Exam 25: Commercial Property Insurance

All of the following are considered to be instrumentalities of transportation and communication for purposes of inland marine insurance EXCEPT

Which of the following is (are)included in the common declarations page of a commercial package policy? I.A description of the insured property II.A listing of the causes-of-loss that are covered by the policy

Tom opened a store in a mall.His store is located between a theater and a department store.Tom counts on the theater and department store to generate walk-in business at his store.While his store has been successful,Tom knows that if either or both of the other businesses closed,his store would suffer an economic loss.What type of dependent property situation is illustrated in this scenario?

Which of the following statements about ocean marine insurance is true?

What is the effect of the optional agreed value provision in the building and personal property coverage form?

Which of the following statements describes a Difference in Conditions (DIC)Policy?

Which of the following types of forms is used to insure fluctuations in business personal property,such as inventory and finished goods?

Which of the following statements about the condominium commercial-unit owners coverage form is (are)true? I.It provides coverage for the unit owner's proportionate financial interest in the condominium building. II.It provides coverage for the business personal property of the unit owner.

Which of the following statements about ocean marine insurance coverages is (are)true? I.Hull insurance limits coverage to the breakdown of a ship's machinery and equipment. II.Protection and indemnity insurance provides liability insurance to the ship owner for bodily injury and property damage to third parties.

The business income and extra expense coverage form covers loss of business income and continuing normal operating expenses.How is business income (revenue)defined?

Rick is risk manager of Herald News,a daily newspaper in a competitive market.Rick wants to make sure that if Herald's printing facility is damaged or destroyed,the paper will continue to be published.What type of insurance can Rick purchase to cover the added cost of continuing to print the paper after a physical damage loss has occurred?

In the optional replacement cost coverage provision is not selected,how are losses settled under the building and personal property (BPP)coverage form?

The building and personal property coverage form provides several optional coverages.Under one optional coverage,no deduction is taken for depreciation when settling a covered loss.This optional coverage is called

Which of the following items is (are)contained in the common policy conditions page of the commercial package policy? I.The policy period II.A provision describing the insurer's right to audit the insured's books and records

Which of the following statements about the equipment breakdown protection coverage form is (are)true? I.The covered cause of loss is a breakdown of covered equipment,including boilers,machinery,and electrical and mechanical equipment. II.It provides coverage for the reasonable cost of expediting permanent repair or replacement of damaged property.

There are a number of implied warranties in ocean marine insurance.One implied warranty is that the vessel is properly constructed and maintained,and that it properly equipped for the voyage to be undertaken.This implied warranty is the warranty of

A navigation error caused a cargo ship to run aground on a reef.The ship,valued at $1.5 million,was carrying $1.5 million in grain and $1.5 in electronic devices.The ship sustained $150,000 in physical damage.If this loss is a "particular average" loss,how will the loss be settled?

Which of the following forms is used to insure buildings that are under construction?

One type of commercial property insurance excludes perils which are covered by the basic coverages.Some businesses buy this coverage to fill coverage gaps,including flood and earthquake,and to cover property in other countries.This type of insurance is called

Which of the following statements is (are)true concerning the value reporting form? I.Failure to report accurately suspends coverage. II.If the insured underreports the property values at a location,and a loss occurs at that location,recovery is limited to the proportion that the last value reported bears to the value that should have been reported.