Caib 2 chapter 1 stuvia - Study guides, Class notes & Summaries

Only the property specifically listed or scheduled on the policy is insured. - ANSWER-Scheduled coverage. Building, Stock and Equipment are insured under a single limit of insurance. - ANSWER-Property of Every Description (POED) coverage. All property owned by the insured is covered or "blanketed" by a single limit of insurance. (May insure property at more than one location.) - ANSWER-All Property (Blanket) coverage. 1) Building 2) Equipment 3) Stock. - ANSWER-The three classes of ...

1) Convertibility; 2) Value; 3) Portability. - CORRECT ANSWER-Three factors of personal property that can help business owners determine loss potential from a criminal act. 1) Forced entry into building; 2) Forced entry into protected enclosures; 3) Unforced entry into building or protected enclosures; 4) Forced opening of building and protected enclosures; 5) Vandalism and mailicious acts; 6) Espionage; 7) Shoplifting; 8) Employee theft. - CORRECT ANSWER-Methods criminals use that c...

1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge - ANSWERIdentify three reasons or obstacles to selling business interruption instance 1. Physical damage to property 2. Failure or breakdown of public utilities 3. Transportation related accidents 4. Physical damage to neighbouring premises 5. Loss caused to property of major supplier or costumer 6. Actions of regulatory authorities 7. Ancillary cause (strikes, lock-outs)...

1. An application 2. Additional verbal information 3. Additional written information, including: previous policy premium, loss history and details, photos, and financial statements - ANSWERAn application and a submission are not the same thing. Identify three items that a submission may include 1. Completion of survey 2. Search for interested insurers 3. Meet with prospect, discuss quotes and select insurer 4. Request binding coverage from elected insurer 5. Review policy and deliver...

A proposal for insurance that's presented to the underwriter for consideration. It can include an application, and additional verbal and written information (i.e., previous policy premium, loss details and history, financial statements and photos). - ANSWER"Submission." 1) Assists to identify loss exposures; 2) Helps eliminate purchase of coverage that isn't needed; 3) Assists in development of underwriting information the insurer needs. - ANSWERThree purposes of survey forms. 1) Ale...

Only the property specifically listed or scheduled on the policy is insured. - CORRECT ANSWER-Scheduled coverage. Building, Stock and Equipment are insured under a single limit of insurance. - CORRECT ANSWER-Property of Every Description (POED) coverage. All property owned by the insured is covered or "blanketed" by a single limit of insurance. (May insure property at more than one location.) - CORRECT ANSWER-All Property (Blanket) coverage. 1) Building 2) Equipment 3) Stock. - CORR...

Define Endorsement. - ANSWER-Endorsements change terms of existing policies Define Rider. - ANSWER-Riders add coverages to those all ready on policy Indicate Covered or Not Covered on Sign Form (C/NC) a) mechanical breakdown b) damage caused by power surge c) damage caused when dropped during installation d) damage caused by freezing e) damage caused by striking employees - ANSWER-a) NC mechanical breakdown b) NC damage caused by power surge c) NC damage caused when dropped during...

1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge -ANSWER- Identify three reasons or obstacles to selling business interruption instance 1. Physical damage to property 2. Failure or breakdown of public utilities 3. Transportation related accidents 4. Physical damage to neighbouring premises 5. Loss caused to property of major supplier or costumer 6. Actions of regulatory authorities 7. Ancillary cause (strikes, lock-outs...

Provide four sources of Business Interruption losses and an example of each. - ANSWERi) Physical damage to business example: Fire destroys business and customers cannot make purchases ii) Failure of public utilities example: Ice storm damages power lines and power cannot be restored for several weeks. This results in sales at the business to plummet iii) Transportation related accidents example: Railcar containing hazardous gas overturns causing evacuation of town. As a result, of this ra...

A proposal for insurance that's presented to the underwriter for consideration. It can include an application, and additional verbal and written information (i.e., previous policy premium, loss details and history, financial statements and photos). - ANSWER"Submission." 1) Assists to identify loss exposures; 2) Helps eliminate purchase of coverage that isn't needed; 3) Assists in development of underwriting information the insurer needs. - ANSWERThree purposes of survey forms. 1) Ale...