Exam practice #3 mis

Question 1

a subscription policy differs from other policies in that

Answer 1

court decisions have established the meaning of words regardless of the intent

Question 2

what is covered under specified perils homeowners

Answer 2

fire, falling object, impact, lightning, explosion, vandalism, smoke, water damage, windstorm, or hail, riot, damaged in transit

Question 3

What is covered under basic home insurance (perils)

Answer 3

fire, falling object, impact, lightning, explosion, vandalism, smoke, water damage, riot, damaged in transit, ( glass breakage, theft, electric current damage)

Question 4

the homeowner policy has how many sections to it

Answer 4

2

Question 5

what does the Intended Coverage Endorsement include

Answer 5

windstorm, hail, explosion, civil commotion, riot, aircraft damage, vehicle damage, smoke, theft, and attempted theft.

Question 6

comprehensive homeowners form does not have what?

Answer 6

theft

Question 7

what is some info needed to underwrite and rate a commercial property

Answer 7

nearby business operations

Question 8

commercial property floater

Answer 8

all-risk policy that includes theft, and covers property at specified premises of the insured. it covers stock, equipment, tenant improvements, any contents while in transportation. and in the custody of sales people. rating is based on the fire and ec rate plus a loading

Question 9

machinery and equipment such as plumbing, heating, and electrical systems, or to be installed… are covered under what

Answer 9

installation floater

Question 10

extra expense insurance is purchased to

Answer 10

pay additional amounts incurred to keep a business going in spite of a major loss

Question 11

a surety bond has these qualities

Answer 11

bonds are similar to insurance but differ, bonds generally guarantee performance, and the person who purchases the bond is not protected by it, also an administration bond falls under the general category of a fiduciary bond.

Question 12

damages awarded for out-of-pocket items such as medical expenses are called

Answer 12

special damages

Question 13

all driving convictions must be disclosed from the past __ yrs

Answer 13

3

Question 14

if a snowmobile sinks through ice, what ill cover it

Answer 14

all perils

Question 15

John forgot to renew his diver’s license, what does this result in?

Answer 15

absolute liability law situation

Question 16

can the insured choose their own lawyer under automobile third party liability?

Answer 16

no

Question 17

absolute liability law

Answer 17

when the insured agrees to repay the insurer usually because they were involved in illegal activity

Question 18

Bill 164, Jan 1994

Answer 18

created SABS, term permanent was removed, metal and psychological were added,

Question 19

Bill 59 (auto insurance rte stability act)

Answer 19

can sue for more situations, benefit limits reduced, can sue for economic losses

Question 20

Bill 198,

Answer 20

economic loss had no threshold, the word permanent was reintroduced, 30k deductible applies to lawsuits for pain and suffering.

Question 21

forfeiture

Answer 21

the loss of a right as a result of the non-performance of some obligation

Question 22

cover note

Answer 22

advises insurer that it has been bound to a contract of insurance

Question 23

which peril is covered under a basic glass policy?

Answer 23

riot, ( not fire, war, or nuclear)

Question 24

Reimbursement begins 72 hours after theft has been reported to insurer or police

Answer 24

under automatic loss of use coverage- section 7 loss or damage coverage

Question 25

what are these in Quebec, contract, principal, agent

Answer 25

mandate, mandator, mandatory