Commercial Insurance Chapter 1

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Author:
tfrantz
ID:
192021
Filename:
Commercial Insurance Chapter 1
Updated:
2013-02-11 11:43:05
Tags:
commercial insurance chapter terms
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Description:
commercial insurance chapter 1 terms
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  1. Real property (realty)
    tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land
  2. Personal property
    all tangible or intangible property that is not real property
  3. Commercial property coverage part
    commercial package policy (CPP) coverage component that provides a broad range of coverages to "middle-market" or larger firms to insure buildings and business personal property
  4. Commercial package policy (CPP)
    Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts
  5. Monoline policy
    Policy that covers only one line of business
  6. Package modification factors
    factors that are applied to the regular policy premiums for certain coverage parts of a CPP that includes both property and liability coverages, resulting in premium discounts for those coverage parts
  7. Commercial property declarations page
    a required commercial property coverage part component that provides basic information about the policyholder and the insurance provided
  8. Commercial property coverage form
    a commercial property coverage part component that can be any of several commercial property forms containing an insuring agreement and related provisions
  9. Causes of loss form
    a required component of the commercial property coverage part that specifies perils covered
  10. Commercial property Conditions
    a required component of the commercial property coverage part that contains conditions applicable to all commercial property coverage forms
  11. Improvements and betterments
    alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them
  12. Describe
    commercial property insurance in terms if these elements: the major categories
    of loss exposures that can be covered and the components of a commercial property
    coverage part.
    • The
    • major categories of loss exposures that can be covered in commercial property
    • insurance are: types of property, causes of loss to property, and financial
    • consequences of property losses. The components of commercial property loss
    • exposures are: commercial, property declarations, one or more commercial
    • property coverage forms, one or more causes of loss forms, commercial property
    • conditions, and any applicable endorsements.
  13. Determine
    whether a described item of property qualifies as Covered Property under one or
    more of these categories in the Building and Personal Property Coverage Form:
    Building, Your Business Personal Property, and Personal Property of Others.
    • An
    • item will be covered under the Building and Personal Property Coverage Form if
    • the building is listed and described in the declarations, completed additions
    • to covered buildings, fixtures (including outdoor fixtures), permanently
    • installed machinery and equipment, and personal property owned by the insured
    • and used to maintain or service the building and its premise(s). An item will
    • be covered under the Your Business Personal Property section if the personal
    • property is owned by the insured and used in the insured’s business. An item
    • will be covered under the Personal Property of Others section of the form if
    • and only if the property is in the care, custody, control, or in or on the building
    • of the insured that is described in the declarations or within 100 feet of the
    • described building.
  14. Determine
    which of the additional coverages and coverage extensions of the Building and
    Personal Property Coverage Form apply to a described loss.
    • The¬†additional coverages that appear in the BPP are: debris removal, preservation
    • of property, fire department service charge, pollutant cleanup and removal,
    • increased cost of construction, and electronic data. The coverage extensions of
    • the BPP if and only if 80% of the coinsurance or a value reporting period
    • symbol is shown in the declarations and the coverage extensions are: newly acquired
    • or constructed property, personal effects and property of others, valuable
    • papers and records (other than electronic data), property off-premises, outdoor
    • property, and non-owned detached trailers.
  15. Determine
    whether the cause of a described loss is a covered cause of loss under either
    the Cause of Loss-Basic Form or the Causes of Loss-Broad Form.
    • The
    • Basic Form and Broad Form differ in three areas and these are: covered causes
    • of loss, exclusions, and additional coverages. The Broad Form covers all the
    • perils that are named in the Basic Form plus three additional perils: falling
    • objects, weight of ice, snow, or sleet, and water damage. The Broad Form also
    • provides additional coverage for collapse.
  16. Determine
    whether the cause of a described loss is a Covered Cause of Loss under the
    Causes of Loss-Special Form.
    • The¬†Special Form covers all losses that would be covered in the Basic and Broad
    • Forms. Additionally the Special Form covers theft of covered property under a
    • wide variety of circumstances, with some exclusions and limitations (Basic and
    • Broad Forms only cover theft in the event of looting in a riot or civil
    • commotion). The Special Form also covers losses that the insured may have not
    • anticipated except those specifically excluded. The Special Form shifts the “burden
    • of proof” from the insured to the insurer (in Basic and Broad Forms, the
    • insured would have to prove that the loss was caused by a covered loss).

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