Chapter 1 Section 2 Part 4

Question 1

explain the effect an unreported material change may have on a loss

Answer 1

goes unreported = no coverage

insured unaware of change = coverage

Question 2

If an insurer wishes to cancel the policy, they may do so at any time giving the insured written notice and

Answer 2

15 days notice registered mail (or)

5 days written notice personally delivered

Question 3

Any excess of premium, or unearned premium, must accompany the notice and will be calculated on what basis?

Answer 3

Pro Rata

Question 4

If the insured requests cancellation, any refund of premium will be calculated on what basis?

Answer 4

Short Rate

Question 5

If an insured loss should occur, the insured is required to give notice to the insurer

Answer 5

forthwith, in writing

Question 6

define “fraud”

Answer 6

deliberate attempt to -deceive- to -secure profit-

Question 7

“Fraud” occurs at the time of a loss. What portion of a claim would an insurer be allowed to deny if they were able to prove the insured committed fraud?

Answer 7

Entire claim

Question 8

four parties who can give notice and proof of loss if insured is unable or refuses

Answer 8

• Friends and Relatives
• Lawyer
• Agents
• Mortgagee

Question 9

The Insurance Act provides for an “appraisal” in (three) instances when there is a dispute as to the value of…?

Answer 9

• Property insured
• Property saved
• Amount of loss

Question 10

After completion of the loss, unless the contract provides for a shorter period, how long does the insurer have to pay the loss?

Answer 10

Within 60 days