C82 Study 4 Flashcards
First-party insurance that indemnifies the owner or user of property for it’s loss, or the loss of it’s income-producing ability, when loss or damage is caused by a covered peril, such as a fire
Property Insurance
Insurance for individuals and families, such as private passenger auto insurance and homeowners insurance
Personal-lines Insurance
Coverage for losses from fire, lighting, and limited explosion and also the resultant damage caused by smoke and water. Usually supplemented by extended coverage insurance
Fire Insurance
An endorsement that enlarges the coverage afforded by the primary policy. Coverages such as windstorm, hail, smoke, and riot are extended coverages on a fire policy
Extended Coverage Insurance
Fire Insurance Covers which type of fires
Hostile Fires
Fire Insurance does not cover which type of fires
Friendly Fires
Which type of Fire is defined as “those that become uncontrolled or escape their designated place”
Hostile Fires
Which type of Fire is defined as “those that are intentionally set in a designated place”
Friendly Fires
In a fire policy there are three conditions that must be met so that an occurrence is classified as a fire, what are these conditions
- there must be an actual fire or ignition
- There must be something on fire which ought not to have been on fire
- There must be something in the nature of a casualty or accident
What is the broadest type of policy that can be purchased
All-risks Policy
A name given to an insurance policy that covers each and every loss except for those that are specifically excluded. If the insurer does not exclude it, then it is automatically covered.
All-risks Policy
Insurance that agrees to indemnify the insured for sums they may be required by law to pay third parties as damages for bodily injury or damage to property.
Liability Insurance
What are the three types of insurance policies currently in the marketplace
- Comprehensive (All-risks)
- Basic (Specified Perils or Named-perils)
- Broad (Combining elements of comprehensive and basic coverage)
Special prescribed and standardized conditions that the province and territorial insurance acts require to be included in fire, automobile and accident and sickness policies
Statutory Condition (General Conditions - QC)
A shelter intended or used as a space in which people live
Dwelling
In this type of policy anything not excluded is covered
All Risks- Comprehensive
In this type of insurance if the cause of your loss is not on the list of exclusions coverage can apply
All risks comprehensive
Comprehensive homeowners policy divided into two sections
Section 1 property coverage
Section 2 liability coverage
Section 1 of comprehensive homeowners insurance includes
- Dwelling Building
- Detached Private structure
- Personal Property
- Additional Living Expenses (ALE)
Section 2 of the comprehensive homeowners policy includes
- Legal liability
- Voluntary medical payments
- Voluntary payment for damages to property of others
- Voluntary compensation for residence employees
Something permanently attached to the dwelling such as a pool would be included in the comprehensive homeowners policy under which setion
Coverage A dwelling building
True of false if connected by a walkway or fence they are still considered detached private structures
True
Clothing, appliances and furniture would be covered under which section of the comprehensive homeowners policy
Coverage C personal property
Portable and attractive to theifs would be considered what? Ex) watch, jewelery, fur
Special limits personal property
Time limit for additional living expense
No time limit
Time limit for fair rental value
Reasonable time limit
Time limit for prohibited access
Max 2 weeks
Two purposes of specified perils in comprehensive homeowners policy are
- To restrict coverage on certain perils or types of property, which would otherwise be all risks coverage ex) water damage
- To provide full coverage for certain types of property where they would be subject to a special limit of coverage ex) jewellery coverage for theft
Comprehensive homeowners policy specified perils are
F ire F alling object I mpact L ightnig E xplosion
V andalism/ Malicious acts
S moke
W ater Damage
W indstorm/Hail
R iot
D amage to insured property while in transit
Two main function’s of exclusions
- Specifies that certain property is not insured
2. Specifies that loss or damage caused by certain perils is not covered
Properties that are excluded in the comprehensive homeowners policy
- Buildings for business or farming
- Property illegally acquired
- Sporting equipment
- Property lawfully seized
- Property on exhibit
- Animals, birds or fish
- Outdoor radio and TV antenna
Is wear and tear loss or damage that is insured
No
Named perils coverage is know as which type of homeowners policy
Basic home insurance
This form of policy has the most limited form of coverage
Basic homeowners policy
What are the perils covered in the basic homeowners policy
F ire
F alling objects
I mpact
E xplosion
Vandalism/ Mischievous acts
Smoke - from a malfunctioning heating or cooking appliance (but not from a fireplace)
G lass Breakage
T ranspotation
T heft
E lectrical Current Damage
Exclusions in the basic homeowners policy are divided into two groups
- Property not insured
2. Loss or damage not insured
Types of properties excluded from the basic homeowners policy and therefore are not insured are
- Buildings for business or farming
- Property on exhibit
- Property illegally acquired
- Evidence of debt or title
- Data ( which are not tangible so are not property)
A building including land immediately surrounding it and belonging to it
Premises
Insureds are covered for claims made against them arising from the following
- Personal liability
- Premise liability
- Tenants legal liability
- Employers liability
Tenants legal liability includes
F ire
E xplosion
W ater escape
S moke - not from fireplace
Coverage F voluntary medical payments. Have no _______________ and it it a ________________ gesture
No legal liabilities
Good will gesture
If someone gets hurt on your property by their own doing and as a good will gesture you pay for their medical expenses this is an example of what coverage
Coverage f voluntary medical payments
These types of coverage are provided by the insurer to help prevent a future claim
Coverage F voluntary medical payments and coverage G voluntary payment for property damage
If property damage is done intentionally by an insured who is 12 years or under there may also be coverage, true or false
True
All risks coverage on a specific class of property of a personal nature is available under the ____________________
Personal articles form
Many items under this form may be covered on a valued basis. Some insurers indicate this with a “V” next to the item on the schedule. What type of form is this
Personal articles form or personal articles endorsement
In the personal articles endorsement automatic coverage up to how much $$$ is provided. And the newly acquired item must be declared within how many days of the purchase date?
5000$ 30 days
Diamonds probably represent the highest values in jewellery. Their description centers on the four C’s
Cut, colour, clarity and carat
A dollar amount specified in an insurance policy (usually a liability policy) that must be paid by the insured before the insurance policy will respond to a loss
Self-insured retention (SIR)
The main reasons to buy umbrella liability insurance are
To obtain higher limits of coverage and broader coverage at a reasonable cost
