CAIB 1 Chapter 5 Farm Insurance Questions and Answers 100% Verified

CAIB 1 Chapter 5 Farm Insurance Questions and Answers 100% Verified Define farming - Answer- premises for crops and livestock roadside stands and farmers markets Three Basic differences between types of arms - Answer- 1) The product grown or produced 2) Types of specialized machinery or equipment used 3) The types of buildings required Identify the 4 coverages generally provided by most farm policies - Answer- 1) dwelling building and personal property 2) Major outbuildings and contents 3) Machinery and equipment 4) General liability 4 types of farm structures that might be insured 'major outbuildings and contents - Answer- 1) barns 2) workshops 3) granaries 4) machinery storage buildings 3 types of buildings excluded from 'major outbuildings and contents - Answer- 1) ones used for manufacturing or commercial purposes (seed cleaning plant) 2) windmills / chargers and their towers 3) Independently erected TV or radio towers Outline the 4 requirements before replacement cost will be provided on major outbuildings - Answer- 1) less than 15 years 2) Constructed of principally new materials 3) on a permanent foundation 4) In use for its original intended purpose The 'Deferred Settlement Clause' was designed by insurers to avoid paying the full amount of insurance purchased when outbuildings are not replaced after a loss. After a loss the insured will receive an initial payment of not more than 50%. Outline the 3 requirements before the insured will receive the balance - Answer- 1) building is repaired or replaced with building of same purpose 2) Repair or replacement is completed within 9 months of the date of the loss or damage 3) Repaired or replaced within 200 feet of original place Identify 4 types of machinery that represent a greater than average exposure to loss and therefore require an additional premium - Answer- 1) farm tools and repair parts 2) grain dryers 3) irrigation equipment