Advanced Property Insurance Flashcards
in the comprehensive home policy, what coverages are the same as in basic?
A B C D, same percentages of A extended to other coverages (10% to B, 20% to D), and items with specified limits are the same
what are some exclusions on the comprehensive home policy that differ from those listed on basic?
-sporting equipment broken while in use
-damage to animal, bird or fish, UNLESS caused by a specified peril
-scratching, marring and abrasion of any personal property or breakage of brittle or fragile articles UNLESS caused by a specified peril, accident to land vehicle/watercraft/aircraft, or theft/attempted theft
-wear and tear
-cost of fixing faulty work
-loss or damage caused directly/indirectly by data problem, but
- still covered if loss of data due to fire,
explosion, smoke or water damage
-caused by birds, vermin, rodent, insects (but glass covered)
-smoke if caused by pollution
-rust
what is a specified peril?
first 11 of the 13 perils (not theft/attempted theft or electricity)
what is excluded under basic home policy but covered under comprehensive?
-water hammer (explosion)
-falling objects dont have to hit exterior first
-driving into own house with own vehicle
-vandalism if you did it yourself
-does not now have to be a sudden surge of electricity
what is an extension of coverage?
-come with the policy, is what is also covered with total premium
what percentage of coverage A covers cost of debris removal?
5%
how long is property removed from insured premises to avoid further loss or damage covered for ?
30 days or until policy term ends, whichever comes first
how long is property covered for while moving to another location?
30 days while in transit but ONLY IN CANADA
how much is given to the insured for fire department charges if they needed to enter to avoid a bigger loss/claim?
up to $1000, with no deductible
when is change of temperature and resulting losses covered?
of change of temp is resulting from physical damage by insured peril (ex: storm breaks window and indoor plants freeze)
how much is given to cover cost of food spoils when power is lost to a freezer?
$2000 per freezer, no deductible
when is freezer food not covered?
-if food goes bad because something happened with the circuit breaker or any disconnection of power to bldg w the freezer
-intentional act
-expenses incurred in acquisition of frozen food
cost of lock replacement is covered for up to how much , providing that….
$500 providing theft is reported to police. no deductible
define the “tear out” extension of covg
if any part of insured building/structure has to be torn out before water damage covered by this form can be replaced, we will pay cost of such work and restoration
**except if due to damage by public watermain, or swimming pools
how much is able to be awarded by insurance companies if given information which leads to an arson conviction?
$1000. does not increase if more than one person give this information
is there a deductible on the arson conviction extension of coverage?
no
when are credit/debit cards, forgery and counterfeit $ covered?
-when someone else uses named insureds cards
-lost their cards
-if given counterfeit $ (up to $200)
-if loss is caused by forgery
what is the limit of coverage for debit/credit cards, forgery and counterfeit $
1000, NO deductible
if there is a loss insured under section 1, and inflation went up, ho wdoes coverage limit amount react?
also goes up. amount of insurance automatically reacts to whatever the % of inflation was
what appears on ALL property insurance policies?
statutory conditions
list the 15 property statutory conditions:
- misrepresentation
- property of others
- change of interest
- material change
- termination
- requirements after loss
- fraud
- who may give notice and proof
- salvage
- entry, control, abandonment
- disagreement process/appraisal
- when loss is payable
- replacement
- action
- notice
what are the 3 ways misrepresentation can be caused:
- if a person applying for insurance,
1. falsely describes the property
2. misrepresents info material to the risk
3. fraudulently omits to communicate
any one of the forms of misrepresentation can cause the contract to be ….
VOID
describe the ‘property of others’ statutory condition…
unless otherwise specified, insurer is not liable for loss or damage to property of anyone other than the named insured
(change of interest) insurer is liable for loss or damage occurring after an authorized assignment in any of these 4 circumstances:
-an authorized assignment under Bankruptcy Act
-change of title by succession
-change of title by operations of law
-change of title by death
what is meant by ‘material change’?
any change material to the risk and within the control and knowledge of the insured avoids the contract as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its local agent
in cases of material change to the policy, additional premium incurred by any such change must be paid….
within 15 days
how much notice is required to be given to the insured if contact is terminated by insurer?
-15 days if given notice by registered mail or
5 days if termination notice personally delivered to insured
if the contract is terminated by the insurer….
-refund is determined on a pro-rated basis for time on risk, and
-refund is to be made as soon as is practicable
iff the insured cancels mid-term,
refund = short-rate
what is short-rate return premium?
the unearned premium an insurer must return when an insured cancels their policy before expiration date
when do the 15 days mentioned when insurer is terminating commence?
the day following the receipt of the registered letter at the post office to which it is addressed
what is insurance fraud
lying on a statement of claim or proof of loss form
what is meant by ‘salvage’
in event of any loss or damage, insured shall take all reasonable steps to prevent further damage
when is the loss payable?
within 60 days after completion of the proof of loss, unless contract provides for a shorter period
if insurer commences to repair/rebuild or replace, they must do so…
within 45 days after receipt of proof of loss
every action of proceeding against the insurer for the recovery of any claim under or by virtue of (this) contract is..
absolutely barred unless commenced within 2 years after loss or damage occurs
personal articles endorsements are also called…
PAF: personal articles floaters
PAP: personal articles policy
PEE: personal effects endorsement
what is a ‘blanket coverage endorsement”
when a broker sells one endorsement listing all items of that category
when on a scheduled basis, newly acquired items are …..
automatically covered for 30 days and up to $5000
blanket endorsement insures all items…
to the value the customer informs
can the insured by an endorsement for uniquely one item?
yes, the insured would inform the insurer of the item value and the claim will be paid based on the amount that the insurer last informed
IBC personal articles wordings are all risk coverage and includes:
-loss/damage to sports equipment due to its use
-marring, scratching, breaking, chipping
-theft by tenant
-sewer back up, water damage
-snowslide, earth movement
-“mysterious disappearance” including losing an item
when should a fine arts endorsement be purchased
-this is on any collection of ‘art’ that our clients choose to have, including but not limited to:
-paintings, antiques, manuscripts
-etchings, porcelains
-tapestries, rare books
-collectable statuary, crystal décor
newly acquired fine art is always automatically covered for how long and how much?
30 days, covered for 25% of the value of the art endorsement that the client already insures
what does a fine arts endorsement cover?
-all risk, including
-marring/scratching
-all sources of smoke
-theft from a vehicle
-seepage, theft by tenant
EXCLUSIONS:
-breakage unless a peril covered by the endorsement
-damage by bird, rodent, insects
-while fixing up your artwork
it is a condition of the fine arts endorsement that when moving art, it is….
packed and wrapped by a competent packer
art is only covered while moving IF
it is wrapped appropriately by a professional
section I on a homeowners form
describes the insurance on your property. it also includes additional living expenses and/or fair rental value in certain circumstances
section II on a homeowners form
describes the insurance for your legal liability for bodily injury to others or damage to property of others arising out of your premises or your personal actions. it also includes benefits following injury or damage to property of others in certain other circumstances
“business” means
any continuous or regular pursuit undertaken for financial gain including a trade, profession or occupation
“data” means
representations of information or concepts in any form
“domestic water container” means
a device or apparatus for personal use on the premises for containing, heating, chilling or dispensing water
“dwelling” means
the building described on the coverage summary page, wholly or partially occupied by you as a private residence
“premises” means
the land contained within the lot lines on which the dwelling is situated
“Residence employee” means
a person employed by you to perform duties in connection with the maintenance or use of the premises. this includes persons who perform household or domestic services or duties of a similar nature to you
