CHAPTER TWELVE - OTHER COMMERCIAL COVERAGES

 

Under Section “F” of the Nation-Wide Marine Definition, “Commercial Property Floater Risks” are several different kinds of commercial Inland Marine forms, some of which have been discussed earlier in this text.  The forms discussed in this chapter are those that the ISO and/or the AAIS have filed forms, rule and rates.  The next chapter will discuss nonfiled forms.

 

Care should be taken when referring to these various forms, that some property that may be covered under the filed forms, may instead be a nonfiled class.  An example would be billboards that are not covered under the “Signs” form.

ACCOUNTS RECEIVABLE

 

Accounts Receivable insurance provides coverage when business records are destroyed by an insured peril and the business cannot collect money owed.  The policy covers these uncollectable sums plus the expense of record reconstruction and extra collection fees.  It does not insure the physical value of the records themselves, such as the paper or computer disks and tapes.

 

Accounts Receivable insurance differs from most other types of Inland Marine insurance as it provides coverage for a type of consequential loss, i.e. insurance that comes in directly from the main event.  Simply put, if the insured’s records of accounts receivable (amounts owed the insured by other persons/businesses) are damaged to the point that that the insured cannot collect what is owed to him, then the insurance company will pay whatever the insured is unable to collect, including interest charges on any loan that is needed to offset the loss plus collection expenses and other reasonable expenses that the insured incurs in their efforts to reconstruct the records.

 

A legitimate question might be, “Why buy insurance?  Why not just keep duplicate records at another location as many businesses do?”  The answer would be that many  businesses do just that, but there is still an expense to get the records up and running again, and the cost of this insurance is quite reasonable.

 

This form insures against risks of direct physical loss for damage, except for those listed in the exclusions.  The exclusions are the first category discussed earlier (governmental action, nuclear hazards, war and military exclusion), plus the second category exclusions of employee dishonesty exclusion, truck/device exclusion, and the unauthorized instructions exclusion. 

 

The most applicable exclusions are those losses caused by or resulting from dishonest acts by the insured, employees, authorized others, etc., or anyone entrusted with the accounts receivable during hours of employment (does not exclude carriers for hire).  Excluded also are losses resulting from alteration, falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of money, securities, or other property.  Also, bookkeeping, accounting or billing errors or omissions; electrical or magnetic injury; disturbance or erasure of electronic records (will pay for direct loss by lightning); and further, they will not pay for any loss that requires any audit of records or any inventory computation to prove its factual existence. 

 

The policy will not pay for any loss caused by or resulting from the following (unless the loss is caused by a “Covered” Cause of Loss):  Weather conditions, acts or decisions of any person, group, organization or governmental body, or faulty, inadequate, or defective planning, zoning development, design, materials or maintenance.

 

There is a coverage extension, much like that offered in other plans, that covers the insured property (records of accounts receivable in this case) while away from the insured’s premises or in transit to another place or returning. 

DETERMINATION OF RECEIVABLES

 

Unique to this form is the replacement of General Condition E, Valuation in the Commercial Inland Marine Conditions with statements to the effect that if the amount of accounts receivable outstanding at the time of loss cannot be accurately determined, the following method will be used:

 

(1) Determine the total of the average monthly amounts of accounts receivable for the preceding 12 months immediately preceding the month in which the loss occurs, and

(2) adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss occurred or for any demonstrated variance from the average for that month.

 

Further, the following will be deducted from the total amount of accounts receivable (regardless of how that amount is established): 

(1)  The amount of the accounts for which there is no loss;

(2)  The amount of the accounts that can be re-established or collected;

(3)  An amount to allow for probable bad debts normally uncollectable; and

(4)  All unearned interest and service charges.

 

 

 

COINSURANCE

 

This form requires at least an 80% coinsurance except for items in transit.

 

PROTECTION OF RECORDS

 

When the business is not open for business and except when the records are actually being used, all records of accounts receivables must be kept in “receptacles” that are described on the Declarations page.

 

 

 

 

VALUABLE PAPERS AND RECORDS

 

Valuable Papers (Records) Insurance provides coverage in the event that papers of intrinsic value are damaged or destroyed.  Coverage is on an All-Risks basis.  Limits of coverage can be quite high, but the insurance company will not pay an amount in excess of the actual cash value of the loss, or the amount necessary to repair or replace the damaged or destroyed papers.  The papers must be kept under lock and key.

 

The definition of “Valuable papers and records” is “inscribed, printed, or written documents, manuscripts or records, including abstracts, books, deeds, drawings, films, maps or mortgages.  But valuable papers and records does not mean money or securities, converted data, programs or instructions used in the data processing operations, including the materials on which the data is recorded.”

 

PROPERTY NOT COVERED

 

There are four areas of property that is not covered:

1. Property not specifically declared and described in the Declarations, if the property cannot be replaced with other property of like kind and quality.
2. Property held as samples or held for delivery after it has been sold.
3. Property held in storage away from the designated premises.
4. Contraband or property in the course of illegal transportation or trade.

 

COLLAPSE

 

Collapse will be covered if caused by the usual means, such as fire, windstorm, hail, explosion, etc, and also includes hidden decay, insect or vermin damage, weight of people or personal property, weight of rain on the roof, and use of defective materials or method in construction, etc. 

 

COVERED PERILS

 

As an All-Risks policy, it insures against risks of direct physical loss or damage, except the causes of loss listed in exclusions.  The exclusions are the typical three categories of exclusions, except that the second category would include

1. loss caused by or resulting from errors or omissions in processing or copying (unless the loss is caused by resulting fire or explosion),
2. loss caused by or resulting from, electrical or magnetic injury, disturbance, or erasure of electronic recordings (does not apply to losses caused by lightning).

 

ADDITIONAL CONDITIONS

 

There are four additional conditions:

1. Property is covered while in the US, Puerto Rico or Canada, within the premises, or away from the premises while in transit or within premises of others.
2. The limit of insurance for specifically declared items is the value of the property that is specifically declared and described in the Declarations.
3. When the covered papers and records are not being used, they must be kept in the “receptacles” as described the Declarations.
4. If after there has been a loss settlement and any property has been recovered either by the company or by the insured, then the loss will be so adjusted.

 

LIBRARIES ENDORSEMENT

 

When Libraries are covered, property away from the premises while in the care, control, or custody of any borrower or renter, is not covered.  Specifically excluded are

1. losses caused by or resulting from failure of any borrower or renter to return the property to the library; and vandalism of mutilation by anyone using the property within the insured’s premises; or unexplained disappearances, or
2. losses that depends on an audit of records of an inventory computation to prove its factual existence, however these procedures may be used to support the determination of a loss that the company would otherwise pay.

 

 

 

PHYSICIANS AND SURGEONS EQUIPMENT

 

Physicians and Surgeons Equipment Insurance provides coverage for equipment normally carried from location to location by a physician or surgeon; written on an All-Risks basis to include supplies and scientific books used in medical practice.

COVERED PROPERTY

 

The insurance will pay for loss to covered property from any of the covered causes of loss.  Covered Property means

1. medical and dental equipment, materials, supplies and books usual to the medical or dental profession, and can also cover similar property of others if used by the insured in his/her profession;
2. the insured’s office equipment, including furniture and fixtures, while at the “premises;
3. the insured’s interest in improvements and betterments, if the insured does not own the building in which the premises is located.

 

Property NOT covered includes radium and contraband or property being illegally transported.

 

EXCLUSIONS

 

The typical first category of exclusions consist of governmental action, nuclear hazard and war and military action.  The second category is typical, with addition of false pretense and unauthorized instruction, plus

1. marring, scratching, exposure to light breakage of tubes, bulbs, lamps or articles made largely of glass (except lenses);
2. processing or work upon the property;
3. artificially generated current creating a short circuit or other electrical discharge with a covered article.

These exclusions (above) will be paid if they are caused by causes of loss that is covered under the coverage, such as fire, and explosion, etc.

 

COVERAGE EXTENSION

 

The available extension covers damage caused directly by theft or attempted theft to any part of the building that contains covered property, or to equipment used to service the building.  This applies only if the building is owned or leased by the insured.

 

VALUATION

 

Valuation for improvements and betterments are unique in this policy.  If the insured repairs or replaces damaged property, actual cash value at time of loss determines the loss amount.  If the improvements or betterments are not repaired or replaced, the value is determined by using a percentage of the original cost representing their unamortized value, which is done by dividing the number of days remaining on the insured’s current rental agreement by the number of days from when the property was installed, until the rental agreement expires.

 

 

COINSURANCE

 

The coinsurance percentage is 80%, except for goods in transit.

PROTECTIVE SAFEGUARDS

 

The insurance required the insured to maintain the protective safeguards that were in effect at the time of the original policy date.  If these safeguards are not effective and not in working condition at a location and in operation when the business is closed for business, coverage is suspended until the equipment or services are back in operation.

UNDERWRITING

 

This form requires unique underwriting because of the possibility of theft of drugs for those doctors who have drugs or other narcotics on the premises.  Some physicians may have sophisticated (read expensive!) electronic equipment in the office for diagnostic or treatment purposes.  This equipment is subject to the same problems as electronic data equipment, such as fluctuations of current and explains why there is an exclusion of electrical disturbance caused by artificially generated current (the exclusions does not apply to natural causes, such as lightning).

 

 

 

SIGNS

 

The 1976 Definition includes coverage for “Signs and Street Clock policies, including neon signs, automatic or mechanical signs, and street clocks, as such.”  Those that are not included in the filings, can be insured on a nonfiled basis and could include such as billboards, ordinary fixed signs, plastic-faced signs and other signs not specifically mentioned.

 

This is a rather simple form, with coverage of signs belonging to or in the custody of the insured, including coverage by collapse by all of the usual causes.  Exclusions are the usual three category exclusions, plus breakage when in transport or installation, repairing or dismantling; and loss caused by artificially generated current creating a short circuit or electrical disturbance.  Also excluded is loss caused by weather conditions, or faulty, inadequate or defective maintenance. 

 

Coinsurance, including property in transit, must be insured for full value.

 

 

FILM

 

The 1976 Definition Section F.5, lists “Film Floaters, including builders' risk during the production and coverage on completed negatives and positives and sound records.”  It has been noted that the ISO form considers Covered Property as “(a)  exposed motion picture film and its sound track or other sound record and (b)  property recorded magnetic or video tape and its sound track or other sound record.  Tape is considered to be properly recorded if it has been replaced and checked after recording.”  This is less coverage than that stated in the Definition, as it does not cover erections of sets or structures involved in film production.  It, however, does cover exposed motion picture film and its sound track, and magnetic and videotape and its sound track(s). 

 

A Film Floater can be written to cover film in transit to and from a theatre or school or other place that rents or borrows the covered films/tapes, and conversely, the borrower/renter can obtain coverage of the tape while it is in their custody.

 

Film covered is identified by the production as shown in the Declarations, so additional productions must be reported to the insurer.  Note that the coverage only applies to commercial production and recording.  Coverage can be obtained on an open basis where all productions are automatically covered, however there are underwriting concerns for this type of coverage.

 

The termination of the policy is rather unique and calls for coverage until one of the following occurs:

1. the full quota of positive prints or films has been made;
2. the insured’s interest in the property has ceased;
3. the policy period has ended; or
4. the coverage is cancelled   -  whichever comes first.

 

PROPERTY NOT COVERED

 

Covered property does not include

1. cut-outs;
2. unused footage;
3. positive prints or films;
4. library stock; or
5. contraband, or property in the course of illegal transportation or trade.

 

 

EXCLUSIONS

 

In addition to the normal three categories or exclusions, (except earthquake and water exclusions do not apply) the following additional exclusions will apply:

1. deterioration, atmospheric dampness or changes in temperatures;
2. exposure of negative film to light;
3. use of developing chemicals;
4. developing, cutting or printing of film or other laboratory work;
5. electrical or magnetic injury, disturbance or erasure of electronic recordings or video tapes (except for direct loss caused by lightning.

 

VALUATION

 

The valuation of the Film Form is necessarily unique, and it replaces the standard Inland Marine valuation condition.  In case of loss, the value will be the cost of reproducing the lost or damaged property, plus the value of the reduction of undamaged parts of a production.  The insured must reduce the value of the loss by using any available property or methods of production.  The cost of the story, scenario, music rights, continuity, permanent sets, owned wardrobes and props, are not includible in the valuation of the covered property.

 

NOTE:  This form is not usually used by movie studios, as they need coverage for the cast, property, sets, wardrobes, etc.  This form is used generally for insuring education, training and promotional films. 

 

The value of the film is the cost of remaking the picture, therefore the underwriter should be aware of all inherent costs and take them all into consideration.

 

 

 

THEATRICAL PROPERTY

 

The Definition describes this coverage as “Theatrical Floaters, excluding building and their improvements and betters, and furniture and fixtures that do not travel about with theatrical troupes.”  However, the forms filed by both ISO and AAIS include scenery, customers and theatrical property whether or not they travel with the “theatrical troupes.”  It should be noted that the filed rules do not apply to carnivals, circuses, rodeos, costume rental companies or theatrical supply houses. 

 

COVERED PROPERTY

 

Simply, the form covers scenery, costumes and other theatrical property owned by the insured, however, the property must be used, or used in the past, as part of one of the scheduled productions. 

 

Property not covered are

1. buildings or their improvements and betterments;
2. vehicles unless actually used on the site in the covered production;
3. jewelry comprised of precious or semi- precious stones, gold, silver, platinum, or of other precious metals or alloys;
4. accounts, bills,  currency, deeds, money, documents, transportation or admission tickets, notes, securities and evidences of debt;
5. animals; contraband or property in the course of illegal transportation or trade.

 

Exclusions are those normally found in commercial policies, all three categories.

 

 

 

LIVESTOCK

 

Livestock insurance is a filed class (both ISO and AAIS) covering cattle, sheep, swine, horses, mules and goats from loss by death or destruction directly resulting from or made necessary by specified perils and is part of the ISO Farm program.  These coverages under this form do not apply to livestock insured by mortality policies, which cover death or destruction due to natural causes (as well as other stated perils).

 

This form is not applicable to the following categories:

1. range animals of the beef type and range sheep while on ranges;
2. horse, mules, or donkeys used exclusively for racing, show, or delivery including breeding therefor;
3. livestock while being transported to or from or while in stockyards or commercial feed lots;
4. insureds conducting sales or auctions, covering livestock or others for public sales;
5. livestock of circus, carnival, or theatrical enterprises;
6. livestock on winter range; or
7. veterinarians and humane societies covering livestock of others in their custody or control for professional purposes.

DETERMINING AMOUNT OF INSURANCE ON LIVESTOCK

 

There are two different methods for determining the amount of insurance:

Listing the six eligible classes of livestock, i.e. cattle, sheep, swine, horses, mules and goats, then the limit of liability per animal and total amount of insurance for each class insured.  This is subject to an 80% coinsurance applied to the total value of all covered animals.

 

An option would be to schedule individual animals with a separate amount of insurance to each, or to provide insurance on a blanket basis by class and type of animal, with separate amounts of insurance for each class/type.  The amount under the blanket basis is either $1,000, the actual cash value of the animal, or 120% of the amount when the total insurance on each class/type is divided by the number of animals of the class and type owned by the insured at the time of loss.

 

The second method provides that if an animal is newly acquired, it will be insured for up to 25% of the total amount of insurance, but the acquisition must be reported within 30 days.

 

COVERED PERILS

 

This form uses the Named Perils approach, with the following Named Perils:

1.  Death or destruction, directly resulting from or made necessary by

1. fire and lightning;
2. windstorm, cyclone, tornado, hail, explosion, riot attending a strike, civil commotion, aircraft and objects falling therefrom and smoke;
3. earthquake, flood, collapse of bridges or culverts;
4. collision, or derailment or overturn of a vehicle on which the insured property is being transported;
5. collision with vehicles except those owned or operated by the insured or by any tenant of the insured;
6. stranding, sinking, burning or collision of vessels, including general average and salvage charges incurred.

 

2.  Theft, excluding escape or mysterious disappearance.

EXCLUSIONS

 

Losses caused directly or indirectly by snow or sleet, whether driven by wind or not, are excluded.  Also excluded is loss due to acceptance of counterfeit money, fraudulent post office or express money orders, or checks or promissory notes that are not paid upon presentation – plus usual exclusions of infidelity, war, nuclear explosions.  Since the provisions of any policy, and in particular the exclusions, are based upon actual or expected losses, the exclusions of negotiable instruments would indicate that those who raise livestock are prey to swindlers and to fraud.

 

The death or destruction of livestock made necessary by certain optional perils, may be insured for additional premium.

1. accidental shooting (except by the insured or member of the insured’s family, employees of the insured or tenants of the farm premises);
2. drowning from external causes (except drowning of swine under 30 days old);
3. artificial electricity;
4. attack by dogs or wild animals; or
5. collapse of building.

 

Note:  Under this form, the common cause of loss is lightning.  The addition of the optional perils is particularly significant when sheep are insured as they are particularly susceptible to attacks by dogs or wild animals, and to drowning.

 

Note also insurance for livestock that cannot be covered under this form, may be available with a nonfiled form, as discussed in the following chapter.

 

 

 

 

MOBILE AGRICULTURAL EQUIPMENT

 

This form is also part of the ISO filed farm program and is designed to cover mobile agricultural machinery and equipment.  Not eligible for this coverage are self-propelled harvester-thresher combines, and mechanical cotton pickers used for hire, portable sawmills, irrigation equipment, and lug boxes.

COVERED PROPERTY

 

The property covered under this form would be as indicated in the Declaration, and includes accessories, tools and spare parts for the equipment.  Coverage is provided while the machinery and equipment is within 100 miles or where it is stored when it is not being used.  It may be insured either under a blanket amount, or under a both scheduled and blanket insurance.

 

Under the blanket coverage, the insured property is described as all unscheduled mobile agricultural machinery and equipment.  The second type of coverage shows a separate amount of insurance for each type, but not exceeding $250 on any one item.  The amount of insurance is limited to $5,000 or 10% of the scheduled property, whichever is less.  Combines and cotton-pickers are not eligible for coverage under the pure blanket coverage, but are eligible under the second approach IF NOT USED FOR HIRE.  (They maybe insured under a nonfiled class, as there is considerable exposure if they are transported to jobs, frequently many miles apart.)

EXCLUSIONS

Excluded from coverage are automobiles, motor trucks, motorcycles, aircraft, watercraft, and vehicles designed for highway use, other than those, which have been designed for farming and are used principally on the premises.  Irrigation equipment and crops are excluded also, as are tires and tubes (unless the loss caused by fire, windstorm or theft or coincides with another loss).

 

Mechanical or electrical breakdown is excluded, and any loss by wear and tear, dampness of atmosphere, or extremes of temperature, and the usual dishonesty-war-nuclear explosions are excluded.

 

 

RADIUM FLOATER

Under the Definition, Section F.1, “Radium Floaters” is listed with no additional description.  The only Radium Form filed is filed by AAIS that is used to cover radium is used only for medical purposes, ordinarily contained in small tubes or needles.  Any other insurance on Radium would be on a nonfiled basis.

 

Property shipped by mail is not covered.  The only stated exclusion is that of loss that results from a process to repair, adjust, service of maintain covered property.  Of course the exclusions in AAIS Inland Marine general terms apply, which relate to wear and tear, gradual deterioration, intrinsic fault of weakness, insects or vermin, delay, loss of market, loss of use or business interruption, obsolescence or deterioration, wear, civil authority and nuclear hazard.

 

A unique provision is that the use of the covered property (radium) must be under the supervision of a person who is specially qualified to handle it.

 

Rates are based on full coverage – the equivalent of a 100% coinsurance applies to each scheduled item.

 

 

COMMERCIAL ARTICLES COVERAGE FORM

The ISO form insuring cameras and musical instruments in the stock of dealers of these properties was discussed earlier.  Both ISO and AAIS file another form for insuring cameras and musical instruments used for commercial purposes, but not held for sale by dealers.

COVERED PROPERTY

Under this form, covered property consists of cameras, projection machines, films and related equipment and accessories;  musical instruments and related equipment and accessories; and similar property or others that is in the care, custody or control of the insured.

 

Each item can be insured separately and all items can be insured on a blanket basis.  Blanket coverage is subject to a 100% coinsurance clause, and therefore the additional acquired property provision will be eliminated.  Otherwise, the additional acquired property clause will pay the lesser of 25% of the total limit of insurance shown in Declarations, or $10,000.

 

Exclusions are the three category exclusions with no unusual exclusions. 

UNDERWRITING

For cameras there are two rating classes, cameras and equipment of motion picture producers, and cameras and equipment of everyone else.  (A little higher rate for motion picture producers).

 

Cameras used in a studio have less exposure that those used outside of a studio.  Television equipment is not eligible for this form, but commercial television equipment may be underwritten on a nonfiled class.  Underwriters must be aware of where the television equipment is used, for example if used in a van to cover news events, the exposure will be considerably more than if only used in the studio.

 

For musical instruments, there are different rates for individual professional musicians, insureds that are not individuals and organs that are not mobile.  Musicians that are not individuals are classified as either dance bands and orchestras, and all other bands (including orchestras, chamber music ensembles and similar groups, and boards of education or municipalities).

 

For non-mobile organs, rates start with 100% fire and extended coverage contents rate for the building in which the organ is located, and rates are for the first $10,000 of coverage, another (lower) rate for the next $40,000, and then another (even lower) rate for $50,000.

 

Professional musicians, as a general rule, take great care of their instruments (excluding some of the rock bands who may destroy every instrument on the stage every performance) but there can be a rather serious exposure while the instrument is in transit.  Bands and orchestras usually travel en masse so the exposure of the instruments will depend upon supervision. 

 

 

STUDY QUESTIONS

 

1.  What will Accounts Receivable insurance pay when business records are destroyed by an insured peril and the business cannot collect money owed?

        A.  Uncollectable sums plus expense of record reconstruction and extra collection fees.

        B.  Uncollectable sums plus physical value of the records themselves.

        C.  Uncollectable sums only.

        D.  The total cost of reconstructing the accounts receivable records plus collection fees.

 

2.  If the amount of accounts receivable cannot be accurately determined at time of loss, what action is taken to determine the loss amount?

        A.  The replacement value of the losses will be paid.

        B.  A method that uses the average monthly amount of account receivable , adjusted for fluctuations, and reduced by certain factors that would normally not be an account receivable.

        C.  A method of averaging the past 12 months of accounts receivable amounts, dividing by 12, then adding 12% for additional fluctuations.

        D.  A panel of appraisers, consisting of 3 CPA’s who will estimate the loss amount based on experiences of companies of like size and like kind.

 

3.  Which of the following would not be covered under Valuable Papers (Records)Insurance?

        A.  Printed documents containing the firms business plan and financing methods.

        B.  Legal documents pertaining to the ownership of the firm, incorporation, etc.

        C.  Securities and money that is part of the company’s assets.

        D.  Copies of geological maps used by the company, an oil drilling firm.

 

4.  Under a Physicians and Surgeons Equipment Insurance policy, the policy will pay for loss to covered property from any of the covered causes of loss.  Covered property may include

        A.  Radium used as part of a diagnostic procedure.

        B.  Processing of X-ray films.

        C.  Crack cocaine used in a psychiatric experiment by a psychiatrist.

1. A diagnostic machine used for diagnosing plaque in certain arteries.

 

5.  Which of the following is not insurable under a filed Sign and Street Clock policy.

        A.  Neon signs.

        B.  A sign with a mechanically operated arm pointing to the business location.

        C.  Removable signs that attach to the door of a company-owned car.

        D.  A clock at the corner of Oak and Main that strikes the hour.

 

 

6.  Which of the following is covered under a (filed) Film Floater?

        A.  Unused footage of a movie.

        B.  Positive prints.

        C.  Exposed Motion Picture Film and its sound track.

        D.  Pornographic Motion Picture Film featuring sex with children.

 

7.  Which of the following would be covered by a Theatrical Floater?

        A.  Scenery of a show of “Cats” performed by various Dinner Theatres.

        B.  Scenery of a Sideshow used in a travelling carnival.

        C.  Saddles, Ropes, Halters and other such material used for Rodeo horses.

        D.  Calliope used by the Strainje Brothers Circus.

 

8.  Which of the following livestock would be insured under the (filed) Livestock Floater?

        A.  A flock of sheep grazing on the range on a ranch in Montana.

        B.  A thoroughbred racehorse grazing in a pasture in Kentucky.

        C.  A Brahma bull used for breeding purposes by a ranch in Florida, kept in a barn and corral and breeding pen.

        D.  A Brahma bull with a herd of Brahma heifers grazing on clover on a ranch in Texas.

 

9.  George has a farm in Iowa.  Which of the following farm equipment would not be eligible for coverage under the (filed) Mobile Agricultural Equipment Floater (scheduled)?

        A.  Combination harvester-thresher (known as “Combine”) not used for hire.

        B.  A Dodge Ram 4x4 pickup used on the farm, licensed for highway also.

        C.  George’s Tractor that he uses for plowing and other farm work, including pulling wagons of grain produced by his combine.

        D.  Portable irrigation pumps and sprinklers used during dry weather.

 

10.  Modelpic, Inc., is a photo studio specializing nearly exclusively in photographing clothing models for magazines, calendars, and for private purposes, such as a model’s “portfolio” of pictures.  They have many very expensive cameras, some in the studio and some are used for location shots.  What type of policy would they need to cover the exposures of the cameras and equipment, both in the studio and on location?

        A.  Commercial Articles Coverage Form.

        B.  Camera and Musical Instrument Dealers.

        C.  Camera and Photographic Materials Floater.

        D.  Model and Cameramen’s Liability policy.

 

ANSWERS TO STUDY QUESTIONS

 

1A     2B     3C     4D     5C     6C     7A     8C     9D     10A