CPCU 551 Chapter 4 Exam: Insurance Endorsements and Clauses, Exams of Commercial Law

Download CPCU 551 Chapter 4 Exam: Insurance Endorsements and Clauses and more Exams Commercial Law in PDF only on Docsity!

CPCU 551 - CHAPTER 4 EXAM

QUESTIONS WITH 100% ACCURATE

DETAILED ANSWERS..

Manufacturer's selling price endorsement (finished stock only) - ANSWERapplies actual selling price (not production costs) to stock that is finished but not yet sold Functional building valuation endorsement - ANSWERsubstitutes the cost of property intended to perform the same function for replacement cost; pays the smallest of the endorsement limit, the building's market value at the time of loss, and the cost to repair or replace the building with less costly material in the same style, minus allowance for physical deterioration and depreciation Additional covered property endorsement - ANSWERextends coverage to all items listed in the endorsement, but requires higher limits (and premiums) Manufacturers' consequential loss assumption endorsement - ANSWERpays for the value of undamaged stock when damage to stock reduces the value of undamaged stock Brands and labels endorsement - ANSWERgives the insured the right, at its own expense, to stamp 'salvaged' or to remove its brands and labels from damaged merchandise after the insurer has taken the merchandise as salvage following a loss Business Personal Property Limited International Coverage Endorsement - ANSWERextends coverage to include property en route to or temporarily located in a specified foreign country Utility Services Direct Damage Endorsement - ANSWERcovers damage to described property caused by interruption of water, communication, or power services Spoilage Coverage Endorsement - ANSWERcovers spoilage of perishable stock from temperature or humidity change caused by mechanical breakdown or power outage Property in Process of Manufacture by Others Limited International Coverage Endorsement - ANSWERextends coverage to include raw materials and inprocess goods while being manufactured in a foreign country at a location not owned, operated, or leased to the insured Ordinance Or Law Coverage Endorsement - ANSWERpays losses caused by enforcement of building ordinances and laws applicable to damaged buildings Increased cost of loss and related expenses for green upgrades - ANSWERsupports the replacement of damaged property with more environmentally friendly ('green') materials