Chapter 3 Flashcards
What types of losses are likely for owners of mobile homes?
- Fire
- Windstorm
- Hail
- Transportation
Explain Emergency Removal Expense
When a mobile home is threatened by an insured peril, coverage is provided for cost to disconnect utilities and expenses to tow mobile home out of harms way
What are two extensions of Coverage C - Personal Property found in Tenant’s policies?
- Coverage is provided for improvements and betterments made by tenant.
- Coverage is also provided for up to $500 in damage to tenant’s premises resulting from theft or attempted theft and vandalism damage to interior of tenant’s premises.
Explain how amounts of coverage for Coverage D are determined in Tenant’s policies
Amounts of coverage for Coverage D – Additional Living Expense is 20% of the amount of coverage selected in Coverage C – Personal Property
What types of property are insured by condominium corporations?
Condominium corporations insure value of the building and the value of all the common elements.
What coverages are available to condominium unit owners?
- Personal Property
Coverage - U1 – Unit Improvements and Betterments
Coverage - U2 – Loss Assessment
Coverage - U3 – Unit Additional Protection
How do insurers limit coverage on seasonal homes?
Coverage offered for seasonal homes is limited to named perils only, not including transportation perils or theft perils.
Why would clients wish to purchase the following: Fine Arts endorsement
Coverage provided would be used to insure objects considered as fine arts. The endorsement will expand perils insured and provide a valued settlement option.
Why would clients wish to purchase the following: Personal Articles endorsement
The endorsement will provide coverage for high valued personal property items, expand the perils insured, and may reduce or eliminate deductibles. Coverage is provided beyond the “Special Limits of Insurance” found in Coverage C - Personal Property.
Why would clients wish to purchase the following: Television and Antenna endorsement
The endorsement will broaden coverage provided for television, radio sets, and antennas.
Why would clients wish to purchase the following: Demolition and Limited Increased Cost of Construction endorsement
The endorsement will provide coverage for additional cost required to comply with any law regulating demolition, repair, or construction of buildings after loss.
Why would clients wish to purchase the following: Residence Glass endorsement
The endorsement is usually purchased to lower deductibles on insured glass breakage losses.
Why would clients wish to purchase the following: Sewer Back-up endorsement
To provide coverage for losses resulting from the backing up or the escape of water from sewer, drain, sump, septic tank, eavestrough or downspout.
Why would clients wish to purchase the following: Travel Trailer endorsement
The endorsement provides all risk coverage for damage to owned trailers and contents for losses occurring in Canada and the continental US
What is insured on Outboard Motor and Boat policies?
Boats, motors, boat trailers, and boat equipment may be insured by an Outboard Motor and Boat Policy.
Why is named perils coverage not recommended for Outboard Motor and Boat policies?
All risk policies are usually recommended because losses resulting from transportation and collision with waterborne objects are not insured by named perils policies.
Identify three causes of loss not covered by Outboard Motor and Boat policies.
- Accumulative damage
- Wear and tear
- Work done on insured property
Describe available coverage to rent outboard motors and boats.
When insured losses occur, clients may access up to $20/day (maximum $200) to rent substitute motors and boats.
How are claims settled on Outboard Motor and Boat policies?
Claims settlement may be either replacement cost or actual cash value.
What are minimum retained premiums and why are they used on Outboard Motor and Boat policies?
Minimum retained premiums are amounts kept by insurer when policies are cancelled prior to their expiry. Insurers understand that the greatest exposure exists during boating season. However, clients may be tempted to cancel coverage after boating season, causing insurers to receive less premiums than needed. As a result, minimum retained premiums are used to ensure insurers receive adequate premiums for risks they insure.
Your clients recently purchased an original Picasso painting.
- Which endorsement should brokers use to insure this masterpiece?
- Which coverage section would you suggest to insure this masterpiece?
- Why should brokers use a valued based policy to insure this masterpiece?
- Fine Arts endorsement
- Section A used to insure the painting while in client’s home and Section B used to insure the painting when away from client’s home.
- When fine arts are insured, valued based policies ensure client’s will receive appraised value when losses occur.
Your client recently purchased a Louis 14th silver tea service.
- Why should brokers recommend Personal Articles Endorsement to insure this tea service?
- What are some coverage enhancements available on Personal Articles Endorsements?
- When high valued articles are insured what might underwriters request?
- Personal property items of high value should be insured on Personal Article Endorsement to ensure proper claims settlement and to expand on perils insured
- Loss or damage to sporting equipment when loss/damage is due to use
- Chipping, marring, scratching or breakage
- Accidental loss while property is being worked upon
- Snowslide, landslide, earthquake or other earth movement
- Theft by tenant of insured’s household
- Flood, sewer back up, seepage or other water
- Loss or damage to sporting equipment when loss/damage is due to use
- Usually request an appraisal or current bill of sale. High valued articles may also have to be re-appraised from time to time
Define Endorsement
Endorsement = Extra sheet or slip of paper that attaches to the policy where the insurer and insured agree in writing to changes in the terms of that contract
Define Mobile Home
Mobile Home = A home that is factory built, on its own chassis, and can be easily moved
