General Insurance Flashcards
Actual cash value of property
Market value of comparable in kind, quality and condition - the depreciation is deducted
Replacement value
Cost to replace with brand new, no depreciation deduction
Salvage value
Not completely destroyed, value deducted from total loss
3 ways to value insured property
Salvage
Actual cash value
Replacement value
Information required for car insurance. 4
Type of vehicle
Optional coverage, deductible etc
Vehicle use
Drivers info
Facility association
Non profit unincorporated entity set up by automobile insurance companies for high risk drivers
Liability coverage
Negligence resulting in bodily injury, death,damage to property of third person
- specific amount is required in each province- pink card
What is accident death coverage
Benefit that client may be entitled to if injured or killed in accident involving their own car
- everyone in car is covered
What benefit are covered under accident benefit
Funeral, medical, rehabilitation, loss of income or death
Is accident benefit coverage no fault
Yes
Client who was not at fault can sue at fault party
Uninsured auto coverage
If injury or death caused by hit abs run, uninsured person, or underinsured that was at fault
- can sue at fault uninsured driver
Direct compensation, property damage coverage
Damage to insured clients vehicle from an accident that was not entirely clients fault
- client submits claim to insurer regardless of who was at fault - no fault benefit
Homeowners policy covers
Owner occupied only
No renters
No home business
No unoccupied
A peril is
An event that may cause injury or a loss or damage to property
Types of coverage based on covered perils 3
Comprehensive
Basic
Broad
What does comprehensive homeowners insurance cover
All physical damage or loss to building or contents for all perils, unless specifically excluded
What does basic homeowners insurance cover
Specified perils for building and content
What does broad homeowners insurance cover
Cover building for all perils and content for specified only
Homeowners policy provide coverage under 3 sections
Property
Liability
Additional options
Property coverage section include
Dwelling building
Detached private structures
Personal property
Additional living expenses
Typical homeowners policy covers building and structure attached - dwelling building section
Permanent equipment
Pools. Hot tubs
Optional for seasonal temporary removed and trees
How much does insurer require building to be insured
At least 80%
Section on detached private structures
Detached buildings covered here, garage, shed
Limited to 10% of coverage on building
Personal property coverage refers to
Contents, including those taken away. I.e. trip
- can be extended to items belonging to student living away
Minimum insurance amount on personal property
60 - 70% of building amount, sone insurers want more
What does additional living expenses cover
Relocation due to insured peril
20% of building coverage is available
If tenant, then 20% of personal content insurance
What does liability coverage include
Homeowners actions anywhere in the world, or from owning, using, or occupying premise
Liability coverage covers voluntary payments that insured would like to make to injured, but must not be result of legal. Three goodwill payments that client may make
Voluntary medical payment
Voluntary payment for damage to property
Voluntary compensation for residence employee
Goodwill payment for voluntary medical payment
Within one year of injury or death
Range of liability coverage
$500k to $2M
Additional coverage may be added to third section. May include 5
Personal articles or fine art endorsement Sewer backups Flood Earthquake Windstorm/ hailstorm
Factors that impact cost of premiums for homeowners insurance 7
Replacement cost of home Age of building Wood stove Geographic location Proximity to body of water Proximity to fire hydrant / station Security system
3 types of coverage in tenant insurance
Personal property
Additional living expenses
Personal liability
Two main types of title insurance
Owners policy
Lenders policy
What does an owner’s title insurance policy cover
Protects owner from loss related to title, in effect as long as property is owned by buyer
What dies a lenders title insurance policy cover
Protects lender who is unable to recover funds
Liability insurance usually involves three entities
First party - insured
Second party - insurer
Third party - claimant
Three forms of liability insurance
Cyber liability
Director liability
Environmental impairment liability
Cyber liability insurance
Covers third parties that are harmed in cyber attack
Directors liability insurance
Professional liability insurance for directors and executives
Environmental impairment liability insurance
Covers third party liability resulting from polluting the environment
Time it takes for Heath card to arrive
90 days
Requirements for provincial health card. 3
Application
Proof of eligibility
Proof of residence
Most travel insurance includes 5
Emergency hospital and medical care Accidental death 24hrtravel assistance Return trip home Arrange for family travel
Additional cost to add to travel insurance. 3
Trip cancelation
Trip interruption
Lost baggage
Factors affecting price of travel insurance 4
Age
Duration
Coverage amount
Health history
Post claim underwriting
Policy issued without preappoval, investigation after claim
Things normally excluded in travel insurance. 10
Preexisting not disclosed Unstable preexisting Misrepresented facts War Alcohol and drugs Mental disorders Pregnancy Self inflicted Elective treatments Travel advisory areas
