Exam 25: Commercial Property Insurance

All of the following statements about the businessowners policy are true EXCEPT

Which of the following statements about the building and personal property coverage form is (are)true? I.A limited amount of coverage is provided for pollutant cleanup and removal at the described premises if the release or discharge of the pollutant results from a covered cause of loss. II.Fire department service charges are specifically excluded because they are a normal cost of doing business.

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

Renee is risk manager of XYZ Company.She purchased a Commercial Package Policy for her company and added one of the optional coverages.This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations.This provision is known as

All of the following statements about inland marine forms are true EXCEPT

All of the following statements about business income insurance are true EXCEPT

Which of the following statements about the business income coverage form is true?

All of the following are covered under the building and personal property coverage form EXCEPT

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?

All of the following are implied warranties in ocean marine insurance EXCEPT

Which of the following types of forms is used to insure fluctuations in business personal property?

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

An Inter-Ocean Transfer cargo ship was forced to jettison some cargo in heavy seas.The various interests in the voyage at the time the property was jettisoned were If $400,000 worth of iron ore was jettisoned,for how much of this amount would Inter-Ocean Transfer be responsible under general average?

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.

Which of the following statements about the extra expense coverage form is (are)true? I.It provides coverage for the increased cost that must be paid to continue operations during a period of restoration. II.It provides coverage for lost business income if a key customer or key supplier experiences a loss.

A firm wishing to insure a single shipment of merchandise sent by a common carrier would purchase a(n)

Frank's property insurance requires periodic reporting of inventory values.Frank believes he can save money by under-reporting the inventory.Last period,Frank reported $200,000 when the value was really $400,000.Shortly after filing the report,when the value was $500,000,the inventory was destroyed.How much will Frank's insurer pay,assuming no deductible?

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 forms is used to insure buildings that are under construction?

Which of the following statements about the causes-of-loss special form of the ISO commercial package policy is (are)true? I.The causes-of-loss special form insures against risk of direct physical loss. II.The causes-of-loss special form excludes loss caused by earthquake.