Chapter 3

Question 1

Mobile homes are more susceptible to loss from these perils:

Answer 1

• fire
• windstorm
• hail
• transportation

Question 2

who would purchase a tenant’s package?

Answer 2

• those living in apartments
• those renting a dwelling or any portion of it
• those who, as part of their remuneration, receive the use of a dwelling.
• owners of a business who occupies private living quarters in a commercial building

Question 3

define condominium

Answer 3

system of separate ownership of individual units in a multiple unit building

Question 4

Two items that the Condo Corp must insure

Answer 4

• value of the structure

- value of the common elements

Question 5

Identify four coverages available to condo unit owners

Answer 5

• personal property
• unit improvements/betterments
• loss assessment
• unit additional protection

Question 6

When does loss assessment coverage kick in?

Answer 6

special assessment levied against each unit owner because of:

• under-insurance
• application of co-insurance penalty
• cause of loss not insured peril on condo corp’s policy
• breach of policy condition

Question 7

what coverages are not insured on a dwelling under construction policy?

Answer 7

• theft of materials from construction site
• glass breakage due to vandalism or malicious acts
• water escape, rupture, freezing

Question 8

what underwriting guidelines apply normally apply to a dwelling under construction policy?

Answer 8

• coverage limited to single/two family dwellings
• dwelling must be owner occupied upon completion of construction
• coverage must be purchased before completion of foundation
• amount of insurance purchased must cover estimated completed value
• coverage limited to one year.

Question 9

Policies insuring rented dwellings or other revenue properties normally exclude:

Answer 9

• vandalism or malicious acts
• sewer back-up
• theft

Question 10

When attached to a habitational policy, endorsements can:

Answer 10

• provide coverage for excluded property/perils
• increase limits for property subject to special limits
• broaden coverage
• decrease deductible
• remove coverage

Question 11

Key exclusions of Fine Arts coverage

Answer 11

• breakage unless caused by perils named in this endorsement
• birds, vermin, rodents, insects
• any process or work

Question 12

Identify 6 types of high value personal property that would be insured under a personal articles endorsement

Answer 12

• cameras, projectors, films, accessories.
• firearms
• furs
• jewellery, precious stones, watches, musical instruments.
• silverware
• stamps and coins

Question 13

identify three underwriting considerations for the Fine Arts form

Answer 13

• all objects must be separately described and a specific amount set for each
• breakage exclusion can usually be deleted for an additional premium
• appraisal required for policies on a valued basis