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Questions and Answers
What is the time limit for coverage after acquiring new property or beginning construction?
What is the time limit for coverage after acquiring new property or beginning construction?
Which of the following personal effects are NOT covered under the extended insurance?
Which of the following personal effects are NOT covered under the extended insurance?
What is the maximum payment for loss of personal property of others in one occurrence?
What is the maximum payment for loss of personal property of others in one occurrence?
Which of the following types of property is excluded from the personal property coverage of others?
Which of the following types of property is excluded from the personal property coverage of others?
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What does the coverage for valuable papers and records exclude?
What does the coverage for valuable papers and records exclude?
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What is the federal share of terrorism losses insured in 2015?
What is the federal share of terrorism losses insured in 2015?
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What is the maximum amount for which the Treasury will pay for insured losses attributed to terrorist acts in a calendar year?
What is the maximum amount for which the Treasury will pay for insured losses attributed to terrorist acts in a calendar year?
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How does the federal share of losses change over time after 2015?
How does the federal share of losses change over time after 2015?
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What happens if losses exceed $100 billion in a year under the federal program?
What happens if losses exceed $100 billion in a year under the federal program?
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Which of the following is NOT included in the coverage for certified acts of terrorism?
Which of the following is NOT included in the coverage for certified acts of terrorism?
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What documentation confirms acceptance of the offered terrorism coverage?
What documentation confirms acceptance of the offered terrorism coverage?
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What type of losses does the coverage specifically relate to under the federal program?
What type of losses does the coverage specifically relate to under the federal program?
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What right does the property holder have regarding inspections?
What right does the property holder have regarding inspections?
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What does the term 'Certified act of terrorism' refer to?
What does the term 'Certified act of terrorism' refer to?
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Which of the following is excluded under the Certified Act of Terrorism Exclusion?
Which of the following is excluded under the Certified Act of Terrorism Exclusion?
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What is included under the scope of the endorsement mentioned?
What is included under the scope of the endorsement mentioned?
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What happens to claims resulting from a certified act of terrorism?
What happens to claims resulting from a certified act of terrorism?
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Which part of a property policy does the endorsement modify?
Which part of a property policy does the endorsement modify?
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What is a prerequisite for an act to be classified as a certified act of terrorism?
What is a prerequisite for an act to be classified as a certified act of terrorism?
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What must an act of terrorism meet to be classified under the Terrorism Risk Insurance Act?
What must an act of terrorism meet to be classified under the Terrorism Risk Insurance Act?
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What aspect of the property is affected by temporary custody mentioned?
What aspect of the property is affected by temporary custody mentioned?
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What is the maximum amount covered for direct physical loss or damage to mobile communication property in one occurrence?
What is the maximum amount covered for direct physical loss or damage to mobile communication property in one occurrence?
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What distance from the described premises qualifies for mobile communication property coverage?
What distance from the described premises qualifies for mobile communication property coverage?
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What is the maximum reimbursement for preparation of loss fees in one occurrence?
What is the maximum reimbursement for preparation of loss fees in one occurrence?
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Which of the following expenses is NOT covered under the preparation of loss fees?
Which of the following expenses is NOT covered under the preparation of loss fees?
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How much can you reimburse an eligible person for a reward payment?
How much can you reimburse an eligible person for a reward payment?
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Which of the following is a requirement for claiming preparation of loss fees?
Which of the following is a requirement for claiming preparation of loss fees?
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Which types of expenses are explicitly excluded from the preparation of loss fees coverage?
Which types of expenses are explicitly excluded from the preparation of loss fees coverage?
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What is the primary purpose of the mobile communication property coverage?
What is the primary purpose of the mobile communication property coverage?
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What is the condition for mobile communication property coverage to apply?
What is the condition for mobile communication property coverage to apply?
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Which of the following statements is true regarding the reward payment provision?
Which of the following statements is true regarding the reward payment provision?
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Which coverage is specifically mentioned as being added under Additional Coverages?
Which coverage is specifically mentioned as being added under Additional Coverages?
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What is the maximum payout for Burglary Damage to Building per occurrence?
What is the maximum payout for Burglary Damage to Building per occurrence?
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Which condition must be met for Burglary Damage coverage to be applicable?
Which condition must be met for Burglary Damage coverage to be applicable?
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Under what condition does the Burglary Damage coverage not apply?
Under what condition does the Burglary Damage coverage not apply?
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Which scenario would NOT be covered by the Burglary Damage to Building?
Which scenario would NOT be covered by the Burglary Damage to Building?
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What type of loss does the Burglary Damage coverage specifically address?
What type of loss does the Burglary Damage coverage specifically address?
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For which type of loss would you likely NOT be eligible for Burglary Damage coverage?
For which type of loss would you likely NOT be eligible for Burglary Damage coverage?
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Which of the following statements about the Cyber Attack exclusion is correct?
Which of the following statements about the Cyber Attack exclusion is correct?
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What must occur for Burglary Damage coverage to be triggered?
What must occur for Burglary Damage coverage to be triggered?
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Which of the following is NOT a requirement for Burglary Damage coverage?
Which of the following is NOT a requirement for Burglary Damage coverage?
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Study Notes
Important Information Regarding Terrorism Coverage
- This notice does not form part of the policy, nor does it grant coverage or change policy terms.
- "We" refers to the insurer, and "you" refers to the policyholder.
- Policyholders have the right to purchase terrorism insurance coverage subject to policy provisions.
- A federal program within the Department of the Treasury shares terrorism loss risk with the insurance industry.
- The definition of a certified act of terrorism has changed, no longer requiring a foreign interest.
- The federal government will pay 85% of insured terrorism losses exceeding the insurer's retention.
- This percentage decreases annually to 80%.
- Terrorism coverage is capped at $100 billion in any calendar year.
Change in Definition of Certified Act of Terrorism
- Originally, an act of terrorism had to cause at least $5 million in losses and involve foreign individuals or entities.
- The 2007 amendment removed the foreign interest requirement.
- Now includes actions by US citizens against US government, if deemed a "certified act of terrorism" by the federal government.
Disclosure of Federal Participation in Payment of Terrorism Losses
- The Treasury Department will share the costs of terrorism losses.
- In 2015, the federal share was 85%, decreasing annually by one percentage point until it reaches 80%.
Limitations on Payment of Terrorism Losses
- If aggregate insured losses exceed $100 billion in a calendar year, the federal government will not pay for losses exceeding this limit.
- Insured losses up to $100 billion will be subject to proration.
Service of Suit Endorsement
- The insurer designates a specific officer as its legal representative for service of process in any action, suit or proceeding.
- The designated person is the General Counsel for the insurer.
- The insurer will abide by the court's decision, or decision on an appeal to a higher court, in the event of a suit.
Auto Dealers' Amendatory Endorsement
- This endorsement modifies insurance for auto dealers.
- Includes coverage for various losses at the described premises.
Loss Prevention Expense
- Additional coverage for expenses for protecting property from loss or damage due to a Covered Cause of Loss.
- The most we will pay under this coverage is $5,000 per occurrence.
Mobile Communication Property
- Coverage for mobile communication property located over 100 feet from the described premises.
- The most we will pay under this coverage is $10,000 per occurrence.
Preparation of Loss Fees
- Covers reasonable and necessary expenses incurred by you to determine the extent of covered loss of damage to covered property, due to a Covered Cause of Loss.
- The maximum amount payable for expenses is $25,000.
Reward Payment
- Coverage for reimbursement of rewards paid up to $25,000 for information leading to the arrest and conviction of a person.
- Does not cover claims relating to the return of the stolen property.
Coverage Extensions
- Covers property not located at the described premises.
- Includes coverage for additional, specifically listed items, and accounts receivable.
Outdoor Property
- Covers outdoor property located within 100 feet of the insured property
- Includes outdoor spas, fences, retaining walls, etc.
- Damage from certain causes of loss are covered.
Accounts Receivable
- Covers outstanding amounts owed to you by customers.
- Covers interest charges on any related loans that are outstanding.
- Covers collection expenses if required by loss or damage.
- Other reasonable expenses are covered as long as they result from direct physical damage.
Appurtenant Buildings
- Covers buildings that are appurtenant to a primary insured building.
- Includes buildings separated by a space or connected by utility lines.
Electronic Data Processing Equipment and Media
- Covers "computers", "electronic data" and media, including property of others.
- Covers damage or loss caused by a covered cause of loss.
- Costs to repair or replace damaged/lost property, or restore data to media, are covered.
- Maximum coverage is subject to the applicable limit of insurance.
Employee Tools
- Covers losses and damage to employee tools used in a business.
- Coverage limit is $500,000 per occurrence, unless a higher limit is shown in the schedule.
Fine Arts
- Covers direct physical damage to fine art items.
- Value is based on fair market value of the specific items at the time of the damage or loss, with an upper limit of the stated limit of insurance
- Applies to art in your care and custody.
Tents
- Covers any tents affixed to the property.
- Maximum coverage per occurrence is $15,000.
Government Confiscation
- Covers direct physical damage to Covered property caused by government confiscation.
- Maximum coverage is $100,000.
Green Standards
- Pays for professional services if required by regulation.
- Repairs or replacements done to comply with regulations are covered.
Leasehold Interest
- Pays for loss of "net leasehold interest".
- Does not cover losses more than 60 days prior to the loss or damage.
Loss Prevention Expense
- Covers reasonable and necessary expenses incurred to protect covered property from covered loss.
- The most we will pay is $5,000 per occurrence.
Flood
- Specific flood coverage is excluded.
- See separate flood insurance policy for this coverage.
Mobile Communication Property
- This covers losses to property more than 100 feet from described premises.
- The maximum is $10,000 per occurrence.
Preparation of Loss Fees
- Covers reasonable and necessary expenses incurred to determine the extent of a loss/damage.
- Maximum is $25,000 per occurrence.
Reward Payment
- This covers any reward associated with a covered cause of loss, up to $25,000.
Property Off-Premises
- Applies for losses to covered property away from the described premises.
- Covers property in storage at a rented location.
- Does not cover items held for sale or display, property from an exhibition, fair, or trade show.
- Does not cover property in the care, custody or control of your salespersons.
Outdoor Property
- Applies for losses to covered items outside building(s) but within 100'.
- Covers outdoor property from multiple causes of loss.
- Maximum coverage is $25,000 per occurrence.
Water Damage
- Covers water backup, overflow of plumbing, heating and air conditioning systems, and surface water accumulation or rapid accumulation of water.
- Maximum coverage per occurrence is $10,000.
Ordinance Or Law Coverage
- Covers damage to property from compliance with ordinances or laws regarding property
- This coverage only covers the physical damage, not the additional costs.
Pollutant Clean-Up and Removal
- Pays for the clean up cost of pollutants from covered causes of loss.
- The most we will pay is $100,000 for each described premises.
Increased Cost of Construction
- Covers additional costs for repairs attributable to applicable ordinances or laws.
- Does not cover any costs to make improvements unrelated to damage.
Additional Coverage- Collapse
- Applies when building collapses, or parts of it collapse.
- Does not cover property collapsing if not from a Covered Cause of Loss.
Additional Coverage- False Pretense - Stock
- Covers for loss(es) related to dishonest acts by individuals or entities, or false pretenses.
- Maximum coverage is $250,000.
Property in Transit
- Covers losses to covered property while in transit.
- Excludes coverage to property that is leased by another party.
- Applies only to tangible property.
- Maximum per occurrence is $10,000.
Cyber Attack
- Covers property loss from cyberattacks.
Product Recall
- Covers costs, damage or loss associated with recalling products, including contamination or loss of usability.
Business Income
- Pays for loss of income due to a covered cause of loss.
Extra Expense
- Covers extra costs you incur to continue or resume business.
Alterations and New Buildings
- Covers loss of income from covered loss related to new buildings, additions, or structural modifications to insured property.
Extended Business Income
- Covers further losses of income after the restoration period.
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Description
Test your knowledge on insurance coverage related to property and federal measures for terrorism losses. This quiz covers key aspects such as personal property exclusions, time limits for coverage, and the specifics of federal insurance programs. Dive in to see how well you understand these critical topics!
