AMIM 122 Chapter 5 Study Guide Questions With Correct Solutions, Already Passed!!

Describe the exposures associated with earth-moving equipment. - Answer-- Upset and overturn can occur because of rough working terrain, the large size of equipment, the weight distribution of the equipment, and the weight of materials. - A high concentration of equipment on a job site can create traffic problems and increase the likelihood of fire and collision. - Fire hazards develop from the variety of ignition sources and combustible materials found in equipment and on job sites. - Vandalism and malicious mischief losses occur due to acts such as the reckless operation of equipment by unauthorized users, introduction of foreign materials into equipment gas tanks, component tampering, and equipment defacement. - A large market exists in the trafficking of stolen contractors equipment because of its high value and versatility within various types of projects. Describe the exposures associated with site-improvement equipment. - Answer-- Site-improvement equipment uses large amounts of flammable fuels to power the machinery and heat asphalt and paving materials, making fire loss a primary concern for contractors and underwriters. - Mixers and pavers are often large and difficult to move, making them less prone to theft but more prone to floor or earthquake damage. - Site-improvement equipment can be damaged by upset, overturn, and vandalism. What factors cause or contribute to boom collapse? - Answer-- Long booms are frequently handled and, if any of the boom members bend during erection, dismantling, transit, or storage, the structural integrity of the boom will be weakened, making it more susceptible to collapse under a load it could normally bear. - Once a crane is erected, its height increases its exposure to loss by windstorm. - Metal fatigue or weakened cables contribute to boom collapse. - Operator error contributes to boom collapse. Describe exposures associated with miscellaneous contractors equipment. - Answer-- Fire due to refueling or poor maintenance - Collision during transportation or operation- Flood damage when stored in low-lying areas - Theft due to the small size, portability, and large market for compressors, generators, and pumps What are the most commonly used types of equipment in road building operations? - Answer-Commonly used types of equipment in road building operations include backhoes, loaders, scrapers, graders, rollers, compactors, trenchers, batching and mixing plants, pavers, planners, finishers, portable generators, and pumps. Specialized drilling and blasting equipment may also be used when constructing roads in rocky or mountainous terrain. Identify exposures unique to underground mining operations. - Answer-- Roof collapse - Explosion and fire from flammable particle matter and equipment fuels - Shaft flooding What are advantages and disadvantages of insuring contractors equipment on a schedule basis? - Answer-Advantages: Scheduling property allows an underwriter to: - Define the exposure - Determine the value of particular units of property - Satisfy insurance-to-value requirements - Omit coverage on items by simply not including them in the schedule Disadvantages: Scheduling each piece of equipment: - Can be very time-consuming for both the insured and the insurer - Requires the insured to declare each new piece of equipment to ensure coverage