AINS 23 Study Guide
Real property (realty) - Answer-Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
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 perils covered.
Commercial Property Conditions - Answer-A required component of the commercial property coverage
part that contains conditions applicable to all commercial property coverage forms.
Proof of loss - Answer-A statement of facts about a loss for which the insured is making a claim.
Actual cash value (ACV) - Answer-Cost to replace property with new property of like kind and quality
less depreciation.
Agreed Value optional coverage - Answer-Optional coverage that suspends the Coinsurance condition if
the insured carries the amount of insurance agreed to by the insurer and insured.
Inflation Guard optional coverage - Answer-Coverage for the effects of inflation that automatically
increases the limit of insurance by the percentage of annual increase shown in the declarations.
Replacement Cost optional coverage - Answer-Coverage for losses to most types of property on a
replacement cost basis (with no deduction for depreciation or obsolescence) instead of on an actual
cash value basis.
Subrogation - Answer-The process by which an insurer can, after it has paid a loss under the policy,
recover the amount paid from any party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
, External exposure - Answer-A property outside the area owned or controlled by the insured that
increases the probability of loss to the insured's building and its contents.
Business income insurance - Answer-Insurance that covers the reduction in an organization's income
when operations are interrupted by damage to property caused by a covered peril.
Net income - Answer-The difference between revenues (such as money received for goods or services)
and expenses (such as money paid for merchandise, rent, and insurance).
Profit - Answer-Net income that results when revenues exceed expenses.
Net loss - Answer-Net income that results when expenses exceed revenues.
Continuing expenses - Answer-Expenses that continue to be incurred during a business interruption.
No continuing expenses - Answer-Expenses that will not continue during a business interruption.
Extra expenses - Answer-Expenses, in addition to ordinary expenses, that an organization incurs to
mitigate the effects of a business interruption.
Probable maximum loss (PML) - Answer-The largest loss that an insured is likely to sustain.
Inland marine insurance - Answer-Insurance that covers many different classes of property that typically
involve an element of transportation.
Marine insurance - Answer-Insurance that, in the U.S., includes both ocean and inland marine coverage
and, in the rest of the world, is limited to insurance for vessels and cargo.
Real property (realty) - Answer-Tangible property consisting of land, all structures permanently
attached to the land, and whatever is growing on the land.
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 perils covered.
Commercial Property Conditions - Answer-A required component of the commercial property coverage
part that contains conditions applicable to all commercial property coverage forms.
Proof of loss - Answer-A statement of facts about a loss for which the insured is making a claim.
Actual cash value (ACV) - Answer-Cost to replace property with new property of like kind and quality
less depreciation.
Agreed Value optional coverage - Answer-Optional coverage that suspends the Coinsurance condition if
the insured carries the amount of insurance agreed to by the insurer and insured.
Inflation Guard optional coverage - Answer-Coverage for the effects of inflation that automatically
increases the limit of insurance by the percentage of annual increase shown in the declarations.
Replacement Cost optional coverage - Answer-Coverage for losses to most types of property on a
replacement cost basis (with no deduction for depreciation or obsolescence) instead of on an actual
cash value basis.
Subrogation - Answer-The process by which an insurer can, after it has paid a loss under the policy,
recover the amount paid from any party (other than the insured) who caused the loss or is otherwise
legally liable for the loss.
, External exposure - Answer-A property outside the area owned or controlled by the insured that
increases the probability of loss to the insured's building and its contents.
Business income insurance - Answer-Insurance that covers the reduction in an organization's income
when operations are interrupted by damage to property caused by a covered peril.
Net income - Answer-The difference between revenues (such as money received for goods or services)
and expenses (such as money paid for merchandise, rent, and insurance).
Profit - Answer-Net income that results when revenues exceed expenses.
Net loss - Answer-Net income that results when expenses exceed revenues.
Continuing expenses - Answer-Expenses that continue to be incurred during a business interruption.
No continuing expenses - Answer-Expenses that will not continue during a business interruption.
Extra expenses - Answer-Expenses, in addition to ordinary expenses, that an organization incurs to
mitigate the effects of a business interruption.
Probable maximum loss (PML) - Answer-The largest loss that an insured is likely to sustain.
Inland marine insurance - Answer-Insurance that covers many different classes of property that typically
involve an element of transportation.
Marine insurance - Answer-Insurance that, in the U.S., includes both ocean and inland marine coverage
and, in the rest of the world, is limited to insurance for vessels and cargo.
