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General Level 1 Licensing > Advanced Property Insurance > Flashcards

Advanced Property Insurance Flashcards

1
Q

in the comprehensive home policy, what coverages are the same as in basic?

A

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

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2
Q

what are some exclusions on the comprehensive home policy that differ from those listed on basic?

A

-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

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3
Q

what is a specified peril?

A

first 11 of the 13 perils (not theft/attempted theft or electricity)

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4
Q

what is excluded under basic home policy but covered under comprehensive?

A

-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

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5
Q

what is an extension of coverage?

A

-come with the policy, is what is also covered with total premium

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6
Q

what percentage of coverage A covers cost of debris removal?

A

5%

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7
Q

how long is property removed from insured premises to avoid further loss or damage covered for ?

A

30 days or until policy term ends, whichever comes first

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8
Q

how long is property covered for while moving to another location?

A

30 days while in transit but ONLY IN CANADA

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9
Q

how much is given to the insured for fire department charges if they needed to enter to avoid a bigger loss/claim?

A

up to $1000, with no deductible

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10
Q

when is change of temperature and resulting losses covered?

A

of change of temp is resulting from physical damage by insured peril (ex: storm breaks window and indoor plants freeze)

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11
Q

how much is given to cover cost of food spoils when power is lost to a freezer?

A

$2000 per freezer, no deductible

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12
Q

when is freezer food not covered?

A

-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

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13
Q

cost of lock replacement is covered for up to how much , providing that….

A

$500 providing theft is reported to police. no deductible

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14
Q

define the “tear out” extension of covg

A

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

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15
Q

how much is able to be awarded by insurance companies if given information which leads to an arson conviction?

A

$1000. does not increase if more than one person give this information

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16
Q

is there a deductible on the arson conviction extension of coverage?

A

no

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17
Q

when are credit/debit cards, forgery and counterfeit $ covered?

A

-when someone else uses named insureds cards
-lost their cards
-if given counterfeit $ (up to $200)
-if loss is caused by forgery

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18
Q

what is the limit of coverage for debit/credit cards, forgery and counterfeit $

A

1000, NO deductible

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19
Q

if there is a loss insured under section 1, and inflation went up, ho wdoes coverage limit amount react?

A

also goes up. amount of insurance automatically reacts to whatever the % of inflation was

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20
Q

what appears on ALL property insurance policies?

A

statutory conditions

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21
Q

list the 15 property statutory conditions:

A
  1. misrepresentation
  2. property of others
  3. change of interest
  4. material change
  5. termination
  6. requirements after loss
  7. fraud
  8. who may give notice and proof
  9. salvage
  10. entry, control, abandonment
  11. disagreement process/appraisal
  12. when loss is payable
  13. replacement
  14. action
  15. notice
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22
Q

what are the 3 ways misrepresentation can be caused:

A
  • if a person applying for insurance,
    1. falsely describes the property
    2. misrepresents info material to the risk
    3. fraudulently omits to communicate
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23
Q

any one of the forms of misrepresentation can cause the contract to be ….

A

VOID

24
Q

describe the ‘property of others’ statutory condition…

A

unless otherwise specified, insurer is not liable for loss or damage to property of anyone other than the named insured

25
Q

(change of interest) insurer is liable for loss or damage occurring after an authorized assignment in any of these 4 circumstances:

A

-an authorized assignment under Bankruptcy Act
-change of title by succession
-change of title by operations of law
-change of title by death

26
Q

what is meant by ‘material change’?

A

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

27
Q

in cases of material change to the policy, additional premium incurred by any such change must be paid….

A

within 15 days

28
Q

how much notice is required to be given to the insured if contact is terminated by insurer?

A

-15 days if given notice by registered mail or
5 days if termination notice personally delivered to insured

29
Q

if the contract is terminated by the insurer….

A

-refund is determined on a pro-rated basis for time on risk, and
-refund is to be made as soon as is practicable

30
Q

iff the insured cancels mid-term,

A

refund = short-rate

31
Q

what is short-rate return premium?

A

the unearned premium an insurer must return when an insured cancels their policy before expiration date

32
Q

when do the 15 days mentioned when insurer is terminating commence?

A

the day following the receipt of the registered letter at the post office to which it is addressed

33
Q

what is insurance fraud

A

lying on a statement of claim or proof of loss form

34
Q

what is meant by ‘salvage’

A

in event of any loss or damage, insured shall take all reasonable steps to prevent further damage

35
Q

when is the loss payable?

A

within 60 days after completion of the proof of loss, unless contract provides for a shorter period

36
Q

if insurer commences to repair/rebuild or replace, they must do so…

A

within 45 days after receipt of proof of loss

37
Q

every action of proceeding against the insurer for the recovery of any claim under or by virtue of (this) contract is..

A

absolutely barred unless commenced within 2 years after loss or damage occurs

38
Q

personal articles endorsements are also called…

A

PAF: personal articles floaters
PAP: personal articles policy
PEE: personal effects endorsement

39
Q

what is a ‘blanket coverage endorsement”

A

when a broker sells one endorsement listing all items of that category

40
Q

when on a scheduled basis, newly acquired items are …..

A

automatically covered for 30 days and up to $5000

41
Q

blanket endorsement insures all items…

A

to the value the customer informs

42
Q

can the insured by an endorsement for uniquely one item?

A

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

43
Q

IBC personal articles wordings are all risk coverage and includes:

A

-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

44
Q

when should a fine arts endorsement be purchased

A

-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

45
Q

newly acquired fine art is always automatically covered for how long and how much?

A

30 days, covered for 25% of the value of the art endorsement that the client already insures

46
Q

what does a fine arts endorsement cover?

A

-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

47
Q

it is a condition of the fine arts endorsement that when moving art, it is….

A

packed and wrapped by a competent packer

48
Q

art is only covered while moving IF

A

it is wrapped appropriately by a professional

49
Q

section I on a homeowners form

A

describes the insurance on your property. it also includes additional living expenses and/or fair rental value in certain circumstances

50
Q

section II on a homeowners form

A

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

51
Q

“business” means

A

any continuous or regular pursuit undertaken for financial gain including a trade, profession or occupation

52
Q

“data” means

A

representations of information or concepts in any form

53
Q

“domestic water container” means

A

a device or apparatus for personal use on the premises for containing, heating, chilling or dispensing water

54
Q

“dwelling” means

A

the building described on the coverage summary page, wholly or partially occupied by you as a private residence

55
Q

“premises” means

A

the land contained within the lot lines on which the dwelling is situated

56
Q

“Residence employee” means

A

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

General Level 1 Licensing (23 decks)

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