Insurance Policy Extensions Quiz

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Questions and Answers

Which type of property does the Extension specifically exclude coverage for?

Valuable papers that exist as electronic data (correct)

Records maintained in a digital format

Physical records located within the premises

Samples held for delivery after sale

What is the maximum amount payable under the Extension for valuable papers located more than 100 feet from the described premises in any one occurrence?

$25,000 (correct)

$10,000

$50,000

$100,000

What type of costs are covered under this Extension regarding the reproduction of records?

Only blank materials for reproducing records

Cost of labor and blank materials for reproducing records (correct)

Costs associated with both electronic and physical records

Only the cost of labor to transcribe records

Which statement best describes the nature of coverage provided under the Extension?

Coverage is subject to the Basket Aggregate Limit of Insurance. Signup and view all the answers

What is excluded from coverage according to the conditions of this Extension?

Loss or damage to samples intended for sale Signup and view all the answers

What conditions require coverage for collection expenses under this policy?

Loss or damage to accounts receivable records Signup and view all the answers

What is the maximum amount payable for accounts receivable located more than 100 feet from a described premises?

$25,000 Signup and view all the answers

Which of the following expenses is NOT covered under the accounts receivable extension?

Normal collection expenses Signup and view all the answers

What is meant by the 'Basket Aggregate Limit of Insurance' mentioned in the policy?

A specific limit for records of accounts receivable Signup and view all the answers

In which scenario would the policy provide for interest charges incurred?

If amounts due remain uncollected pending payment Signup and view all the answers

What type of loss does the accounts receivable coverage specifically address?

Direct physical loss or damage by covered causes Signup and view all the answers

Which of the following best describes a covered cause of loss as pertains to accounts receivable records?

Natural disasters Signup and view all the answers

If an expense is incurred to re-establish accounts receivable records, under what condition is it covered?

As a necessity resulting from physical loss or damage Signup and view all the answers

What is the maximum amount that will be paid for loss or damage in one occurrence?

The applicable Limit of Insurance shown in the Declarations Signup and view all the answers

Which statement correctly defines the Basket Aggregate Limit of Insurance?

It can be apportioned among various Coverages as chosen by the insured Signup and view all the answers

What happens to the applicable Limit of Insurance when utilizing the Preservation of Property Additional Coverage?

It does not increase the applicable Limit of Insurance Signup and view all the answers

What condition must be met for the first Named Insured to adjust the Basket Aggregate Limit of Insurance?

They may apportion it to any coverage one or more times Signup and view all the answers

What is the valuation method for permanent tents in the event of loss or damage?

Actual cash value at the time of the loss Signup and view all the answers

In the context of Limits of Insurance, which coverage is separate from the normal limits shown in the Declarations?

Preservation of Property Signup and view all the answers

Which of the following best describes the coverage applicable after a loss related to hazardous substances?

Limits of Insurance remain unaffected by hazardous claims Signup and view all the answers

Which type of coverage must be considered when evaluating loss assessment procedures?

Ordinance or law coverage Signup and view all the answers

What must be true for the Limits of Insurance in each described premise under the Basket Aggregate Limit?

They are applied separately unless otherwise stated Signup and view all the answers

Which statement reflects the impact of Errors and Omissions coverage within the policy limits outlined?

It is subject to the same limits as the rest of the coverages Signup and view all the answers

What is the limit for pollutant clean-up and removal for business income?

$25,000 Signup and view all the answers

Which coverage has a limit of $1,000,000 basket aggregate?

Valuable Papers and Records Signup and view all the answers

How long is the coverage period for newly acquired or constructed property?

90 Days Signup and view all the answers

What is the monetary limit for reward payments under the specified coverages?

$25,000 Signup and view all the answers

Which of the following has the lowest limit for coverage of employee tools?

$10,000 Signup and view all the answers

For property off-premises coverage, what is the maximum limit available?

$25,000 Signup and view all the answers

What is the limit for Preparation of Loss Fees pertaining to Business Income?

$25,000 Signup and view all the answers

Which coverage category is specifically subject to a $1,000,000 aggregate limit?

Outdoor Property Signup and view all the answers

What is the limit for Newly Acquired or Constructed Property – Your Business Personal Property?

$1,000,000 Signup and view all the answers

What is the coverage limit for accounts receivable losses?

$25,000 Signup and view all the answers

What aspect of the coverage does the Green Standards Additional Coverage specifically not include?

Loss attributable to non-compliance with existing green standards Signup and view all the answers

Which of the following is excluded from the Green Standards Additional Coverage?

Loss due to pollution clean-up efforts Signup and view all the answers

What is required for costs related to lost property under Green Standards to be covered?

Prior compliance with relevant green standards Signup and view all the answers

Which type of loss does the leasehold interest coverage address?

Loss from lease cancellation due to valid lease conditions Signup and view all the answers

What constitutes a covered direct physical loss under the Green Standards Additional Coverage?

Loss or damage proportional to total loss incurred Signup and view all the answers

What does the term 'pollutant clean-up and removal' refer to in the context of exclusions?

Expenses for removing hazardous materials from a site Signup and view all the answers

How does the policy handle damage caused by hazardous substances?

It specifically excludes losses from hazardous substance incidents Signup and view all the answers

Which of the following statements best describes the impact of 'green standards' on the coverage provided?

They limit coverage to damages compliant with existing standards Signup and view all the answers

What is a requirement for loss assessment procedures under this policy?

They must indicate the cause of loss Signup and view all the answers

What does the term 'fungus' encompass according to the definition provided?

Any form of fungus including yeast, mold, and related substances Signup and view all the answers

Which of the following is included in the definition of a 'computer'?

Programmable electronic equipment used to store electronic data Signup and view all the answers

Which of the following components is NOT part of the 'computer' definition?

Mobile communication property Signup and view all the answers

What type of substances does the definition of 'fungus' explicitly exclude?

Fungus intended for consumption Signup and view all the answers

What specifically does the definition of 'computer' exclude?

Media used for storing electronic data Signup and view all the answers

What is the definition of a 'certified act of terrorism' as per the exclusion mentioned?

An act certified by the Secretary of the Treasury under federal law. Signup and view all the answers

Which coverage part is modified by the exclusion of certified acts of terrorism?

Commercial Property Coverage Part Signup and view all the answers

What is excluded under the certified act of terrorism exclusion?

Losses caused directly or indirectly by a certified act of terrorism. Signup and view all the answers

How does the policy treat losses contributing to a certified act of terrorism?

They are excluded regardless of any contributing factors. Signup and view all the answers

What is the significance of the Terrorism Risk Insurance Act mentioned in the policy?

It sets criteria for what constitutes a certified act of terrorism. Signup and view all the answers

Which clause clarifies the rights regarding inspections and surveys of property?

Property inspections and surveys can be done at any time. Signup and view all the answers

In the context of this insurance policy, who has the rights to the property under temporary custody?

Temporary custodians have limited rights related to the property. Signup and view all the answers

What is the maximum amount payable for burglary damage to a building in one occurrence?

$25,000 Signup and view all the answers

Which scenario would render the burglary damage coverage inapplicable?

Subsequent damage from a non-covered cause of loss Signup and view all the answers

In which case is the insured responsible for burglary damage to a building they occupy?

When they occupy the premises but do not own it Signup and view all the answers

Which of the following defines the coverage limitation under the burglary damage clause?

The insurance for the building is specified in the Declarations Signup and view all the answers

What part of a building does the burglary damage coverage specifically pertain to?

The part of the premises which you occupy Signup and view all the answers

Which factor does NOT influence the application of the burglary damage coverage?

The location of the building Signup and view all the answers

If a building you occupy is damaged due to burglary, how is the liability for coverage determined?

By your contractual liability Signup and view all the answers

What is excluded from coverage under the burglary damage additional coverage?

Direct physical loss due to fire Signup and view all the answers

What constitutes necessary criteria for coverage under burglary damage?

It must be directly linked to a burglary incident Signup and view all the answers

What does 'void ab initio' mean in the context of this policy?

The policy is automatically cancelled retroactively. Signup and view all the answers

Which fees are included in the coverage for property valuation related to construction and repair?

Architectural and engineering fees Signup and view all the answers

What triggers the application of Building Deductible in this policy?

Additional coverages and coverage extensions Signup and view all the answers

Which circumstance would result in the policy being void?

Non-compliance with economic and trade sanctions Signup and view all the answers

How is property at a single premises defined under this policy?

All property at one premises constitutes a single premises. Signup and view all the answers

What is meant by 'coverage extensions' in this context?

It describes extra benefits beyond standard coverage. Signup and view all the answers

What does 'reasonable and necessary' refer to in construction fees?

Charges that are customary in the industry for repair Signup and view all the answers

What does the endorsement effective date signify?

The start date for coverage under the endorsement. Signup and view all the answers

In the context of this policy, which of the following best describes 'Deductible'?

The amount subtracted from the coverage limit. Signup and view all the answers

How does the policy approach the impact of economic and trade sanctions?

It includes sanctions as exclusions for coverage. Signup and view all the answers

What is the coverage for 'computers' in the event of partial damage?

Cost of reasonable restoration to pre-loss condition Signup and view all the answers

What does the coverage for 'electronic data' include if not replaced or reproduced?

Cost of the media with no stored data Signup and view all the answers

What is the payment limit for loss or damage to 'media'?

Cost to repair or replace with substantially identical property Signup and view all the answers

Which type of property is explicitly not covered by this Coverage Extension?

Property held for distribution or sale Signup and view all the answers

What is the maximum amount payable for loss or damage to 'computers', 'electronic data', and 'media' in one occurrence?

Subject to the specific item limit detailed in the policy Signup and view all the answers

For property located more than 100 feet from the described premises, which conditions apply?

The maximum payout is restricted to $75,000 in any one occurrence Signup and view all the answers

What method is used for valuing 'computers' if they are not replaced or repaired?

Actual cash value of the equipment Signup and view all the answers

What occurs if a 'computer' is partially damaged?

Cost of restoring the computer is fully covered Signup and view all the answers

In the event that 'electronic data' is reproduced, what is the extent of coverage provided?

Actual cost incurred to reproduce the data Signup and view all the answers

Study Notes

Property Exclusion

The Extension specifically excludes coverage for property that is not physically located on the described premises.

Maximum Coverage Amount for Valuable Papers

The maximum payable under the Extension for valuable papers located over 100 feet from the described premises is $1,000.

Reproduction of Records Costs

The Extension covers expenses related to the reproduction of records, including reproduction, transcription, and the labor associated with these processes.

Coverage Nature

The Extension provides coverage for loss or damage to specific property items, such as accounts receivable, valuable papers, and other valuable property.

Coverage Exclusions

Excluded from coverage under the Extension are losses caused by dishonest or fraudulent acts on the part of the Named Insured or their employees.

Collection Expenses Coverage

Coverage for collection expenses is available under this policy, specifically for accounts receivable, when a loss or damage event occurs due to a covered cause of loss.

Maximum Coverage for Accounts Receivable

The maximum amount payable for accounts receivable located more than 100 feet from a described premises is $1,000.

Accounts Receivable Coverage

Not covered under the accounts receivable extension are expenses related to legal fees associated with the recovery of outstanding accounts.

Basket Aggregate Limit of Insurance

The 'Basket Aggregate Limit of Insurance' refers to the maximum amount that will be paid under the policy for all covered losses within a specified period, typically a year.

Interest Charges Coverage

Interest charges are covered under the policy when they are incurred due to a covered cause of loss leading to a delay in payment of accounts receivable.

Accounts Receivable Coverage Focus

Accounts receivable coverage specifically addresses the loss or damage to records containing account information, resulting in the inability to collect outstanding payments.

Covered Cause of Loss for Accounts Receivable

A covered cause of loss for accounts receivable records includes damage caused by covered perils such as fire, windstorm, and other events listed in the policy.

Re-establishment Expenses Coverage

Expenses incurred to re-establish accounts receivable records are covered under the condition that the loss or damage is caused by a covered peril and is subject to the applicable policy limits.

Maximum Payment Per Occurrence

The maximum amount that will be paid in a single occurrence for loss or damage is subject to the policy's Limit of Insurance, typically expressed as a dollar amount.

Basket Aggregate Limit Definition

The Basket Aggregate Limit of Insurance is the maximum amount payable under the policy across all covered losses during a specified period, typically a year, regardless of the number of occurrences.

Limit of Insurance Impact

When utilizing the Preservation of Property Additional Coverage, the applicable Limit of Insurance for the described premises is increased to include the cost of preserving the property.

Adjusting Basket Aggregate Limit

The first Named Insured can adjust the Basket Aggregate Limit of Insurance, provided that the adjustment is documented in writing and approved by the insurance company.

Valuation Method for Permanent Tents

Permanent tents are valued at their actual cash value in the event of loss or damage, taking into account depreciation and factors affecting the value.

Separate Limit of Insurance

The coverage for accounts receivable is separate from the normal limits shown in the Declarations.

Coverage after Hazardous Substance Loss

Coverage applicable after a loss related to hazardous substances is subject to specific exclusions and limitations, with the policy typically providing coverage for cleanup and removal expenses within defined limits.

Loss Assessment Procedures

The policy's provision for Loss Assessment procedures is relevant when evaluating the coverage available for assessments levied against the insured for their proportionate share of losses incurred by an association or corporation.

Basket Aggregate Limit Requirements

For the Basket Aggregate Limit to apply, the Limits of Insurance for each described premise must be equal or greater than the applicable values of the insured properties.

Impact of Errors and Omissions

Within the policy limits outlined, Errors and Omissions coverage does not extend to claims arising from intentional or fraudulent acts.

Limit for Pollutant Clean-up and Removal for Business Income

The limit for pollutant clean-up and removal expenses related to Business Income is $1,000,000.

Basket Aggregate Limit Coverage

Business Personal Property has a Basket Aggregate limit of $1,000,000.

Coverage Period for New Property

The coverage period for newly acquired or constructed property is 30 days from the date of acquisition or completion.

Reward Payment Limit

The monetary limit for reward payments under the specified coverages is $1,000.

Employee Tools Coverage

The lowest limit for coverage of employee tools is $2,500 per employee.

Property Off-premises Coverage Limit

The maximum limit available for property off-premises coverage is $10,000.

Preparation of Loss Fees Limit

The limit for Preparation of Loss Fees pertaining to Business Income is $2,500.

Aggregate Limit Coverage

The category of Business Income is subject to a $1,000,000 aggregate limit.

Newly Acquired or Constructed Property Limit

The coverage limit for Newly Acquired or Constructed Property – Your Business Personal Property is $1,000,000.

Accounts Receivable Loss Coverage Limit

The coverage limit for accounts receivable losses is $10,000.

Green Standards Coverage Exclusion

The Green Standards Additional Coverage does not specifically include coverage for costs related to the environmental cleanup and removal of hazardous substances.

Green Standards Exclusion

Excluded from the Green Standards Additional Coverage are losses caused by acts of war, nuclear hazards, and other specific events outlined in the policy.

Lost Property Costs Coverage

Costs related to lost property under Green Standards are covered, provided they are incurred to minimize the cost of loss or damage caused by a covered cause of loss.

Leasehold Interest Coverage Focus

Leasehold interest coverage addresses the loss of rental income or the expense associated with relocating due to a covered loss or damage event.

Covered Direct Physical Loss

A covered direct physical loss under the Green Standards Additional Coverage includes damage caused by covered perils such as fire, windstorm, and other events as outlined in the policy.

Pollutant Clean-up and Removal

The term 'pollutant clean-up and removal' refers to the costs associated with removing or remediating pollutants released or released due to a covered cause of loss.

Damage Caused by Hazardous Substances

Damage caused by hazardous substances is typically excluded, unless the loss is directly caused by a covered peril and meets the specific conditions outlined in the policy.

Green Standards Coverage Impact

Green standards enhance coverage by providing additional benefits for environmentally friendly practices and sustainable rebuilding efforts following a covered loss.

Loss Assessment Procedures Requirement

A requirement for loss assessment procedures under this policy is that the insured must be a member of the association or corporation that is levying the assessment.

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Description

Test your knowledge on the specifics of insurance policy extensions, including coverage exclusions and limits. This quiz covers topics such as valuable papers, accounts receivable, and reproduction of records. Assess your understanding of the conditions and limits related to insurance extensions.

Insurance Policy Extensions Quiz

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Questions and Answers

Which type of property does the Extension specifically exclude coverage for?

What is the maximum amount payable under the Extension for valuable papers located more than 100 feet from the described premises in any one occurrence?

What type of costs are covered under this Extension regarding the reproduction of records?

Which statement best describes the nature of coverage provided under the Extension?

What is excluded from coverage according to the conditions of this Extension?

What conditions require coverage for collection expenses under this policy?

What is the maximum amount payable for accounts receivable located more than 100 feet from a described premises?

Which of the following expenses is NOT covered under the accounts receivable extension?

What is meant by the 'Basket Aggregate Limit of Insurance' mentioned in the policy?

In which scenario would the policy provide for interest charges incurred?

What type of loss does the accounts receivable coverage specifically address?

Which of the following best describes a covered cause of loss as pertains to accounts receivable records?

If an expense is incurred to re-establish accounts receivable records, under what condition is it covered?

What is the maximum amount that will be paid for loss or damage in one occurrence?

Which statement correctly defines the Basket Aggregate Limit of Insurance?

What happens to the applicable Limit of Insurance when utilizing the Preservation of Property Additional Coverage?

What condition must be met for the first Named Insured to adjust the Basket Aggregate Limit of Insurance?

What is the valuation method for permanent tents in the event of loss or damage?

In the context of Limits of Insurance, which coverage is separate from the normal limits shown in the Declarations?

Which of the following best describes the coverage applicable after a loss related to hazardous substances?

Which type of coverage must be considered when evaluating loss assessment procedures?

What must be true for the Limits of Insurance in each described premise under the Basket Aggregate Limit?

Which statement reflects the impact of Errors and Omissions coverage within the policy limits outlined?

What is the limit for pollutant clean-up and removal for business income?

Which coverage has a limit of $1,000,000 basket aggregate?

How long is the coverage period for newly acquired or constructed property?

What is the monetary limit for reward payments under the specified coverages?

Which of the following has the lowest limit for coverage of employee tools?

For property off-premises coverage, what is the maximum limit available?

What is the limit for Preparation of Loss Fees pertaining to Business Income?

Which coverage category is specifically subject to a $1,000,000 aggregate limit?

What is the limit for Newly Acquired or Constructed Property – Your Business Personal Property?

What is the coverage limit for accounts receivable losses?

What aspect of the coverage does the Green Standards Additional Coverage specifically not include?

Which of the following is excluded from the Green Standards Additional Coverage?

What is required for costs related to lost property under Green Standards to be covered?

Which type of loss does the leasehold interest coverage address?

What constitutes a covered direct physical loss under the Green Standards Additional Coverage?

What does the term 'pollutant clean-up and removal' refer to in the context of exclusions?

How does the policy handle damage caused by hazardous substances?

Which of the following statements best describes the impact of 'green standards' on the coverage provided?

What is a requirement for loss assessment procedures under this policy?

What does the term 'fungus' encompass according to the definition provided?

Which of the following is included in the definition of a 'computer'?

Which of the following components is NOT part of the 'computer' definition?

What type of substances does the definition of 'fungus' explicitly exclude?

What specifically does the definition of 'computer' exclude?

What is the definition of a 'certified act of terrorism' as per the exclusion mentioned?

Which coverage part is modified by the exclusion of certified acts of terrorism?

What is excluded under the certified act of terrorism exclusion?

How does the policy treat losses contributing to a certified act of terrorism?

What is the significance of the Terrorism Risk Insurance Act mentioned in the policy?

Which clause clarifies the rights regarding inspections and surveys of property?

In the context of this insurance policy, who has the rights to the property under temporary custody?

What is the maximum amount payable for burglary damage to a building in one occurrence?

Which scenario would render the burglary damage coverage inapplicable?

In which case is the insured responsible for burglary damage to a building they occupy?

Which of the following defines the coverage limitation under the burglary damage clause?

What part of a building does the burglary damage coverage specifically pertain to?

Which factor does NOT influence the application of the burglary damage coverage?

If a building you occupy is damaged due to burglary, how is the liability for coverage determined?

What is excluded from coverage under the burglary damage additional coverage?

What constitutes necessary criteria for coverage under burglary damage?

What does 'void ab initio' mean in the context of this policy?

Which fees are included in the coverage for property valuation related to construction and repair?

What triggers the application of Building Deductible in this policy?

Which circumstance would result in the policy being void?

How is property at a single premises defined under this policy?

What is meant by 'coverage extensions' in this context?

What does 'reasonable and necessary' refer to in construction fees?

What does the endorsement effective date signify?

In the context of this policy, which of the following best describes 'Deductible'?

How does the policy approach the impact of economic and trade sanctions?

What is the coverage for 'computers' in the event of partial damage?

What does the coverage for 'electronic data' include if not replaced or reproduced?

What is the payment limit for loss or damage to 'media'?