Insurance Broker Level 1 Set 7 Flashcards
A Civil Authority
Means any person acting under the authority of any level of government with respect to the protection of persons and property in the event of an emergency.
Business Property;
Is subject to a special limit of insurance for all insured losses under a homeowner package policy.
Coverage for mass evacuation under coverage D ( additional living expenses) is applicable if;
the evacuation is the result of a sudden or accidental event.
A broken window as a result of a large bird flying into it is covered;
Under the Homeowners broad and comprehensive forms
A bylaw endorsement;
will cover only those costs actually incurred by the policy holder to comply with the minimum code requirements
A underwriting concern with respect to rented dwellings is when
short term occupancies are the norm.
A bare land condominium unit ;
Owner owns the lot on which a dwelling building and/or garage may be built ( or is already built). The owner has full ownership of everything within the boundaries of the lot.
A condominium unit owners Additional Protection Coverage;
Provides all risk coverage for damage to the insured unit in the event that the condominium corporations policy is inadequate and will offer less than full indemnity.
Replacement cost for farm buildings my be available if the building;
is no more than 15 years old and constructed off new materials.
Four types of commercial businesses/buildings are;
Mercantile, non-mercantile, manufacturing or industrial, and institutional
Five additional coverage options found on the Building, equipment and stock Broad form are;
- Temporary Locations - property at an unspecified location in Canada, except while in transit, as long as such location is not owned, rented or controlled by the insured.
- Building at newly acquired location - located within Canada, from the date of acquisition up to 30 days, unless the building is in the course of construction
- Contents at newly acquired location - located within Canada, from the date of acquisition up to 30 days, if the building is owned, rented or controlled by the insured.
- Property in transit - contents in the course of transit within Canada or the continental USA, until delivered
5, Sales representative - contents while in the custody of a sales rep. - Within Canada or the continental USA and includes while in transit
Building Maintenance supplies;
Are not included in the definition of equipment on the commercial building equipment and stock form.
On a commercial building, equipment and stock policy, loss or damage to animals, fish or birds;
Is excluded unless the loss or damage is causes directly by theft and/or attempted theft or a named peril.
Extensions of coverage found in the Commercial Building, Equipment and Stock broad form are;
1, Removal of insured property - protection from further loss or damage for a max. period of 7 days
2. Debris removal - Up to 25% of the total amount payable for the direct loss or damage to the insured property
3. Personal property of officers and employees - of loss or damage occurs on the insured premises and the insured is liable for it and responsible for insuring it,
subject to a max. limit of $250 for any one officer or employee.
4. Growing trees plants or shrubs outside the building, - must be caused by named perils, but not by theft or attempted /theft or by windstorm or hail. The max, limit is 5000 per occurrence and 500 per item.
A peak season endorsement
provides an option for the insured to increase the limit of insurance for stock for the period of time required
The boiler and machinery policy covers;
in addition to boilers and pressure vessels - machinery, electrical apparatuses, air conditioning units, telephone equipment, production machinery and computers.
Surety - What is it?
It is a bond or agreement that guarantees the actions of a third party. It is not insurance, it is a 3 party contract. Which consist of the principal, the obligee and the surety.
Surety - Why is it needed?
Bonds are needed to provide security to a party entering into a contractual agreement with another. The surety guarantees the performance of an obligation or debt that one party has to another. Funds will be provided for damages or for the completion of the work if a principle defaults on his or her obligation.
A boiler and machinery policy may also cover;
printing presses, x-ray machines and mechanical and electrical equipment
A Contractors Equipment Floater;
is available on an all risk basis
Robbery is defined as;
The taking of property from a custodian by a person who causes or threatens bodily harm or commits an overt unlawful act witnessed by the custodian.
Three common crime perils are;
Theft, robbery and burglary
The safe burglary rider includes;
the taking of the safe itself from within the insureds premises.
Four coverages provided by a business package policy are;
hold-up, stock and or safe burglary, employee dishonesty, and counterfeit money, forged cheques or money orders.
An example of an extra expense recoverable under a business interruption insurance policy is;
The expediated shipping costs for new equipment purchased to replace production equipment destroyed in a building fire.
Personal Liability Insurance will protect private individuals against liability;
arising from actions any where in the world that result in bodily injury or property damage to others
- assumed under contract as an occupier of rented premises
- arising out of the ownership, use, or occupancy of a defined premises
A special assessment is;
a financial contribution, often a lump sum payment, imposed by a condominium corporation which must be paid by condominium unit owners in addition to their usual condominium fees.
Business use of premises is an exclusion that applies;
to all coverage sections of a personal liability policy
Under an umbrella policy, a self-insured retention is;
defined as the amount of the loss that is payable by the insured.
Occurrence Based Policy
The policy will respond if the loss or damage occurs during the policy term.
Claims Made Policy
The policy will only cover claims made during the term of the contract
Personal and advertising injury means injury including consequential bodily injury arising out of the following offenses;
- false arrest, detention or imprisonment
- malicious prosecution
- wrongful eviction from, wrongful entry into, or the invasion of the right of private occupancy of a room, dwelling or premises that a person occupies.
- oral or written publication, of any manner of material that slanders a person or organization or disparages their goods or services
- Oral or written publication, in any manner, that violates a persons right or privacy.
- The use of another persons advertising idea in the insureds advertisement
- ## infringing on another persons copyright
A CGL coverage for personal and advertising injury does not provide coverage for;
business activities such as advertising, publishing or broadcasting done by or for the insured.
Tenants’ legal liability coverage under the CGL policy;
applies to property damage to premises leased by the insured, arising out of the insured’s negligence.
Property damage arising out of the fumes from a hostile fire;
is not excluded on a CGL pollution policy
The Canadian Currency Clause condition;
Is mandatory in a CGL policy in Alberta
The insured’s work in a CGL policy is defined as;
- work performed by the insured
- work performed on behalf of the insured
- materials or parts furnished in connection with work performed by the insured
Emergency assistant benefits provided on a travel insurance policy;
- are often contracted to a private assistance company
Travel Accident insurance provides coverage up to the stated limits for;
The loss of sight in both eyes
Insurance Brokers Association of Canada
Primary objective is to raise the standing of independent brokers by providing them with professional development opportunities,
Insurance Institute of Canada
The primary objective is to provide education and professional development opportunities to individuals employed in the property and casualty insurance industry
Claims handling is an activity in which;
The Insurance Bureau of Canada is not involved
The administration of the Canadian inter-company Arbitration Agreement is provided by;
The Canadian Insurance Claims Managers Association
Intact Insurance
is not a member of the
Canadian Association of Direct Relationship Insurers
Free form Endorsement
a non-standard endorsement drafted
Free form Endorsement
a non-standard endorsement drafted to address particular circumstances of a risk
Hard Market
Prices increase due to increase in demand creating less supply
Loss Ratio
is the relationship between incurred losses and earned premium over a specified period, expressed as a percentage
Manuscript Policy
policy wording that is customized to fit the needs of a unique risk
Multiple-Limit Policy
A policy which shows a separate limit of insurance for each coverage provided
Actuary
One who is responsible for ratemaking
Adverse Selection
occurs when a greater number of insureds with high risk exposures want to purchase insurance in higher amounts, and those with low risk exposures do not purchase insurance at all or purchase insurance in smaller amounts
Appeal Bond
a bond filed with the court by the party against whom a judgement has been rendered, and such decision is being appealed. It is a guarantee that the judgement will be paid if the appeal is not successful
Cross- Liability
means that each named insured will be treated as if they had a separate policy. it provides coverage when one insured brings an action against another insured.
Direct Compensation Property Damage
means that the insurer will indemnify their own insured for the damage to their vehicle, including resulting loss of use, to the extent the insured is not responsible for the accident
Executor Bond
a bond which guarantees the faithful performance of an executor in the performance of their duties
Proportional Reinsurance
a reinsurance arrangement in which the proportion on risk ceded and premium transferred to a reinsurer is the same
Rateable Proportion
the proportion of an insurance policy limit bears to the total limit of all insurance policies
Residual Market
a market which provides coverage for high risks that have difficulty obtaining insurance coverage
Soft Market
occurs when the competition is brisk and prices decrease. Supply exceeds demand
