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FIL 350 - Chapter 3
Causes of Loss Forms
| Question | Answer |
|---|---|
| Causes of Loss in basic form | Fire, lightning, explosion, windstorm/hail, smoke, aircraft/vehicles, riot/civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action |
| Causes of Loss in the broad form | All 11 basic form perils plus falling objects, weight of snow, ice, or sleet, water damage. Collapse is covered under an additional coverage |
| Conditions for Fire Peril | Must involve flame or glow, rapid oxidation, and must be a hostile fire |
| Hostile Fire | A fire that breaks out of its intended receptacle |
| Conditions for Explosion Peril | Includes combustion explosion; does not include explosions resulting from water or pressure relief devices (steam boilers, air tanks, hot-water tanks) |
| Conditions for Smoke Peril | Limited to smoke causing sudden and accidental loss including smoke originating on or of the insured’s premises and from friendly fire. Excludes agricultural smudging and industrial operations |
| Aircraft or Vehicles Peril | Direct physical contact of an aircraft, spacecraft, self-propelled missile, vehicle, or an object thrown up by a vehicle with covered property |
| Riot or Civil Commotion Peril | Covers civil unrest including acts of striking employees while occupying the described premises and looting at the time and place of the riot/civil commotion |
| Conditions for Sinkhole Collapse Peril | Sudden sinking of collapse of land into underground empty spaces, not including man-made underground cavities (mines); land damage and cost of filling sinkholes is not covered |
| Conditions for Volcanic Action Peril | Direct damage from a volcanic eruption when caused by airborne volcanic blast or airborne shock waves, ash, dust, or particulate matter, or lava flow; does not include volcanic debris removal costs unless debris caused physical damage |
| Conditions for Falling Object Peril | Covers damage resulting from falling objects with exception to personal property in the open and damage to the interior of a building unless the roof or outside wall is damaged first |
| Conditions for Water Damage Peril | Covers accidental discharge or leakage of water or steam as the direct result of the breaking apart or cracking of a plumbing, air conditioning, heating system or appliance on the described premises. excludes continuous leakage which occurs over 14 days |
| Ordinance or Law Exclusion | Increased cost of building reparation due to ordinances and laws regulating building construction is excluded |
| What is the single coverage extension listed in the causes of loss - special form? | Personal property in transit - $5,000 for damage to the insured’s personal property in or on a motor vehicle (owned, leased by, or operated by the insured) that is more than 100 feet from the described premises; only covered against specified perils |
| Water Damage, Other Liquids, Powder or Molten Material Damage Extension (Special Form) | The cost of tearing out and replacing parts of the building to repair damage to a system or appliance from which water or other liquid, powder, or molten material has escaped and caused damage is covered |
| What perils are specifically defined in the Basic Form? | Aircraft or vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action |
| What additional covered peril is specifically defined in the Broad Form (in addition to the basic form perils)? | Water Damage |
| Conditions for windstorm or hail | Excludes frost or cold weather, ice, snow or sleet (whether driven by wind or not). Also, damage to the interior is only covered if external damage is caused first |
| conditions for aircraft and vehicles peril | Damage caused by vehicles owned by the named insured or operated in their business |
| What are the eight exclusions subject to anti-concurrent causation language? | Ordinance or Law, Earth Movement, Governmental Action, Nuclear Hazard, Utility Services, War and Military Action, Water, and Mold |
| What are the four exclusions that are not subject to anti-concurrent causation language? | Artificially Generated Electrical Energy, Explosion of Steam Boilers, Mechanical Breakdown, and Neglect |
| What are the Theft-Related Exclusions in the Special Form? | Dishonest or Criminal Acts by Certain Individuals, Voluntary Parting (unless trickery or armed robbery is used), Unauthorized Instructions, Inventory Shortages, Unexplained Disappearance, Theft of Building Materials (unless held for sale) |
| What categories of property have internal limits under the Special Form Causes of Loss? | $2,500 for furs, jewelry, dies/molds, $250 for tickets and stamps |
| What are the "specified causes of loss" and how are they used in the causes of loss forms? | They are broad form perils and are used to limit the covered perils for certain categories of property (e.g., fragile items, animals, personal property in transit) |
| What are the three causes of loss forms? | Basic, broad, and special form |
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FIL350
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