For the purpose of this part, the following terms mean:

1. (1) “Actual cash value” means the cost of replacing damaged or destroyed property with comparable new property minus depreciation;
2. (2) “Agreed value” means the specified maximum amount of insurance that will be paid for a building or structure;
3. (3) “Boiler and machinery (equipment breakdown)” means the type of coverage that covers loss and damage as a result thereof, resulting from the malfunction of boilers and machinery;

4. (4)

   1. (A) “Business personal property (contents)” means coverage for the school district’s personal property items that are movable and are not attached to the building’s structure.
   2. (B) This would include items such as inventory, computers, copiers, furniture, fixtures, library books, musical instruments, athletic equipment and uniforms, whether or not they are included on the inventory schedule.

   3. (C) Not included under this coverage are:

      1. (i) Automobiles;
      2. (ii) Boats;
      3. (iii) Animals; or
      4. (iv) Crops;
5. (5) “Code upgrade”. See “ordinance and law”, subdivision (16) of this section;

6. (6)

   1. (A) “Coinsurance” means the amount of insurance a district must carry in order to be indemnified for the total dollar amount of the actual loss.
   2. (B) Not all policies have a coinsurance clause.
   3. (C) No public school property eligible to receive facilities assistance listed in 6 CAR § 324-103(b) will be insured for less than ninety percent (90%) of replacement cost;
7. (7) “Deductible” means the amount of loss paid by the insured per claim;

8. (8)

   1. (A) “Earth movement (earthquake)” means the type of insurance that provides protection to insured property damaged as a result of:

      1. (i) Earthquake;
      2. (ii) Landslide;
      3. (iii) Rockslide;
      4. (iv) Mudslide;
      5. (v) Mudflow;
      6. (vi) Earth rising;
      7. (vii) Earth sinking;
      8. (viii) Earth collapsing; or
      9. (ix) Collapse of sinkholes.
   2. (B) This type of insurance coverage may be purchased as an optional coverage;

9. (9)

   1. (A) “Extra expense” means following a covered loss, this type of insurance coverage provides payment for cost above normal operating expenses for the facility prior to loss.
   2. (B) Example: temporary facilities (portable classrooms), additional transportation costs and setup and utility costs after a building was damaged or destroyed and rendered unusable by a tornado or fire;

10. (10)

    1. (A) “Flood” means the rising, overflowing, or breaking boundaries of rivers, lakes, streams, or similar waterways or man-made bodies of water.
    2. (B) Insurance coverage for flood damage may be purchased as an optional coverage;

11. (11) “Instructional materials” means the:

    1. (A) Traditional books and trade books in printed and bound form;
    2. (B) Activity-oriented programs;
    3. (C) Manipulatives;
    4. (D) Hand-held calculators;
    5. (E) Hands-on materials; and
    6. (F) Technology-based materials that require the use of electronic equipment in order to be used in the learning process;

12. (12)

    1. (A) “In-transit” means the type of insurance that provides coverage while property is in due course of transit within the boundaries of the policy territory.
    2. (B) Examples of items typically covered by this type of insurance coverage are coverage for band instruments, uniforms, and other school-owned equipment if damaged or destroyed on an authorized field trip or school sponsored extra-curricular activity, or in transit under the authorization of the school district;

13. (13)

    1. (A) “Money and securities” means the type of insurance that provides coverage for losses incurred due to burglary and robbery only, but does not cover losses incurred due to theft by such means as embezzlement or deception.
    2. (B) This type of coverage does not include valuable papers;

14. (14)

    1. (A) "New construction" means any improvement to an academic facility and, if necessary, related areas such as the physical plant and grounds, that brings the state of condition or efficiency of the academic facility to a state of condition or efficiency better than the academic facility's original condition of completeness or efficiency.
    2. (B) "New construction" includes additions to existing academic facilities and new academic facilities;

15. (15)

    1. (A) “Newly acquired property or business personal property” means the type of insurance coverage that is limited to a specified time frame.
    2. (B) School districts covered by this type of insurance should inform their insurer fifteen to thirty (15-30) days prior to accepting new construction from the contractor;
16. (16) “Ordinance and law (code upgrade)” means a type of insurance designed to provide sufficient coverage to bring a damaged or destroyed building into compliance with current building code provisions that were not in effect when the building was originally constructed, as mandated by the International Building Code;
17. (17) "Real property" means land and anything attached to or erected on it, excluding anything that may be severed without injury to the land;
18. (18) "School district or districts” means a geographic area with an elected board of directors that qualifies as a taxing unit for purposes of ad valorem property taxes under Title 26 of the Arkansas Code and which board conducts the daily affairs of public schools under the supervisory authority vested in it by the General Assembly and Title 6 of the Arkansas Code;
19. (19) “Stated value”. See “agreed value”, subdivision (2) of this section;

20. (20) “Structures” includes, but is not limited to:

    1. (A) Signs;
    2. (B) Light poles;
    3. (C) Bleachers;
    4. (D) Covered walks; or
    5. (E) Fences;

21. (21)

    1. (A) “Terrorism” means activities against persons, organizations, or property that involve the threat or commission of violence or a dangerous act.
    2. (B) Insurance coverage for damages caused by acts of terrorism may be purchased as an optional coverage; and
22. (22) “Transit”. See “in transit”, subdivision (12) of this section.