CPCU 551

Most aftershocks will be considered part of the original event because an occurrence under the form refers to all earthquake shocks that occur within how many hours 168 hours or 7 days differences between the two ISO earthquake forms CP 10 40 & CP 10 45 (sublimit form) - The sub-limit form contains an aggregate and the CP 10 40 does not. -The sub-limit form's deductible is the percentage of the value of the property damaged and the CP 10 40's deductible is the percentage of the limit o...

Property, Liability, Personnel, Net Income What are the four categories of loss exposures faced by most organizations to which risk control techniques can be applied to prevent or reduce the cost of losses? Avoidance eliminates any possibility of loss. The probability of loss from an avoided exposure is zero because the entity does not assume the loss in the first place. Describe the way in which avoidance prevents or reduces the cost of losses This technique is applied to a particul...

Business Income Insurance covers the decrease in an organization's income when operations are interrupted by damage to property as a result of covered peril. Time Factors of Business Income Loss 1. Time required to replace damaged property 2. Time required to restore normal level of operations Contingent Business Income Dependent property exposures A business could incur business income and/ or extra expense losses as a result of damage to property at the premises of a firm upon w...

Financial Institution Bond A policy that covers the crime loss exposures of financial institutions such as banks, savings and loan institutions, and insurance companies. Most used financial institution bond Standard from No. 24 Why are Financial institution bonds called "bonds" Employee dishonesty, a key coverage, was tradtionally called a "fidelity bond" Enitities eligible for financial institution bonds are not eligible for the ISO Crime Forms Computer and funds tra...

An insured who owns a large business has been comparing the different types of commercial insurance policies. The insured would likely choose a Commercial Package Policy (CPP) because it will provide The option to add lines of insurance for most coverages that are needed. (It will provide the option to add lines of insurance for most coverages that are needed.) The risk manager of a midsize manufacturing company would like several specific property coverage enhancements and a seamless appr...

CPCU 551 REVIEW NOTES CHAPTER 1 WITH VERIFIED SOLUTIONS

4 elements to property loss exposures -assets exposed to property loss -the causes of loss -the potential financial consequences of loss -the parties that can be affected by loss- (Property Owners, Secured Lenders, and Property Holders) Property Loss Exposure A condition that presents the possibility that a person or an organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to property in which that person or organization has a financial ...

Take 2 - 6. Which one of the following statements is correct with respect to the Building and Personal Property (BPP) Coverage Form? The BPP lists several types of classes of property that do not qualify as covered property. (The BPP provides coverage against direct physical loss only.) Under Property Not covered section it states that there is a number of classes of property not covered. For this reason, you need to have a list of property covered and not covered read together when tryin...

Condominium A real estate development consisting of a group of units, in which the air space within the boundaries of each unit is owned by the unit owner, and all remaining real and personal property is owned jointly by all the unit owners. Condominium unit The portion of a condominium owned solely by a unit owner. Common elements Areas of a condominium that are jointly owned by all unit owners, including the land on which the buildings are located. Condominium association An...

Broad-Aggregate Commercial Property Insurance Definition All types of commercial property insurance covering property loss and related net income loss Narrow-Singular Commercial Property Insurance Definition One particular type of commercial property insurance that covers loss of or damage to buildings and business personal property at specified locations Property Loss Exposure A condition that presents the possibility that a person or an organization will sustain a loss resulting f...