COPE
What does COPE stand for?
Which internal hazard groups are GAIG's sweet spot?
Hazard Groups 4 and 5
Stock is included under this type of coverage
Business Personal Property
Policy premium = $19,500
Paid loss = $5,713
What is the loss ratio?
29%
($5,713/$19,500) * 100
What construction class has the highest loss cost rate?
frame
Which PCs are considered "unprotected"
9 & 10
We are a market for above average risks. The operations have a higher potential for a large loss, but the special hazards or exposures can be controlled with property underwriting and loss prevention handling
HG 3
Necessary expenses you incur during the period of restoration that you would not have incurred if there had been no direct physical loss or damage to property caused by or resulting from a Covered Cause of Loss
Extra Expense
The building catches on fire and there is estimated to be $7,500 in damages.
What do we pay out?
$0
falls under deductible
What construction class has the lowest loss cost rate?
fire resistive
Financial condition and management attitude are part of this COPE element
Occupancy
We are generally not a market for these classes due to the high hazards which are normally present. The agent should have an experienced book of business and/or the risk should be considered "best in class"
HG 1
Signs, whether attached to buildings or not are covered under this coverage
Building
A building is valued at $500,000. What is the amount of insurance they should carry to meet 90% coinsurance requirements?
$450,000
$500,000 * 0.9
Buildings where the exterior walls are construction of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials and where the floors and roof are combustible
Joisted Masonry
Which COPE element includes evaluating ISO Public Protection and Community?
Protection
Give an example of an operation often declined due to extreme hazards
ammunition manufacturing, firework manufacturing, unsprinklered woodframe apartments, distillery, vacant buildings, sawmill
A period of time that begins immediately after the time of direct physical loss or damage and ends on the earlier of the date when the property at the described premises should be repaired, rebuilt, or replaced with reasonable speed and similar quality, or the date when business is resumed at a new permanent location
Period of Restoration
Value of property = $500,000
Coinsurance = 90%
Deductible = $5,000
Limit of Insurance = $350,000
Amount of Loss is $100,000
What do we pay?
$73,000
((Did/Should) X Loss)) – Deductible
$500,000 * 90 = $450,000 (insured should have carried this)
$350,000/$450,000 = .78% (penalty)
$100,000 * .78 = $78,000 (reduces loss payout)
$78,000 - $5,000 = $73,000 (applies the deductible)
Buildings where the exterior walls are construction of masonry materials with the floors and roof of metal or other non-combustible materials
Masonry Non-Combustible
Name the four types of operational hazards under Occupancy
physical, moral, common, special
Name a common hazard evaluated across most risks
electrical, heating, storage/housekeeping, smoking, financials, management
Under the SBP Building and Personal Property Coverage Form, SB 8602, - with respect to insurance on or at each newly acquired or constructed property, coverage will end when the policy expires or ___ days after the insured acquires the property or begins construction on that part of the building
90
Value of Property = $500,000
Coinsurance = 90%
Deductible = $1,000
Limit of Insurance = $450,000
Amount of Loss = $100,000
What do we pay?
$99,000
((Did/Should) X Loss)) – Deductible
$500,000 * 90 = $450,000 (insured should carried this)
$450,000/$450,000 = (no penalty)
$100,000 * 100% = $100,000 (no coinsurance penalty - adequate limits)
$100,000 - $1,000 = $99,000 (applies the deductible)
Buildings where the exterior walls and the floors and roof are constructed of masonry or fire resistive materials with a fire resistive rating of one hour or more but less than two hours
Modified Fire Resistive