Fire & Casualty Practice Exam 4

A three-story, 12 dwelling unit building is eligible for a business owners policy because it is a commercial property that is used for residential purposes. Business owners policies typically provide coverage for property damage, liability, and business interruption, and they are commonly offered to small businesses and commercial property owners. Since the three-story, 12 dwelling unit building falls under the category of commercial property, it qualifies for a business owners policy.

Pure risk refers to a situation where there is only the possibility of loss or no loss. It involves events or circumstances that can result in a negative outcome, such as accidents, natural disasters, or illness. Unlike speculative risk, which involves the possibility of gain or loss, pure risk only involves the potential for loss. This type of risk is typically insurable, as individuals and organizations can transfer the risk to an insurance company through policies such as property insurance, health insurance, or liability insurance.

A speculative risk refers to a situation that offers the possibility for both a loss and a gain. Unlike pure risks which only involve the possibility of a loss, speculative risks involve potential for both positive and negative outcomes. This type of risk typically involves actions or investments where the outcome is uncertain and can result in either profit or loss. It is characterized by the element of speculation or gambling, as the outcome is uncertain and depends on various factors.

The market value refers to the price at which a damaged property could have been sold. It represents the value of the property in the current market conditions. Therefore, if the amount paid for the damaged property is equal to its market value, it means that the compensation received is equivalent to the price at which the property could have been sold. This indicates that the payment is fair and reflects the actual value of the property.

If a named insured is not the owner of the building, improvements and betterments are covered under the business personal property. This means that any improvements or upgrades made to the building by the named insured would be covered under their business personal property insurance. This coverage is important because it protects the named insured's investment in the improvements and betterments, even if they do not own the building itself.

The correct answer is "Vehicle for hire to transport people." Livery conveyance refers to a vehicle that is available for hire to transport people. This can include taxis, limousines, or any other type of vehicle that is used for transporting passengers for a fee. It does not refer to vehicles used for transporting property or commercial vehicles with more than 4 wheels. It also does not refer to share-the-expense carpooling, where individuals share the cost of transportation.

The retro-active date of a claims-made professional liability policy refers to the earliest date an event or loss may occur and still be eligible for recovery. This means that any claims made for events or losses that occurred before the retro-active date would not be covered by the policy. It is important to note that the retro-active date is not the expiration date of the policy or the date after which no more claims can be made.

One of the main reasons the federal government insurance programs exist is due to the large amount of resources needed for some catastrophic losses. These programs are designed to provide financial assistance and coverage in the event of major disasters or emergencies that could overwhelm private insurers. By pooling resources and spreading the risk across a larger population, the federal government can ensure that individuals and businesses have access to insurance coverage in times of significant loss or damage.

Net income is the correct answer because it represents the amount of money a company has earned after deducting all expenses from its revenue. It is a measure of profitability and indicates that the company has made a profit. Net income is calculated by subtracting all costs, such as operating expenses, taxes, and interest, from the total revenue. If the result is positive, it indicates a net profit, while a negative result indicates a net loss.

A monopolistic state fund refers to a situation where a company has no other choice but to purchase workers compensation insurance from a state program. This means that there is no competition in the market, and the state has a monopoly on providing this type of insurance. In such cases, companies are obligated to obtain coverage from the state fund, as it is their only option available.

Avoidance is the correct answer because it refers to the risk management technique that completely eliminates a loss exposure and reduces the chance of loss to zero. This technique involves completely avoiding the activity or situation that could potentially lead to a loss. By not engaging in the risky activity, the organization or individual can eliminate the possibility of any loss occurring. This is the most effective way to mitigate risk as it completely removes the potential for loss.

Insurable interest refers to the financial stake or relationship that an individual has in a property or person, which would cause them to suffer a financial loss if that property or person were to be damaged or lost. In the context of property ownership, insurable interest means that the owner has a financial interest in protecting their property from potential risks and losses, such as damage or theft. Therefore, the possibility of financial loss resulting from the ownership of property is known as insurable interest.

The correct answer is $2,500 because HO-3 provides coverage for the landlord's furnishings up to that amount.

If an insurer pays an insured a total of $85,000 for lost wages, physicians visits and hospital costs, and physical therapy treatments, and later discovers that the claim was fraudulent, the insured may be fined as much as $170,000. This is because the insured received $85,000 in fraudulent payments, and the fine for fraudulent claims is usually double the amount received. Therefore, the insured may be fined an additional $85,000, bringing the total fine to $170,000.

Market conduct regulation refers to the state laws that govern the practices of insurance companies in various areas such as underwriting, sales, rate-making, and claims handling. These regulations are put in place to ensure that insurers operate ethically and fairly, and to protect consumers from unfair or deceptive practices. Market conduct regulation helps to maintain a level playing field in the insurance industry and promotes transparency and accountability among insurers.

Under a personal auto policy, if a newly acquired auto is to replace the covered auto with liability coverage only, the insured has 4 days to request collision coverage. This means that if the insured wants to add collision coverage to the newly acquired auto, they must make the request within 4 days of acquiring the vehicle. After this time period, they may not be able to add collision coverage to the policy.

If the other than collision coverage is purchased, it means that the insured has opted for coverage that protects their vehicle against damages caused by events other than collisions, such as theft, vandalism, or natural disasters like earthquakes. Therefore, if an earthquake causes damage to the insured auto, it would be covered by the personal auto policy as long as the other than collision coverage was purchased.

The co-insurance clause is commonly used to require insureds to purchase insurance close to the value of the property. This clause ensures that the insured carries a sufficient amount of insurance coverage relative to the value of the property. If the insured fails to meet the required percentage of coverage stated in the co-insurance clause, they may be subject to a penalty or receive reduced claim payments in the event of a loss.

Liability loss would result in a claim for monetary damages due to injury to another or damage to another's property. Liability loss refers to the legal responsibility or obligation one has towards another person or their property. In this case, if someone is found liable for causing injury or damage to someone else or their property, they may be required to compensate the affected party by providing monetary damages.

Personal loss exposure can be defined as a condition or situation where an individual or family is presented with the risk of experiencing financial loss due to causes such as injury, disability, death, or sickness. This type of exposure refers to the potential loss that individuals or families may face in their personal lives, and it encompasses various risks and uncertainties that can impact their financial well-being. Examples of personal loss exposure include medical expenses, loss of income due to disability, funeral costs, and other financial burdens resulting from personal misfortunes.

Commercial general liability insurance would provide coverage for the losses that could result from the lawsuit filed by Stack Computer Company against JAE Computer Company. This type of insurance typically covers claims related to false advertising, defamation, and other forms of misleading business practices. Therefore, it would be the most appropriate category of insurance to address the potential losses arising from this particular lawsuit.

Under the presumptive disability clause, an insured is considered totally disabled when they experience the loss of the power of speech due to sickness or injury. This means that if an insured person is unable to speak as a result of a covered illness or injury, they would be considered totally disabled under this clause. This would likely entitle them to certain benefits or compensation as outlined in their insurance policy.

Crime insurance would be the type of insurance that the employer would need to be covered for the loss caused by an employee embezzling $10,000 from the insurance company. Crime insurance provides coverage for losses resulting from criminal acts such as theft, fraud, embezzlement, and forgery. It helps protect businesses against financial losses caused by the dishonest actions of their employees.

Under a standard homeowner's HO-3 policy, the coverage for real property is provided under the "All risks" category, which means that it covers any peril or risk unless it is specifically excluded in the policy. On the other hand, the coverage for personal property is provided under the broad form named perils category, which means that it only covers specific perils that are listed in the policy. Therefore, the correct answer is that "All risks" coverage applies to real property, while broad form named perils coverage applies to personal property.

Co-insurance clauses in property policies are included to encourage insureds to purchase coverage near the value of the property. This is because if the insured does not purchase sufficient coverage, they may be subject to a penalty in the event of a claim. The co-insurance clause requires the insured to carry a certain percentage of the property's value, typically 80% or 90%. If the insured does not meet this requirement and a loss occurs, they will only be reimbursed for a proportionate amount of the loss, based on the percentage of coverage they did purchase. This serves as an incentive for insureds to accurately assess the value of their property and obtain adequate coverage.

The personal auto policy provides all coverage while the insured is renting a vehicle on a two week vacation in the U.S. This means that liability coverage, medical coverage, and uninsured motorist coverage are all provided. There is no exclusion or limitation mentioned in the question regarding coverage for rented vehicles, so it can be assumed that all coverage is in force.

In this scenario, the named insured has been charged with arson, implying that they intentionally caused the fire loss to their building. However, the mortgage holder's claim for damages is not affected by the insured's action. The mortgage holder is still entitled to receive 100% of their loss because their claim is separate from the actions of the insured. Regardless of the insured's actions, the mortgage holder's claim remains valid and unaffected.

Valuable paper coverage is the most suitable for insuring maps, drawings, abstracts, and mortgages. This coverage specifically protects important documents and papers that hold significant value to the insured. It provides coverage against various risks such as damage, loss, or theft of these valuable papers. Other coverages like accounts receivable, business personal property, and scheduled property may not offer the same level of protection or be specifically tailored to cover such items.

The ordinance or law exclusion typically excludes losses that arise from the enforcement of building codes or laws. Making a restroom ADA compliant is not related to building codes or laws, but rather a requirement under the Americans with Disabilities Act (ADA). Therefore, the additional costs necessary to make a restroom ADA compliant would not be excluded by the ordinance or law exclusion.

The correct answer is "Pollution liability limit". This is because a commercial liability declarations page typically lists various limits and coverages related to liability insurance. These may include limits for rented property, medical expenses, and personal and advertising injury. However, pollution liability limit is not typically listed on this page as it is a separate and specialized coverage that may be included in a separate policy or endorsement.

To surrender a license for cancellation, a licensee must deliver the document itself to the Commissioner. This means physically handing over the license document to the Commissioner or the appropriate authority responsible for license cancellations. This action signifies the licensee's intention to terminate their license.

A vehicle owned by a state agency which self-insures its autos is not considered an uninsured motor vehicle because it is covered by a self-insurance policy.

Insureds benefit from a commercial lines package program because it offers the convenience of having all coverage in one policy. This means that instead of having multiple policies for different types of coverage, they can have everything bundled together in a single policy. This simplifies the insurance process and makes it easier to manage and understand their coverage. It also eliminates the need to coordinate multiple policies and ensures that there are no coverage gaps or overlaps.

Equipment breakdown insurance covers various causes of loss, including steam boiler explosion, mechanical failure caused by centrifugal force, and electrical breakdown. However, it does not cover losses caused by inherent defects. Inherent defects refer to flaws or weaknesses in the equipment that were present from the time of its manufacture or installation. These defects are considered to be the responsibility of the manufacturer or installer, rather than an unforeseen event or accident. Therefore, equipment breakdown insurance does not provide coverage for losses caused by inherent defects.

In order for a policy to be transferred to another party, it is necessary to have the written consent of the insurer. This means that the insurer must provide their approval in writing for the policy to be transferred. Without this written consent, the policy cannot be transferred to another person or entity.

Business income insurance is the correct answer because it provides coverage for the loss of net income that a business incurs due to a fire. This type of insurance helps businesses to recover their lost income and continue their operations while their property is being repaired or replaced. It typically covers the business's net profit, ongoing expenses, and extra expenses incurred during the interruption period caused by the fire. Fire and allied lines insurance, commercial general liability insurance, and commercial property insurance do not specifically cover the loss of net income due to a fire.

Deafness would not be included among the chronic illness triggers of a LTC policy because it is not typically considered a chronic illness. Chronic illnesses are long-term conditions that require ongoing medical care, whereas deafness is a sensory impairment that can be managed with assistive devices and communication methods. Therefore, it does not meet the criteria for a chronic illness trigger in a LTC policy.

The commercial property causes of loss forms cover various types of losses, including lightning, explosions, and loss by removal from premises when insured perils endanger covered property. However, smoke damage from industrial operations is not covered. This means that if a commercial property experiences smoke damage due to industrial operations, the insurance policy will not provide coverage for the resulting losses.

The correct answer suggests that the applicant may be required by the insurer to have underlying liability coverage by carrying both auto and liability coverage. This means that in order to purchase a personal umbrella policy, the applicant may need to have existing auto insurance and liability coverage.

Underwriting is the process through which insurers determine which customers to insure and what coverage options to offer. It involves assessing the risk profile of potential policyholders, including their health, age, occupation, and other relevant factors. This evaluation helps insurers determine the appropriate premium rates and coverage terms for each customer. Adverse selection refers to the tendency of higher-risk individuals to seek insurance more actively, while rate making refers to the process of setting premium rates. Marketing involves promoting insurance products to potential customers.

The personal auto policy is excess, meaning that it will only provide coverage after the dealer's policy has been exhausted. In this scenario, since the accident occurred while the auto was being test driven by an employee of the dealer, the dealer's policy would be the primary coverage. The personal auto policy would only come into play if the dealer's policy limits are not sufficient to cover the liability claims.

A named non-owner coverage endorsement would be recommended in this situation because Ian does not own a car but occasionally drives cars belonging to friends. This endorsement provides liability coverage for Ian when he is driving a car that he does not own. It would protect him in the event of an accident or damage caused while driving a rented car or a friend's car.

An insurance solicitor would be employed to aid an insurance broker because they specialize in legal matters related to insurance. They provide legal advice, draft contracts, and handle any legal disputes that may arise. Insurance brokers often require the assistance of solicitors to ensure that they are in compliance with insurance laws and regulations, as well as to navigate any legal issues that may arise in their business operations. Therefore, an insurance solicitor would be a valuable resource for an insurance broker.

In an unendorsed claims-made general liability policy, the insured has 60 days to report a claim that occurred during the policy period. This means that the insured must notify the insurance company within 60 days of becoming aware of the claim in order for it to be covered by the policy. After this time period, the insurance company may deny coverage for the claim.

The insured's concern about being liable to the renter for injuries that might occur in connection with the rental suggests the need for an attachment of the additional residence rented to others endorsement to the homeowner's policy. This endorsement would provide coverage for any liability claims arising from injuries that occur on the rented property.

The co-insurance clause in the policy states that the owner must insure the property for at least 80% of its value. In this case, the owner insured it for $300,000, which is 60% of the property's value. Since the owner did not meet the 80% requirement, the insurer will only pay a proportionate amount of the loss. The insurer will pay $150,000, which is 60% of the $200,000 loss.

When there is insufficient business personal property present to conduct customary operations, the property is considered vacant. This means that if the property owner does not have enough business personal property to carry out their regular operations, such as equipment, inventory, or other necessary items, then the property is considered vacant for insurance purposes.

The Unfair Practices Act prohibits various acts or practices that are considered unfair in the insurance industry. However, charging a different rate for males and females based on data in mortality tables that is segregated by sex is not prohibited. This is because insurance companies are allowed to use actuarial data, including mortality tables, to determine rates for life or annuity policies. The use of sex as a factor in determining rates is considered actuarially sound and not discriminatory under the law.

An inland marine policy typically covers property that is being transported over land or stored at a location other than the insured's premises. Exclusions in this type of policy are events or perils that are not covered. Earth movement refers to events such as earthquakes, landslides, or sinkholes, which are typically excluded from coverage in an inland marine policy. Wear and tear, electrical breakdown, and insects or vermin are all examples of exclusions that may be found in an inland marine policy. Therefore, the correct answer is Earth movement, as it is not an exclusion in an inland marine policy.

Actual cash value is the amount that an insurance company would pay to replace damaged property, taking into account the depreciation of the property. This means that the value of the damaged property is determined by subtracting the depreciation from the cost of replacing it.

The correct answer is Basic, broad, and special. This means that under the commercial property coverage program, all three causes of loss forms provide coverage for the peril of windstorm. The basic form provides coverage for a limited number of perils, including windstorm. The broad form provides coverage for a wider range of perils, including windstorm. And the special form provides coverage for all risks unless specifically excluded, including windstorm.

Before appointing an insurance solicitor, a broker-agent is required to hold a permanent license. This means that the broker-agent must have obtained the necessary qualifications and certifications to legally operate as an insurance broker. Holding a permanent license ensures that the broker-agent has met the regulatory requirements and has the knowledge and expertise to effectively carry out their duties in the insurance industry.

The correct answer is "An estimate of the amount that the insurer will pay." This is because a loss reserve is not the exact or maximum amount that the insurer will have to pay to close a claim. It is an estimate that the insurer sets aside to cover the expected future payments for the claim. The actual amount paid may vary based on various factors such as legal proceedings, negotiations, or additional information that may affect the claim.

Most states require insurers to file policy forms with the Insurance Department. This department is responsible for regulating insurance activities within the state and ensuring that insurers comply with all applicable laws and regulations. By requiring insurers to file policy forms with the Insurance Department, states can review and approve these forms to ensure they are fair, transparent, and in compliance with state insurance laws. This helps protect consumers and maintain a level playing field in the insurance market.

The correct answer is that a person who makes a loan using real property as security shall not make available the information contained in a borrower's fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information. This means that if a borrower specifically requests that their insurance information not be shared, the lender must respect their wishes and keep the information confidential.

When a PPO participant selects an in-network primary care physician and has the option to go out of the network when they need medical care, they have a Network PPO. This means that the participant has the flexibility to choose a primary care physician within the PPO network and also has the freedom to seek medical care outside the network if needed.

Under tort law, a person can face a claim for legal liability based on different factors. Absolute liability refers to situations where a person is held liable for harm caused, regardless of fault or intent. Intentional torts involve deliberate actions that cause harm or injury to another person. Negligence occurs when a person fails to exercise reasonable care, resulting in harm to another. However, breach of contract is not typically considered a tort, but rather a violation of a contractual agreement. Therefore, a person cannot face a claim for legal liability under tort law solely based on breach of contract.

The products/completed operations limit is listed on a commercial general liability declarations as an aggregate limit. This limit represents the maximum amount of coverage available for claims related to products or completed operations, such as injuries or damages caused by a product or service after it has been completed or delivered. It ensures that the insurer will only pay up to this limit for all claims arising from products or completed operations during the policy period.

A self-insured retention under an umbrella policy refers to a deductible that is applicable to losses that are excluded by the underlying coverage but are covered by the umbrella policy. In other words, if a claim falls under the umbrella policy but is not covered by the primary insurance, the insured party will be responsible for paying the self-insured retention amount before the umbrella policy coverage kicks in. This deductible is specific to losses that are excluded by the underlying coverage and provides an additional layer of protection for the insured.

Self-funding is a funding method where the benefits are customized or tailored to suit the needs of a specific group. This means that the benefits provided through self-funding can be designed to meet the specific requirements and preferences of the group members. Unlike traditional insurance plans, self-funding allows for flexibility in determining the coverage and benefits offered, allowing the group to have more control over their healthcare plans. This feature makes self-funding an attractive option for organizations or groups that want to have more control and customization over their healthcare benefits.

The co-insurance clause in a commercial policy on an owned building makes it advisable for the insured to carry insurance of a percentage of the building value to avoid a possible penalty. This means that if the insured does not insure the building for at least the specified percentage, they may face a penalty in the event of a loss. Therefore, it is important for the insured to carry adequate insurance coverage to meet the co-insurance requirement and avoid any potential penalties.

The insuring agreement is the section of the insurance contract that outlines the key promises made by the insurer. It specifies the coverage provided, the risks that are insured against, and the conditions under which the insurer will pay a claim. This section summarizes the core obligations and responsibilities of the insurer, making it a crucial part of the contract. The definitions section provides explanations of important terms used in the contract, while the conditions section outlines the requirements and obligations of both the insurer and the insured. The declarations section contains specific information about the policyholder and the insured property or person.

Under a value reporting form, the insured is required to make regular reports on the value of the insured property. If the insured fails to make these reports as required, the most that will be paid in the event of a loss is 75% of the limit. This means that the insured will receive a reduced payout, as they did not fulfill their reporting obligations.

A DP2 insurance policy provides coverage for additional living expenses, which means that if a covered event such as a fire or natural disaster renders the insured property uninhabitable, the policy will cover the cost of temporary living arrangements such as hotel stays or rental accommodations. This coverage is not provided by a DP1 policy, which only covers the actual cash value of the property and does not include additional living expenses.

The insured is not required to submit to questions under oath while not in the presence of any other insured.

A personal articles floater is the most similar to the scheduled personal property endorsement on a homeowner's policy. Both cover specific items of high value, such as jewelry, artwork, or collectibles, and provide broader coverage than a standard homeowner's policy. They typically have higher coverage limits and may also include coverage for accidental loss or damage.

Insurance is designed to provide financial protection and reduce uncertainty for the insured. It does this by offering payment for covered losses and reducing the financial burden on the insured. Insurance can also serve as a source of investment funds, as premiums paid by policyholders are often invested by insurance companies. However, the retention of the loss by the insured is not a benefit of insurance. Instead, insurance aims to transfer the risk of loss from the insured to the insurer, allowing the insured to avoid bearing the full financial impact of the loss.

Automobiles while kept for the owner in a commercial parking garage are not a type of property commonly insured by using a commercial package policy inland marine coverage part. This is because automobiles are typically insured under a separate auto insurance policy, rather than being included in an inland marine coverage part.

The water damage exclusion in the causes of loss - special form applies to all of the listed options except plumbing system leakage. This means that damages caused by tidal waves, sewer backup, and flood would not be covered under the policy, but damages caused by plumbing system leakage would be covered.

The other three options provide valid reasons for purchasing reinsurance, such as reducing capacity problems, insuring exceptionally large accounts, and protecting against catastrophe exposures. However, purchasing reinsurance only on below average business and keeping the good business for themselves does not align with the purpose of reinsurance, which is to spread risk and protect against potential losses.

The loss under a watercraft endorsement is covered if it arises out of the use of the watercraft for a business party. This means that if any damage or loss occurs during a business-related event or function on the watercraft, it will be covered by the insurance policy.

Under a personal auto policy, the insured while using a covered auto includes the named insured, resident relatives, and other entities responsible for the use of the auto. This means that not only the policyholder and their immediate family members are covered, but also any other individuals or organizations that have been given permission to use the insured vehicle.

The insurance company is considered the first party to an insurance contract because they are the entity that provides the insurance coverage and assumes the risk in exchange for premium payments. They are responsible for drafting the terms and conditions of the contract and issuing the policy to the insured. The insured, on the other hand, is the second party to the contract, as they are the ones who purchase the insurance coverage and agree to abide by the terms of the contract.

Coverages A and/or B of the commercial general liability (CGL) contract provide coverage for advertising injury. This means that if a business is sued for certain types of advertising-related offenses, such as defamation or copyright infringement, the CGL policy will cover the costs of legal defense and any damages awarded to the injured party. It is important for businesses to have this coverage as advertising-related lawsuits can be costly and have a significant impact on their finances.

An insurance broker is defined as someone who is paid to handle insurance transactions on behalf of another person, but not on behalf of the insurer. This means that the broker acts as a middleman between the client and the insurance company, helping the client find the best insurance policies and negotiate the terms. The broker's loyalty lies with the client, not the insurer, ensuring that the client's best interests are prioritized in the insurance transaction.

A managing general agent is a person or company that negotiates and binds ceding reinsurance on behalf of an insurer. They have the authority to underwrite and issue policies, handle claims, and perform other administrative tasks related to insurance. This role requires expertise in the insurance industry and a deep understanding of reinsurance. They act as an intermediary between the insurer and reinsurer, ensuring that the reinsurance contracts meet the needs of the insurer while also protecting their interests.

The correct answer is "Makes no mention of a vehicle inspection requirement." This means that according to the CA Insurance Code, there is no specific requirement for a vehicle inspection when adding a private passenger vehicle to an insurance policy. The code does not provide any information or guidelines regarding vehicle inspections in this context.

The equipment breakdown policy covers all types of equipment, including electronic equipment used in the transmission of energy, equipment operating under a vacuum, and aircraft. However, computer equipment is not covered under this policy.

Rate-making refers to the process in which an insurer determines the appropriate charges for its policies. This involves analyzing various factors such as the risk level, claims history, and market conditions to calculate the premiums that policyholders should pay. By considering these factors, insurers can ensure that the premiums charged are sufficient to cover potential claims and expenses while also remaining competitive in the market. Therefore, rate-making is the correct term to describe this process.

The correct answer is fair market value. Fair market value refers to the price that a willing buyer and a willing seller would agree upon in an open and competitive market. It takes into account factors such as the condition of the building, its location, and current market conditions. Using fair market value helps to ensure that the commercial building is adequately insured for its true value, taking into consideration any appreciation or depreciation since the client purchased the property.

A supplemental extended reporting period endorsement provides an indefinite extension of the filing reporting period. This means that the policyholder will have an unlimited amount of time to report any claims that arise after the policy has expired. This endorsement is beneficial as it provides additional protection and flexibility for the policyholder in case any claims arise after the policy has ended.

not-available-via-ai

The correct answer is "Inside the premises - robbery or safe burglary of other property". This coverage would cover the loss of the money as well as the damage to the building in the event of a burglary.

Liability coverage under boat owners policies typically excludes contractual liability. This means that the policy does not provide coverage for any liabilities that arise from a contractual agreement or obligation. While the policy may cover other types of liabilities such as passenger liability, flotilla liability, and operations liability, it specifically excludes contractual liabilities. This is important for boat owners to be aware of, as they may need to obtain separate insurance or additional coverage to protect themselves from contractual liabilities.

Under an un-endorsed commercial property coverage form with no optional coverages, buildings are valued on the basis of actual cash value. Actual cash value is the value of the property at the time of loss, taking into account factors such as depreciation. It is calculated by subtracting the depreciation from the replacement cost of the property. This means that the insured will receive the current value of the building, taking into consideration its age, wear and tear, and market value.

The personal auto policy covers various expenses in addition to the limits of liability under Coverage A. These include the cost of bail bonds related to a covered accident, the premium for appeal bonds, and pre-judgment interest. However, the policy does not cover loss of earnings to attend trial at the company's request. This means that if the company asks the insured to attend a trial, any loss of earnings resulting from this request would not be covered by the policy.

The correct answer is "Amount to replace the damaged property without a deduction for depreciation." This means that the replacement cost of an item is the amount it would take to replace the damaged item with a new one, without considering any depreciation that may have occurred over time. It is important for insurance purposes as it ensures that the policyholder can fully replace their damaged property with a new one of the same kind and quality.

Assault is the intentional act of causing apprehension of harmful or offensive contact, without actually making physical contact. It involves the threat of harm or the creation of fear in another person. Slander, libel, and ownership of a wild animal are all examples of intentional torts, as they involve intentional harm or damage to another person's reputation or property. However, assault does not require any physical contact and is solely based on the creation of fear or apprehension, making it the exception among the given options.

The correct answer is Causes of loss forms. Causes of loss forms are an important part of a commercial property policy as they outline the specific perils or causes of loss that are covered by the policy. These forms typically contain a list of exclusions, which are specific situations or events that are not covered by the policy. Therefore, the causes of loss forms contain the most exclusions that apply to a commercial property policy.

In the state of California, a rate will not remain in effect if it is considered to be excessive, unfairly discriminatory, or inadequate. The term "impartial" does not fit into this context as it is not typically used to describe rates. Impartiality refers to being unbiased or neutral, which may not be relevant when determining the effectiveness of a rate.

The general aggregate limit is a limit of insurance that is displayed on the commercial general liability (CGL) declarations page. It refers to the total limit of coverage for all claims made during the policy period, except for claims covered under the products-completed operations aggregate limit. In other words, it does not include coverage for claims related to products or completed operations.

"Other than collision" is a property insurance coverage that protects against damage to a vehicle that is not caused by a collision, such as theft, vandalism, or natural disasters. Medical payments, personal injury, and property damage liability are all types of liability insurance coverages, which protect against injuries or damages caused to others.

Under tort law, a corporation can be subject to a claim for legal liability on the basis of absolute liability. Absolute liability refers to a legal doctrine where a party can be held liable for damages regardless of fault or negligence. In certain situations, such as when dealing with hazardous activities or dangerous substances, the law imposes strict liability on corporations to ensure that they bear the costs of any harm caused. This means that if a corporation engages in such activities and harm occurs, they can be held legally responsible for the damages, even if they took all reasonable precautions to prevent them.

The given correct answer states that there is an appreciable difference between a homeowners policy and a dwelling program for personal property coverage. This suggests that there are significant distinctions between the two types of policies, although the specific differences are not mentioned in the question.

The business income coverage form provides coverage for the actual loss of business income that is sustained due to the necessary suspension of operations. However, in order for the loss of income to be covered, it must be caused by an insured peril. If the loss of income is not caused by an insured peril, then there is no coverage provided. This means that the cause of the loss cannot be due to any other reason or event that is not covered by the policy.