PRC 112 CH 1 UPDATED ACTUAL Questions and CORRECT Answers
ISO - insurance services office an org that provides insurance companies with data, policy forms, and risk
analysis tools to help the create and price polices
BPP- buildings and personal property coverage form covers a business's buildings, equipment, inventory and other property.
it protects the things a business owns if damaged by a covered cause of loss
BIC - business income coverage form helps reduce lost income if your business has to temporarily close due to a
covered event or loss.
net income revenue - expenses
Business income worksheet used to estimate the amount of business income coverage needed, by
projecting expected revenues and expenses during a potential period of
interruption.
(used to estimate the amount needed to meet coinsurance condition)
3 factors to consider in commercial property loss 1. types of property
exposures 2. cause of loss
3. financial consequences
Real property (realty) Tangible property consisting of land, all structures permanently attached to the
land, and whatever is growing on the land.
Personal property All tangible or intangible property that is not real property.
ex: vehicles, merchandise, tools, clothing)
Contents- types of property refers to the personal property or business property located inside a
building that is not part of the structure itself.
Property in transit- types of property property being moved or shipped locations
Property in the possession of others - types of property owned by the insured that is temporarily in someone else’s care,
property custody, or control
EX: brining a suit to the dry cleaners
"Floating" property - types of property refers to property that moves from place to place and is not tied to a fixed
location
EX: a contractors tools moving from job site to job site.
, what is the greatest risk for loss of property? fire
Commercial property coverage part Commercial package policy (CPP) coverage component that provides a broad
range of coverages to "middle market" or larger fi rms to insure buildings and
business personal property.
Commercial package policy (CPP) Policy that covers two or more lines of business by combining ISO's
commercial lines coverage parts
Monoline policy Policy that covers only one line of business
Package modification factors Factors that are applied to the regular policy premiums for certain coverage
parts of a CPP that includes both property and liability coverages, resulting in
premium discounts for those coverage parts.
(stacking polices gets you a discount on premium)
Commercial property declarations page A required commercial property coverage part component that provides basic
information about the policyholder and the insurance provided.
Commercial property coverage form A commercial property coverage part component that can be any of several
commercial property forms containing an insuring agreement and related
provisions.
(insuring agreement, additional coverages and extension, provisions and
definitions)
Causes of loss form A required component of the commercial property coverage part that
specifies perils covered.
(basic, broad, special)
Commercial Property Conditions explains what the insured needs to do in order for coverage to be provided
what does the BPP coverage from provide coverage 1. building
for? 2. your business personal property
3. personal property of others
what does the BPP coverage form not cover? 1. illegal to insure
2. things not as likely or susceptible to loss by most perils
3. if it can be better insured by another form
Special limits of liability Internal dollar limits on certain specified classes of property that apply
regardless of the overall policy limit.
Preservation of Property - additional coverage protects covered property while it's being moved and for up to 30 days at its
new location
protects against direct damage or physical loss
Fire Department Service Charge- additional coverage covers paying a service charge for fire department services
ISO - insurance services office an org that provides insurance companies with data, policy forms, and risk
analysis tools to help the create and price polices
BPP- buildings and personal property coverage form covers a business's buildings, equipment, inventory and other property.
it protects the things a business owns if damaged by a covered cause of loss
BIC - business income coverage form helps reduce lost income if your business has to temporarily close due to a
covered event or loss.
net income revenue - expenses
Business income worksheet used to estimate the amount of business income coverage needed, by
projecting expected revenues and expenses during a potential period of
interruption.
(used to estimate the amount needed to meet coinsurance condition)
3 factors to consider in commercial property loss 1. types of property
exposures 2. cause of loss
3. financial consequences
Real property (realty) Tangible property consisting of land, all structures permanently attached to the
land, and whatever is growing on the land.
Personal property All tangible or intangible property that is not real property.
ex: vehicles, merchandise, tools, clothing)
Contents- types of property refers to the personal property or business property located inside a
building that is not part of the structure itself.
Property in transit- types of property property being moved or shipped locations
Property in the possession of others - types of property owned by the insured that is temporarily in someone else’s care,
property custody, or control
EX: brining a suit to the dry cleaners
"Floating" property - types of property refers to property that moves from place to place and is not tied to a fixed
location
EX: a contractors tools moving from job site to job site.
, what is the greatest risk for loss of property? fire
Commercial property coverage part Commercial package policy (CPP) coverage component that provides a broad
range of coverages to "middle market" or larger fi rms to insure buildings and
business personal property.
Commercial package policy (CPP) Policy that covers two or more lines of business by combining ISO's
commercial lines coverage parts
Monoline policy Policy that covers only one line of business
Package modification factors Factors that are applied to the regular policy premiums for certain coverage
parts of a CPP that includes both property and liability coverages, resulting in
premium discounts for those coverage parts.
(stacking polices gets you a discount on premium)
Commercial property declarations page A required commercial property coverage part component that provides basic
information about the policyholder and the insurance provided.
Commercial property coverage form A commercial property coverage part component that can be any of several
commercial property forms containing an insuring agreement and related
provisions.
(insuring agreement, additional coverages and extension, provisions and
definitions)
Causes of loss form A required component of the commercial property coverage part that
specifies perils covered.
(basic, broad, special)
Commercial Property Conditions explains what the insured needs to do in order for coverage to be provided
what does the BPP coverage from provide coverage 1. building
for? 2. your business personal property
3. personal property of others
what does the BPP coverage form not cover? 1. illegal to insure
2. things not as likely or susceptible to loss by most perils
3. if it can be better insured by another form
Special limits of liability Internal dollar limits on certain specified classes of property that apply
regardless of the overall policy limit.
Preservation of Property - additional coverage protects covered property while it's being moved and for up to 30 days at its
new location
protects against direct damage or physical loss
Fire Department Service Charge- additional coverage covers paying a service charge for fire department services
