Term
| Business and personal property coverage A |
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Definition
| coverage provided for insured's building, business personal property, and personal property of others, personal property used to service business |
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Term
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Definition
| furniture, machinery, inventory, stock and personal property |
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Term
| Property not covered on Biz |
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Definition
| ledger statements, accounts, bills, currency, cash, contracts, money, sidewalks, underground pipes, retaining walls, crops, fences |
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Term
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Definition
| debris removal, preservation of property, fd service charge, and pollutant cleanup and removal |
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Term
| extension for off the premises |
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Definition
| $10,000 for property kept temporarily at a location you don't own/lease--trade show, fair, or storage |
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Term
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Definition
| vacant for more than 60 consec. days, insurer will not provide coverage for vandalism, sprinkler leakage, internal water damage, glass breakage, theft. other perils will be reduced by 15% |
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Term
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Definition
| building is vacant unless 31% of square footage is rented or used by owner to conduct operations. building is vacant if more than 70% is not rented or being used |
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Term
| Cause of Loss Forms-Basic |
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Definition
| form covers the same perils that are available in a DP basic- Fire, lightning and extended coverages, vandalism |
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Term
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Definition
| all the perils of basic form, and then glass breakage, damage caused by the weight of ice, snow and sleet, falling objects, and water damage from water pipes |
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Term
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Definition
| all risk or open peril, all perils found in broad except those excluded. Theft is also covered up to specific limits. Glass breakage is covered as well |
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Term
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Definition
| Increases amount of insurance for the biz personal property of a biz that experiences fluctuations in inventory during coverage period (holiday season) |
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Term
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Definition
| If added, will provide insured against the loss of gross earnings sustained as a result of a covered loss. Includes a 3 day deductible, will pay up for loss of biz income--net income plus continuing expenses of biz |
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Term
| additional coverages for Biz income form |
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Definition
| expenses to reduce loss, alterations to new buildings, civil authority (4 weeks), extended biz income (60 days--for the regulars) |
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Term
| Other commercial property forms-builder's risk |
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Definition
pays for damage to structures while being built-including foundations.
existing buildings are not covered, and ceases 60 days after property has been occupied |
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Term
| General Liability Coverage |
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Definition
| Used for ownership of property, biz operations on and off premises, the manufacturing of products, completed operations, contractual or assumed liability |
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Term
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Definition
| protects a commercial biz for it's responsibility for bodily injury or property damage to others as long as it occurs during the policy period. Loss or claim may be reported to insurer at any time in the future. |
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Term
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Definition
| covers the liability of a biz entity as long as the injury or damage happens after a retroactive date. Loss must be communicated, reported and submitted to the insurer within the policy period-claim must be made during policy term |
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Term
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Definition
| 1) premises and operations liability and 2)products and completed operations liability. |
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Term
| 1) Bodily injury and property damage liability |
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Definition
| Pays as a result of bodily injury or proerty damage to others, on or off the biz premises and arising out of operations or activities of biz. Protects for strict liability (defective products) |
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Term
| Products and completed operations |
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Definition
| The policy defines product as any goods or products, other than real property, manufactured, sold whose business or assets the insured has acquired-injury or damage away from manufacturer's premises |
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Term
| insured contracts and damage to premises rented to you |
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Definition
| lease agreements, easements, incidental agreements with a municipality, sidetrack agreements and elevator maintenance agreements-also includes fire damage to other's property (aka fire started by you but other properties got damaged) |
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Term
| Additional liability coverages |
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Definition
| incidental medical malpractice, nonowned watercraft, and host liquor liability (serving alchol at a christmas party) |
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Term
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Definition
| intended damage/injury caused by named insured, hold harmless agreement, liquor liability, injuries that could fall under worker's comp, pollution, autos aircraft and watercraft, property of insured, insured's product or work, product recall |
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Term
| supplementary payments-Liability |
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Definition
- $250 for cost of bail bonds,
- loss of earnings up to $250 per day
- pre-judgement/post judgement interest
- premiums on appeal bonds
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Term
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Definition
| if you are designated in dec page, plus spouse, employee, volunteer (no temps) first named insured recieves notices on cancellation, and is responsible for payments |
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Term
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Definition
| premium shown in policy is an "advance premium" and a "deposit" premium |
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Term
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Definition
| U.S territories and posessions, Puerto Rico and Canada plus WW coverage for products |
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Term
| Claim's Made Policy Form-trigger |
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Definition
| "trigger"-event that must occur |
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Term
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Definition
| limits coverage to claims arising from events happening after a specified date and it prevents coverage from being provided for losses occuring prior to that (retroactive) date |
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Term
| Differences between claims made and occurence |
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Definition
| 1) the trigger of coverage 2) the fact that claims-made form lists a retroactive date which may be advanced by insured to save premium 3)the claims made form includes the BERP |
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Term
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Definition
| Can be added to CPP to protect aginast BI or PD. Vehicle with gross weight of 10,000 pounds or more must be covered under commercial plan |
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Term
| Business Auto Policy or BAP |
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Definition
| Adds liability coverage, physical damage and other coverages are available by endorsement such as UM, and med pay |
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Term
| 5 sections of covered autos |
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Definition
| 1) covered autos 2) liability coverage 3) physical damage 4) biz auto conditions 5) definitions |
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Term
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Definition
| any auto liability only-broadest coverage because it includes all owned, hired and non-owned autos |
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Term
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Definition
| covers owned autos only-no coverage for rentals |
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Term
| covers owned private passenger autos only and liability and physical damage coverage |
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Definition
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Term
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Definition
| owned autos other than private passenger autos only for liability |
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Term
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Definition
| owned autos subject to a no-fault law (PIP) |
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Term
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Definition
| owned autos subject to compulsory unisured motorist |
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Term
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Definition
| covers specifically described autos for liability and physical damage and includes only the autos described in dec page |
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Term
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Definition
| hired autos only for liability-leases, hires, rents or borrows-but only the auto described |
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Term
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Definition
| non-owned autos only for liability-used for cars that employees own |
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Term
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Definition
| will pay an injured third party for bodily injury and proerty damage suffered, covered polution clean up costs, and legal expenses. Supplementary payments are $2,000 for cost of Bail Bonds and loss of earnings up to to $250 per day |
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Term
| definition of insured on BAP |
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Definition
| named insured, permitted users |
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Term
| exclusions of section 2 of BAP |
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Definition
- intentional injury to ohters
- workers comp
- racing
- escape of pollutants being carried on covered auto
- care, custody or control
- fellow employees
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Term
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Definition
common carrier-offers services to public
contract carrier-only carries product after entering contract
private carrier-transports it's own property in own trucks
section 2-BI and PD
section 3-trailer interchange coverage |
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Term
| Types of Commercial Crime |
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Definition
| Burglary, robbery, mysterious dissapearance, theft, custodian, messenger, employee theft, computer fraud, outside premises, funds transfer fraud, money orders and counterfeit, kidnap ransom and extorsion |
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Term
| equiptment breakdown/boiler and machinery-covered objects |
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Definition
| 1) electrical equipment 2) mechanical equipment 3) AC and fridge 4) boiler 5) biz equipment and systems |
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Term
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Definition
| Self contained and complete package policy for small biz--almost like HO for biz. |
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Term
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Definition
- 3 mil gross annual sales
- max of 25,000 square feet
- apartment bildings, office buildings no more than 6 stories-nor 100,000 feet of space
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Term
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Definition
| standard property (named peril) and special property (open peril)- coverage of building materials and supplies within 100 feet of building |
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Term
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Definition
| property owned and used by insured, property of others in sured's care, custody and control; tenants improvements and betterment; leased property (copy machine), exterior building glass |
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Term
| optional coverages on BOP |
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Definition
| employee dishonesty, outdoor signs ($2500 for unattached, $1000 for attached); equipment breakdown; money and securities |
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Term
| additional coverages of BOP |
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Definition
1) biz income coverage for up to 12 months
2) extended biz income (regulars) 60 days
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Term
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Definition
- Accounts recievable up to $10k on premises and $5 off
- valuable paper and records up to $10k on and $5k off
- automatic increase of 25% for seasonal variations
- Theft- $2500 for furs, $2500 for jewlery and $2500 for patterns/molds
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Term
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Definition
| legal liability of insured, med payments, damage to premises rented to you is $50,000 |
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Term
| Who is Eligible for a BOP? |
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Definition
| drugstores, bake shops, beauty salons, small convenience stores, pizza shops, dry cleaners, and funeral home. |
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Term
| Who is not eligible for a BOP |
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Definition
| manufacturer, hospitals, auto dealerships, establishments, selling liquor, amusement parks, financial institutions |
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Term
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Definition
- apartment buildings and res condiminiums
- office buildings (not exceeding 6 stories nor 100k feet
- other buildings not exceeding 25k feet
- motels not exceeding 3 stories or more
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Term
| BOP personal property eligible |
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Definition
- building owner's personal property in apartment buildings
- personal property in an office of less than 25k feet
- personal property associated with merchant operations, wholesale services or processing not exceeding 25k square feet and $3mil annual gross profit
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Term
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Definition
| Very similar to homewoner's policy up until coverage E |
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Term
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Definition
| scheduled farm property-scheduled farm items personal property used for farming purposes |
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Term
| Unscheduled Farm Property-F |
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Definition
| provides coverage for all unscheduled items of farm personal property on the premises including mobile agricultural equipment, tools and livestock but no race horses/poultry |
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Term
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Definition
| other farm structures that coger structures on farm not used for dwelling purposes such as fences or silos |
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Term
| Farm liability coverage- H and I |
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Definition
bodily injury and PD -H
personal and advertising injury liability-I
J-medical payments |
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Term
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Definition
| either state mandated or voluntary-where employer self insures if qualified. worker's comp carriers are obligated to employee |
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Term
| principles of worker's comp |
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Definition
- negligence is not a factor
- benefits will be paid to employee periodically
- cost of insurance paid by employer
- the purchase of insurance coverage is required
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Term
| Employer's duty of care to employee |
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Definition
| several duties of care: providing a safe work place; providing safe tools; providing competent fellow employees; making all employees aware of inherent dangers; creating and enforcing rules for safety |
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Term
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Definition
| employee gives up right to sue an employer-because this is the exclusive remedy for insured worker |
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Term
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Definition
| employee injuries must be reported to the DIA and notice of injury mus tbe provided by the employer to the DIA within seven cale ndar days if the injured employee has lost five days of work |
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Term
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Definition
| Does not provide coverage for pain and suffering, mental anugish, nor property damage. employee suffers an injury within the scope of his or her employment or suffers from an occupational disease such as a heart attack caused by stress or exposure to workplace chemical |
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Term
| Workers' Comp part 1 continued |
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Definition
| -Medical expense benefits = unlimited reasonable medical expenses, account for 30 to 40% of all worker's comp benefits paid |
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Term
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Definition
| Waiting period must be satisfied, generally paid on a weekly basis, for 66 2/3% of weekly wage if permanent, and 60% if partial or temporary, total amount of time is 156 weeks |
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Term
| Dependent/Funeral benefits |
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Definition
-burial expenses and survivor benefits
amount is $4,000 in MA.
If worker is fatally injured, benefit is paid on weekly basis according to state maximums until children are 18 or finish college. |
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Term
| Employer's Liability/Part II |
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Definition
| responds to third party suits against the employer-legal defense expenses. Basic limits are $100,000 per accident, $100,000 per occupational disease and $500,000 aggregate limit for occupational disease |
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Term
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Definition
| action against employer in a capacity other than an employer-if employee is injured at work from malfunctioning equipment |
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Term
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Definition
| injured by machinery at the workplace that is manufactured by another organization- and then that organization comes back and says that the employer installed in incorrectly-therefore employer gets dragged in |
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Term
| consequential bodily injury |
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Definition
| sued by family member of insured employee if family member suffers from consequent illness--aka healthcare worker getting aids, spreading it to partner |
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Term
| care and loss of services |
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Definition
| sued by family member of insured employee du to a loss of consortium, companionship or affection |
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Term
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Definition
| 1) Job classification/type of work 2) payroll of all workers 3) claim experience of the employer--purpose of this is to compare employer's actual losses (claim experience) to it's expected losses by industry type |
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Term
| Mod factor greater than 1 |
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Definition
| means that the employer has been filing more claims than average or that losses are greater than expecte, and thus a surcharge is added to premium. Factor of less than 1 means the opposite and employer pays lower premium |
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Term
| volunary compensation endorsement |
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Definition
| the most common exempted occupations include domestic part-time casual seasonal or famr employees. Amends the worker's comp policy to include additional coverage-also prevents those employees from filing suit |
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Term
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Definition
| the subseequent injury fund will pay benefits for an employee's previous injury and current employer only responsible for current injury. Pursuades employer's to hire previously injured persons. |
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Term
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Definition
| Producer-life, accident and health, property, casualty personal lines, credit insurance, and variable life and annuity |
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Term
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Definition
| the insurance advice given for compensation is in the form of a prearranged fee, also referred to as a consultant, counselor, specialist, analyst or policy holder adviser. Licensed CPA or attorney can practice without having license. |
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Term
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Definition
| must be a licensed producer and maintain an office in state--reinsures on behalf of an insurer |
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Term
| reinstatemen, and renewal of producer license |
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Definition
| triennial fee is $225, producer who allows his or her license tol lapse may within 12 months from teh due date of renewal fee reinstate license but with twice the renewal fee |
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Term
| mass standard fire policy |
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Definition
| must be approved by state of MA, only covers fire, lightning and removal. |
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