Chapter 11

Question 1

Vacant building insurance

Answer 1

• sprinkler leakage
• building glass breakage
• water damage
• theft
• attempted theft
• vandalism during construciton

Question 2

Computer fraud insurance

Answer 2

• Computer used to cause loss or damage to money, securities, other property through fraud
• Occurs from inside the building premises

Question 3

Funds transfer insurance

Answer 3

pays for loss of money from fraudulent instruction directing financial institution to transfer or pay funds from a transfer account

Question 4

Coinsurance provisions

Answer 4

• Penalize policyholder after loss if it hasn’t purchased adequate insurance coverage for the true value of its property or loss of income
• Included in property forms and loss of income forms

Question 5

Causes of loss - special form

Answer 5

Covers any cause of loss except those specifically excluded

Question 6

Broad form and Basic form

Answer 6

Used for old or poorly maintained properties

Question 7

“Property Not Covered” reasons for not covering

Answer 7

• Property covered by different policy
• Generally not considered subject to loss
• Property cannot be legally owned