CIC Commercial Property flashcards
CIC Commercial Property · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Building and Personal Property form
- The core commercial property form insuring buildings, business personal property, and personal property of others at scheduled locations, with separate limits per interest group.
- Coinsurance clause calculation
- Payment equals the limit carried divided by the limit required, times the loss, where the limit required is the coinsurance percentage times the value at time of loss.
- Agreed Value option
- An endorsement that suspends the coinsurance penalty when the insured files a signed statement of values, but only for the property listed on that statement.
- Blanket insurance
- A single limit applying to two or more locations or interest groups, with the per-location limit equal to the total less the value of other covered property.
- Replacement cost valuation
- Valuation paying the cost to repair or replace with new property of like kind and quality, without deduction for depreciation, subject to the coinsurance requirement.
- Personal property of others
- Property in the insured's care, custody, or control that belongs to others; covered under the BPP form but not at replacement cost unless endorsed.
- Preservation of property coverage
- An additional coverage paying costs to protect covered property from further damage after a loss, subject to a stated sublimit and a time limit.
- Debris removal additional coverage
- An additional coverage paying costs to remove debris of covered property after a covered loss, with a sublimit and a 180-day reporting requirement.
- Ordinance or law endorsement
- Covers the undamaged portion value of a building that must be demolished, demolition costs, and increased cost of construction required by building codes.
- Business Income endorsement
- Required to add time element coverage to the BPP form; the base property form alone pays only direct physical damage, not lost income.
- Basic Form covered perils
- Covers fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
- Broad Form added perils
- Adds falling objects, weight of snow, ice, or sleet, and accidental discharge of water from plumbing, heating, or sprinkler systems to the Basic Form perils.
- Special Form coverage trigger
- Insures risks of direct physical loss unless excluded, placing the burden on the insurer to prove that an exclusion applies to the loss.
- Water damage 14-day exclusion
- Broad and Special Forms exclude water damage from repeated seepage or leakage occurring over 14 days or more, even though a single accidental discharge is covered.
- Earth movement exclusion
- Excludes loss from earthquake, landslide, mudflow, and settling; coverage requires a separate earthquake endorsement or a difference-in-conditions form.
- Flood exclusion
- Excludes loss from surface water, waves, tides, overflow of a body of water, and mudslide; coverage must be purchased separately, often through a flood policy.
- Equipment breakdown endorsement
- Adds coverage for loss caused by mechanical breakdown, electrical arcing, and centrifugal force, all of which the causes-of-loss forms exclude.
- Spoilage coverage
- Covers perishable stock damaged by change of temperature from breakdown of refrigeration equipment or interruption of power, subject to a stated limit.
- Utility services endorsement
- Covers loss caused by interruption of off-premises utility service, including power, water, gas, and communications, when the utility's equipment is damaged.
- Water backup endorsement
- Adds coverage for water that backs up through sewers or drains or overflows from a sump, which is otherwise excluded as water damage.
- Civil authority coverage
- Pays Business Income and Extra Expense when a civil authority prohibits access to the premises because of damage to nearby property, for a stated number of days.
- Period of restoration
- Begins 72 hours after the direct physical loss and ends when the property is repaired with reasonable speed or business resumes at a new permanent location.
- Business Income coverage
- Pays net income plus continuing normal operating expenses during the period of restoration, up to the limit chosen by the insured.
- Extra Expense coverage
- Pays reasonable costs to avoid or minimize business interruption, with its own limit that does not reduce the Business Income limit.
- Business Income coinsurance
- Payment equals the limit carried divided by the limit required, times the loss, where the limit required is the coinsurance percentage times annual net income plus operating expenses.
- Extended Business Income
- Continues Business Income payments after the period of restoration ends for a stated number of days, commonly 30, 60, or 90.
- Contingent Business Income
- Covers loss caused by physical damage at a supplier's or customer's location, requiring a scheduled or blanket limit added by endorsement.
- 72-hour waiting period
- A deductible-style feature of Business Income coverage that delays the start of the period of restoration by 72 hours after the direct physical loss.
- Rental value coverage
- Time element coverage for landlords that pays the fair rental value of the premises during the period of restoration plus continuing expenses.
- Leasehold interest coverage
- Covers a tenant's loss when a lease is terminated by covered damage, paying the value of the favorable lease plus moving expenses.
- Gross earnings form
- An older time element form insuring gross earnings, defined as net profit plus all operating expenses including those that cease during interruption.
- Extended period of indemnity
- An alternative name for the endorsement extending Business Income payments beyond the period of restoration for a stated number of days.