Lesson 3-4 Flashcards
Identify the 3 leading causes of fires in Canada:
- Failure or malfunction of mechanical or electrical equipment
- Arson, suspected arsen and other set fires
- Misuse source of ignition
Identify what information is required by law to appear on all insurance policies:
- Names of Parties to the Contract
- Policy Period
- Loss Payable or Payee
- Summary of insurance coverage(s) and amounts for which Insurer may be liable
- Rate and Premium Charged
- Subject Matter of Insurance
The IFC 10010 is designed to meet the requirements of the insurance acts of the common law provinces. Identify the three perils to be included by law in any contract of fire insurance:
- Fire
- Lightning
- Explosion of Natural, Coal, or Manufactured gas
Identify the losses that Insurers are not liable for by law under the Basic Fire Policy
- Damage electrical devices, appliances, or wiring cause by power surge or brown-outs
- Heat application losses
- Uninsurable losses (war, invasion, rebellion)
- Nuclear losses
Basic Fire Policy
Certain property losses are not required to be insured by law. Identify the four groups of property excluded:
- Money, bullion, other precious metals
- Automobiles, watercraft, aircraft, etc.
- Property at locations vacant, unoccupied, or shut down for more than 30 consecutive days
- By-laws
Any additional costs as a result of a by-law, incurred by the Insured is not covered under the policy. Identify any 4 costs that may be incurred by the Insured:
- Use of improved construction materials.
- Installation of automatic fire extinguishing systems.
- Installation of wheelchair ramps and improved accessibility features for the handicapped.
- Observing of minimums/ maximums re: height and floor area.
Identify 2 extensions of coverage required by law to be in a Basic Fire Policy
- Removal/Salvage (for 7 days)
- Debris Removal and windstorm Debris (not exceeding 25% of total amount payable)
Basic Fire Policy
Identify 3 provisions of the Removal clause:
- Coverage for property at a location not indicated on the policy
- Amount paid is limited to the amount of insurance remaining after any losses at the Insured location have been paid
- Coverage for only 7 days or the unexpired term at unnamed location
Briefly explain the purpose of the Debris Removal extension
To Indemnity the insured for expenses incurred in the removal of Debris from the insured property
Broad Form
Identify the perils insured by the Fire and Extended Coverage form:
- Fire or Lightning
- Explosion
- Impact by Aircraft, Spaceship or Land Vehicle
- Riot, Vandalism or Malicious Acts
- Smoke
- Leakage from Fire Protective Equipment
- Windstorm or Hail
Named Perils Form
Are direct damages caused to electrical appliances covered under this form?
Yes, if cause by lightning
Named Perils Form
Identify 5 types of explosions specifically excluded under Explosions
- Boilers and Machinery under steam pressure
- Other vessels and apparatuses, and connected pipes exceeding 15lb psi pressure
- Damage cause by centrifugal force
- Any vessels and apparatuses and connected pipes undergoing pressure tests
- Gas Turbines
Named Perils Form
Identify three other types of losses that are not considered Explosion and therefore not covered by the policy:
- Electrical arcing
- Bursting or repture due to freezing
- Bursting or rupture of any safety disc or fusible plug
Named Perils Form
Identify three types of losses not covered under Impact by Aircraft, Spacecraft or Land Vehicle:
- Cause by vehicles belonging to or under control of the insured or their employees
- To the aircraft, spacecraft, or land vehicle that caused the loss
- Caused by taxied aircraft or spacecraft
Named Perils Form
Identify three coverage exclusions found under the peril of Riot, Vandalism or Malicious Acts
- Interruption or cessation of work due to temperature change
- Flood or release of water from a dam
- Theft or attempted theft
