Why you need this course:
After completing this course, you´ll be able to calculate merchandise losses under various property coverage forms.
Upon successful completion of this course, you should be able to:
- Distinguish between the coverage provided by the Building and Personal Property Coverage Form (BPP) and the Business Owners Policy (BOP) for merchandise and the insurable interest requirements of the BPP and the BOP for merchandise.
- Explain how replacement cost and actual cash value are determined for merchandise.
- Describe the information contained in a business's books and records and financial statements.
- Given a case, calculate the cost of goods sold by a business during a given time period.
- Given a case, calculate the book value of remaining inventory on a date of loss, using books and records.
- Describe a salvor's services, and explain the operation of salvage contracts.
- Given a case, calculate settlements involving salvage proceeds.
- Explain a reporting form policy's purpose and operation.
- Explain how reporting form policies treat underreporting and late reporting.
- Given a claim involving reporting form coverage, calculate a loss:
- With proper reporting and no specific insurance
- With proper reporting and specific insurance applicable
- With underreported values and no specific insurance
- With underreported values and specific insurance applicable
- Explain what procedures an adjuster should follow and what information the adjuster should gather in the adjustment of:
- Loss to a large quantity of merchandise
- Loss to a small quantity of merchandise
- Explain why percentage damage settlements of merchandise losses can be advantageous to both the insured and insurer.
Cost: $20 per Professional Development Hour (PDH). Information on Professional Development Hours (PDH) provided can be found here.
Merchandise Losses Topics Include:
- Coverage provided by the BPP and the BOP
- Determining replacement cost and actual cash value for merchandise
- Information contained in a business's books and records and financial statements
- Calculating the cost of goods sold during a given time period
- Calculating the book value of remaining inventory
- Salvor services
- Calculating settlements with salvage proceeds
- Reporting form policy
- Calculating a loss for a claim involving reporting form coverage
- Procedures an adjuster should follow when adjusting loss to a large quantity of merchandise and loss to a small quantity of merchandise
- Why percentage damage settlements of merchandise losses can be advantageous to both the insured and insurer
Additional Course Resource
Additional Knowledge Solutions
(800) 644-2101 (U.S. and Canada)
(610) 644-2100 (Outside the U.S. and Canada)
720 Providence Road
Malvern, PA 19355-3433
Customer Service hours are Monday through Friday, 8:00 a.m. to 6:00 p.m. Eastern Standard Time.