightning strikes the insured's combine." Under the Special Cause of Loss Form, rain damage to property in the open, windstorm damage, fire related to tobacco barns are all excluded. Property lleft exposed to the elements is a peril in control of the insured. Covering such damage would be covering a morale hazard, negligence. As for the tobacco shed, it is excluded because the risk is too high while the tobacco is being cured.

When a fox broke into Helen's hen house and killed four hens, Helen had to file a claim against her Farm Property insurance policy, which had a Broad Cause of Loss attached. After reviewing the claim, the insurance company

  1. paid Helen the market value of the four hens.

  2. declined the claim since attacks by wild animals are not covered by the Broad Form.

  3. paid Helen $8,000.

  4. paid Helen the actual cash value of the four hens.

The correct answer is "paid Helen the market value of the four hens." Attacks by wild animals are covered, and the value of Helen's loss is not fixed by the company but set based on the market value of the poultry.

Unless otherwise stated in the declarations of a farm policy, which of the following activities does not meet the contractual definition of farming?

  1. hydroponic activates

  2. aquaculture

  3. operation of roadside stands

  4. mechanized processing operations

The correct answer is "mechanized processing operations." "Farming" means the operation of an agricultural or aquacultural (water farming, hydroponics) enterprise. It includes the operation of roadside stands but does not include retail activity other than described in the policy or mechanized processing operations.

Unscheduled farm personal property has a livestock limit of:

  1. 1,000/ head one year or older.

  2. 3,000/head one year or older.

  3. 4,000/head one year or older.

  4. 2,000/head one year or older.

The unscheduled farm property form will cover livestock up to $2,000 per head which is an animal one year of age or older. So $1,000 would be available for the animal under 1 year of age known as a half head.

What is NOT excluded from the liability section of the farm coverage form?

  1. injury to farm employees

  2. injury to the next door neighbor while walking across your field

  3. insured's own products

  4. pollutants

Premises Liability exposure on the insured premises is always covered by the policy's liability protection.

When a boiler on Barry's farm exploded, the blast damaged nearby equipment and the resulting fire burned down one of his barns. After filing his Farm Insurance claim with his carrier, Barry was surprised to learn that his Basic Cause of Loss policy

  1. only covered the damage from the fire, not the explosion.

  2. covered all of the damage

  3. only covered the damage from the explosion, not the fire.

  4. declined to cover any of the damage

The correct answer is "only covered the damage from the fire, not the explosion." Though the policy covers both fires and explosions, it excludes damage from explosions typically covered by equipment breakdown insurance. Though this explosion was excluded, the resulting fire damage is covered, which is typical among commercial property insurance forms.

Broad form Farm Property coverage will cover which of the following perils?

Water damage from frozen pipes in a building under construction

Fire damage due to fire used to cure or dry tobacco

Collapse, except as provided in additional coverage

Electrocution of covered livestock

The broad form covers the electrocution of livestock. Fire losses during the curing of tobacco are always excluded in all forms, as is collapse unless covered in additional coverages. Also, the broad form does not cover frozen pipes in buildings under construction unless the heat is specified as being left on.

B has been injured on a farm and has minor losses that would be covered under the Part J of the farm's Farm insurance policy. B must bring her claim within how long of the accident?

  1. 60 days

  2. 1 year

  3. 3 years

  4. 30 days

The correct answer is "3 years." The insuring agreement of Coverage J states that the insurer will pay all reasonable medical expenses within three (3) years from the date of an accident causing bodily injury. Under Part J coverage, all payments are made regardless of fault.