CIC Property Section 1 Commercial Property Coverage Forms & Endorsements Questions & Answers Solved 100% Correct!!

List and explain the specific rights and duties of the first Named Insured as stated in the Common Policy Conditions. - 1. Authorized To Cancel 2. Receive Notice Of Cancellation 3. Make Changes With Insurer Consent 4. Responsible For Payment Of All Premiums 5. Payee For Return Premiums List the circumstances under which an insured may waive rights of recovery against others as stated in the Commercial Property Conditions. - 1. Can waive rights of recovery against anyone as long as it is prior to a loss and it is in writing. 2. Can waive subrogation after loss only if in writing and the responsible party, at time of loss, is: - Another insured - A business woned or controlled by the named insured - A business that owns or controls the named insured - A tenant Determine whether an item qualifies as Covered Property (i.e., Building, Your Business Personal Property or Personal Property Of Others) as defined in the Building And Personal Property Coverage Form. - a. Building - Completed additions - Fixtures, including outdoor fixtures - Machinery and equipment (considered permanently installed) can be covered - Personal property used to service the building or premises - IF NOT COVERED BY OTHER INSURANCEIdentify and describe the endorsements that are available to change whether the policy considers an item to be Building or Your Business Personal Property. - Building 1. Additional Building Property- clarifies items in the gray area like permanently installed machinery. 2.Additional Property Not Covered- removes property from coverage. Business Personal Property 3. Additional Property Not Covered- Contents to be removed. 4. Leased Property- Insures Personal Property leased to the Insured. 5. Your Business Personal Property - Separation of Coverage- Can separate and specify Limit of Insurance for any of the seven categories of your BPP Given the appropriate information, differentiate between items that are considered Covered Property and Property Not Covered under the Building And Personal Property Coverage Form. - Property Not Covered - 21 - Bridges, roadways, walks, patios, paved surfaces - Contraband - Foundations of buildings or structures if their foundations are below (1) the lowest basement floor or (2) the surface of the ground, if there is no basement. - Land - Electronic Data: doesn't cover software. - Valuable papers and records - The following outside of building: 1- crops. 2- fences and antennas. Additional Covered Property Endorsement adds property not covered. Identify and apply the advantages and disadvantages/special considerations of writing a policy on a blanket basis versus on a scheduled/specific basis. - Advantages of Blanket Coverage:- Named insured can apply insurance where needed when more than one type of property is covered blanket. - Handles fluctuating values between locations or fire-rated divisions. - Reporting forms easier to handle - Only needs coinsurance for all locations combined Disadvantages of Blanket Coverage: - 90 or 100% coinsurance required. - Blanket may not be possible because of underwriting. - Statement of values must be obtained from named insured - Rates for one year only - Must have same causes of loss for all covered property - Must list all ownership interests with multiple locations