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CPCU 551 Chapter 2
Chapter 2
| Question | Answer |
|---|---|
| Real Property (defined) | Land, all structures permanently attached and whatever is growing on the land. |
| Building Definition and Details | Generally each insured building is included in the declarations it can be any structure. It is to include fixtures and permanently installed equipment and machinery. |
| Types of Personal Property Covered under the Bulding Definition? | Property used to maintain the building. |
| Your Business Personal Property (list the types) | Property owned by the insured (4 categories), Labor and Materials unfinished property of others, Improvements and Betterments, Trade Fixtures. |
| Types of Property Owned by the Insured (4) | Stock (merchandise), furniture and fixtures, machinery and equipment, all other property used in the business owned by the insured. |
| Labor, Materials or Services Furnished (define) | It applies only to insureds own costs, no coverage for anticipated profit lost. |
| Leased Personal Property | Covered only if lease requires coverage by the leasee. |
| Trade Fixtures | Characterized as such when the tenant has the right to remove them. They are valued at acv. |
| Personal Property of Others | Automatically insured for up to $2500.00. Must be in the building or within a 100 feet of premises. Pays regardless of liability of insured. |
| Name two possible coverage extensions available? | The Property Off Premise (up to $10,000.00), The Newly Acquired or Constructed Property. |
| List Buildings and Other Real Property Exclusions? | Land, Water, Bridges, Roadways, Docks, Foundations below the lowest basement, Plants and outdoor property. |
| List the Other Personal Property Exclusions? | Money and securities, Electronic Data, Vehicles, Watercraft, and Airplanes, Animals |
| List the types of supplemental coverages available? | Debris removal, Property being moved, Fire Department Charges, Pollution Cleanup, Increased Cost of Construction, Electronic Data. |
| Debris Removal Details? | Covers cost of debris removal following a covered loss. The most that can be paid is 25% of the sum of the direct loss payment less the deductible. An additional $10k exists per location if cost exceeds the limit of insurance. |
| Fire Department Service Charge what is the max amount? | $1,000.00 |
| Pollution Cleanup | Up to $10k per location each 12 month period must give 180 days notice. |
| Electronic Data | Max is $2500.00 per year. |
| Coverage Extensions (defined) | There are six types, they apply only if at least an 80% coinsurance is shown. They are not subject to the coverage limits listed in the declarations. |
| List the 6 types of coverage extensions? | Newly acquired property or constructed property, Personal Property of Others, Valuable Papers and Records, Property Off Premise, Outdoor Property, Non Owned Detached Trailers |
| Outdoor Property Limitations | Only covered by (FLARE) Fire, Lightning, Aircraft, Riot, Explosion. |
| Non Owned Detached Trailer Details | Must be in the insureds care, the must be liable to pay for it if lossed, not covered if attached to vehicle. |
| Limits of Insurance (Details) | Paid once per occurrence, insureds usually benefits from this term given the vague interpretation of occurrence. |
| Deductibles | Usually $500.00 for business personal property. If two or more items are lossed in an occurance the insured usually suffers in that a deductible is taken for each item despite just the one occurrence. |
| Blanket Coverage | Used to cover numerous items so only one deductible needs to be paid per occurrence. |
| Valuation of Small Building Losses | If coinsurance is met and the cost to repair or replace the damage is less then $2500.00 there is no deductible. |
| Valuation of Stock Sold But not Delivered | Valued at selling price |
| Valuation of Glass | The added cost of replacing with safety glass is covered by the insured. |
| Valuation of Tenants Improvements | If tenant promptly repairs pays the acv. If not promptly done the insurer pays pro rata portion of the original cost, if others pay insured pays nothing. |
| List the 4 types of optional coverages? | 1) Agreed Value 2) Inflation Guard 3) Replacement Cost 4) Extension of Replacement Cost to personal property of others. |
| Agreed Value | Suspends the coinsurance condition if agreed value is listed in declarations. If limit of insurance is less then agreed value the payment is calculates as (limit/agreed value x loss) - deductible |
Created by:
GARYSCHILD
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