Terrorism Coverage Notice

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the maximum amount payable for accidental discharge of substances from fire extinguishers in one occurrence?

$7,500

$5,000 (correct)

$10,000

$2,500

Which situation will not provide coverage under the fire extinguisher systems expense?

Discharge during testing (correct)

Accidental discharge during operation

Recharging fire extinguishers

Direct physical loss from chemicals

What types of items are explicitly excluded from coverage according to the amendments?

Accounts, food stamps, and lottery tickets held for sale (correct)

Buildings and structures under construction

Motor vehicles and machinery used solely at a described premises

Virtual currency and electronic data processing equipment

For which of the following causes does the policy cover loss of business personal property?

Government confiscation Signup and view all the answers

Which electronic items are specifically mentioned in the amendments?

Television antennas and their masts or towers Signup and view all the answers

Which statement best describes the coverage for motor vehicles?

All motor vehicles are excluded from coverage Signup and view all the answers

What is included in the expense coverage for fire extinguishers under the policy?

Cost of hydrostatic testing of fire extinguishers Signup and view all the answers

What type of deductible applies to the additional coverage for fire extinguisher systems?

No deductible applies Signup and view all the answers

What items related to landscaping are indicated as exceptions in the amended policy?

Trees, shrubs, or plants that are 'stock' Signup and view all the answers

Which type of currency is noted as excluded from coverage?

Virtual currency and money in any form Signup and view all the answers

What business operation will not result in coverage for damage according to this policy?

Testing of fire extinguishers Signup and view all the answers

Which of the following is true regarding hydrostatic testing costs under the policy?

It is covered if it is part of the recharging process Signup and view all the answers

Which of the following is incorrectly associated with electronic data exclusions?

Electronic data processing equipment is excluded Signup and view all the answers

What specific exclusions apply related to structures surrounding the property?

Fences and specific antennas with wiring Signup and view all the answers

Which of the following statements represents coverage limitations concerning fire extinguisher systems?

No coverage for discharges during testing or installation Signup and view all the answers

Which of the following is true regarding the exclusions related to machinery?

Coverage is only provided for machinery at described premises Signup and view all the answers

What is the maximum amount payable under this Additional Coverage for a single occurrence?

$100,000 Signup and view all the answers

Which of the following expenses is NOT covered under the Additional Coverage for green standards?

Alterations to property unrelated to damage Signup and view all the answers

Which requirement must be satisfied to apply the Additional Coverage?

The property must be insured under the policy limits Signup and view all the answers

What does Exclusion B.1.c. pertain to in the context of this Additional Coverage?

It does not apply solely for the purposes of this Additional Coverage. Signup and view all the answers

When would the Additional Coverage not apply to green standards costs?

When damage is caused by factors beyond the policy's scope Signup and view all the answers

Which activity is included under the Additional Coverage related to the repair or replacement process?

Ventilating in accordance with green standards Signup and view all the answers

What type of professionals can be hired under the Additional Coverage's green standards?

Professionals accredited under specific green standards Signup and view all the answers

Which of the following activities would NOT qualify as a necessary expense for the repair or replacement of Covered Property?

Hiring unaccredited professionals for repairs Signup and view all the answers

What is the maximum payment for covered loss or damage to 'employee tools' in a single occurrence at a described premises?

$500,000 Signup and view all the answers

What is the maximum coverage for 'computers', 'electronic data', and 'media' that are in transit?

$50,000 Signup and view all the answers

How much can be claimed for 'computers', 'electronic data', and 'media' at an exhibition or trade show?

$25,000 Signup and view all the answers

What is the maximum amount payable for 'employee tools' used in business but located more than 100 feet from a described premises?

$10,000 Signup and view all the answers

Which company underwrites the insurance policy indicated in the document?

Columbia Casualty Company Signup and view all the answers

What type of property does the endorsement most specifically include under fine arts?

Property of others while in care Signup and view all the answers

Which of the following is NOT specifically covered under this policy?

Raw materials for production Signup and view all the answers

What is the significance of the Effective Date noted in the endorsement?

It marks the start of coverage. Signup and view all the answers

Which of the following correctly defines 'Electronic Data'?

Information created or used on electronic media with controlled equipment. Signup and view all the answers

What does 'Fine arts' NOT include?

Valuable papers and records. Signup and view all the answers

What is meant by 'Government confiscation'?

The seizure of property by civil authorities for law violations. Signup and view all the answers

Which statement accurately represents 'Employee tools'?

Tools owned by employees, including leased and temporary ones. Signup and view all the answers

Which of the following items can be classified as 'Fine arts'?

Paintings and bronzes. Signup and view all the answers

What characterizes 'computer programs'?

Instructions that enable devices to function and process data. Signup and view all the answers

What does 'Green standards' entail?

Ecological and environmental criteria for operations. Signup and view all the answers

Which type of media is excluded from the definition of 'Electronic Data'?

Records of Accounts Receivable. Signup and view all the answers

What is the maximum reimbursement for loss under the Additional Coverage for property theft?

$25,000 Signup and view all the answers

What is required for a reward to be reimbursed according to the policy?

The covered property must be returned. Signup and view all the answers

What is the limit for loss or damage under the Newly Acquired or Constructed Property Extension for buildings?

$2,000,000 Signup and view all the answers

Who is not eligible for reimbursement under the policy regarding theft?

Any officer of the company Signup and view all the answers

What amount is specified as the limit for loss or damage under the Business Personal Property Extension?

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

What must occur before a reward can be reimbursed?

The person committing the crime must be convicted. Signup and view all the answers

When does coverage for Newly Acquired or Constructed Property become effective?

On the policy effective date Signup and view all the answers

What is the significance of the number $25,000 in this policy?

It is the maximum reimbursement for any one occurrence of theft. Signup and view all the answers

Study Notes

Policyholder Notice - Terrorism Coverage

This notice does not change policy terms
"We" refers to the insurer, "you" refers to the policyholder
You have the right to purchase coverage for acts of terrorism
Terrorism Risk Insurance Act (Act) establishes a federal program for sharing risk from terrorism attacks.
The federal government shares risk with the insurance industry.
Changes in the definition of a certified act of terrorism:
Originally, an act of terrorism had to cause $5 million in losses and be committed by or on behalf of a foreign person or foreign interest to coerce the U.S. government or population.
The 2007 re-authorization removed the foreign interest requirement.
-Now, certified acts of terrorism can include acts by U.S. citizens against the U.S. government.

Federal Participation in Terrorism Losses

The Treasury will pay 85% of terrorism losses exceeding insurer retention.
This percentage decreases by one point yearly, until it reaches 80%.
If aggregate insured losses exceed $100 billion in a calendar year, the Treasury will not pay any further losses exceeding $100 billion.
Any further losses are subject to pro-rata allocation by the Secretary of the Treasury.

Cancellation and Nonrenewal

Insurer may cancel the policy if the building has been vacant or unoccupied for 60 days. This will not apply to seasonal unoccupancy, construction, renovation, or additions.
Also applies if the building has undergone permanent repairs and not started within 30 days of payment of loss.
If outstanding order to vacate, demolition order, or declared unsafe, by governmental authority.
If removal of fixed, salvageable items from the building is not being replaced.
If essential utility services (heat, water, sewer, or electricity) have been disrupted for 30 days or more.
If property taxes are outstanding for over a year after the due date.
The insurer can cancel the policy for other reasons if the policy has been in effect for 90 days or more.

Studying That Suits You

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

Description

This quiz covers the key points regarding terrorism coverage as per your insurance policy. It outlines the rights of the policyholder, the role of the federal program in sharing terrorism risk, and recent changes in the definition of certified acts of terrorism. Test your understanding of these important insurance details.