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Business Owners 02
Stack #35173
| Question | Answer | etc |
|---|---|---|
| businessowners policy? | is package policy approach to insurance for business firms that meet eligibility requirements. program introduced in 1976 & has been extensively revised over years. | 2002 edition most current revision. |
| what type of policy is business owners policy? | standalone policy with its own forms | (blank) |
| what coverages are provided by business owners policy? | property & liability coverage in a single contract. | (blank) |
| how many premiums for business owners policy? | single premium with no division or itemization of premium charged for property & liability. | (blank) |
| in how many policies must all building and personal proeprty under one ownership be included? | in one policy. | (blank) |
| what are the characteristics and purpose of the business owners policy (02) | is a prepackaged policy designed to fit the needs of the small to medium size business. Instead of selecting the individual coverages, to be insured, the ins co offers a package of coverage which includes property & liability | usually a few additional coverages included in pack and some optional coveages may be offered. the insured cannot usually exclude coverage automatically provided in package. |
| what businesses are eligible for coverage? | small to medium businesses with low exposure to loss which primarily conduct business on premises & do not have a large products/completed operations exposure. | (blank) |
| typical busineses eligible for businessowners policy include: | office buildings not exceeding 6 stories in height or $100,000 square feet in total floor area; apts and condos not exceeding 6 stories in height or 60 dwelling units; mercantile, processing & service estb. if total floor area of bldg not more than 25k ft | or annual gross sales of $3k; contractors including carpenters, electricians, painters, plumbers, etc.; restaurants limited to fast food types up to 7500 sqft (beer & wine sales permitted subjc to limit 25% gross sales & convenience stores w/gas pumps |
| on convenience stores that have gas pumps and want to have a business owners policy what extent of sales are limited | 50% of gross sales can be gasoline | no auto service, auto washing, or propane/kerosne filling permitted |
| are sporting stores considered elgible for BOP | yes but not if they sell firearms | additional restrictions can be applied to further idnetify those risks with the lowest potential for loss. these premiums are relatively inexpensive so important to eliminate those risks that have an increased exposure to loss |
| advantages of prepacked policy | property & liability coverage is included in single predesigned package, options most frequently needed by small business owners are included/available for small additional premium & rates for entire package are extremely favorable since eligible types | of risks have a lower potential for loss. |
| what does it mean when say BOP premium indivisible | liability rate is computed with the property rate. not a separate premium for liability and property. special rate package applies to all mandatory coverages. | final premium will depend on the limits selected, deductibles & any optional coverages. |
| under the BOP the following are ineligible: | automobile sales and servicing operations, manufacturing operations, places of amusement, household personal property, 1 or 2 family dwellings, and financial institutions | (blank) |
| why does the business owners policy not require common policy declarations or common policy conditions used on other commercial package policies (CPP) | it is prepackaged and has its own sets of endorsemetns and does not require those. | (blank) |
| what will teh BOP have attached? | business policy declarations form | (blank) |
| what information is commonly found on BOP dec? | name and address of insured, coverages, and amt of insurance, optional coverages selected and any endorsements attached to policy. | (blank) |
| what definitions are included in BOP | money, period of restoration, pollutants and specified causes of loss | (blank) |
| money | currency, coins, bank notes and traveleters or register checks or money orders held for sale | (blank) |
| period of restoration | for business income coverage begins 72 hours after the direct loss or immediately for Extra Expense Coverage. period of restoration ends on teh date the property has been repaired or business has resumed. | (blank) |
| pollutants | include any solid, liquid, gaseous or thermal irritant or contaminant | (blank) |
| specified causes of loss | means fire, lightening, explosion, windstorm, or hail, smoke, aircraft, or vehicles, riot or civil commotion, vandalism, leakage from fire extinguishing equipment, sinkhold collapse, volcanic action, falling objects, weight of ice, snow or sleet and | water damage |
| what is covered | both the building and business personal property | (blank) |
| what coverage must the insured purchase | if the insured owns the building and personal property they are usually required to purchase coverage for both. | (blank) |
| if the insured owns teh building but leases it to others, what coverage can be purchased? | they can insure the building only. | (blank) |
| if the insured is the tenant of a leased building, what coverage will be required? | insurance will only be required on the business personal property. | (blank) |
| what definitions apply for building and personal property | same as those in building and personal property coverage form | (blank) |
| what replacement basis is used for BOP | usually written on replacement cost basis without a coinsurance clause. however, many insurers felt BOP insured were not carrying adequate amounts of insurance, and an insurance to value provision was introduced | (blank) |
| insurance to value provision | provides that to collect the full replacement cost, teh insured must carry insurance equal at least 80% of insurable value of covered property. | many insurers do not include but it is becoming more widespread |
| several additional coverages for BOP | debris removal, preservation of property, fire department service charge, collapse, water damage, other liquids, powder or molten material damage, business income, extended business income, extra expense, pollutant clean up and removal, civil authority, | money orders and counterfiet paper currency, forgery & alteration, increased construction cost, glass expenses |
| debris removal | is provided for up to 25% of direct loss plus the deductible if reported within 180 days of the loss or the end of the policy period, whichever earliest. if amt of debris removal and direct loss exceeds the limit of insurance, or if debris removal | expense exceeds 25% limitations, policy will pay an additional $10k under the debris removal coverage. |
| preservation of property | commonly called removal coverage, provides 30 days coveage for property that is temporarily removed to protect it from damage | (blank) |
| fire department service charge | $1,000 included as additional amount of insurance | (blank) |
| collapse | is covered if caused by 1 of the specified causes of loss: hidden decay, insect/vermin, weight of people or property, or use of defective materials if collapse occurs during construction | this additional coverage is only included in special form. |
| business income | loss of business income is included during restoration following a direct loss to covered property. covearge is limited to 12 months following the loss for business income and 60 days following the direct loss for ordinary payroll. | this additional coverage is not subejct to limit of insurance. |
| extended business income | will cover necessary suspension of business operations from time property is repaired, rebuilt or replaced and operations are resumed to earlier of the date operations are restored to the level that would have existed without the loss or 30 days after | property repaired, rebuilt, replaced and operations resumed. |
| extra expense | also covred for up to 12 months follwoing direct loss to property. | additional coverage is not subject to limit of insurance |
| pollutant clean up and removal | policy will pay up to $10k for expense incurred in a 12 month period to extract pollutants for land or water at descibred premises if pollution resulted from a covered cause of loss and is reported to the insuerre within 180 days. | this is an additional amt of insurance |
| civil authority | loss of business income or extra expenses that result from action of civil authority that prevents access to premises due to a direct loss elsewhere is also covered. coverage for business income beings 72 hours afte rthe action and continues for up to 3 | weeks. coverage for extra expenses begins immediatley and lasts for 3 weeks or until business income coverage ceases, whichever is later. |
| money orders and counterfeit paper currency | will also py up to $1k for losses that occur form good faith acceptance of counterfeit currency or unpaid money orders | (blank) |
| forgery and alteration | up to $2500 for losses that result from altered or forged checks or drafts is also convered. | (blank) |
| increased cost of construction | buildings insured on a replacement cost basis are covered for increased costs incurred to comply with enforecment of an ordinance or law while rebuilding, repairing/replacing damged parts of property if damage was caused by covered cause of loss. | covg not subject to ordinance or law exclusion |
| glass expenses | policy will pay for expenses incurred to put up temporary plates or board up openings in damaged glass and for expense to remove or replace obstructions when replacing or repairing glass that is not part of a building. | (blank) |
| what are the several coverage extensions that are in addition to limit of insurance | personal property at newly acquired premises, personal property off premises, outdoor property, personal effects, valuable papers and records cost of research | (blank) |
| personal property at newly acquired premises | up to $100k is available for newly acquired business personal property. coverage will only apply for 30 days after insured acquires the property or end of policy period whichever comes first | (blank) |
| personal property off premises | up to $5k available for business personal property other than money and securities during transit or temporarily at a premises the insured does not own, use, lease or operate. | (blank) |
| outdoor property | insured may extend the coverage to apply to outdoor radio and television antennaes, detaches signs and trees, shrubs and plants if loss results from fire, lightning, lightning, explosion, riot or civil commotion or an aircraft. | insurer will pay up to $2500 for this coverage extension but more than $250 for any 1 tree plant or shrub |
| personal effects | business personal property covearge may be extended to apply to personal effects owned by insured, officers, partners or members of insured and employees. | insurer will pay up to $2500 at each described premises. |
| valuable papers and records-cost of research | up to $10k available for cost to research, replace or restore lost information for which duplicates are not available on premises, and $5k for valueble papers and records not at described premises. | (blank) |
| what will a policy pay if the insurance that applies to business personal property to accounts receivable | will pay all amounts due from insured's customers that the insured is unable to collect, interest charges on any loan required to offset amounts uncollectible pending the insurer's paymetn of these amoutns, collections expenses in excess of normal | collection expenses that are made necessary by loss/damage; other reasonable expense tha the insured incurs to reestablish records of account; receiveables that result from direct physical loss or damage by covered cause of loss to the insured's record AR |
| what is the higest amount paid under acounts receivable extension for loss or damge in any 1 occurrence | $10k unless a higher olimit of insurance for accounts receivable is shown in declarations. | for accounts receivable not at described premises, most hte extension will pay is $5k. |
| follwing are additional exclusions that apply to AR coverage extension: | loss or damage caused by or resulting from alteration, falsification, concealment or destruction of records of account recievables done to conceal the wrongful giving, taking or withholding of money, securities, or other property (only applies to wrongful | use/taking/withholding); loss or damage caused by or resulting from bookkeeping, accounting or billing errors or ommissions & any loss/damage that req audit of records of inventory compilation to prove factual existence |
| what are the standard causes of loss | fire; lightning; explosion; windstorm or hail; smoke; aircraft & vehicles; riot or civil commotion; vandalism; sprinkler leakage; sinkhold collapse; volcanic action; and transportation | (blank) |
| transportation | loss or damage to covered property in course of tranist cuase by collision or derailment of a vehicle, the stranding or sinking of a vessel; or the collapse of a bridge; pier; culvert; wharf or dock. | (blank) |
| which peril is unique to businessowners | transportation perils | (blank) |
| special businessowners property coverage | covers risk of direct physical loss subject to exclusions and limitations. this means coverage is provided on an open peril basis and is identical to Commericial Property Special Form cause of losse.s | (blank) |
| following business property coverage form conditions apply in addition to common policy conditions | abandonment, appraisal, duties in event of loss or damage; legal action against insurer; electronic media & records limitation; limitation-electronic media & research; control of property; mortage holders; no benefit to bailee; policy period, coverage | territor, loss payment, recovered property, vacancy |
| abandonment | the insured cannot abandon damaged property for purpose of claming a total loss | (blank) |
| appraisal | a method of valuing property following a loss when the insured and the insurer fail to agree upon the amt of damage | (blank) |
| duties in event of loss | notify teh policy if law has been broken; given insurer prompt notice of loss, including description of damaged property, given insurer description of how, when and where loss or damage occurred; take all reasonable steps to protect covered property from | further damage and keep record of all expenses; at insurer's request provide an inventory of the damaged and undamaged property; permit insurer to inspect the property and to examine the insured's books and records; send insurer a signed proof of loss |
| duties in event of loss continued | send the insurer a signed sworn proof of loss within 60 days of reuqest; cooperate with the insurer in investigation and settlement; resume all or part of business operations asap; and the insurer has the right to examine any insured under oath | (blank) |
| legal action against insurer | insured is required to be in full compliance with regard to policy provisions before bringing any legal action aginst the company, and the action must be brought within 2 years of date of loss | most states amend 2 years as stated in policy (Missouri gives 10 years to commence action) |
| electronic media and records limitation | insurer will not pay for business income loss caused by direct physical damage to electronic media and records after the longer of 60 days or the period necessary to repair/replace the property with reasonable speed. | (blank) |
| control of property | acts or persons other than the insured which are beyond the control of the insured | will not affect coverage |
| policy period, coverage territory | coverage territory is dfined as US and its possessions and territories; Puerto Rico and Canada | (blank) |
| Loss payment | in event of loss or damage the insurer has the option to pay the value of the lost or damaged property; pay the cost to repair or replace the lost or damaged property | take all or any part of lost or damaged property at an agreed upon or appraised price; or repair, rebuild or replace the lost/damaged property with like kind & quality |
| recovered property | if proeprty is recovered after loss settlement, the insured may either retain teh property and return any loss settlement payment, surrender property to the insurer. | (blank) |
| vacancy | losses caused by vandalism, sprinkler leakage (unless the insured takes protective measures) building glass breakage, water damage, theft or attempted theft will not be covered if the building has been vacant for more than 60 consecutive days. | losses in a building vacant for more than 60 days caused by any other covered cause of loss, will be covered for an amount 15%less than normal coverage under policy. |
| how soon with insurer notify the insured of their intention | within 30 days after receiving the sworn proof of loss. | (blank) |
| how will losses be settled if property is insured to at least 80% of its replacement cost | losses will be settled on a replacement cost basis | (blank) |
| how will loss be settled if property insured at less than 80% of its replacement cost | the insurer will pay the greater of actual cash value a proportion of the cost to repair or replace the property equal to ratio of the limit of insurance to 80% of the cost to repair or replace or the amount the insured actually spends to repair or | replace the damaged property. |
| what types of property are always settled on actual cash basis? | used or second hand merchandise, property of others, household contents except personal property in apartments or rooms furnished by the insured as landlord, manuscripts and works of art, antiques or rare articles. | (blank) |
| how are valuable papers valued | at the cost of blank materials for reproducing records and labor to copy the records. | (blank) |
| how is money valued | at its face value and securirties will b valued as of their value at the close of business the day of the loss | (blank) |
| what happens if either party recovers property in which a settlement hsa already been made | the insured has teh option to retain the property and return teh amount paid. | insurer will pay for any recovery costs and expenses necessary to repair recovered property. |
| resumption of operations | means the insurere will reduce the amount of business income and extrra expenses losses to the extent the insured can resume operations in whole or in part by using damaged & undamaged property | (blank) |
| when does a policy written on a tenant become vacant | when the buildling does not conatin enough business to conduct customary operations. | (blank) |
| when does vacancy occur if the policy is written on buiklding owner | when 70% or more of the square footage is unused or is not rented. | (blank) |
| what damage is excluded if the building is vacant for 60 days or more | any loss or damage caused by vandalism, sprinkler leakage unless the insured has protected the system against feezing, building glass breakage, water damage, theft or attempted theft. | if the loss/damage to vacant building results from any other cause of loss, the amoutn payable will be reduced by 15% |
| what 2 provisions pertain to automatic increases in coverage in BOP | building limit-automatic increase; business personal property limit-seasonal increase | (blank) |
| buildign limit-automatic increase | limit of insurance for building will automatically be increased annually by percentage amount shown in Dec; | (blank) |
| business personal property limit-seasonal increase | the limit for business personal property will be automatically increased by 25% for seasonal fluctutations. | this increase is only applicable if the insured carries insurance equal to 100% of the average montly values for the past 12 months. |
| what coverage limitations | not pay for loss or damage to steam boilers, steam pipes, hot water boilers or other water heating equipment caused by condition inside equip, mysterious disappearance ; property transferred to others based on unauthorized instructions; glass damage | limited to $100 per plate/$500 per occurrence; outdoor signs attached to buildings covered for $1000 per sign in any 1 occur; policy wont pay for fragile items broken unless caused by specified cuases of loss; loss/damage cuased by theft |
| what does mysterious disappearance mean as to coverage lijmitations | property mising with no physical evidence about what happened to it, such as inventory shortages | (blank) |
| glass damage limitation does not apply to | damage caused by specified causes of loss, except vandalism | (blank) |
| exclusion for payment on fragile items does not include | glass that is part of interior/exterior of building to containers of property held for sale, or to photograhpic or scientific instrument lenses | (blank) |
| in the special form (since theft not covered in basic/broad forms), loss cuased by theft limited as to amt of coverage on following | $2,500 for furs; $2500 for jewelry, watches, jewels, pearls, precious and semiprecious sontes, etc & $2500 for patterns, dyes, molds & forms | (blank) |
| deductibles | the most insurer will pay for any 1 loss is the applicable limit of insurance minus deductible. | deductible doesnt apply to fire department service charge, fire extinguisher systems recharge expense, business income, extra expense or civil authority coverages. |
| what property is excluded from coverage | aircraft & vehicles, money/securities/ contraband or property in courts of illegal trade or transportation; land, water, crops or lawns; outdoor fences, radio & television antennas, satellite dishes, detaches signs, trees, plants and shrubs & watercraft | while afloat |
| what exclusions pertain to Special Businessowners policy | ordinance/law; earth movement; governmental action; nuclear hazard; power failure; war/military action; water (flood, waves, mudflow, etc), artificiallly generated electrical current; delay, loss of use of market; smoke from agriculatural smudging/ | industrial operations; explosion of steam apparatus; freezing; dishonesty; false pretense (voluntary parting with property if induced by trick, scheme, or device)rain, snow, ice or sleet to pers prop in open; collapse, pollution; expected losses, |
| exclusions found in businessowners policy continued | false pretenses (voluntarily parting with property if induced by trick, scheme or device); collapse (except as provided in addtl covrage), expected losses (wear & tear, gradual deterioration, mechanical breakdown, etc), weather conditions (but only if | weather conditions contribute to an otherwise exclused cause of loss), acts or decisions, negligent work and business income and extra expenses that result from delays or cancellation of lease |
| standard form also excludes | rupture/bursting or water pipes; and leakage or discharge of water or steam from the breaking or cracking of any part of a system/appliance that contains water/steam | (blank) |
| what optional coverages are available on BOP | outdoor signs, money & securities, employee dishonesty, mechanical breakdown | (blank) |
| outdoor signs | all outdoor signs owned or in care, custody or control of insured can be insured. signs generally insured on open peril basis for amt of insruance specified in DEc. commons exclusions include wear and tear | hidden or latent defects, rust, corroson, and mechanical breakdown. without additional coverage, the limit under BOP is $1,000. however, this addtl outdoor sign coverage allowed purchase larger amt of ins for outdoor signs |
| money and securities | loss of money and securities resulting from theft, disappearance or destruction can be covered. the insured is reuqired to maintain records of the money and securities so the insurer can verify amt of loss or damage. for coverage to apply, the money | and securitries mus thave been at the insured premises, a financial institution, the insured's/employees home or in transit from one of these places. separatre limits specified for losses that incur inside & outside premises |
| employee dishonesty | loss to business personal property or money & securities that results from dishonest acts of employees is covered. acts committed by insured/partners are excluded. | policy declarations will show applicable limit of insurance. coverage automatically terminates on any employee once insured learns of previous acts of dishonesty |
| mechanical breakdown | coverage provides protection for direct losses caused by an accident to an object owned or in teh care, custody or control of insured. | an object means boiler or pressure vessels, or air-conditioned units with capacity of 60,000 BTUS or more. specific types of objc excluded |
| what is the business owners liability for a BOP written on | Businessowners liability coverage form | which generally applies to all operations and premises owned or operated by insured. cert. locations/operations excluded by endorsement |
| BOP liabitliy covers | bodily injury, property damage, personal injury & advertising injury. medical expenses. | (blank) |
| business liability covers medical expenses | same coverage previously discussed in section dealing with commercial general liability covg. includes same supplemental payements as comm general liability form. | medical expenses limit to per person limit on dec. |
| medical expense coverage includes | accidental bodily injury only, incoluding ambulance services, x-ray services, and first aid when accident occured. not cover any counseling | (blank) |
| medical payments coverag ewill pay | medical, dental, hospital, and funeral services incurred within 1 year from date of accident to person who suffers bodily injury by accident on or next to the insured's premises. or because of insured's operations. | (blank) |
| how long with BOP pay medical expenses | necessary medical expenses of others incurred within 1 year. | (blank) |
| what conditions apply for BOP coverage to liability coverage in addition to common policy conditions | bankruptcy, duties in event of occurrence, claim or suit, financial responsibilitylaws, legal action against insurer, separation of insured, | (blank) |
| bankruptcy | bankruptcy or insolvency of insured does not relieve the insurer of any obligation | (blank) |
| duties in event of occurrence, claim or suit | promptly notifying insurer of occurrence (how, when where, names & addresses of injured persons), prompt written notice of claim; promptly notifying insurer of any legal papers received related to loss; and cooperating and assisting in investigation of | claim |
| financial responsibility laws | policy will comply with any state laws concerning financial responsibilties | (blank) |
| legal action against insurer | insured must comply with all terms of policy prior to taking legla action against insurer. party may sue insurer to recover damages against an insured in form of settlment. settlement cannot exceed policy limits. | (blank) |
| separation of insured | limit of insurance is paid only once per occurrence regardless of number of claimants /number of persons injured. | (blank) |
| what exclusions apply to business liability coverage | expected or intended injury, contractual liability, liquor liability, workers comp and similar laws, employers liabilty, pollution, aircraft, auto or watercraft, mobile equipment, war, professional services, | property damage to property the insured owns/in insured's care, custody or control; damage to insured's product/work; damage to impaired property/property not physicall injured; recall of products work or impaired property; personal & advert injury excl, |
| what exclusions apply to business liability coverage (continued) | medical expense exclusions and nuclear energy exclusion | (blank) |
| expected or intended injury | exclusion does not apply to BI which results from use of reasonable force to protect person/property | (blank) |
| contractual liability | does not apply to insured contracts | (blank) |
| liquor liability | no coverage from liability arising out of causing/contributing to intoxication of person, furnishing alcholic beverages to a minor or person who is already intoxicated, or to any regulation or ordinance relating to sale, gift or dist. of alcoholic beverag | exclusion only applies to insured in business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages |
| Workers Comp and similar laws | no coverage for any obligation the insured has under WC/similar law | (blank) |
| employers liability | no coverage for BI to an employee in course of employment, including spouse, children or siblings of employee. exclusion does not apply to any liability assumed under insured contract. | (blank) |
| pollution | BI or PD arisingout of actual or alleged pollution is excluded. exclusion does not apply to heat, smoke, or fumes from hostile fire. | (blank) |
| aircraft, auto or watercraft | no coverage for BI or PD caused by ownership, maintenance, use or entrustment to others of any aircraft, auto or watercraft. exclusion does not apply to: watercraft while on shore at premises owned by insured; nonowned watercraft less than 26 ft long & | not being used to carry persons or property for fee;parking auto on premises; liability assumed under any insured contract; & BI/PD caused by operation of cherry picker/similar equip mounted on trucks& air compressors, pumps & generators |
| mobile equipment | no coverage because transportation of mobile equpment by auto or use of mob equip in any speed, demolition or racing contest | (blank) |
| professional services | no coverage for bodily injury, property damage, personal or advetisting injury due to rendering or failure to render professional services. | exclusion applies to most tyeps of professional services but not to an insured whose operations incl those of retail druggist or drugstore |
| personal and advertising injury exclusions | same as in commercial general liability coverage form | (blank) |
| medical expenses exclusion | similar to exclusions for medical payments in commercial general liabhility coverage form | (blank) |
| nuclear energy liability exclusion | applies to all liability coverages. | (blank) |
| definitions | of advertising injury, BI, coverage terrigoty, insured contract, mobile equipment, personal injury, products/completed operations hazard, insured product, etc | all of which are similar or same as those discussed in general liability coverage form |
| Businessowners common policy conditions | cancellation; changes, examination of books/records; inspections and surveys, premiums, transfer of rights and duties under policy, transfer of rights of recovery (subrogatrion), concealment, misrepresentation/fraud, insurance under 2 or more coverages, | liberalization, other insurance, premium audit |
| cancellation | insured may cancel polciy at any time by mailing writen notice of cancellation to insurance co. if 2 or more insureds listed on dec page, only insured listed first (first naemd insd) can cancel. insurer can cancel by mailing written notice of cancellat | to 1st named insured. |
| what are the requirements for notice of cancellation by mail: | advance notice is required by insurer so that insured can obtain other coverage; must be mailed/delivered to insured 5 days prior to date of cancellation if any of following conditions exist to bldg: bldg vacant/unoccupied for 60 or more consecutive days | permanent repairs for damaged by covd loss have not been contracted within 30 days of initial payment of loss; bldg has outstanding order to vacate, demolition order, been declared unsafe by govt authority; fixed & salvagble items removed from bldg not |
| what are the requirements for notice of cancellation by mail: | fixed and salvagable items removed from bldg not being replaced; failure to furnish necessary utilities (heat, water, etc) for 30 or more consecutive days, or failure to pay property taxes owed/outstanding for more than 1 year; | (blank) |
| how soon must cancellation be mailed if nonpayment of premium is cause of cancellation | 10 days prior to date of cancellation | (blank) |
| if any other reason for cancellation, how much notice required | 30 days of cancellation for any other reason. | (blank) |
| what does the insurer have to prove as to mailing | that notice was mailed to first named inusred to mailing address on file with company, not that notice was actually delivered | (blank) |
| who is the return premium sent to | refund sent to first named insured | (blank) |
| changes | this condition states that the policy constitutes the entire contracft between teh insured and insurer and can only be changed by written request by first named insured and approval by insurer. | (blank) |
| examination of books or records | insurer has the right to examine and audit the insured's books and records that relate to policy at any time during the policy period and for up to 3 years after policy no longer in force. keep in mind many policies are issued with estimated premiums. | final premium is determined after policy expires and is based on property values, sales & payroll. |
| inspections and surveys | insurer has right but not required to inspect insured's premises and operaitons at any reasonable time during the policy period. purpose of these inspections is to determine insurability of property and operations to set proper insurance rates and to | make loss control recommendations. such inspections do not guarantee that the property or operations are safe, healthful or in compliance with state laws. |
| premiums | first named insured is responsible for paying premiums under policy. in addition if ever the insured gives any refund it will be sent to first named insured. | (blank) |
| transfer of rights and duties under policy | insured cannto transfer any rights or duties under the policy to any other person or entity without the written consent of hte insuer. uopn death insureds rights and duties under policy are autojmatically transfferred to insured's legal representative. | (blank) |
| transfer of rights of recovery (subrogation) | insurer has right to recover it sclaim payment from negligent 3rd party | (blank) |
| concealment, misreprsentation or fraud | policy will be void if any insured commits fraud relating to the policy or intentionally conceals or misreprsentats a material fact conerning the policy, covered proprety, the insured's interest in covered property, or claim under polciy. | (blank) |
| insruance under 2 or more coverages | if 2 or more coverages in this policy apply to the same loss, insurer will not pay more than actual amount of loss | (blank) |
| liberalization | if insurer adopts any revision that broadens coverage without additional premium within 45 days prior to or during policy period, that coverage will immediatley apply to policy | (blank) |
| other insurance | if a loss is covered by other insurance- insurer will only pay the amt of loss in excess of other coveage, whether or not insured cna collection form other sinurance. | (blank) |
| permium audit | policy subject to auid if a premium designated as an advanced premium is shown in Dec. final premium due will be computed when actual expsoures are determined. first named insured must keep records of information needed for premium computation and send | copies to the insurer at the insurer's request. |
| what selected endorsements are available | hired auto & nonowned auto liability, protective safeguards, utility services-direct damage, utility services, time element | (blank) |
| hired auto and nonowned auto liability | provides coverage for liability arising out of the use or maintenance of a hirded or nonowned auto. these coverages are purchased separately and are scheduled on endorsement. hired auto are autos the insured leases, hires or borrows not from employees/ | partners or executive officers. nonwoend autos are autos not owned , leased or borrowed by insured but used in business. typically refers to employees use of peronal auto for business purposes. this endorsement can be added to BOP if insured no Com aut |
| when will hired auto and nonowned auto liability be aded to policy | if insured does not have commercial auto insurance | (blank) |
| protective safeguards | adds a policy condition requiring the insured to maintain protective safeguards (automatic sprinker system,l fire alarm etc) as condition for coverage. | if automatic sprinkler system shut down due to breakage, leakage, freezing or opening of spinkler heads, the inured has 48 hours to restor system before must notify insurer. |
| uitlity services direct damage | endorsment provides coverage for direct damage caused by utility service disruption stemming from covered peril. insured's location & utility service must be indicated in endorsement. | utility services include water services, communication services & power supply services. |
| utilty services-time element | endorsement covers insureds loss of business income or extra expense in event of direct physical loss to a utilty service. insured's location and utility service must be indicated in endorsement. | (blank) |
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jsl122171