Washington State Surplus Lines - Property Terms
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Agreed Amount Clause - ✔✔Under this clause, the insured and the insurer agree that
the amount of insurance carried
will automatically satisfy the coinsurance clause. The effect is to eliminate the necessity
of determining whether or not the amount carried is equal to the stated percentage of
the
actual cash value indicated in the coinsurance clause
Allied Lines - ✔✔Various insurance coverages for additional types of losses, and
against loss by additional
perils, which are closely associated with and usually sold with fire insurance. Examples
include coverage against loss by perils other than fire, coverage for sprinkler leakage
damage, and business interruption coverage. The fire insurance field consists of
coverages for "fire and allied lines."
Amount Subject - ✔✔The maximum amount which underwriters estimate can
possibly be lost under the most
unfavorable circumstances in any given loss, such as a fire or tornado. Contrast with
Probable Maximum Loss
Appurtenant Structures - ✔✔Buildings on the same premises as the main building
insured under a Property Insurance
policy. Most Dwelling Property Insurance policies cover appurtenant structures under
,most circumstances
Arbitration Clause - ✔✔The provision in a Property Insurance contract which states
that if the insurer and insured
cannot agree on an appropriate claim settlement, each will appoint an appraiser, and
these will select a neutral umpire. A decision by any two of the three prescribes a
settlement and binds both parties to it.
Automatic Reinstatement Clause - ✔✔A stipulation in a Property Insurance policy
which states that after a partial loss covered
by the policy has been paid, the original limit of the policy will be automatically
reinstated.
Same as Loss Clause
Average Clause - ✔✔A clause providing that similar items in one location or several
locations which are
insured by a policy shall be covered in the proportion that the value of each bears to the
value of all. Previously known as the "Pro Rata Distribution Clause" and the "Average
Distribution Clause." See also Pro Rata Distribution Clause.
Average Rate - ✔✔A rate for a policy established by multiplying the rate for each
location by the value at that
location and dividing the sum of the results by the total value
Basic Coverage Form - ✔✔Any of the commercial or personal lines property forms
which provide basic coverages.
These forms generally provide the most limited coverage, which is surpassed by broad
, forms and special forms
Basic Form Rates - ✔✔Under the latest commercial lines program, Basic Form Rates
are arrived at by adding
Group I and Group II rates together. Refer to Group I Rates and Group II Rates
Blanket Insurance - ✔✔A form of Property Insurance that covers, in a single contract,
either multiple types of
property at a single location or one or more types of property at multiple locations
Block Policy - ✔✔An All-Risk policy which derives its name from the French term en
bloc meaning "all
together." It provides coverage on stock, property being transported, property in
bailment,
and the property of the insured on the premises of others
Boiler and Machinery Insurance - ✔✔Insurance against the sudden and accidental
breakdown of boilers, machinery, and
electrical equipment. Coverage is provided on (1) damage to the equipment, (2)
expediting expenses, (3) property damage to the property of others, and (4)
supplementary payments; and (5) automatic coverage is provided on additional objects.
Coverage can be extended to cover consequential losses and loss from interruption of
business
Boston Plan - ✔✔This is a plan under which insurers agree that they will not reject
property coverage on
residential buildings in a slum area. Instead, they will accept the coverage until there has
Study Questions and Complete Answers| Verified
100% Correct| Newest 2025
Agreed Amount Clause - ✔✔Under this clause, the insured and the insurer agree that
the amount of insurance carried
will automatically satisfy the coinsurance clause. The effect is to eliminate the necessity
of determining whether or not the amount carried is equal to the stated percentage of
the
actual cash value indicated in the coinsurance clause
Allied Lines - ✔✔Various insurance coverages for additional types of losses, and
against loss by additional
perils, which are closely associated with and usually sold with fire insurance. Examples
include coverage against loss by perils other than fire, coverage for sprinkler leakage
damage, and business interruption coverage. The fire insurance field consists of
coverages for "fire and allied lines."
Amount Subject - ✔✔The maximum amount which underwriters estimate can
possibly be lost under the most
unfavorable circumstances in any given loss, such as a fire or tornado. Contrast with
Probable Maximum Loss
Appurtenant Structures - ✔✔Buildings on the same premises as the main building
insured under a Property Insurance
policy. Most Dwelling Property Insurance policies cover appurtenant structures under
,most circumstances
Arbitration Clause - ✔✔The provision in a Property Insurance contract which states
that if the insurer and insured
cannot agree on an appropriate claim settlement, each will appoint an appraiser, and
these will select a neutral umpire. A decision by any two of the three prescribes a
settlement and binds both parties to it.
Automatic Reinstatement Clause - ✔✔A stipulation in a Property Insurance policy
which states that after a partial loss covered
by the policy has been paid, the original limit of the policy will be automatically
reinstated.
Same as Loss Clause
Average Clause - ✔✔A clause providing that similar items in one location or several
locations which are
insured by a policy shall be covered in the proportion that the value of each bears to the
value of all. Previously known as the "Pro Rata Distribution Clause" and the "Average
Distribution Clause." See also Pro Rata Distribution Clause.
Average Rate - ✔✔A rate for a policy established by multiplying the rate for each
location by the value at that
location and dividing the sum of the results by the total value
Basic Coverage Form - ✔✔Any of the commercial or personal lines property forms
which provide basic coverages.
These forms generally provide the most limited coverage, which is surpassed by broad
, forms and special forms
Basic Form Rates - ✔✔Under the latest commercial lines program, Basic Form Rates
are arrived at by adding
Group I and Group II rates together. Refer to Group I Rates and Group II Rates
Blanket Insurance - ✔✔A form of Property Insurance that covers, in a single contract,
either multiple types of
property at a single location or one or more types of property at multiple locations
Block Policy - ✔✔An All-Risk policy which derives its name from the French term en
bloc meaning "all
together." It provides coverage on stock, property being transported, property in
bailment,
and the property of the insured on the premises of others
Boiler and Machinery Insurance - ✔✔Insurance against the sudden and accidental
breakdown of boilers, machinery, and
electrical equipment. Coverage is provided on (1) damage to the equipment, (2)
expediting expenses, (3) property damage to the property of others, and (4)
supplementary payments; and (5) automatic coverage is provided on additional objects.
Coverage can be extended to cover consequential losses and loss from interruption of
business
Boston Plan - ✔✔This is a plan under which insurers agree that they will not reject
property coverage on
residential buildings in a slum area. Instead, they will accept the coverage until there has
