WebCe - Commercial Properties Exam with complete Solutions

WebCe - Commercial Properties Exam with complete Solutions A tornado severely damages one of Major Manufacturing's plants. As a result of the damage, Major Manufacturing is forced to curtail its operations during the 6 months needed to complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to as - answera time element loss. Which of the following describes a feature of standard commercial property policies? - answerSeveral different forms must be combined to make up a policy. The president of Handy Corner Grocery has just learned that its accounting clerk has been embezzling money from the company for the past 6 months. Handy has a standard commercial property policy, a standard commercial general liability policy, and a workers compensation and employers liability policy. Which of these policies covers this loss? - answerNone of these policies cover the loss An insurance company that specializes in coverage for religious institutions publishes its own policy forms that provide broader coverage than the ISO forms. This insurer's forms would not be referred to as - answerstandard forms. Duffy's Tavern is currently insured under a commercial package policy that includes only commercial property coverage and commercial general liability coverage. Duffy would like to add coverage for equipment breakdown. This can be done by - answeradding either a separate equipment breakdown policy or an equipment breakdown coverage endorsement to Duffy's commercial property policy. A small fire in the Dalton Hotel basement damaged the computerized system that controls all elevators in the hotel. It will be necessary-and costly-to completely reprogram the system to replace the lost data. Dalton has a commercial property policy that - answercovers this loss because electronic data that is integrated with the elevator system is not excluded. A building owned by Mega Properties has been continuously vacant for 6 months. In the seventh month, a lightning strike starts a fire which destroys the building. Assuming that Mega's commercial property policy is written on standard forms, how much would the insurer reduce the loss payment because of the vacancy of the building? - answerThe insurer would discount the loss payment by 15 percent because the building was vacant. Ad Men Advertising Agency is located on the 25th floor of a high-rise building, and the declarations of its commercial property policy list its location as "Suite 2500, 1271 Madison Avenue, New York, NY." Ad Men's valuable laser printer is stolen from the building's outdoor ground-floor loading dock when an employee leaves it unattended while fetching his car. Ad Men's policy includes the special causes of loss form. Ad Men's insurance - answercovers this loss because the property was within 100 feet of the building. Executive Dry Cleaning wants to have coverage for personal property of its customers in its commercial property policy. What must be done to activate this coverage under the standard building and personal property coverage form? - answerA limit of insurance for personal property of others must be shown on the policy declarations page. Handy's Corner Grocery has a standard commercial property policy covering its retail store. An explosion destroys $15,000 of grocery inventory and $5,000 in cash. Is the loss of the cash covered under Handy's commercial property policy? - answerNo, because money and securities are excluded from coverage. What coverage is provided under the building and personal property coverage form for the cost of replacing or restoring lost information on valuable papers and records? - answerValuable papers and records are covered for up to $2,500 (or a higher limit, if shown in the declarations) for loss from certain perils. The roof of the Green Building is partially covered with live grass. Green's building and personal property coverage form covers these plants, because this living roof is what the form refers to as a(n) - answervegetated roof. After high winds severely damage the roof of its building, Keepsake Fine Art and Collectibles moves its inventory to a temporary location to protect it from damage from the elements. Unfortunately, the temporary location suffers a flood only 3 days after the move, and Keepsake's inventory is damaged. Assuming that Keepsake has an unendorsed standard commercial property, does the policy provide coverage for this loss? - answerYes. The preservation of property additional coverage covers loss to property that has been moved from a covered location to protect it from damage by a covered cause of loss. The crew demolishing a taller building next to the SA Store accidentally knocked over a masonry wall that toppled onto the roof of the SA Store. This, in turn, caused the SA Store roof to collapse, damaging the SA Store building and its contents and injuring patrons inside the store. A substantial amount of debris must be removed before repairs to the SA Store building can begin. Subject to dollar limitations, SA Store's building and personal property coverage policy (2012 edition), which covers broad form causes of loss, will cover - answerremoving debris of the store building and contents and debris of the