replacement value -ANSWER- Cost to repair, replace or rebuild the lost or damaged property without deduction for depreciation
Scheduled Coverage -ANSWER- Coverage for property specifically identified or scheduled on the insurance policy
All Property -ANSWER- All property owned by Insured is c...
3 advantages of using a fact find or survey - ANSWER-1) Assists brokers when
identifying potential losses 2) Assists brokers not to sell coverages the client does not
need 3) Assists brokers in collecting information needed by insurance companies
3 benefits of commercial property checklists - ANSWER-1) Assists brokers when
identifying potential losses 2) Assists brokers to make sure coverages are not
overlooked 3) Assists brokers in reducing E&O losses
Define "Fire Resistive" - ANSWER-This means that the building has achieved the
standard set in hours to remain structurally sound when attacked by fires
Define "Non-Combustible" - ANSWER-These buildings are slightly below the standard
of fire resistive structures
5 areas where insurers request additional information when the building is 25 years or
older (WHORP) - ANSWER-1)Wiring 2) Heating 3) Over-current protection 4) Roof 5)
Plumbing
5 fire hazards common to commercial buildings - ANSWER-1) Heating 2) Occupancy 3)
Protection 4) Electrical Services 5) Detachment
Define "Detachment" - ANSWER-The distance between the insured building to other
commercially rated buildings
Describe 2 types of protection - ANSWER-Private protection; steps taken within the
building to reduce frequency and severity of losses such as sprinkler systems. Public
protection; methods used by municipalities such as fire departments
4 functions performed by underwriters - ANSWER-1) Risk selection 2) Risk
classification 3) rating & rate making 4) policyholders services
Define "Adverse Selection" - ANSWER-Occurs when the applicant for insurance is more
likely to suffer a loss
Define "Risk Classification" - ANSWER-Grouping or classifying risks according to
established criteria which is based on their probability for loss
What is the main advantage of risk classification? - ANSWER-allows insurers to
properly calculate premiums to charge
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