Insurance Level 1 Exam Questions Flashcards
CIP Program Requirements
5 Mandatory, 3 applied, 2 Elective
The Insurance Council
Is the regulatory body responsible for the licensing and discipline of insurance agents, brokers and adjusters in the province of Alberta.
Disclosure of Markets
If an agent or broker can offer only one company, s quote to a prospective client, there is a duty upon you to make this limitation known before excepting and before placing any business on the clients behalf.
Confidentiality
Agents or Brokers shall hold in strict confidence all information acquired in the course of the professional relationship concerning the business and affairs of the client, and shall not divulge any such information unless authorized by the client to do so, or required by law to do so in conducting negotiations on behalf of the client.
Property and Casualty Insurance Compensation Corporation (PACICC)
An administrative body. When a bankruptcy occurs and claims cannot be paid, the Corporation will then pay all valid claims.
A max, $250 000 for all claims arising from a single occurrence.
Common Law
Law of precedents - case by case
All provinces except Qerbec
Pair and Set
Only the part that is lost will be covered.
Removal Clause Legislated
Items removed to protect from further loss will be covered for 30 days
Retrocession
When a reinsurer cedes out to another reinsurer, they become retrocessionaires
Premises
The land contained within the lot lines on which the dwelling is situated.
The purpose of insurance is to pay for losses that are both;
Accidental and future
Statutory Conditions are part of fire, auto and accident and sickness but;
Liability insurance
Additional Living Expenses Coverage D
Coverage is over and above what would normally have cost the insured to live had the loss not occurred. ex of this would be
- Cost to place the family pet in a kennel
- taxi fares to take children to and from school
- Costs of moving personal effects to a new temporary location
Access prohibited by Order of Civil Authority
Cannot be your home, the insurer agrees to pay the fair rental value for a period not exceeding 2 weeks. Must be from a peril insured by insureds own policy
There is no deductible on
Endorsements
Property is not covered
against vandalism. water damage, and glass the moment it becomes vacant, or for loss or damage after it has been vacant for more than 30 days.
Specified Perils in the Homeowners comprehensive form are;
fire, lighting, explosion, smoke, falling objects, riot, vandalism or malicious acts, water damage, windstorm or hail, transportation
Mobile Home Insurance includes;
Coverage A - Dwelling, C- Personal Property and D - Additional living expenses but no B coverage (Detached buildings)
Common elements of a condominium policy are;
Parking area
Landscaping
Recreational Areas
Walkways
Seasonal Dwelling Insurance
Theft is not covered when you are not there, attempted theft is not covered at all.
Burglary, vandalism or malicious acts and glass breakage can be added for an additional premium.
There is no coverage for loss of property due to change in temp.
- freezer food
- outdoor trees, plants and shrubs
Civil law
Settle disputes between individuals or other legal entities.
- Allow victims to seek compensation for the wrong done to them.
A third party is;
one who is not a party to the agreement or to a transaction but who may have rights therein.
Special Damages;
- can be determined exactly
ex. medical or hospital expenses
General damages;
- cannot be determined exactly
ex,, awards for pain or suffering, or the loss of future income
