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24 Cards in this Set
- Front
- Back
3 types of bailees |
1. Repair of personal property (tv repair shop) 2. Storage of personal property (public storage) 3. Delivery of personal property (fed ex) |
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When could bailees be responsible for damage to customers property? |
When negligent in common law or contract |
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Other than stock coverage found on Bailees commercial property policies, 2 other policies that could be used to insure customer property |
1. Separate policy covering legal liability 2. Specialized policy insuring customers property which ignore requirements for legal liability |
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By knowing answers to certain questions, brokers should understand whether the carrier or the owner of the property should purchase insurance when selling Inland Transportation Insurance |
1. Who is responsible for loss to property 2. What is the extent of responsibility |
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What is general rule regarding the responsibility of common carriers? |
Common carriers are responsible for the safe delivery of property in their care |
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Common carriers will not be held responsible for all losses to goods in their possession when : |
1. Acts of God reasonably foreseable 2. Acts of public enemies 3. Acts of public authority (highway shutdown by police) 4. Neglect or default of shipper (badly packaged) 5. Inherent vice of property transported |
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What documents are used by common carriers to limit their liability to owners? |
Bills of Lading |
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Describe release bill of Lading |
Removes carrier from any responsibility for the shipment |
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When property is insured by a Transportation Floater Broad Form, when does coverage begin and when does coverage end? |
Begins when it leaves the premises continues until property is uploaded at destination |
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When would insureds purchase a Trip Transit policy? |
Clients require coverage for one single shipment |
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What are catastrophe limit and why is it used? |
Most insurers will pay in one occurence loss. The insurers, to limit coverage in large losses, use catastrophe limits |
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4 problems which could occur when owners rely on carriers insurance |
1. Carriers may not have amounts of coverage needed to properly insure customers property 2. May have limited perils insured 3. May have violated policy conditions which negates coverage 4. May not have renewed policy or have cancelled policy |
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4 advantages for owners when they purchase their own insurance on goods being transported |
1. Owners are able to claim from own insurers which speeds claims settlements 2. Owners policy will insure actual cash value of shipment, not amount carrier is responsible by law or bill of lading 3. Owners policy may insure more perils 4. Lower premiums than carriers insurance |
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2 key exclusions in Tool Floater |
1. Loss or damage to electrical apparatus caused by artificial electricity 2. Loss caused by mysterious disappearance |
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Types of property insured by Contractors Equipment Floaters? |
Insure all kinds of move able equipment owned, rented or leased by client |
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Why would insurers impose a catastrophe limit of contractors equipment |
Worried about large losses because of high values insured |
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What guidance should brokers provide when catastrophe limits used on Contractors Equipment policy |
Advise not to store all of their equipment in ways that may expose all equipment to one occurence |
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3 conditions of coverage on Newly Acquired Equipment found on Contractors Equipment Floaters |
1. Equipment insured by this extension must be similar to what is insured on policy 2. Insured only for 30 days from date of acquisition 3. Amount of coverage limited as to amount |
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3 types of properties insured by Builders Risk policies? |
1. All materials which will enter and Form part of the completed project 2. All landscaping including growing trees, plants or shrubs which will Form part of completed project 3. Temporary buildings and structures required to complete project to the extent these temporary buildings and structures are needed for project competition |
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2 key exclusions found in Builders Risk policies |
1. No coverage for contractors tools and equipment 2. Cost of making good for faulty or improper material workmanship or design. Resultant damage is insured |
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When does coverage normally cease on Builders Risk policies |
Coverage ends when project comes into use or occupied |
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What limit of insurance must be purchased when buying Builders Risk policies |
Completed value |
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When is coverage provided by Installation Floaters |
1. While in transit 2. While awaiting installation 3. During installation until work accepted or until clients interest end (general contractor signs off) , whichever is first |
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How are premiums calculated on Installation Floaters |
Gross annual receipts of client |