Chapter 7

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Author:
krys
ID:
58936
Filename:
Chapter 7
Updated:
2011-01-10 04:26:44
Tags:
Farm Property Insurance
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Description:
Chapter 7
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  1. farm property insurance
    • to keep pace with chages in faming operations
    • farms today - large business operations with heavy investments in land, buildings, livestock and farm equipment
  2. Farm Coverage Part includes
    • 1. One or more farm declarations Forms (Property and/or liability)
    • 2. Farm Coverage Forms
    • 3. endorsements
  3. Farm property coverage form
    • pay for direct physical loss to covered property resulting from a covered cause of loss
    • must be a limit shown in Declarations
    • Coverage A - Dwellings
    • Coverage B - other private structures
    • Coverage C - household personal property
    • Coverage D - loss of Use
    • Coverage E - Scheduled Farm Personal property - separate limit for each class of property applies
    • Coverage F - Unscheduled Farm Personal Property - a single blanket limit for farm personal property applies
    • Coverage G - Other Farm structures
  4. Causes of Loss
    • Basic, Broad, or Special Form
    • Basic - the rest similar to commercial policy except collision (coverage E & F only), Earthquake loss to livestock, Flood loss to Livestock
    • Broad - 5 additional cause of loss
    • electrocution of covered livestock, attacks on covered livestock by dogs or wild animals; accidental shooting of covered livestock; drowning of covered livestock from external causes; loading/unloading accidents
    • Special - open peril coverage for insured property other than livestock ; will not pay for dishonesty of insured and employee, release of pollutants unless caused by a specified cause of loss
  5. exclusions
    not cover losses caused directly or indirectly by law, earth movement (except sinkhole collapse), government action, intentional loss, nuclear hazard, off-premises services, war and military action, or flood or surface water
  6. Additional coverages
    • debris removal, resonable repairs, damage to property removed for safekeepting, fire department service charge- apply to all coverages
    • A, B, C and D - removal of fallen trees (up to $500); credit cards and fund transfer cards (up to $500)
    • E and F - cost of restoring farm operations records
    • E, F, G - extra expense
    • collapse - except basic form
    • pollutant clean up and removal
  7. Business property
    property pertaining to any trade, profession or occupation other than farming
  8. Dwelling
    building used for family residency , including mobile, modular and prefabricated homes
  9. Farm personal property
    equipment, supplies, and products of farming
  10. livestock
    cattle, sheep, swine, goats, horses, mules and donkeys
  11. Poultry
    fowl kept by isnured for use or sale
  12. securities
    negotiatible or nonnegotiable instruments or contracts presenting either money or other property
  13. Specified cause of loss
    basic form and broad form cause of loss
  14. Livestock coverage form
    • purchased when insured does not buy Farm property coverage form as livestock is the only exposure
    • written on named peril basis
    • covers death resulting from fire, lightning, wind or hail, explosion, riot, collision with vehicles on public roads, sinkhole collapse, volcanic action, vandalism and theft
    • excludes freezing in snowstorms, mysterious disappearance
    • limit - apply per animal or class of animal
    • automatically cover additional acquired livestock up to 30 days
    • all property must be insured at ACV
  15. Mobile Agricultural Machinery and Equipment Coverage Form
    • insured does not buy Farm Property Coverage Form
    • machinery and equip the only farm exposure
    • written either blanket or scheduled basis
    • 80% coinsurance clause
    • self-propelled harvester combines and cotton pickers with limit of insurance (scheduled)
    • exlcudes- dishonesty, irrigation equip, marring, mechanical breakdown, changes in temp
  16. Crop Insurance
    • specialized policy, protects insured against reduced yield because of a covered loss to crops before they are harvested
    • growing crops excluded
  17. Crop hail insurance
    • named peril coverage
    • fire, lightning, wind and freezing, frost plus hail
    • rates developed by Crop hail insurance actuarial association
    • deductible - 5% yield reduction
    • coverage ceases when crop is harvested
    • payment of insured loss - reduces the total amt of insurance available
    • include replanting provision - to reduce both insured and insurer's losses, insurer reimburse up to 20% of amt of insurance, does not reduce the amt of insurance
  18. multi-peril crop insurance (mpci)
    • written by private insurers
    • reinsured by Federal Crop Insurance Corporation
    • cover approximately 200 different crops
    • 90% for 5 major crops - corn and maize, cereal grains, soybeans, tobacco and cotton
    • causes of loss - adverse weather conditions, fire, inscets, plant diesase, wildlife, earthquake, and volcanic eruption
    • property and casualty insurance guaranty associations- not liable for losses
  19. Coarse grains
    corn, grain, sorghum and soybeans
  20. small grains
    wheat, barley, oats, rye and flax
  21. harvest
    combining an insured crop, or cutting for hay, silage or fodder
  22. silage
    a product that results from severing the plant from land and choppoing it for the purpose of livestock feed

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