Going over exams Flashcards
Mold, fungus and other biological hazards
are not covered.
Risk management
Science of loss prevention
Tenants improvements and betterments
Is under equipment
Commercial general liability covers
premises, operations, products and completed operations liability
If you can’t get insurance on regular market can get it from
Facility association
3-D policy two important elements
Crime and fidelity coverage
Legal liability
careless act
personal injury coverage on CGL policy covers liability from
Slander or libel of a person or an organization
Tenants legal liability coverage
Fire, explosion, water escape and smoke
Two main coverages of person liability policy
Personal and premises liability
Utmost good faith
the disclosure of material information is required by all parties
Adversely affect good client service
Limited capacity
Type of damages that liability policies will pay
Special damages
Claim under personal liability policy must be reported
within one year of occurrence
Obligee in a fidelity bond is the
Employer
What does endorsement do
Alters the provisions of the policy
Who has right to cancel a policy
Insured, Insurer
RETROCESSION
Reinsurance purchased by a reinsurance company
signatures of the applicant are
Preferred
Theft by employee is covered if you have what package
Comprehenive dishonesty, disappearance and destruction policy
Farm animals are not covered
At a stockyard
won’t be covered if you travel pregnant
within 8 weeks of due date
Surety Bonds are not
NOT INSURANCE
Subrogation
The right of the insurance company to recover payments made under the policy from another person who is legally responsible for the loss
Franchise Clause means
If the loss exceeds the deductible or other specified amount, the deductible totally disappears.
Insurance terms
Black Law Dictionary
Insurance contracts are regulated by the following legiatlation in common law provinces
The insurance acts, the stat conditions
Auto insurance
Only applicant needs to sign the application
Min liability in Alberta
$200,000
Commerical building
temporary fixtures and fittings are not covered under building.
stat conditions which are found in all fire policies
impose obligation on both the insured and the insurer
Right of the mortgagee
The right to share in the loss payment, as long as the insured owes something on the mortgage.
Wood outside that is going onto house
would be fully covered under dwelling building
Data problem defined as
erasure, destruction, or misinterpretation of data
Freezer food
Expenses incurred to store freezer food in a cold storage unit while the freezer is being repaired.
Endorsement added to cover farm mach and equipment
all risk coverage
Mobile homes
optional emergency removal expense
5% of the amount of insurance under coverage A
A claims made policy
Covers only claims made during the term of the contract
Section F of homeowner policy
Voluntary medical payments
Coverage E homeowners
Property damage
Physical los or damage to tangible property, including the loss of use of such property
Person who owns 25 power units
get owners form policy
Non-owned automobile policy provides
third party liability
if they lease automobile for long time
standard owners automobile policy, suitably endorsed.
under the third party liability section of the automobile policy, the insured agrees to
reimburse the insurer for all amounts the insurer has to pay because of the absolute liability law, but which the insurer would not otherwise be liable to pay
Pure risk
the chance of loss
Binding limits outlined in the agency agreement
Act as a cntrol on brokers binding powers
Can only use personal information for
purpose that are reasonable
insurance agent or broker is resposible for providing info that
materially affects the insurer’s interest
E and O
Act only within the scope of your authority and competence
E and O policy
must be issued by a licensed insurer approved by the ministry
reinsurance
is insurance for insurance companies
who sells insurance to the general public is under control of
the provincial government
underwriter
employed by an insurer to accept and reject risk on their behalf
Stock companies are owned by
the shareholders
Superintendent of insurance
administering the insurance act in each province is responsibility of the superintendent of insurance
No fault portion of automobile insurance is called
Accident benefits coverage
Common law is based on
the premise that current court decisions should follow previous decisions whenever the circumstances are similar
Condsideration
The subject of matter of the policy
Comprehensive coverages doesnt cover
Collison or upset
Total disability must occur within
60 days from date of accident
Moral hazard
A subjective characteristic of the applicant that could cause a peril to occur.
warranty is
a promise by insured’s that certain facts are true and will remain so.
Death benefits, the death must occur
2 years from date of accident
If you need glass coverage get
Limitation of glass endorsement
Accident benefits proof of loss must be within
90 days
all risks policies cover
all losses unless they are specifically excluded by the policy
agent represents the interest of the
insurer
Total disability benefit not payable for the first
7 days from the date of accident
Stat conditions which are found in all fie polices
impose obligations on both in insured and the insurer
Mobile homes, optional emergency removal expense
5% of the amount of insurance under coverage A
Residual markets, from an underwriting standpoint, refer to
special programs to ensure insurance availability to less desirable or more hazardous risks
Third party liability of auto
insured agrees to, reimburse the insurer for all amounts that insurer has to pay because of the absolute liability law, but which the insurer would not otherwise be liable to pay
Large loss principle
if possible, devastating exposes to loss should be transferred through non-insurance or insurance transfer
Binding limits outlined in the agency agreement
act as a control on brokers binding powers
trust account is used to deposit
premiums collect to pay insurers for policies issued
Net premiums
Premiums are after the producer’s commission has been deducted
E and O’s
$500,000 MIN
You have an ethical duty recommending insurance to advise all insurance available, even if its beyond what your insurers
provide
Insurance defined as
A contractual relationship where one party for consideration agrees to reimburse another for a loss
Caveat emptor refers to
The doctrine of
“buyer’s beware”
Rebating
A broker agrees to accept less money than the premium shown on the policy
Proportional reinsurance
Quota share
Consequential Loss
A loss that is an indirect result of an occurrence
