ANSWER-
The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: ANSWER- 1) the value of the lost or damaged property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of...
The three amounts to be considered when calculating the amount of payment as
outlined in the Indemnity Agreement are: ANSWER- 1) the value of the lost or damaged
property (ACV)
2) the interest of the insured in the property (ex. financial interest, home, mortgage)
3) the amount of insurance specified on the "Declarations Page" for the loss or
damaged property (least amount|)
Identify the four categories that buildings may fall into: ANSWER- Residential (ex.
home)
Non-mercantile (ex. hospitals, nursing homes)
Mercantile (ex. drycleaners, bakeries)
Manufacturing/Industrial (ex. autobody shops)
Three classes of property commercially insured are: ANSWER- building, stock,
equipment
Identify the two bases that coverage can be provided on: ANSWER- Scheduled
All property
Property of every description
Identify and give an example of each of the five types of property contained in the
definition of Building found in the IBC Commercial Property Broad Form ANSWER- 1)
Growing plants, trees, shrubs INSIDE the building used for decorative purposes only
when insured is the owner of the building (ex. cactus)
2) Materials and equipment supplies ON the premises for maintenance (ex. lumbar,
glass)
3) Additions and extensions IN CONTACT with the building (enclosed walk-way
between buildings)
4) Permanent fittings and fixtures ATTACHED and FORMING part of the building. (ex.
light fixtures, carpeting)
5) Fixed structures PERTAINING to building and located on the premises (ex. fence)
, [GMAPF]
Identify the three conditions pertaining to the coverage for growing plants, trees, etc.
ANSWER- - such property was INSIDE the building
- was being used for decorative purposes
- insured was the owner of the building
Identify and give an example of the three types of property contained in the definition of
Stock found in the IBC Commercial Property Broad Form: ANSWER- 1) packing,
wrapping and advertising materials (ex. bubble plastic, Styrofoam)
2) merchandise of every description USUAL to insureds business (ex. goods for sale for
business)
3) similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable for (appliance if appliance store.
[PMS]
Identify the three conditions that need to be present before 'similar property belonging to
others' will be insured under the definition of Stock: ANSWER- 1) must be similar to that
insured by the policy
2) the insured must have had an obligation to keep the property insured
3) the insured must be legally liable for it.
Identify and give an example of each of the three types of property contained in the
definition of Equipment found in the IBC Commercial Property Broad Form: ANSWER-
1) generally all contents USUAL to insureds business, other than building or stock (ex.
furniture)
2) similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable for (ex. shaw cable box)
3) tenants improvements (ex. space rented out or leased, malls)
[GST]
Identify the three ways in which property may be valued: ANSWER- Actual Cash Value
(ACV)
Replacement Value
Book Value
Which way is NOT an appropriate means of valuing property for insurance purposes?
ANSWER- Book Value
Identify the one word that can summarize the difference between Actual Cash Value
and Replacement Cost: ANSWER- depreciation
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