CIC COMMERCIAL MULTILINE QUESTIONS AND
ANSWERS SURE A+
✔✔Identify and apply Covered Property,
Covered Locations,
and Property Not Covered under a Bailee Policy - ✔✔Covered Property:
Customers Property in Named insured CCC
has to be in CCC for processing
Covered locations;
-described premises
-on premises of others for servicing or processing
-Anywhere in covered territory while in transit
--Between NI premises branches
--Between NI and Servicing
--Between NI and Customer
Property Not Covered:
-Aircraft/watercraft
-contraband
-Furs
-Jewelry
-money + securities
-no charge for services
-vehicles
-waterborn property
✔✔how can the payment of loss be handled in bailee coverage form(4)
what right does the insurer have in property of others?
what right does the insurer have if the customer sues the named insured? - ✔✔- value
of lost or damaged property
- cost to repaid the damaged property
- rebuild, repair, replace property with like kind or quality (buffing)
, - take any part of the property at an appraised or the agreed value
the insurer has the right to adjust the loss with the customer or the named insured on
the owners behalf
if the customer sues the named insured, the insurer has the right(not duty) to defend
and if they do then they will pay all costs incurred in that defense
✔✔Describe the interests covered under a Bailee Coverage Form - ✔✔Interests-
Named insured on policy
Bailee- their responsibility for the value of goods of the bailor in their CCC- Investment,
time and materials invested
- usually there is a provision that allows the settlement of a claim directly with the bailor
Bailor- may have their own coverage on goods bailor policy will contain provision that
prevents protection from any bailee
- written on a open peril basis, extensions are extensive
✔✔selected exclusion commonly found in policies providing bailment coverage - ✔✔-
theft of property left overnight in or on a vehicle (unless inside locked building and signs
of forced entry)
- loss resulting from mis-delivery
- voluntary parting with property due to trick, scheme, or fraud
- damage caused by processing performed by the bailee
✔✔4 unique challenges for projects under construction (builders risk) - ✔✔-
changing/increasing values and exposures
- changing insurable interest as project develops
- there is property to be covered that is no located on the property site (ex. warehouse
for materials)
- projects in the course of construction are more susceptible to loss than are already
completed building or structures
✔✔builders risk can be written to cover - ✔✔- new construction
- additions to existing building or structures
- renovations, repair, or remodeling
✔✔examples of people with insurable interest in builders risks policies - ✔✔- project
owners
- general contractor and subcontractors
- others like engineers, architects, mortgage lenders, suppliers, construction manager,
etc
ANSWERS SURE A+
✔✔Identify and apply Covered Property,
Covered Locations,
and Property Not Covered under a Bailee Policy - ✔✔Covered Property:
Customers Property in Named insured CCC
has to be in CCC for processing
Covered locations;
-described premises
-on premises of others for servicing or processing
-Anywhere in covered territory while in transit
--Between NI premises branches
--Between NI and Servicing
--Between NI and Customer
Property Not Covered:
-Aircraft/watercraft
-contraband
-Furs
-Jewelry
-money + securities
-no charge for services
-vehicles
-waterborn property
✔✔how can the payment of loss be handled in bailee coverage form(4)
what right does the insurer have in property of others?
what right does the insurer have if the customer sues the named insured? - ✔✔- value
of lost or damaged property
- cost to repaid the damaged property
- rebuild, repair, replace property with like kind or quality (buffing)
, - take any part of the property at an appraised or the agreed value
the insurer has the right to adjust the loss with the customer or the named insured on
the owners behalf
if the customer sues the named insured, the insurer has the right(not duty) to defend
and if they do then they will pay all costs incurred in that defense
✔✔Describe the interests covered under a Bailee Coverage Form - ✔✔Interests-
Named insured on policy
Bailee- their responsibility for the value of goods of the bailor in their CCC- Investment,
time and materials invested
- usually there is a provision that allows the settlement of a claim directly with the bailor
Bailor- may have their own coverage on goods bailor policy will contain provision that
prevents protection from any bailee
- written on a open peril basis, extensions are extensive
✔✔selected exclusion commonly found in policies providing bailment coverage - ✔✔-
theft of property left overnight in or on a vehicle (unless inside locked building and signs
of forced entry)
- loss resulting from mis-delivery
- voluntary parting with property due to trick, scheme, or fraud
- damage caused by processing performed by the bailee
✔✔4 unique challenges for projects under construction (builders risk) - ✔✔-
changing/increasing values and exposures
- changing insurable interest as project develops
- there is property to be covered that is no located on the property site (ex. warehouse
for materials)
- projects in the course of construction are more susceptible to loss than are already
completed building or structures
✔✔builders risk can be written to cover - ✔✔- new construction
- additions to existing building or structures
- renovations, repair, or remodeling
✔✔examples of people with insurable interest in builders risks policies - ✔✔- project
owners
- general contractor and subcontractors
- others like engineers, architects, mortgage lenders, suppliers, construction manager,
etc
