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?