AINS 23 Exam Study Guide with Complete Solutions

AINS 23 Exam Study Guide with Complete Solutions Crime - Employee Theft covers: - Answer-1) Theft committed by any employee 2) Money, securities and "other property" with intrinsic value and it is tangible 3) Coverage extends in US territory, Canada, Puerto Rico or anywhere that an employee is temporarily outside for less than 90 consecutive days Crime - Forgery/Alteration covers: - Answer-1) Forgery and/or alteration 2) Checks, drafts, promissory notes or similar instruments 3) Worldwide Crime - Inside the Premises, Theft of Money and Securities covers: - Answer-1) Theft, disappearance or destruction, as well as actual or attempted theft of money or securities, and actual or attempted theft or unlawful entry 2) Money and securities, applicable to the premises or the premises exterior, including locked safes, vaults, registers, cash boxes, cash drawers 3) Applies only inside the premises Crime - Inside the Premises, Robbery or Safe Burglary of Other Property covers: - Answer-1) Actual or attempted robbery of a custodian or safe burglary EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 2/48 2) Covers "other property", including when locked in a safe or a vault 3) Applies only inside the premises Crime - Outside the Premises covers: - Answer-1) Theft, disappearance or destruction of money or securities, or actual or attempted robbery of other property 2) Coverage applies outside the premises in the care or custody of a messenger or armored car company in US, Puerto Rico or Canada Crime - Computer and Funds Transfer Fraud covers: - Answer-1) Use of a computer to fraudulently cause a transfer or cause the NI's account to be debited or deleted; or fraudulent instruction directing the financial institution to debit or delete the NI's account 2) Applies to money, securities and other property for computer fraud (actual use of computer); or money or securities for funds transfer fraud (fraudulent instruction) 3) Worldwide Crime - Money Orders and Counterfeit Money covers: - Answer-1) Good-faith acceptance of money orders that are not paid upon presentation or counterfeit money 2) Covers money orders issued by any post office, express company or financial institution, or counterfeit money acquired during regular course of business 3) Applies to US, Puerto Rico, Canada Real Property (Realty) - Answer-Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 3/48 Personal Property - Answer-All tangible or intangible property that is not real property Commercial Property Coverage Part - Answer-Commercial package policy (CPP) coverage component that provides a broad range of coverages to "middle-market" or larger firms to insure buildings and business personal property Commercial Package Policy (CPP) - Answer-Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts Monoline Policy - Answer-Policy that covers only one line of business Package Modification Factors - Answer-Factors that are applied to the regular policy premiums for certain coverage parts of a CPP that includes both property and liability coverages, resulting in premium discounts for those coverage parts Commercial Property Declarations Page - Answer-A required commercial property coverage part component that provides basic information about the policyholder and the insurance provided Commercial Property Coverage Form - Answer-A commercial property coverage part component that can be any of several commercial property forms containing an insuring agreement and related provisions Causes of Loss Form - Answer-A required component of the commercial property coverage part that specifies the perils covered EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 4/48 Commercial Property Conditions - Answer-A required component of the commercial property coverage part that contains conditions applicable to all commercial property coverage forms "Building" Includes the following - Answer-(1) Completed additions to the covered buildings (2) Fixtures (including outdoor fixtures) (3) Permanently installed machinery & equipment (4) Personal property owned by the insured used to maintain or service the building or premises (ie. fire extinguishers, outdoor furniture, equipment for refrigeration, HVAC, cooking, dishwashing, laundry) (5) If not otherwise insured, will cover additions, alterations or repairs in progress as well as equipment & materials, if located within 100' of the premises Extensions to the Building & Personal Property form - Answer-(1) Debris Removal (2) Preservation of Property (3) Fire Department Service Charge (4) Pollutant Cleanup and Removal (5) Increased Cost of Construction (6) Electronic Data EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 5/48 Debris Removal Extension - Answer-Will pay to cover the cost of debris removal from a covered property if the debris results from a covered cause of loss during the policy period. Can also extend to cover removal from neighboring properties. Is an extension of the property form Preservation of Property Extension - Answer-Coverage extends to property while in transit and at a new location for up to 30 days if it is moved to prevent loss. Coverage is even broader under this extension, protecting against "any direct physical loss or damage". Is an extension of the property form Fire Department Service Charge Extension - Answer-Covers the cost of any applicable charges up to the specified limit, if charged by the fire department. Is an extension of the property form Pollutant Cleanup and Removal Extension - Answer-Pays the expenses to extract pollutants from land or water at the described premises if the release is the result of a covered cause of loss during the policy period. Is an extension of the property form Increased Cost of Construction Extension - Answer-Provides a small amount of Ordinance or Law coverage up to the lesser of 5% of the policy limit, or $10,000. It does not cover Ordinance/Law Cov A, B or C. Is an extension of the property form Electronic Data Extension - Answer-Provides very modest coverage for electronic data, likely too low to be meaningful coverage. Is an extension of the property form Newly Acquired or Constructed Property Extension - Answer-Automatically extends coverage to newly acquired or constructed property provided the building use is similar to the EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 6/48 building(s) described on the policy. This extension ceases either 30 days after the acquisition/construction or the date the insured notifies the insurer of the new location. Is an extension of the property form Personal Effects and Property of Others Extension - Answer-Provides a limited amount of coverage for personal effects owned by an individual insured, partner, member, officer, etc. This coverage extension excludes theft, but does include coverage for property of others in the care, custody or control of the insured. Is an extension of the property form Valuable Papers and Records (Other than Electronic Data) Extension - Answer-Valuable papers (ie. medical records, drawings, etc) are covered up to the cost to replace blank records and the labor to duplicate. Is an extension of the property form Property Off-Premises Extension - Answer-Coverage extends to covered property while away from described premises and also covers it while at a fair, trade show or exhibition. Is an extension of the property form Outdoor Property Extension - Answer-Covers loss to outdoor fences, radio and TV antennae, trees, shrubs and plants. Only covers loss by fire, lightni