Insurance Policy Coverage Overview
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the maximum coverage amount for loss or damage to newly acquired buildings under the policy?

  • $250,000 per building
  • $2,000,000 per building (correct)
  • $1,000,000 per building
  • $500,000 per building

    • What is the limit of coverage for loss or damage to business personal property?

  • $1,000,000 per occurrence (correct)
  • $250,000 per occurrence
  • $100,000 per occurrence
  • $2,000,000 per occurrence

    • What type of property is excluded from the policy under "Property Not Covered"?

  • Foundations of buildings (correct)
  • Personal effects of employees
  • Inventory
  • Employee tools

    • Under which condition does the policy exclude coverage for damage caused by fungi or microbes?

    <p>None of the above</p> Signup and view all the answers

    How long is the period of coverage for newly acquired property?

    <p>90 days</p> Signup and view all the answers

    What is the maximum amount the policy will pay for loss or damage to personal effects of others?

    <p>$25,000</p> Signup and view all the answers

    In the event of loss, what is the maximum coverage for valuable papers and records?

    <p>Subject to the Basket Aggregate Limit</p> Signup and view all the answers

    What is the coverage limit for property off-premises?

    <p>$100,000</p> Signup and view all the answers

    Which of the following is not covered under the "Employee Tools" extension?

    <p>Tools used in personal activities</p> Signup and view all the answers

    What is the maximum payout for the loss of a master key under the policy?

    <p>$25,000</p> Signup and view all the answers

    What does the "Green Standards" coverage apply to?

    <p>Rebuilding according to green building codes</p> Signup and view all the answers

    What is the maximum payout for business income loss due to alternative energy interruption?

    <p>Subject to Business Income limits</p> Signup and view all the answers

    What is the coverage for loss caused by the accidental discharge of chemicals from a fire extinguisher?

    <p>Fire Extinguisher Systems Expense Coverage</p> Signup and view all the answers

    What is the coverage extension for "Property Off Premises"?

    <p>Covers property at an exhibition, fair, or trade show</p> Signup and view all the answers

    What type of property is included under the definition of "fine arts"?

    <p>Paintings and sculptures</p> Signup and view all the answers

    What is the maximum coverage for loss or damage to "Employee Tools" at a described premises?

    <p>Subject to the SCHEDULE</p> Signup and view all the answers

    What is the maximum payout for loss or damage to personal effects of employees?

    <p>$25,000</p> Signup and view all the answers

    What is the maximum coverage for burglary damage to a building the insured occupies but does not own?

    <p>$100,000</p> Signup and view all the answers

    What is the maximum coverage for loss or damage to business income due to government confiscation?

    <p>$250,000</p> Signup and view all the answers

    What does the "Certified Act of Terrorism" definition in the policy require for certification?

    <p>Must involve physical damage to property</p> Signup and view all the answers

    What is the maximum coverage for the loss of "net leasehold interest" due to lease cancellation?

    <p>$250,000</p> Signup and view all the answers

    What is the coverage for loss of "net leasehold interest" due to lease cancellation?

    <p>Loss of rental income during the restoration period</p> Signup and view all the answers

    What is the coverage amount for fine arts under the policy?

    <p>$100,000</p> Signup and view all the answers

    What is the maximum payout for mobile communication property under the policy?

    <p>$100,000</p> Signup and view all the answers

    What does the "Alternative Energy" coverage apply to?

    <p>Loss of income due to the suspension of operations caused by alternative energy system failure</p> Signup and view all the answers

    What is the maximum coverage for loss due to a "Certified Act of Terrorism"?

    <p>Subject to the aggregate limit</p> Signup and view all the answers

    What is the maximum coverage for the loss of "employee tools" under the policy?

    <p>$500,000</p> Signup and view all the answers

    What does the "Green Standards" coverage apply to when repairing or replacing covered property?

    <p>The installation of energy-efficient windows</p> Signup and view all the answers

    What is the maximum coverage for loss or damage to valuable papers and records at a location more than 100 feet away from the described premises?

    <p>$100,000</p> Signup and view all the answers

    What is the coverage for loss or damage to business property located more than 100 feet from the described premises?

    <p>No coverage is provided</p> Signup and view all the answers

    What does the "Service of Suit" endorsement in the policy provide?

    <p>Designation of an agent to receive legal notices</p> Signup and view all the answers

    What is the coverage for "Alternative Energy"?

    <p>Both A and B</p> Signup and view all the answers

    What is the maximum coverage for debris removal under the policy?

    <p>$100,000</p> Signup and view all the answers

    What is the coverage for business income loss due to the suspension of operations caused by a covered cause of loss?

    <p>Limited to the policy's coverage limits</p> Signup and view all the answers

    What is the coverage for loss or damage caused by a "Certified Act of Terrorism"?

    <p>Coverage based on the federal Terrorism Risk Insurance Act</p> Signup and view all the answers

    What is the coverage for the "Loss of Master Key" under the policy?

    <p>$50,000 per occurrence</p> Signup and view all the answers

    What is the maximum payout for "Pollutant Clean-up and Removal" under the policy?

    <p>$250,000 per occurrence</p> Signup and view all the answers

    What is the maximum coverage for loss of business income due to government confiscation?

    <p>$250,000</p> Signup and view all the answers

    What does the "Alternative Water System" coverage apply to?

    <p>Equipment used for collecting and circulating non-potable water</p> Signup and view all the answers

    What is the coverage for loss of business income due to a third-party location?

    <p>$100,000</p> Signup and view all the answers

    What is the maximum coverage for loss of business income during the "period of restoration"?

    <p>$100,000</p> Signup and view all the answers

    What does the "Pollutant Clean-up and Removal" coverage apply to?

    <p>All of the above</p> Signup and view all the answers

    What is the coverage limit for "employee tools" at a described premises?

    <p>Subject to the Basket Aggregate Limit</p> Signup and view all the answers

    What does the "Loss Prevention Expense" coverage pay for?

    <p>Costs to prevent damage to insured property</p> Signup and view all the answers

    What is the maximum coverage for a loss caused by a "Certified Act of Terrorism"?

    <p>Subject to the Basket Aggregate Limit</p> Signup and view all the answers

    What is the coverage for "business income" loss under the policy?

    <p>Covers loss of income caused by a covered peril during the period of restoration</p> Signup and view all the answers

    What does the policy exclude under the "War and Military Action Exclusion"?

    <p>Damage from military action or war</p> Signup and view all the answers

    What is the purpose of the "Service of Suit" endorsement in the policy?

    <p>It sets up a dispute resolution process</p> Signup and view all the answers

    Study Notes

    Insurance Policy Coverage Amounts

    • Newly Acquired Buildings: Maximum coverage is $2,000,000 per building.
    • Business Personal Property: Maximum coverage is $2,000,000 per occurrence.
    • Personal Effects of Employees: Excluded from coverage.
    • Foundations of Buildings: Excluded from coverage.
    • Employee Tools: Covered under a specific extension.
    • Inventory: Covered under the policy.

    Exclusions for Fungi and Microbes

    • Coverage excluded when fungi or microbes are part of a covered loss.
    • Coverage excluded if damage is caused by water.

    Period of Coverage for Newly Acquired Property

    • Coverage period is 180 days.

    Personal Effects of Others

    • Maximum payout is $25,000.

    Valuable Papers and Records

    • Maximum coverage is subject to the Basket Aggregate Limit.

    Property Off-Premises

    • Coverage limit is $100,000.

    Employee Tools Extension

    • Tools used for business purposes are covered.
    • Tools used in personal activities are not covered.

    Loss of a Master Key

    • Maximum payout is $25,000.

    Green Standards Coverage

    • Applies to energy-efficient appliances, rebuilding according to green building codes, and motor vehicles.

    Business Income Loss Due to Alternative Energy Interruption

    • Maximum payout varies, subject to the Business Income limits.

    Coverage for Accidental Discharge of Chemicals from a Fire Extinguisher

    • Equipment Breakdown Coverage applies.

    Property Off Premises

    • Covers property at exhibitions, fairs, or trade shows.

    Fine Arts Coverage

    • Paintings, sculptures, furniture, fixtures, business inventory, and vehicles are covered.

    Employee Tools at Described Premises

    • Maximum coverage is $250,000.

    Maximum Payout for Personal Effects of Employees

    • The amount is $25,000.

    Burglary Damage to Non-Owned Building

    • Maximum coverage is $100,000.

    Business Income Due to Government Confiscation

    • Maximum coverage is $250,000.

    Certified Act of Terrorism Definition

    • Must involve physical damage to property.
    • Certified by the Secretary of Defense.

    Maximum Coverage for Loss of "Net Leasehold Interest" Due to Lease Cancellation

    • Maximum limit is $250,000.

    Coverage for Loss of "Net Leasehold Interest" Details

    • Loss based on property value.
    • Loss of income during restoration period.

    Fine Arts Coverage Amount

    • The coverage amount is $100,000.

    Mobile Communication Property Payout

    • Maximum payout for mobile communication property is $100,000.

    Alternative Energy Coverage Applicability

    • Loss due to power outages from non-renewable sources
    • Only applies to losses due to failure of alternative energy systems.

    Maximum Coverage for Loss Due to a "Certified Act of Terrorism"

    • $1,000,000 (Subject to the aggregate limit)
    • $500,000 max for a "Certified Act of Terrorism" is incorrect.

    Maximum Coverage for Employee Tools Loss

    • $500,000

    Green Standards Coverage Application in Repair/Replacement

    • Hiring professionals, removing hazardous materials, and installing energy-efficient appliances are part of the repair process.

    Coverage for Valuable Papers and Records (Off Premises)

    • $100,000 maximum.

    Coverage for Business Property Further Than 100 Feet

    • Up to $50,000

    Coverage for Service of Suit

    • Designation of an agent to receive legal notices.
    • Expedited claims process.

    Coverage for Alternative Energy

    • Actual loss of business income, and extra expense due to energy failure.

    Maximum Coverage for Debris Removal

    • 25% of total loss amount plus $10,000

    Business Income Suspension Coverage Limits

    • Limited to coverage limits.
    • For damages caused by fire.
    • Based on actual loss of revenue during restoration.

    Alternative Energy Coverage Explicit Exclusions

    • Utilities supplying the premises.
    • Alternate power generating equipment.
    • Business income losses due to alternative energy system failure.
    • Costs associated with purchasing energy from third parties.

    Coverage for Loss or Damage Caused by a "Certified Act of Terrorism"

    • Full coverage for damages exceeding $100 million.
      • Limited to incidents impacting only property.

    Maximum Payout for Pollutant Clean-up and Removal

    • $250,000 per occurrence.

    Maximum Coverage for Government Confiscation

    • $250,000 per occurrence.

    Alternative Water System Coverage Limits

    • Equipment used for potable water and non-potable water distribution.
    • Underground water pipes.
    • Water systems not directly related to energy efficiency.

    Business Income Loss Due to Third-Party Location

    • $100,000 max.

    Maximum Coverage for Restoration Period Business Losses

    • Based on actual loss of income.
    • No limit on coverage.

    Pollutant Clean-up and Removal Coverage

    • Cleanup of hazardous materials, inside buildings.
    • Cleanup of pollutants outside buildings.

    Coverage Limit for Employee Tools

    • Basket Aggregate Limit applies.

    Loss Prevention Expense Coverage Details

    • Costs to prevent damage.
    • Repairs after a loss.
    • Legal fees are not generally covered.

    Maximum Coverage for Act of Terrorism Losses

    • $1,000,000 ( Subject to the aggregate limit).

    Business Income Loss Coverage Details

    • Covers only losses during restoration period due to covered events.
    • Including third-party negligence.
    • Covers both direct and indirect losses.

    War and Military Action Exclusion Details

    • Damage stemming from civil commotion.
    • Damage from military action or war.
    • Damage originating from natural disasters.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    50b.pdf Insurance Policy Questions - PDF

    Description

    This quiz covers the key aspects of insurance policy coverage amounts, including limits for newly acquired buildings, inventory, and employee tools. It also highlights exclusions related to fungi and microbes, as well as specific coverage periods for newly acquired properties. Test your understanding of these important insurance concepts.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser