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General Insurance Essentials > Mod 7 Study 6 + 7 > Flashcards

Mod 7 Study 6 + 7 Flashcards

1
Q

What are the 3 classifications that must be met for a fire

A
  1. There must be an actual fire or ignition.
  2. There must be something on fire which ought not to have been on fire
  3. There must be something in the nature of a casualty or accident.
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2
Q

Statutory Conditions are required to be included in which policies

A

Fire, automobile, and accident and sickness policies.

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3
Q

What are Statutory Conditions

A

Spell out certain responsibilities and duties that insurers and insureds under the policies must abide by

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4
Q

Can policy wording vary by province and territory and by insurer for comprehensive Homeowners forms?

A

Yes

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5
Q

What are the two distinct sections homeowners policies are divided into

A

Property coverages and liability coverage

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6
Q

What are the 4 categories in section 1 of the comprehensive homeowners policy - property?

A

Dwelling building
Detached Private Structures
Personal Property
Additional Living Expense

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7
Q

Examples of Extensions of Coverage

A 
Debris removal
Property removed to protect it from loss
Property being moved to a new residence
Fire department charges
Change of temperature
Freezer food
Lock replacement (or keys)
Tear out (walls from water damage)
Credit or debit cards, forgery and counterfeit money
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8
Q

Specified Perils include

A

Fire
Riot/civil disturbance
Rising Water

Windsotrm
Explosion
Theft or attemmpted theft

Sinking, stranding, burning, dereailment
Hail
Earthquake
Lightning
Falling or forced landing

FRR WET SHELF

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9
Q

What is Personal Liability under Homeowners policy

A

Coverage under Homeowners policies is a form of insurance meant to protect individuals and their families against the liability imposed upon them by law arising out of their daily activities that result in bodily injury or property damage to others.

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10
Q

Legal liability coverage E

Insured are covered for claims made against them arising from the following:

A

Personal liability
premises liability
tenants legal liability
employers liability

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11
Q

Valued policy

A

A policy that provides that a special amount shall be paid in the event of the total loss of the property

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12
Q

Coinsurance

A

The insured will bear a proportion of any loss if not insured up to its full value.

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13
Q

Self-insured retention (SIR)

A

$ amount specified in an insurance policy that must be paid by the insured before the insurance policy will respond to a loss

Wording varies from insurer to insurer

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14
Q

Excess coverage

A

Insurance that does not participate until all other similar insurance on the same subject is exhausted or until the loss exceeds a previously agreed-upon amount

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15
Q

Subrogation

A

Insurer’s rights to recover the amount of the loss paid, from those legally responsible for it.

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16
Q

Comprehensive home insurance policies provide

A

Coverage against all risks of direct physical loss or damage subject to the exclusions

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17
Q

Endorsements that may be added to Homeowners policies

A 
Personal Articles
Fine Arts
Sports Equipment
Earthquake
Flood insurance
Identity theft
Home business insurance
Umbrella liability insurance
18
Q

Additional Living Expenses insurance

A

Coverage for the additional expenses incurred when an insured’s dwelling is damaged by an insured peril to such an extent that the insured cannot live in it until it is repaired.

19
Q

Application for Tenants & Condo Insurance must include

A

The location of the dwelling
How the unit or apartment was constructed
The applicant’s claims history
The amount of insurance requested

20
Q

freebie

A

yay :)

21
Q

Named perils policy also known as

A

Basic coverage

22
Q

Burglary

A

Unlawful removal of property from premises by visible forcible entry

23
Q

Pro rata distribution clause for Secondary Dewllings

A

Clause used in a property policy for the distribution of the insurance amount over the several locations of objects covered in proportion to their value

24
Q

What qualifies as a business

A

The activity must be both ‘continuous or regular’ and ‘for financial gain’

25
Q

Who is insured under property and liability sections of a property policy

A 
The name insured
WHILE LIVING IN THE SAME HOUSEHOLD
Her or her spouse 
The relatives of either 
Students who temporarily live away from home
26
Q

How long does a premise need to be vacant for for it to be excluded from the Comprehensive Homeowner’s Policy

A

Vacant for more than 30 days

27
Q

Named perils in basic home insurance

A

W - ater damage
T - ransportation
F - ire

G - lass breakage
E - xplosion
T - heft

S - moke
I - mpact
L - ightning
V - andalism
E - lectric current
R - iot
28
Q

Endorsements in Homeowner policies will

A

Extend coverage or remove the effect of an exclusion or a limit

29
Q

Define Robbery

A

Theft that involves the treat of force and a robber must confront their victim in some way or manner

30
Q

Define Premises

A

Premises includes all premises where the insureds maintain a residence, including seasonal and rental properties that are described on the policy
ex: hotel, newly acquired land. cemetery, vacant land in Canada, and a vacant lot to build residence.

31
Q

How is a loss payee involved in a policy

A

Someone other than the named insured who have insurable interest. In the event of a loss they are entitled to reimbursement.

They are noted in the policy.

32
Q

When is Loss Payable?

A

Within 60 days after completion of the proof of loss.

33
Q

Describe a gratuitous bailee

A

A bailee who agrees to hold another’s property for no fee

34
Q

CGL represents what

A

Commercial General Liability

35
Q

What are the 4 sections of coverage under Commercial General Liability

A

BI & PD
personal injury liability
medical payments
tenants legal liability

36
Q

In tenants legal liability under CGL the acronym SELF covers what

A

S-moke
E-xplosion
L-eak
F-ire

37
Q

Small Business Package includes what coverage

A

Business contents against Fire and EC perils OR all risks.

Optional coverage includes flood, earthquake, and sewer backup

38
Q

What is the difference between adjustable premium and peak season endorsement

A

Adjustable premium can move up or down over time

Peak season endorsement provides increased amounts of coverage on inventories beginning and ending on specific dates

39
Q

What are the 3 construction contract bonds

A

Bid bond
Performance bond
Labour and materials payment bond

40
Q

What are the 3 miscellaneous bonds

A

Fiduciary bonds
Customs or excise bonds
License and permit bonds

41
Q

Professional liability insurance protects professionals against liability for damages upon his or her alleged E&O. Who would benefit from this coverage

A

Architects, medical processionals, attorneys

General Insurance Essentials (11 decks)

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