Chapter 3 Flashcards
1
Q
Causes of fire losses 🔥
A
- failure or malfunction of mechanical equipment (major cause)
- arson, suspected arson, or other set fires
- misuse of ignition source
2
Q
Information required on all policies
A
- names of parties to the contract
- policy period
- loss payable or payee
- type of coverages and amounts for which insurer may be liable
- rate and premium charged
- subject matter of insurance (and location)
3
Q
Debris removal
A
The amount payable shall not exceed 25% of the sum of the total amount payable for the direct loss and damage to insured property and the applicable deductible
4
Q
Package policies generally contain
A
Property insurance
Business interruption
Liability insurance
Crime insurance
5
Q
Rate credits are provided for
A
Building constructed after 1945 Alarmed Sprinkler system Sole occupant Increased deductible Claims free Ground floor area below specified size - 3000 sq ft Floor of concrete with no basement Neighborhood Maintenance and safety Management Judgement by broker -5 to +5 Building insured in addition to contents Detachment Enclosed shopping mall Automatic circuit breakers
6
Q
Why brokers like package policies
A
Simplicity of application form
Costs of insurance determined on the spot
Expertise less required
Broad coverages provided eliminate many of claims problems common to more limited policy forms
