AIC 304
Extra expenses - Correct answer-Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Inland marine insurance - Correct answer-Insurance that covers many different classes
of property that typically involve an element of transportation on land.
Marine insurance - Correct 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.
Nationwide Marine Definition - Correct answer-Statement of the types of property that
may be insured on inland marine and ocean marine insurance forms.
Origin and cause expert - Correct answer-An expert who independently determines
where and how a fire began.
Trustee - Correct answer-Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and transferred solely for the benefit
of the beneficiary.
Security interest - Correct answer-An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security interest was
given.
Public adjuster - Correct answer-An outside organization or person hired by an insured
to represent the insured in a claim in exchange for a fee.
Business income insurance - Correct answer-Insurance that covers the reduction in an
organization's income when operations are interrupted by damage to property caused
by a covered peril.
Business interruption - Correct answer-Loss of revenue that a business or another
organization sustains because its operations are suspended as a result of physical
injury to its property
Scope - Correct answer-A list of the areas damaged that includes the type of damage, a
description of the proposed action to take regarding the damaged property (such as
repair, replace, remove, or demolish), and the area's measurements.
Nonwaiver agreement - Correct answer-A signed agreement indicating that during the
course of investigation, neither the insurer nor the insured waives rights under the policy
, Insurable interest - Correct answer-An interest in the subject of an insurance policy that
is not unduly remote and that would cause the interested party to suffer financial loss if
an insured event occurred.
Bailee - Correct answer-The party temporarily possessing the personal property in a
bailment.
Net income - Correct 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 - Correct answer-Net income that results when revenues exceed expenses.
Net loss - Correct answer-Net income that results when expenses exceed revenues.
Continuing expenses - Correct answer-Expenses that continue to be incurred during a
business interruption.
Noncontinuing expenses - Correct answer-Expenses that will not continue during a
business interruption.
Incendiary fire - Correct answer-An intentionally set fire.
Trailer - Correct answer-Fuel configured in a manner to spread a fire.
Alibi - Correct answer-An assertion that the party in question was elsewhere at the time
the crime occurred.
Specified perils - Correct answer-A method of designating the covered perils (causes of
loss) in a property insurance policy by naming them in the policy.
Open perils - Correct answer-A method of designating covered perils (causes of loss) in
a property insurance policy by covering direct physical loss unless the policy excludes it.
Theft - Correct answer-The taking of personal property from its rightful owner, without
the owner's consent, with the intent to deprive the owner of its value.
Period of restoration - Correct answer-The period during which business income loss is
covered under the BIC forms; it begins 72 hours after the physical loss occurs and ends
when the property is (or should have been) restored to use with reasonable speed.
(With regard to extra expense coverage, it begins immediately after the physical loss
occurs.)
Extra expenses - Correct answer-Expenses, in addition to ordinary expenses, that an
organization incurs to mitigate the effects of a business interruption.
Inland marine insurance - Correct answer-Insurance that covers many different classes
of property that typically involve an element of transportation on land.
Marine insurance - Correct 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.
Nationwide Marine Definition - Correct answer-Statement of the types of property that
may be insured on inland marine and ocean marine insurance forms.
Origin and cause expert - Correct answer-An expert who independently determines
where and how a fire began.
Trustee - Correct answer-Someone who has the legal title to a property but is
responsible for ensuring that it be used, handled, and transferred solely for the benefit
of the beneficiary.
Security interest - Correct answer-An interest in property (real or personal) that allows
the property to be sold on default to satisfy the debt for which the security interest was
given.
Public adjuster - Correct answer-An outside organization or person hired by an insured
to represent the insured in a claim in exchange for a fee.
Business income insurance - Correct answer-Insurance that covers the reduction in an
organization's income when operations are interrupted by damage to property caused
by a covered peril.
Business interruption - Correct answer-Loss of revenue that a business or another
organization sustains because its operations are suspended as a result of physical
injury to its property
Scope - Correct answer-A list of the areas damaged that includes the type of damage, a
description of the proposed action to take regarding the damaged property (such as
repair, replace, remove, or demolish), and the area's measurements.
Nonwaiver agreement - Correct answer-A signed agreement indicating that during the
course of investigation, neither the insurer nor the insured waives rights under the policy
, Insurable interest - Correct answer-An interest in the subject of an insurance policy that
is not unduly remote and that would cause the interested party to suffer financial loss if
an insured event occurred.
Bailee - Correct answer-The party temporarily possessing the personal property in a
bailment.
Net income - Correct 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 - Correct answer-Net income that results when revenues exceed expenses.
Net loss - Correct answer-Net income that results when expenses exceed revenues.
Continuing expenses - Correct answer-Expenses that continue to be incurred during a
business interruption.
Noncontinuing expenses - Correct answer-Expenses that will not continue during a
business interruption.
Incendiary fire - Correct answer-An intentionally set fire.
Trailer - Correct answer-Fuel configured in a manner to spread a fire.
Alibi - Correct answer-An assertion that the party in question was elsewhere at the time
the crime occurred.
Specified perils - Correct answer-A method of designating the covered perils (causes of
loss) in a property insurance policy by naming them in the policy.
Open perils - Correct answer-A method of designating covered perils (causes of loss) in
a property insurance policy by covering direct physical loss unless the policy excludes it.
Theft - Correct answer-The taking of personal property from its rightful owner, without
the owner's consent, with the intent to deprive the owner of its value.
Period of restoration - Correct answer-The period during which business income loss is
covered under the BIC forms; it begins 72 hours after the physical loss occurs and ends
when the property is (or should have been) restored to use with reasonable speed.
(With regard to extra expense coverage, it begins immediately after the physical loss
occurs.)
