Mod 7 Study 6 + 7 Flashcards
What are the 3 classifications that must be met for a fire
- There must be an actual fire or ignition.
- There must be something on fire which ought not to have been on fire
- There must be something in the nature of a casualty or accident.
Statutory Conditions are required to be included in which policies
Fire, automobile, and accident and sickness policies.
What are Statutory Conditions
Spell out certain responsibilities and duties that insurers and insureds under the policies must abide by
Can policy wording vary by province and territory and by insurer for comprehensive Homeowners forms?
Yes
What are the two distinct sections homeowners policies are divided into
Property coverages and liability coverage
What are the 4 categories in section 1 of the comprehensive homeowners policy - property?
Dwelling building
Detached Private Structures
Personal Property
Additional Living Expense
Examples of Extensions of Coverage
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
Specified Perils include
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
What is Personal Liability under Homeowners policy
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.
Legal liability coverage E
Insured are covered for claims made against them arising from the following:
Personal liability
premises liability
tenants legal liability
employers liability
Valued policy
A policy that provides that a special amount shall be paid in the event of the total loss of the property
Coinsurance
The insured will bear a proportion of any loss if not insured up to its full value.
Self-insured retention (SIR)
$ 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
Excess coverage
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
Subrogation
Insurer’s rights to recover the amount of the loss paid, from those legally responsible for it.
Comprehensive home insurance policies provide
Coverage against all risks of direct physical loss or damage subject to the exclusions
Endorsements that may be added to Homeowners policies
Personal Articles Fine Arts Sports Equipment Earthquake Flood insurance Identity theft Home business insurance Umbrella liability insurance
Additional Living Expenses insurance
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.
Application for Tenants & Condo Insurance must include
The location of the dwelling
How the unit or apartment was constructed
The applicant’s claims history
The amount of insurance requested
freebie
yay :)
Named perils policy also known as
Basic coverage
Burglary
Unlawful removal of property from premises by visible forcible entry
Pro rata distribution clause for Secondary Dewllings
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
What qualifies as a business
The activity must be both ‘continuous or regular’ and ‘for financial gain’
Who is insured under property and liability sections of a property policy
The name insured WHILE LIVING IN THE SAME HOUSEHOLD Her or her spouse The relatives of either Students who temporarily live away from home
How long does a premise need to be vacant for for it to be excluded from the Comprehensive Homeowner’s Policy
Vacant for more than 30 days
Named perils in basic home insurance
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
Endorsements in Homeowner policies will
Extend coverage or remove the effect of an exclusion or a limit
Define Robbery
Theft that involves the treat of force and a robber must confront their victim in some way or manner
Define Premises
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.
How is a loss payee involved in a policy
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.
When is Loss Payable?
Within 60 days after completion of the proof of loss.
Describe a gratuitous bailee
A bailee who agrees to hold another’s property for no fee
CGL represents what
Commercial General Liability
What are the 4 sections of coverage under Commercial General Liability
BI & PD
personal injury liability
medical payments
tenants legal liability
In tenants legal liability under CGL the acronym SELF covers what
S-moke
E-xplosion
L-eak
F-ire
Small Business Package includes what coverage
Business contents against Fire and EC perils OR all risks.
Optional coverage includes flood, earthquake, and sewer backup
What is the difference between adjustable premium and peak season endorsement
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
What are the 3 construction contract bonds
Bid bond
Performance bond
Labour and materials payment bond
What are the 3 miscellaneous bonds
Fiduciary bonds
Customs or excise bonds
License and permit bonds
Professional liability insurance protects professionals against liability for damages upon his or her alleged E&O. Who would benefit from this coverage
Architects, medical processionals, attorneys
