Chapter 8 Other property coverage Flashcards

1
Q

A home is considered high-valued if it has a minimum replacement value of

a. $5 million.
b. $3 million.
c. $1 million.
d. $500,000.

A

c. $1 million.

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2
Q

A home that is visited throughout various times of the year, for weekends and vacations, qualifies for what type of policy form?

a. Homeowners form
b. Residential form
c. Secondary home form
d. Seasonal residence form

A

d. Seasonal residence form

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3
Q

Condominium coverage requires special treatment due to the specific nature of the risk. Coverages U1 and U2 are written into the wordings to address the nature of the risk. What does Coverage U1 address?

a. Standard unit bylaw
b. Condominium common areas
c. Loss assessment
d. Improvements and betterments

A

d. Improvements and betterments

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4
Q

In British Columbia, what is the governing body of a condominium multi-unit building made up of single unit owners known as?

a. Condominium corporation
b. Strata unit board
c. Condominium owners bureau
d. Strata corporation

A

d. Strata corporation

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5
Q

Tenants would be responsible for which of the following properties?

a. Dwelling structure they live in as a principal residence
b. Outdoor shrubs, lawn, and trees at the premises where they live
c. Tenants’ own personal property at the premises where they live
d. Landlord’s appliances in the unit that the tenant rents

A

c. Tenants’ own personal property at the premises where they live

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6
Q

The frequency with which tenants move can generate additional work for the insurer that is time-consuming and costly. This is considered to be a concern for whom?

a. Tenants
b. Landlord
c. Underwriter
d. Advisors

A

c. Underwriter

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7
Q

The tenants basic form covers personal property stored in a warehouse ONLY against theft. How many days does the comprehensive form also cover loss to such property caused by any other peril?

a. 10 days
b. 30 days
c. 45 days
d. 60 days

A

b. 30 days

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8
Q

Through which of the following provisions does the condominium corporation assign responsibility between the unit owner and the corporation for loss or damage to a unit?

a. Condo owner rule
b. Common property bylaw
c. Standard unit bylaw
d. Bylaw ordinance

A

c. Standard unit bylaw

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9
Q

Up to how many acres are acceptable to be covered on a hobby farm?

a. 15 acres
b. 25 acres
c. 45 acres
d. 50 acres

A

b. 25 acres

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10
Q

What materials are traditionally used as a foundation for a mobile home?

a. Chassis and tires only
b. Concrete blocks
c. Settled ground
d. Tie-downs

A

b. Concrete blocks

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11
Q

Which of the following is not covered in a High valued High Insurance?

a. Equipment breakdown
b. Home Appraisal
c. Earthquake
d. Home Invasion

A

c. Earthquake

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12
Q

How many farm animals are you allowed to own for a dwelling to be considered a hoppy farm ?

a. 5
b. 7
c. 10
d. 12

A

a. 5

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13
Q

Condominium coverage requires special treatment due to the specific nature of the risk. Coverages U1 and U2 are written into the wordings to address the nature of the risk. What does Coverage U2 address?

a. Standard unit bylaw
b. loss to common elements
c. Loss assessment
d. Improvements and betterments

A

c. Loss assessment

Underinsurance
Application of a coinsurance penalty
A cause of loss that is not an insured peril
Breach of a policy condition

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14
Q

Condominium coverage requires special treatment due to the specific nature of the risk. Coverages U3 is written into the wordings to address the nature of the risk?

a. Standard unit bylaw
b. Unit additional protection
c. Loss assessment
d. Improvements and betterments

A

b. Unit additional protection

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15
Q

Mobile Homes are Factory-built homes on their own chassis, constructed to code, towed to site. Mobile homeowners form includes property and liability, covers named perils
But, Excludes the following:

A

*Loss or damage occurring while the building is
being moved, except in an emergency
* Loss due to conversion, embezzlement, or
secretion by any person in possession of the
building

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16
Q
  • Condominium unit owners forms
    o A basic form and a comprehensive form omit
    a. Dwelling. b. Detached private structures.c. Contents. d. Additional living expense

a. a and b
b. b and c
c. c and d
d. a and c

A

a. a and b

17
Q

Explain Coverage U in a condominium coverage policy

A

o Coverage U1—Unit Improvements and Betterments
o Coverage U2—Loss Assessment
o Coverage U3—Unit Additional Protection

18
Q

Miguel is interested in protecting himself from the cost associated with cyber threats. While it is not explicitly stated as an exclusion, how would the broker explain to Miguel how cyber threats are effectively excluded by data and data problem exclusions? (5 marks)

A

Cyber risks exclusions

While there is no cyber exclusion as such in the forms, the data exclusion performs the same purpose.
This wording excludes data, which is defined as information or concepts in any form.
In addition, loss or damage caused directly or indirectly by a data problem is excluded unless caused directly by resultant fire, explosion, smoke, or leakage from fire-protective equipment.
A data problem is defined as erasure, destruction, corruption, misappropriation, or misinterpretation of data; error in creating, amending, entering, deleting, or using data; or inability to receive, transmit, or use data.
These two clauses together effectively remove cyber coverage from the policy.

19
Q

Tengfei is confused about the terms of Coverage U2; explain the need for loss assessment coverage and use the example of extensive damage from a burst pipe to outline how it works.

A

Under certain circumstances, the condominium corporation might charge a special assessment to each unit owner if the building’s insurance is insufficient.
This might occur because of underinsurance, or a coinsurance penalty, loss from an excluded peril, or a breach in policy conditions.
For example, if a pipe bursts in one unit and causes damage to the building that exceeds the policy limit, a special assessment might be charged to all unit owners to cover the difference.
If the pipe bursts in Tengfei’s unit, he would be assessed the building policy’s deductible.
The loss assessment coverage would not cover this cost, but some insurers may extend loss assessment coverage in their policies to include the insured’s share of the building deductible, up to a specified amount.