The insured has filed a claim under the "Business Income Department Properties - Broad
Form" because the primary buyer of products and services from the business has filed for
bankruptcy under this form the primary buyers business would be known as - ANSWER A
recipient location
recipient location - ANSWER Businesses who support insured by being the primary buyer
for their products
HO-3 (special form) - ANSWER covers the dwelling and other structures on a risk-of-di-
rect-physical loss basis. All direct physical losses are covered except those losses specifically
excluded. Personal property is covered on a named perils basis
HO-5 Comprehensive Form - ANSWER provides open perils coverage ("all-risks coverage")
on the dwelling, other structures and personal property.
HO-2 (broad form) - ANSWER covers the dwelling, other structures, and personal prop-
erty on a named perils basis
HO-4 (contents broad form) - ANSWER Only covers a tenant's personal property on a
named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies
to the barn? - ANSWER Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wag-
ons owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a
_________. - ANSWER Temporary Substitute Auto
1
,The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - ANSWER Answer: A
An additional auto acquired during the policy period is considered a covered auto. However,
some restrictions do apply. For example, if the newly acquired auto is in addition to any vehi-
cle shown on the declarations, it must be insured within 14 days of the purchase date. If it
replaces one of the cars, the insured does not need to add it during that policy period.
Coverage F on homeowners policy provides - ANSWER Medical payments to others; pays
all necessary medical expenses for up to three years after an accident.
Coverage F: Medical Payments to Others - ANSWER Does not apply to the insured or
members of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of
valuable stock. He submits a claim to his insurance carrier that provides his coverage under a
Business Owners Policy. What coverage is provided by the BOP? - ANSWER No coverage
would apply, there is no coverage for missing property when there is no physical evidence to
show cause of loss
Arbitration (ADR) - ANSWER Neutral third party hears a dispute and makes a decision
both parties have agreed to follow.
2
, Mediation - ANSWER A method of settling disputes outside of court by using the services
of a neutral third party, called a mediator. The mediator acts as a communicating agent be-
tween the parties and suggests ways in which the parties can resolve their dispute. Not bind-
ing.
Difference between Arbitration and Meditation? - ANSWER Mediation is not binding, Ar-
bitration is.
Mediation-Arbitration - ANSWER If the parties cannot reach a settlement through media-
tion, an arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs - AN-
SWER Whether attached to the building or not for up to 2,500 if damaged by a peril in-
sured against.
Building and Personal Property Coverage Form - ANSWER Commercial Property coverage
form that covers buildings, the insured's business personal property, and the personal prop-
erty of others located at the business premises
Foreseeability Test - ANSWER To determine if the defendant's conduct was the proximate
cause of the plaintiff's injury, the court applies
Foreseeability - ANSWER excludes liability for harms that were sufficiently unforeseeable
at the time of the defendant's tortious conduct.
Purpose of freight insurance - ANSWER Covers shipper fees
Freight Insurance - ANSWER indemnifies the ship owner for the loss of earnings if the
goods are damaged or lost and are not delivered. Shipper Fees.
3
Form" because the primary buyer of products and services from the business has filed for
bankruptcy under this form the primary buyers business would be known as - ANSWER A
recipient location
recipient location - ANSWER Businesses who support insured by being the primary buyer
for their products
HO-3 (special form) - ANSWER covers the dwelling and other structures on a risk-of-di-
rect-physical loss basis. All direct physical losses are covered except those losses specifically
excluded. Personal property is covered on a named perils basis
HO-5 Comprehensive Form - ANSWER provides open perils coverage ("all-risks coverage")
on the dwelling, other structures and personal property.
HO-2 (broad form) - ANSWER covers the dwelling, other structures, and personal prop-
erty on a named perils basis
HO-4 (contents broad form) - ANSWER Only covers a tenant's personal property on a
named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies
to the barn? - ANSWER Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wag-
ons owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a
_________. - ANSWER Temporary Substitute Auto
1
,The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse. - ANSWER Answer: A
An additional auto acquired during the policy period is considered a covered auto. However,
some restrictions do apply. For example, if the newly acquired auto is in addition to any vehi-
cle shown on the declarations, it must be insured within 14 days of the purchase date. If it
replaces one of the cars, the insured does not need to add it during that policy period.
Coverage F on homeowners policy provides - ANSWER Medical payments to others; pays
all necessary medical expenses for up to three years after an accident.
Coverage F: Medical Payments to Others - ANSWER Does not apply to the insured or
members of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of
valuable stock. He submits a claim to his insurance carrier that provides his coverage under a
Business Owners Policy. What coverage is provided by the BOP? - ANSWER No coverage
would apply, there is no coverage for missing property when there is no physical evidence to
show cause of loss
Arbitration (ADR) - ANSWER Neutral third party hears a dispute and makes a decision
both parties have agreed to follow.
2
, Mediation - ANSWER A method of settling disputes outside of court by using the services
of a neutral third party, called a mediator. The mediator acts as a communicating agent be-
tween the parties and suggests ways in which the parties can resolve their dispute. Not bind-
ing.
Difference between Arbitration and Meditation? - ANSWER Mediation is not binding, Ar-
bitration is.
Mediation-Arbitration - ANSWER If the parties cannot reach a settlement through media-
tion, an arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs - AN-
SWER Whether attached to the building or not for up to 2,500 if damaged by a peril in-
sured against.
Building and Personal Property Coverage Form - ANSWER Commercial Property coverage
form that covers buildings, the insured's business personal property, and the personal prop-
erty of others located at the business premises
Foreseeability Test - ANSWER To determine if the defendant's conduct was the proximate
cause of the plaintiff's injury, the court applies
Foreseeability - ANSWER excludes liability for harms that were sufficiently unforeseeable
at the time of the defendant's tortious conduct.
Purpose of freight insurance - ANSWER Covers shipper fees
Freight Insurance - ANSWER indemnifies the ship owner for the loss of earnings if the
goods are damaged or lost and are not delivered. Shipper Fees.
3
