Chapter 9 Questions Flashcards
what is betterment
two forms
when a property is repaired, certain parts will have been renewed so that it is in a better condition that it was before the loss
also if the quality of the building is improved int he course of carrying out repairs (e.g. installing a new sprinkler system)
circumstances where a person insured under a property policy may receive less than a full indemnity in the event of a loss
inadequate sum insured or limit of indemnity
operation of another policy limit
operation of an average clause
can average operate as an implied term
yes in the case of marine
possible in the case of commercial property
probably not in the case of household
what is a franchise
no liability for any loss which is less than the franchise figure, but once the franchise has been exceeded the loss is payable in full
what is a valued policy
parties agree that, in the event of a loss, a particular sum will be paid regardless of the actual value of the property at the time
what kinds of policy are subject to the provision of s.83 of the fires prevention (metropolis) act 1774
fire insurance of buildings in england, wales and some other countries (not scotland or ireland) and to policies written by insurance companies but not lloyd’s policies
Aisha has insured property that she purchased second hand for £800. If she had bought it new, the property would have been worth £1,500. At the time of a claim, it was worth £300. Under the principle of ‘indemnity’, what would be the value of her claim?
300
What is an example of contingency insurance?
life insurance
What is an example of contingency insurance?
He had an agreed value policy on a classic car.
Amelia has suffered a total loss resulting in her house having to be rebuilt. What would normally be the position with her property insurance?
A new insurance contract must be arranged along with a new premium.
