Chapter 3 Perils and Hazards Flashcards
Name 3 scenarios when coverage for vandalism or malicious act is excluded.
When a building is under construction
When a building is vacant
When perpetrated by the insured
What are the two types of hazards?
a physical hazard is a hazard arising from the physical condition or characteristics of an object that is insured
A moral hazard is an attitude of the property owner, a willingness to profit from the policy by causing a loss or not attempting to prevent a loss.
Three things not covered under theft.
Pets, animals, birds, and fish
New construction building materials during the construction sage
Voluntary parting of a property via false pretense
Because the meaning of Theft is very broad, policies that provide theft coverage rely on which of the following to limit the scope of coverage.
a. deductible clause
b. dollar value limits
c. level of protection
d. exclusions
d. exclusions
Coverage cannot be added by endorsement for which of the following perils?
a. Water seepage
b. Earthquake
c. Flood
d. Sewer backup
a. Water seepage
In an All Risk policy, damage caused by smoke is covered no matter how it was caused unless it is a result of which of the following?
a. faulty, unmaintained furnace
b. fireplace
c. industrial operation
c. cigar smoke
c. industrial operation
In which of the following scenarios could a file claim be excluded?
a. arson
b. property undergoing a heat process
c. fire caused by lightning
d. Wildfire
b. property undergoing a heat process
Which of the following is not a factor that can make damage from earthquake greater?
a. The underlying geology of the insured property
b. occupancy or vacant
c. construction of the dwelling
d. age of the structure
b. occupancy or vacant
By provincial statute, a fire policy may only EXCLUDE fire if it results from which of the following?
a. Fire at a neighboring residence
b. Fire that started in an automobile in the driveway
c. Property undergoing a heat process
d. Pot of grease being forgotten on the stove
c. Property undergoing a heat process
For which of the following non-standard perils can an endorsement be purchased?
a. Collapse
b. Ice damming
c. Seepage
d. Mould
b. Ice damming
Glass breakage is automatically included as a named peril in which one of the following forms?
a. IBC 1161 Tenants Basic Form
b. IBC 1173 Seasonal Residence Form
c. IBC 1151 Homeowners Basic Form
d. IBC 1165 Condominium Unit Owners Basic Form
c. IBC 1151 Homeowners Basic Form
In all-risks coverage, the onus is on the insurer to prove that
a. an exclusion applies.
b. loss or damage to insured property at an insured location occurred during the policy term.
c. an exclusion does not apply.
d. the loss was fortuitous.
a. an exclusion applies.
In the IBC named-perils forms, which of the following losses would be covered under the water damage section of the insured’s property policy?
a. A sudden and accidental escape of water from a domestic water container located outside the dwelling
b. Sewer backup after a severe rainstorm
c. Freezing
d. Rain that enters through an open window
a. A sudden and accidental escape of water from a domestic water container located outside the dwelling
What are two perils that remain excluded even when permission for vacancy is granted?
a. Water damage and glass breakage
b. Vandalism and explosion
c. Malicious acts and water damage
d. Riot and vandalism
c. Malicious acts and water damage
What does the acronym COPE stand for?
a. Construction, occupancy, protection, exposure
b. Construction, occupation, protection, elements
c. Construction, occupation, protection, exposure
d. Construction, occupancy, protection, elements
a. Construction, occupancy, protection, exposure
