RMIN 5100S Exam 2 Questions and Answers 2023, Exams of Nursing

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RMIN 5100S Exam 2 Questions and Answers 2023

1. categories of commercial loss exposures: property, personnel, liability, net income loss
2. property loss: - tangible: personal property, real estate -intangible: patent, copyright
3. personnel loss: death, disability, injury, retirement
4. liability loss: your responsibility to someone else for property damage, bodily injury, or net income loss
5. net income loss: reduction in income due to a direct loss
6. commercial property loss exposures: - types of property

• COL to property
• financial consequences of property losses

7. types of property: - real: building and land, anything permanently attached to the building; HVAC, wiring and plumbing; underground pipes, driveways, sidewalks

• personal: contents (BPP, property of others), floating property, property in transit, property of others

8. financial consequences of property loss: - cost to repair/replace damaged property

• loss of business income while property being repaired/replaces
• extra expenses to resume operations

9. CPP: common declarations, common conditions, 2 or more coverage parts
10. coverage part: commercial property declarations, commercial property cover-age forms, COL forms, endorsements, commercial property conditions
11. commercial property declarations: info specific to the property being insured

• location of property/description of the property
• list of mortgagees
• list of endorsements/coverage forms
• coinsurance %
• deductibles
• property coverages and limits of insurance
• any optional coverages
• covered COL's

12. commercial property coverage forms: - ISO's CPP has several different com-mercial property coverage forms

• this form tells you what property is covered
• insuring agreement
• definitions
• property covered

• property not covered
• additional coverages/coverage extensions

13. COL forms: basic, broad, special
14. named perils: coverage for perils only listed in the policy
15. open perils: coverage for all perils unless specifically excluded in the policy
16. basic: 11 perils covered
17. broad: 11 perils plus 3 more
18. special: contains open perils
19. BPP: (building and personal property form)

• can cover any of the 3 categories of property: building, BPP, and personal property of others

20. BPP- building: covers:

• buildings/structures listed in the declarations
• completed additions to covered property
• permanently installed fixtures, machinery, equipment
• personal property of insured used to service and maintain the premises
• additions, alterations, repairs in progress including materials, supplies in connec-tion with work

21. BPP- BPP: covers:

• furnitures and fixtures
• machinery and equipment
• stock
• leased property of the insured that they have a contractual right to insure
• improvements and betterments
• personal property owned by you and used in your business
• labor, materials, or services furnished or arranged by you on the personal property of others

22. BPP- personal property of others: - must be in insureds care, custody, control

• must be within 100 feet of building, structure, premises
• payment made to the property owner not the insured
• payment not based on legal liability

23. BPP- property not covered: - accounts, bills, currency - animals

• automobiles for sale
• electronic data
• cost to replace/restore data or info
• bridges, walkways, patios, paved surfaces - cost of excavations, grading
• contraband
• land, water, lawn, growing crops

• coverage only if RC chosen rather than ACV
• if damages by covered COL, covers increased cost of construction to comply with ordinances and regulations in making repairs

31. electronic data: - 2500 aggregate regardless of number of times and locations

• not a sufficient amount of insurance for any business

32. BPP- coverage extensions: - you must have 80% coinsurance - must be on, in, within 100 feet of building, premises

• payable in addition to policy limits

33. BPP- coverage extensions: - outdoor property

• property temp off premises
• detached/unowned trailers
• valuable data/records
• newly constructed/acquired buildings
• personal effects and property of others
• property temp stored in portable storage containers

34. newly acquired/constructed property: - building: 250,000 limit per location; must serve same purpose or be a warehouse

• BPP: 100,000 per location
• period of coverage: 30 days after acquisition, construction begins, coverage expires at policy expiration, when values reported to insurer

35. personal effects/property of others: - provides up to 2500 per location for: personal effects of employees, members, managers, partners, insureds; personal property of others in insureds care, custody, control

• no coverage for damage or loss from theft

36. valuable papers and records: - covers cost to replace blank materials and labors for which there is no duplicate

• DOES NOT cover electronic data
• provides up to 2500 per location
• must be due to a covered COL in basic, broad forms
• valuable papers: medical records, A/R, and legal documents

37. property off premises: - 10,000 limit

• provides coverage for property temp off premises unless in a vehicle or in sales persons ownership

38. outdoor property: - coverage for fences, satellite dishes, plants, shrubs, trees

• 1000 limit but no more than 250 per tree, plant, shrub
• coverage only for losses caused by fire, lightening, riot/civil commotion, aircraft, explosion

39. non owned detached trailer: - extends BPP to include trailers in care, custody, control of insured

• no coverage if attached to vehicle or if detached from vehicle during hitching
• 5,000 limit
• only applies if you have a contractual responsibility to pay for a loss to a trailer

40. property temp stored in portable storage containers: - 10,000 limit

• must be within 100 feet of described premise
• coverage ends 90 days after property is placed in the unit

41. basic form: - fire - lightening

• windstorm/hail
• smoke
• vandalism
• riot/civil commotion
• explosion
• vehicle/aircraft
• sinkhole collapse
• sprinkler leakage
• volcanic eruption

42. broad form: - fire - lightening

• explosion
• smoke
• lightening
• windstorm/hail
• riot/civil commotion
• sinkhole collapse - vandalism
• sprinkler leakage
• volcanic eruption
• water damage
• weight of ice, sleet, snow - falling objects

43. fire: - covers resulting smoke, heat, water damage from fire department - fire poses greatest risk for large/total loss
44. lightening: naturally occurring electrical charge between clouds and earth
45. explosion: - includes explosion of gases or fuels in furnace or flue

• doesn't include rupture or bursting of pressure detecting devices, contents in building

• utility service
• war and military action
• water
• fungus, wet/dry rot, bacteria

60. ordinance or law exclusion: - excludes coverage for cost required to comply with building ordinances and laws

• some coverage is given back in additional coverages (increased cost of construc-tion)

61. earth movement exclusion: - excludes coverage for earthquake, landslide, earth sinking, etc.

• excludes volcanic eruption

62. governmental action exclusion: - excludes seizure or destruction of property by governmental authorities

• exception: if damage results from acts of destruction ordered by gov to prevent spread of fire, the resulting damage would be covered

63. nuclear hazard exclusion: - no coverage for nuclear radiation, reaction, conta-mination

• exception: fire resulting from nuclear reaction is covered

64. utility service exclusion: - excludes coverage for failure of power, communica-tion, water or other utility service of failure is off premises

• limited coverage if utility failure occurs on premises

65. war and military action exclusion: - excludes coverage for war, insurrection, similar actions

• current interpretation is that this exclusion does NOT apply to terrorist attacks

66. water exclusion: - excludes flood, surface water, waves/tides, storm surge, mudslide, water backup, seepage, etc.

• exclusion does not apply to fire, explosion, sprinkler leakage caused by any of the above

67. fungus, wet/dry rot, bacteria: - excludes presence, growth, proliferation, or spread of fungus, wet/dry rot or bacteria

• exception: if a result of fire or lightening
• limited coverage given back in additional coverages

68. other exclusions in basic and broad forms: - mechanical breakdown

• artificially generated electrical current
• neglect
• explosion of steam boilers

69. additional coverages- fungus, wet/dry rot, bacteria: - included in basic, broad, and special COL form

• 15,000 aggregate coverage during the policy period for a covered COL

70. additional coverages- collapse: - included in broad and special COL forms -covers abrupt collapse if due to: hidden decay, hidden insect/vermin damage, weight of people or personal property, weight of rain collecting on roof; defective materials during construction; covered COL
71. special form: - covers ""direct physical loss unless the loss is excluded or limited in the policy"

• if a cause of loss is not specifically excluded, it is covered - shifts the burden of proof from the insured to the insurer - most frequently selected COL forms

72. exclusions in basic, broad, special COL forms: - ordinance or law

• government action
• war and military action
• utility service
• nuclear hazard
• earth movement
• water
• fungus, dry/wet rot, bacteria
• artificially generated electric current
• explosion of steam boilers
• mechanical breakdown
• neglect

73. exclusions in special form that matches covered COL exceptions in broad or basic forms: - no coverage to property outside of building

• no coverage for agricultural smudging or industrial operations
• no coverage for continuous seepage, leakage of water

74. exclusions unique to special forms: - wear and tear

• decay, deterioration, rust, corrosion, hidden/latent effect
• mechanical breakdown
• settling, cracking, shrinking, expanding
• smog
• infestation and waste products of animals, rodent, insects
• for personal property: dampness or dryness of atmosphere, change in extremes in temperature, marring/scratching

75. special form- concurrent causation exclusions: - weather conditions

• acts/decisions
• fault, inadequate zoning, surveying, planning, design

76. other exclusions/limitations in special forms: - loss/damage to products

• property excluded unless caused by specified cause of loss: animals, fragile

RMIN 5100S

Exam 2

Questions and

Answers 2023