M93 - Chapter 5

Question 1

There is no legal definition of ‘Fire’ but it must involve?

Answer 1

Actual Ignition

Something being on fire that is not supposed to be

Accidental or fortuitous event

Question 2

Are satellites covered under the Aircraft peril?

Answer 2

Yes under ‘other aerial devices’

Question 3

Riot and Civil commotion is always subject to two exclusions, what are they?

Answer 3

Nationalisation (Government takes over a public entity) / Confiscation (Legal seizure of property)

Work stoppages (Strikes)

Question 4

Fun facts about riots and the Riot Compensation act 2016

Answer 4

12 People for a riot (3 in Scotland and NI)

Police accountable for damages up to 1m per claim

No cover for consequential loss, except for accommodation if home is damaged

Allows for new for old, and covers vehicles

42 days to make a claim, 90 days to submit full details with some flexibility around personal circumstances

1 Million per claim

Question 5

Define ‘Storm’

Answer 5

Atmospheric disturbance involving wind, rain, snow or hail, or any combination

Question 6

When was Pool Reinsurance Company LTD (Pool Re) Set up

Answer 6

1st January 1993.

Question 7

From July 2002 what enhancements were made to Pool Re?

Answer 7

All Risks cover

Element of cyber cover for material damage and business interruption

Question 8

Pool Re rating zones?

Answer 8

A - Central London
B - Inner London, Channel Tunney & Business districts of other major cities
C - Rest of England (Ex’ Devon & Cornwall)
D - Rest of GB

Question 9

What is the only total exclusions from Pool Re?

Answer 9

War & Related risks

Question 10

4 ‘Head of cover’ that can be covered by Pool Re

Answer 10

Completed buildings
Other property
Business Interruption (Rents receivable)
Book debts

Question 11

NI cannot access Pool Re - They claim from the government, under what act?

Answer 11

Criminal Damage (Compensation) (NI) Order 1977

Question 12

Main 3 types of material damage covers?

Answer 12

Buildings - Including F&F, outbuildings
Stock - Material of trade, or held in trust for a customer
Machinery - Plant & All others items Inc’ Those held for a customer

Question 13

What are the FLExA perils

Answer 13

Fire
Lightning
EXplosion
Aircraft

Question 14

Typical storm exclusions

Answer 14

Flood/Lightning - Separate contingency

Tempest - No longer part of definition

Frost

Changes in the water table - Now can be included with Property owners

Question 15

What’s in Policy introduction and Property damage events section, according to this stupid book.

Answer 15

Policy Intro - Contract, Pol Defs, Pol Conditions and exceptions

Prop Damage events section - Cover, contingencies, conditions

Question 16

Which contingencies will insurers insist have to be paired?

Answer 16

Malicious damage - Riot
Earthquake - Subterrean fire
Flood - Storm
Own Vehicle Impact - 3rd party Vehicle impact

Question 17

What % are typically provided to cover clearance of debris and professional costs

Answer 17

Machinery - 5 to 10%

Buildings - 17%

Question 18

What is the definition of damage?

Answer 18

Loss or destruction of or to, the property insured