Question
FOR REVIEW 1. List and briefly describe the extensions of coverage under the Buildings and Personal Property Coverage Form used to insure commercial buildings. 2.
FOR REVIEW
1. List and briefly describe the extensions of coverage
under the Buildings and Personal Property Coverage Form
used to insure commercial buildings.
2. The Widget Manufacturing Company insures its plant
against loss by fire for $900,000, under a policy with an 80
percent coinsurance clause. At the time that a $600.000
loss takes place, it is determined that the building is worth
$1,250,000. How much will the insurer pay? How much
would be paid in the event of a total loss?
3. Briefly describe the provisions of a reporting form
that apply in the event that the insured (a) is late in filing
a report or (b) underreports the values on hand.
4. Give two specific examples in which contingent busi-
no interruption insurance would be needed.
5. List and briefly distinguish among the four cover
ages that are written as a part of an ocean marine
policy.
6. Identify and briefly describe the six broad classes into
which inland marine coverages may be divided
7. Distinguish between a general average loss and a par-
ticular average loss in ocean marine insurance. What is a
fee of particular average clause?
8. The Widget Manufacturing Company purchased an
Employee Dishonesty Coverage Form (Portfolio Crime
Form A) with a $10,000 penalty on June 1, 2005, and can-
celed the bond on June 1, 2007. Which of the following
losses would be covered and to what extent?
a. Employee A embezzled $5000 in 2004 and $5000
in 2006, the total $10,000 loss being discovered in
January 2007.
b. Employee B embezzled $15,000 in 2006, but the loss
was not discovered until January 2007.
c. Employees C and D embezzled $7500 each in a collu-
sive loss during 1996, but the loss was not discovered
until May 2007.
9. Briefly distinguish between burglary and robbery.
10. Briefly describe the four coverages of the Equipment
Breakdown Protection Coverage Form. What consequences-
tial loss coverages are available by endorsement?
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