Chapter 7 - C12 Insurance on Property

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Terms	Definitions
How many clauses does the Commercial Property Broad Form have?	it has 18 clauses, one more than the named perils form
What new clause was inserted just before the Definitions clause in the Broad Form?	the new clause is the locked vehicle warranty
What clause, present in the Named Perils Form, is divided into Sub-clauses A and B in the Broad Form? Why is it divided into these two sub-clauses?	the insured property clause is divided into sub-clauses A and B. it expands the scope of contract beyond only locations identified on the declarations page. also includes some losses otherwise excluded.
What clause in the Named Perils Form is the Broad Form's Sub-clause A identical to?	it is identical to the insured property clause in the named perils form.
Under what circumstances does the Broad Form's Sub-clause B provide coverage where the Named Perils Form does not?	in circumstances which provide coverage in a single policy for property at more than one location or while in transit.
Explain the distinction between a temporary location and a newly acquired location.	temporary location excludes a location owned, rented or controlled by the insured.
How should an insurer consider insuring property that would otherwise be covered under Sub clause B if that property is valuable, unusual, or attractive to thieves?	would be better to omit coverage for such high exposures under the commercial property broad form and issue a separate policy on terms that reflect the exposure and loss control measures needed.
How is the Broad Form's Insured Perils clause different from the Named Perils Form's Insured Perils clause?	it extends coverage not merely against perils named in this clause but against all risks of direct physical loss of or damage to the property insured.
Why do exclusions in all risks wordings exempt losses that would be covered by the Basic Fire Policy?	in order to meet the legal requirements for fire insurance contracts.
How many exclusions does the Broad Form have? Which ones are identical to their counterpart; in the Named Perils Form?	there are 16 exclusions in the broad form. 7 are identical to the named perils form counterpart.  -vacancy or unoccupancy exclusion, electrical devices exclusion, growing plants exclusion, money, securities and related property exclusion, property illegally acquired or kept exclusion, roadways and walkways exclusion.
Explain the Broad Form's Sewers, Drains, and Watermains exclusion.	it excludes sewers, drains, watermains and other types of property that may be part of an insured building or fall within the definition of equipment.
Define the term stock as it relates to the Commercial Broad Form.	stock includes the insured's own property and property of others. for vets and pet stores, that includes live pets.
The Animals, Fish, or Birds exclusion in the Broad Form limits coverage to what perils?	it limits coverage to the perils of the named perils form and theft or attempted theft.
How do its two exceptions limit the Furs, Jewellery, Precious Stones exclusion?	1. exempts 1st part of loss ($1k in IBC form) 2. restores coverage for full amount of a loss caused by one of the named perils
Which exclusion is meant to limit the scope of coverage to insured property in transit? What exceptions are there to this exclusion?	the marine insurance and waterborne property exclusion. it excludes coverage for insured property also insured under a marine policy.
What is the exception to the Property in the Custody of Others exclusion?	only exception is for property in the custody of a carrier delivering it, where the insured is responsible for the property until it is delivered
Define the term free on board.	at the risk of the insured's customer.
Which exclusions under Excluded Perils are the same in both the Broad Form and the Named Perils Form?	war risks, nuclear incident, by-laws exclusions
Along with fire following an earthquake, the exemption in the Broad Form's Earthquake exclusion applies to what three other perils? What type of property is not covered by the Earthquake exclusion?	also applies to explosion, smoke and leakage from fire protective equipment. property in transit is not covered in the earthquake exclusion.
What do the two Non-insurable Losses exclusions exclude?	1. loss due to dampness, dry air, temp changes 2. shrinkage, evaporation weight changes occurring during processing
Define the term agricultural smudging.	containers of slow-burning combustible material are ignited to create a blanket of smoke. uses in operations such as fruit orchards.
What are the two exceptions to the Pollution exclusion? Give an example of a situation in which each exception would apply.	1. escape of pollutant caused directly by an insured peril. e.g. faulty design in an oil container causing spill 2. insured peril caused by escape that was caused by an insured peril e.g. fire started by workers, leads to oil pipeline explosion
Describe the Mysterious Disappearance exclusion.	theft losses are covered by an all risks policy but the insured must prove that theft took place.
Define the term warranty.	a warranty is a statement or stipulation in a contract the breach of which nullifies the contract.