PROPERTY INSURANCE PRE-LICENSING PEARSON VUE 2016 CONTENT OUTLINE CHANGES

Size: px

Start display at page:

Download "PROPERTY INSURANCE PRE-LICENSING PEARSON VUE 2016 CONTENT OUTLINE CHANGES"

Emily Barnett
5 years ago
Views:

An Illinois Certified Course Provider Since 1987 Phone: Office: 847-455-1130 Fax: 847-455-1153 Website: www.dohrnit.com Dohrn Insurance Training, Inc.

1 An Illinois Certified Course Provider Since 1987 Phone: Office: Fax: Website: Dohrn Insurance Training, Inc Grand Avenue Pre-licensing and Ethics Classes and CE Self-Study River Grove IL ILLINOIS INSURANCE LICENSE EXAMS ON OR AFTER 1/116 PROPERTY INSURANCE PRE-LICENSING PEARSON VUE 2016 CONTENT OUTLINE CHANGES PART ONE GENERAL 50 TOTAL QUESTION NOTE THE FOLLOWING 2016 CHANGES TO THE MATERIALS IN YOUR PROPERTY BOOK FROM CLASS IN 2015: PAGE 38: I. TYPES OF POLICIES C. Commercial Lines 2. Commercial Property ADD THE FOLLOWING SECTION EQUIPMENT BREAKDOWN IMMEDIATELY AFTER EXTRA EXPENSE INSURANCE: e) EQUIPMENT BREAKDOWN Historically referred to as "boiler and machinery" insurance, equipment breakdown is insurance coverage for business equipment breakdowns caused by motors burning out, utility, boiler malfunction (which can blow up a city block) and operations errors. It is sometimes added to either Commercial Property coverage or a Business Owner Policy as an endorsement when required. Many types of equipment are covered such as mechanical and electrical equipment, computers, communication equipment, refrigeration system and air conditioning systems and especially boilers and equipment operating under internal pressure. The key idea of this coverage is that loss was caused purely by an ACCIDENT (unintended, unplanned and UNFORESEEABLE event).

2 2 If the insured had reason to believe there may be any reasonable warning with equipment that could have prevented a breakdown, the insured is expected to prevent the damage. Note below that there is coverage for expediting expenses meaning call in te repair person, we (insurer) will gladly pay to prevent a worse loss. In general the Covered Cause of Loss is a "Breakdown" to "Covered Equipment. COVERAGES PROVIDED: Property Damage Covers direct damage to "Covered Property" located at the premises described in the Declarations. Expediting Expenses (There is a duty by the insured to call in for repairs to prevent loss whenever possible. Pays for the extra cost incurred on a necessary basis by the insured due to a covered loss to: 1. Make temporary repairs; and 2. Expedite the permanent repairs or re- placement of the damaged property. Business Income and Extra Expense or Extra Expense Only (up to $25,000) 1. Pays actual loss of "Business In come" during the "Period of Restoration"; and 2. The "Extra Expense" necessarily incurred to operate the business during the "Period of Restoration". Spoilage Damage pays for the spoilage damage to raw materials, property in process or finished products if: The raw materials, property in process or finished products must be in storage or in the course of being manufactured; Insured must own or be legally liable under written contract for the raw materials, property in process or finished products; and The spoilage damage must be due to the lack or excess of power, light, heat, steam or refrigeration. Utility Interruption The interruption is the direct result of a "Breakdown" to "Covered Equipment" owned, operated or controlled by the local private or public utility or distributor that directly generates, transmits, dis tributes or provides utility services which is received by the insured. Newly Acquired Premises for up to the number of days shown in the declarations Ordinance Or Law Coverage - coverage applies despite the Ordinance or Law Exclusion if in- creases in loss are necessitated by the enforcement of any laws or ordinances that are in force at the time of the "Breakdown", which regulate the demolition, construction, repair or use of the building or structure. Also when there is direct physical loss or damage to "Covered Property" caused by "Fungus", wet or dry rot including the cost of removal of the "Fungus", wet or dry rot; there is a $15,000 limit in a 12 month period for the cost to tear out and replace covered property as needed to gain access to the fungus to remove it.

3 3 EXCLUSIONS. Equipment Breakdown coverage has the same regular exclusions common to all commercial property coverage forms (Earth movement, war, flood, etc,) but the exclusions also extend to fire and lightening and the Extended Coverage perils (because these are covered by Commercial Property). A major exception to the normal exclusion of explosion, is as follows, in the insuring agreement: However, we will pay for loss or damage caused by an explosion of "Covered Equipment" of a kind specified below: Steam boiler; Electric steam generator; Steam piping; Steam turbine; Steam engine; Gas turbine; or Moving or rotating machinery when such explosion is caused by centrifugal force or mechanical breakdown. OTHER CLAUSES. When processing a claim, the policy states that deductibles apply separately to each applicable coverage event and a signed, sworn proof of loss containing the information we request to investigate the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. Furthermore if the insured elects or is required to repair or replacement of the damaged "Covered Equipment" in a manner that Improves the environment Increases efficiency or Enhances safety (while maintaining the existing function) then insured will pay, subject to the limit of insurance, up to an additional 25% of the property damage amount. All repairs and replacements must take place within 24 months following the date of the "Breakdown", otherwise the insurer will pay only the smaller of the: Cost it would have taken to repair or replace; or Actual cash value at the time of the "Breakdown". The coverage has the same standard Liberalization clause found in all commercial property policies which states that if they broaden coverage within 45 days of the effective date of the policy, the insurer will extend the broadened coverage to the policy without additional premium

4 4 DEFINITIONS "Breakdown" means the following direct physical loss that causes damage to "Covered Equipment" and necessitates its repair or replacement: Failure of pressure or vacuum equipment; Mechanical failure including rupture or bursting caused by centrifugal force; or Electrical failure including arcing; unless such loss or damage is otherwise excluded However, Breakdown DOES NOT MEAN or include: Malfunction including but not limited to adjustment, alignment, calibration, cleaning or modification; Defects, erasures, errors, limitations or viruses in computer equipment and pro- grams including the inability to recognize and process any date or time or provide instructions to "Covered Equipment"; Leakage at any valve, fitting, shaft seal, gland packing, joint or connection; Damage to any vacuum tube, gas tube, or brush; Damage to any structure or foundation supporting the "Covered Equipment" or any of its parts; The above limitations on what constitutes a breakdown reinforce the central concept that the insured must diligently prevent loss by engaging in outstanding maintenance of the equipment otherwise the loss is foreseeable and not covered. For purposes of the Equipment Breakdown coverage Period of Restoration" means the period of time that: Begins at the time of the "Breakdown" or 24 hours before the insurer receives notice of "Breakdown" whichever is later; and Ends 5 consecutive days after the date when the damaged property at the premises described in the Declarations is repaired or replaced with reasonable speed and similar quality.

5 5 PAGE 51 I. TYPES OF POLICIES E. National Flood Insurance Program THE MAXIMUM DEDUCTIBLE ALLOWED FOR THE REGULAR FLOOD PROGRAM INCREASED FROM $5,000 TO $ PAGE 67 ELIMINATE: II. INSURANCE TERMS AND RELATED CONCEPTS W. Burglary, Robbery, Theft, and Mysterious Disappearance PAGES LIFE INSURANCE PRE-LICENSING PEARSON VUE 2016 CONTENT OUTLINE CHANGES PART TWO ILLINOIS LAW 30 TOTAL QUESTION 4) License Suspension, Revocation or Denial (Ref. 5/500-70) AN ADDITIONAL CAUSE FOR REVOCATION, SUSPENSION OR DENIAL 0F LICENSE HAS BEEN ADDED TO THE 15 EXISTING CAUSES, AS FOLLOWS: 16) Failing to comply with any provision of the Viatical Settlements Act of 2009.

HOUSING AUTHORITIES RISK RETENTION POOL

HOUSING AUTHORITIES RISK RETENTION POOL THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EQUIPMENT BREAKDOWN COVERAGE This endorsement modifies insurance provided under the following: HOUSING