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Insurance Level 1 > NEED TO KNOW > Flashcards

NEED TO KNOW Flashcards

1
Q

15 credits a year needed to renew license

A

Can carry over 7.5 credits.

3 applied and 2 electives.

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2
Q

Have to be licensed to

A

talk to any public person

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3
Q

CIP

A

Need 5 mandatory. 10 courses

3 applied and 2 electives.

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4
Q

Insured

A

Client

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5
Q

Insurer

A

Insurance company

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6
Q

Insurer gets net premium

A

Brokerage gets commission.

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7
Q

What is trust account?

A

Unearned premiums.

3o days can take out money made for month.

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8
Q

Fiduciary

A

Person of higher trust, someone who holds position of trust.

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9
Q

Code of conduct

A

A formally adopted statement of applied ethics, or a statement of what is expected in practice from the members of a company, organization, or association that has formally declared its operating values and principles.

Most codes of conduct begin with a description of the principles and values to which the organization aspires.

The code may also prohibit specific behaviors or actions by those it covers.

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10
Q

Must disclose all the markets

A

Give them all the options

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11
Q

Can’t accept

A

Anymore money than premium

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12
Q

Can only change information if

A

insured says so or by law.

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13
Q

Broker

A

Sells for many.

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14
Q

Agent

A

Sells for one.

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15
Q

Prescription, in law is

A

a time after which a cause of action ceases. In insurance, its the time after which a claim may not be brought.

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16
Q

Errors and Omission

A

Must be $500,000 per claim per person MIN

$2 Million max per claim

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17
Q

Can deny coverage if

A

Person didn’t buy that coverage.

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18
Q

Public Adjuster

A

Paid by the insured.

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19
Q

Independent adjuster

A

Paid by insurer.

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20
Q

Company adjusters

A

Salaried by insurance company.

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21
Q

Trust account

A

Where premium goes

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22
Q

Nothing can be taken out of

A

the trust account

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23
Q

Risk

A

Refers to the chance of financial loss to which an object of insurance is exposed.

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24
Q

Dealing with risk

A

Avoidance
controlling risk
loss prevention

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25
Q

Major function of insurance

A

Spreading the losses of the few among many

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26
Q

Underwriters

A

Work together with the broker.

Person who reviews application/risks to ensure they fall within the insurers guidelines. The person who determines which risks are acceptable to the insurance company.

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27
Q

Defining Insurance

A

“Agreement”.

The undertaking of one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of insurance may be exposed… or to pay a sum of money or other thing of value upon the happening of a certain event.

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28
Q

Indemnify

A

To provide compensation for loss or expenses incurred. A contract, express or implied, to repay in the event of a loss.

Insured neither gains nor looses.

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29
Q

Defining Risk

A

Risk is simply described as the chance of financial loss or object of insurance.

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30
Q

Speculative risk

A

This involves the possibility of either financial loss or gain.

“Playing the lottery”

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31
Q

Pure risk

A

This involves the chance of financial loss which does not; at the same time offer a chance of financial gain,

for example; loss of property. When there is no opportunity for a person to profit from a loss the risk is pure.

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32
Q

Pure risk

A

Only pure risk is insurable.

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33
Q

Moral hazard

A

Danger of loss arising from the nature of the insured rather than from the physical nature of the risk.

This would encompass those instances where the chance of loss is increased by an Insured’s carelessness, incompetency, recklessness, indifference to loss or an insured’s fraudulent nature.

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34
Q

Five element of contracts

A

1-Agreement- Unconditionally agree/accept

2-Considereation- Exchange of value between two parties

3-Legality of object- Must be legal

4.Legal capacity of the parties to contract must be competent

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35
Q

Trade names

A

May enter under other than personal name

Insurance contract must be between the owner of the trade name and the insurer. Corporations are deemed to be legal entitles and have same legal capacity to enter into a contract as that of a natural person.

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36
Q

Insurance contrracts

A

Require 8 elements enforable

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37
Q

Insurable Interest

A

Would suffer financially by a loss

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38
Q

All contracts require 5 elements to be enforable

A

Must contain 3 elements; Insurable interest, utmost good faith and indemnity.

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39
Q

Utmost good faith (Uberrima Fides)

A

Insurance contracts require a higher standard of honesty.

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40
Q

Indemnity

A

They indemnify insured for their losses

Insured’s only receive actually amount of loss, no more and no less.

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41
Q

If insurance contract doesn’t contain each of the 8 elements

A

the contract is VOID

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42
Q

Void Contract

A

A void contract is one which is unable in law to support the purpose for which it was intended.

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43
Q

Voidable

A

“One which is void as to (the) wrongdoer but not void as to (the) wronged party, unless he elects to so treat it”

Example; A contract between minor and an adult is generally voidable only at the election of the minor.

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44
Q

Any changes to contract will always be

A

In writing. Both parties must agree to change.

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45
Q

Endorsements

A

Acknowledges a change in the terms of the contract which adds, subtract or alters coverages

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46
Q

Endorsements can also be called

A

Rider - Adds additional coverage to the existing contract

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47
Q

Endorsements can also be called

A

Rider - Adds additional coverage to the existing contract

Floater- Covers property having a high degree of mobility. Coverage for property that moves location to location.

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48
Q

Rider

A

Adds additional coverage to the existing contract

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49
Q

Floater

A

Covers property having a high degree of mobility. Coverage for property that moves location to location.

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50
Q

Law of large numbers

A

The determination of amount of premiums is law of large numbers

which is the principle that the reliance to be placed upon a given probability is increased when the number of trails or cases is increased.

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51
Q

Dealing with risk

A

Avoidance, controlling and transfer.

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52
Q

Controlling risk or loss prevention

A

controlling risk is concerned with taking measures to reduce the frequency and severity of losses.

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52
Q

Controlling risk or loss prevention

A

controlling risk is concerned with taking measures to reduce the frequency and severity of losses.

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53
Q

Transfer of risk

A

Transfer all or portion of risk to someone else.

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54
Q

Binding a risk

A

An insurer’s agency agreement will provide the brokerage with the authority to bind the insurer for certain classes of risks and limits.

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55
Q

Direct loss

A

When the object of insurance is actually attacked by an insured peril.

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56
Q

How do you measure the amount of loss

A

ACV
Interest
Limit of insurance provided.

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57
Q

ACV

A

Actual cash value

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58
Q

Utmost good faith

A

Trust what they say

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59
Q

Indemnity

A

Receive only actual amount

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60
Q

Insurance contract must contain

A

8 elements or will be void.

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61
Q

Rider

A

Adds additional coverage to existing contract.

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62
Q

Endorsements

A

Acknowledges a change in the terms of the contract which adds, subtracts or alters coverage.

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63
Q

OSFI

A

Office of the superintendent of financial institutions

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64
Q

IBC

A

Insurance Bureau of Canada

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65
Q

IBAC

A

Insurance brokers of canada

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66
Q

ICPB

A

Insurance advisory organization

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67
Q

Two major types of insurers

A

Private and proprietary.

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68
Q

Private insurers

A

Alberta

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69
Q

Proprietary Insurers

A

Exist to make a profit; can be either incorporated or unincorporated.

Types of insurers who are proprietary are Joint stock companies (Incorporated)

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70
Q

Being unincorporated

A

All underwriters become personally responsible for all the losses on insurance business they chose to underwrite.

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71
Q

Llyod’s of London

A

Unincorporated

People known as syndicates.

Insurance market and largest brokerage house in the world.

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72
Q

Non- proprietary insurers

A

Reasons other than profit. Owned and controlled by policy holders who have banded together to secure insurance at the lowest cost possible.

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73
Q

Mutual companies

A

Owned by the policy holders

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74
Q

Fraternal societies

A

Which exist for the benefits of its members and are usually set up for life insurance, accident and sickness (service clubs)

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75
Q

Government Insurer’s

A

Saskatchewan, Manitoba, BC and Quebec provide compulsory automobile insurance plans for their residents.

Consumers have option for insuring their personal and business property.

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76
Q

Two major distribution systems

A

Brokers

Agents

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77
Q

Independent Agency/Brokerage

A

Brokers.

Represents many insurers

Owners are responsible for payment of all expenses with the business (earned commissions are used)

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78
Q

Direct writing systems

A

Agents

Employees of the insurer

Insurer owns all the business written

Administration function assumed by insurer.

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79
Q

Insurance in Canada is

A

Supervised and regulated by the federal and provincial governments.

To make sure contracts are drafted fairly, conducted to the general benefit of the public.

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80
Q

Role of Federal Government

A

Finically.

Provides licensing to insurers that meet strict financial standards.
Established by the OSFI (Office of the superintendent of financial institutions).

They ensure the companies have enough capacity for the risks that they take on. Ensure their solvency and financial stability.

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81
Q

Role of the Provincial Governments

A

Insurance Act.

Each common law province has a superintendent of insurance that’s responsible for administering the insurance act.

Responsibility concerns; -Licensing insurers, agents, brokers, adjusters

  • Supervise the terms and conditions of insurance contracts
  • Monitoring the solvency of provincially licensed insurer’s.
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82
Q

Four insurance councils

A

Alberta insurance council

Insurance Adjustors council

Life insurance council

General insurance council

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83
Q

Alberta Insurance Council

A

Financial arm of councils, provides investigation and administrative services to other councils.

-Provides administrative services to the continuing education accreditation committee appointed by the minster of finance.

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84
Q

Following councils are regulator bodies who are responsible for licensing and discipline of agents, brokers and adjusters in Alberta

A
  • Life insurance council
  • General Insurance Council
  • Insurance Adjustors council
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85
Q

Canadian Insurance Claims Managers Association (CICMA)

A

Organization of insurance company claims manager that promotes a high standard of ethics in the handling of claims.

One of it’s main functions is to administer the Canadian Inter-company Arbitration Agreement, Which it sets up to arbitrate disputes among the companies who are signatories to the agreement.

This avoids many possible cases of litigation between insurers.

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86
Q

Insurance Bureau of Canada (IBC)

A

The national trade association that represents the insurance companies.

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87
Q

Insurance Institute of Canada (IIC)

A

Offers educational programs to the general insurance industry in Canada, Including employees of insurance and reinsurance companies, brokerages, agencies, adjusting firms and risk managers.

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88
Q

Insurance Brokers of Canada (IBAC)

A

This non-profit trade association is the national body of Canada’s organized brokers.

Developed and maintains licensing courses and maintains close liaison.

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89
Q

Insurance Advisory Organization (ICPB)

A

One of Canada’s leading loss control firms

Risk inspections, advisory rating services, operates a loss control school for insurance and fire department personnel.

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90
Q

Fire Underwriter’s Investigation Bureau (FUIB)

A

Crimes relating to fire and other property losses by the following branches set up;
Fire underwriters investigation bureau and Canadian automobile theft bureau.

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91
Q

Property and Casualty Insurance Compensation Corporation (PACICC)

A

When bankruptcy occurs and claims cannot be paid, the corporation will then pay all valid claims. All participation insurance companies are then charged an assessment to cover the total amount of the claims.

The following can be claimed under this industry funded plan;
-Max of $250,000 for all claims arising from a single occurrence

-A refund of up to 70% of unearned premiums, to may $700 per policy

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92
Q

Underwriters Laboratories of Canada (ULC)

A

Not for profit organization which operates laboratories and a certification service for the examination, testing and certification of devices, construction materials and services to determine their effect on fire, accident and property hazards.

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93
Q

Government Insurers

A

Saskatchewan, Manitoba, Bc and Quebec (Automobile)

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94
Q

Insurance Bureau of Canada

A

It’s national industry association representing Canada’s private p and c insurers.

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95
Q

Property and Casualty Insurance Compensation Corporation

A
  • Max of $250,00 for all claims arising from a single occurrence
  • Refund up to 70% of unearned premiums, subject to a max of $700 per policy.
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96
Q

Over time is not covered

A

Mold, fungus and other biological hazards is not covered.

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97
Q

Facility association

A

If having trouble getting automobile insurance in regular market can get it from Facility Association.

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98
Q

A CGL Policy generally covers a client’s

A

Premises, operations, products and completed operations liability.

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99
Q

3-D Policy

A

Crime and fidelity coverage

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100
Q

Binding is always between

A

Insurer and broker

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101
Q

DID
——- X Loss “Partial Losses only”
SHOULD

A

Should = Value x %
What they should of insured it for full partial loss

DID= Insured purchased

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102
Q

Vicarious Liability

A

An employer is liable toc ompensate persons for harm caused by an employee in the course of employment

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103
Q

Word or phrase most closely with legal liability?

A

Careless act

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104
Q

Personal injury covers

A

Slander or libel of a person or an organization

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105
Q

Utmost good faith

A

the disclosure of material information is required by all parties

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106
Q

Additional living expenses

If house burning

A

everything covered

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107
Q

If house not burning

A

Covers for 14 days

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108
Q

Floods never covered unless

A

You add it on

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109
Q

Did over should

A

Find out should first

times the % then do did

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110
Q

Co-insurance is like

A

gambling

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111
Q

co-insurance caluses are designed to

A

discourage the insured from gambling on suffering only a partial loss

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112
Q

Co-insurance is

A

Partial loss only

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113
Q

Theres 15 stat conditions

A
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114
Q

Section 1

A

Property coverage

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115
Q

Coverage A - Dwelling building

A

Anything attached

  • attached structures
  • tree
  • attached equipment
  • material not covered by theft
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116
Q

Coverage B- Detached structure

A

Any structure or building separted from the dwelling by a clear space

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117
Q

Coverage C- Personal Property

A

Everything other than auto or trailer

118
Q

Coverage D- additional living expenses

A

the dwelling is damaged by an insured peril

119
Q

Extensions of coverage same for all forms

A

Debris removable, property removed, moving, fire department charges, change of temp, freezer food

120
Q

Freezer food

A

Will cover up to $2,000

due to power failure or mechanical breakdown

121
Q

Lock replacement

A

keys stolen or loss, reported to cops

$500

122
Q

Homeowners Basic Form

A

This form insures loss or damage caused by the 13 perils

123
Q

13 perils-homeowners ALL COVERED

A

1- fire or lighting

  1. explosion (dont include water hammer)
  2. smoke- sudden, unusual and faulty operation
  3. falling object -has to hit building
  4. impact by aircraft or land vehicle -by others
  5. Riot
  6. Vandalism or malicious acts- by others
  7. water damage - sudden or accidental from water main
  8. windstorm or hail -not personal property
  9. glass breakage
  10. transporation
  11. theft, including damaged caused by attempted theft
  12. electricity
124
Q

Smoke damage covered under

A

Comprehensive if it was your fault

125
Q

Basic covered- Named

A

Comprehensive- All risks

126
Q

Homeowners broad form

A

dwelling building and detached is ALL RISKS

Named perils is provided for personal property

127
Q

Coverage A-

A

Dwelling building- comprehensive

128
Q

Comprehensive

A

Coverage B- Detached private

129
Q

Coverage C

A

Personal property- basic

130
Q

Coverage D

A

Additional living expenses - comprehensive

131
Q

Mobile home insurance

A

Only covered to move it in emergency

If stuff tied down it’s covered.

132
Q

Tenants package

A

Owner covers A and B dwelling and detached
Up to $500 for dmaages not including fire
personal and additional for tenant

133
Q

Coverage C and D

A

Insured by tenant

134
Q

Condominium policy

A

You own the air you breath inside and personal property.

everyone responsible for shared spaces.

135
Q

Your policy covers improvements and betterments

A

made by you

anything you build is under your policy

136
Q

Seasonal dwelling

A
  • theft not covered if not there unless added on

- be there 1 day every 60 days can be put on homeowners

137
Q

Personal articles endorsement

A

provides coverage for high value

can add and delete

property includes; firearms, jewelry, furs, stamps, coins, silverware, cameras

138
Q

Fine arts endorsement

A

provides insurance for object as fine arts

  • paintings
  • pictures
  • etchings
  • tapestries
  • rare glass
  • rare objects
  • antique furniture etc
139
Q

Comprehensive form

A

jewerly covered for $2,000

140
Q

Fire insurance

A

Fire damage caused by fire which followed a short circuit is covered

141
Q

Insurance contract is enforceable only if it contains 3 elements

A

Insurable interest
Indemnity
Umberrima fides

142
Q

Coverage G

A

Voluntary, good neighbor policy

143
Q

Tort law

A

wrong other than breach of contract

144
Q

We owe the greatest duty to

A

children on our property

145
Q

Joint Liability

A

2 or more people are legally responsible, its jointly liable

146
Q

Section 2 liability coverage of the homeowners

A

Coverage E- Personal Liability
$1 million

Coverage F-Voluntary medical payments $1000

Coverage G- Voluntary payment for damage of property $500

Coverage H- Voluntary compensation for residence employees - as per schedule

147
Q

Intentionally acts covered for

A

12 years of age and under is covered

148
Q

Watercraft and motorized vehicle you

A

do not own is covered for liability

149
Q

Trailers covered when

A

not attached

150
Q

Trailer attached to vehicle covered

A

under auto when driving

151
Q

Can have 3 parking spaces if anymore

A

its under commercial insurance

152
Q

Umbrella policy

A

will pay only when;

  • not enough insurance under the primary policy
  • no coverage provided under primary
152
Q

Umbrella policy

A

will pay only when;

  • not enough insurance under the primary policy
  • no coverage provided under primary
153
Q

A self- insured retention (SIR) applies to all losses covered by

A

the umbrella liability

154
Q

Personal liability covered

A

all over the world

155
Q

Commerical covered

A

Canada and the USA

156
Q

CGL-

A

Commercial general liability policy

157
Q

Commercial will pay medical payments for

A

third party

158
Q

Additional Liability

Environmental impairment liability;

A
  • provides coverage for pollution liability and environmental clean up
  • Available only through specialty markets.
159
Q

Section 1-

A

yourself

160
Q

section 2

A

third party

161
Q

Statute law is defined as;

A

Written law derived from bills introduced into parliament which, when passed, supersedes any existing common.

162
Q

Theft is covered

A

under livestock

not insured if off farm property

163
Q

Named perils form, basic

A

theft not covered

164
Q

Personal property of employees covered

A

max of $250 per person

165
Q

Property away from the insured premises

A

1-property in transit
2- property at temporary locations

Theft only covered with proof forcued into locked space

all glass coverage is covered expect fire, war and nuclear damage

166
Q

Contractors insurance

A

1-builder’s risk only covers the building

2-installer’s floater covers equipment until installed

3-contractor’s equipment floater
floater covers equipment anywhere in canada and the usa

167
Q

Boiler and machinery

A
  • breakdown insurance

- cover what breaks and what it effects

168
Q

power is defined in three ways;

A
  1. pressure (steam boiler)
  2. movement (running engine wheel)
  3. electricity (electric motor)
169
Q

Property under broiler and machinery policy;

A
  • machinery
  • computers
  • production machinery
  • a/c
  • miscellaneous electrical apparatus such as electrical panels
170
Q

Burglary

A

locked and they entered. no people involved

171
Q

robbery

A

deal with people

172
Q

safe burglary

A

safe is all covered but money.
all loss or damage done will be covered

to cover money need money and securities

173
Q

Comprehensive Dishonesty, Disappearance and Destruction 3-D

A

insurance coverage for dishonest employees is known as fidelity insurance
-pay any funds stolen by employees

174
Q

Surety bonds are not insurance

A

There are 3 parties to a contract
and the bond must be signed under seal by two parties
-must be signed and sealed
3 parties- Obligee, principal, surety

175
Q

Bid bonds

A

Like Bidding on jobs

176
Q

Performance bond

A

Contractors promise to provide if their bid is accepted

177
Q

Travel insurance

A
  • Pre-exciting won’t be covered
  • 180 days max anywhere in the world
  • Pregnancy complications within 8 weeks of the expected due date with not be covered
178
Q

Accident and sickness

A

-Policies provide 24 hour coverage for lost income caused by a disability

179
Q

Marine insurance

A

Oldest form of insurance

it covers both the vessel itself (hulll) and the cargo

180
Q

In alberta Min limit is

A

$200,000 inclusive for bodily injury and property damage

181
Q

Auto section A

A

third party liability

182
Q

Auto section C

A

own damage

183
Q

Service carrier receives administration

A

costs from the pool - called nordick

184
Q

can’t refuse anyone unless

A

they owe money to insurance

185
Q

You star at 0 on the grid

A

Up 5 if you have accident, down 1 every year accident free

186
Q

whoever owns the car

A

owns insurance

187
Q

Lend your car

A

lend your insurance

188
Q

quebec min limit

A

$50,000 auto

everywhere else is $200,000

189
Q

14 days to get insurance

A

for new car, has to have insurance beforehand.

190
Q

mortagee is the

A

bank

191
Q

Covered for rentals in

A

Canada and the USA

192
Q

ACV= Actual cash value

A

The new or replacement cost of the property at the time of loss, less depreciation

193
Q

Personal liability policy

A

must be reported within one year of occurrence

194
Q

An edorsement alters the

A

provisions of the policy

195
Q

All perils covers

A

theft of a vehicle by a member of the household.

196
Q

Under statutory conditions of property poliicy

A

the insured, insurer has right to cancel a policy

197
Q

Civil law

A

written law

198
Q

Every policy by law must have stat conditions

A

fire
auto
accident and sickness

199
Q

Except liability policies.

A

liability is for third parties only

200
Q

If insurer cancels

A

you get all the money back

201
Q

Insured cancels

A

they do %

202
Q

30 days

A

to tell about loss

203
Q

45 days to repair

A

to repair

204
Q

60 days to

A

pay it all back

205
Q

Glass coverage is on all basic

A

for outside windows only

206
Q

Personal property

A

contents

207
Q

Should =

A

Value x % (clause)

Partial loss only

208
Q

Treaty contract

A

must say yes

209
Q

Fuculete

A

case by case , yes or no

210
Q

insurer keeps retention

A

cede out to reinsurers

2nd time reinsure is called rectro cession

211
Q

reinsurance is an arrangement

A

between the underwriting insurer and a professional reinsurance company

212
Q

Access prohibited by order of civil authority

A
  • 2 weeks flood not covered

- not your house, just can’t get to your

213
Q

replacement cost if 100% is covered

A

will cover whatever the cost

214
Q

nothing over time is

A

covered

215
Q

outside windows

A

all covered

216
Q

Vacant never coming back

A

No glass, vadislm and water is not covered

all other covered for 30 days

217
Q

House needs to be checked everyday after

A

4 days straight being gone.

unless drained all pipes only

water not covered if no one checks

218
Q

mobile home only covered if

A

moving it to prevent further loss

219
Q

major causes of loss for mobile is

A

fire,windstorm and hail

220
Q

improvements and betterments made by tenant will be

A

claimed under tenants policy

221
Q

If pay condo fee’s

A

Get condo policy

222
Q

Seasonal dwelling doesnt cover

A

attempted theft

223
Q

Endorsements

A

no deciable to add or delete something

224
Q

By law endorsment only paid if

A

you have it added on

225
Q

basic of settlement

A

coverage is normally available on an actual cash value or replacement cost basis

226
Q

Personal articles endorsement

A

provides coverage for certain types of high valued personal property while located anywhere in the world

227
Q

Reinsurance is an arrangment between

A

underwriting insurer and a professional reinsurance company

228
Q

a co insurer

A

is one who shares in the payment of a loss

229
Q

Insured

A

the person named as insured on the coverage summary page, and while living with the same household

230
Q

lock replacement

A

$500

231
Q

Freezer food covers

A

$2,000 for food
when loss is damage due to;
power failure or mechanical breakdown

232
Q

fleet

A

anymore than 5 or over on auto

233
Q

tort law

A

a tort is a wrong, other than breach of contract, done to another person or entity in breach of a duty laid down by law

234
Q

Strict liable

A

assumed to be guilty until proven innocent

235
Q

liability

A

third party only

236
Q

Special liability

A

doctor bills

237
Q

Liability only covers watercraft and motorized vehicles you own

A

12kw (16HP
38kw (50 HP)
8 m (26 ft)

238
Q

Auto no deductions for

A

fire, lighting and theft of whole car

239
Q

Farm insurance

A

two part insurance policy

home and farm

240
Q

Buildings

A

rates and types covered based on;

construction, use of building, type of heating, age

241
Q

Livestock

A

has theft, not covered at stockyard

242
Q

Broad form

A

theft while open

243
Q

stock

A

anyting you give customer

244
Q

Equipment

A

furniture, fitting, fixures, tools, equipment, phone system, improvements and betterments

245
Q

A brokers binding authority is

A

granted through

their contracts with the individual companies

246
Q

The sponsor of an applicant for an insurance license must;

A

vouch for the applicants general character

247
Q

Insurance defined as

A

A contractual relationship where one party for consideration agrees to reimburse another for a loss

248
Q

Auto

A

Min limit is $200,000 inclusive for bodily injury and property damage

249
Q

Auto has no deductible

A

for fire, lighting and theft of the whole vehicle

250
Q

Policy forms SPF number 1

A

leasing or own it

251
Q

SPF number 2

A

standard driver’s automobile policy

252
Q

SPF number 1

A

owner’s form

253
Q

SPF #4

A

standard garage automobile policy

254
Q

No fault

A

Ontario, Quebec, Manitoba, News Brunswick’s, Saskatchewan

255
Q

SPF #2

A

Don’t own vehicle but drive

256
Q

SPF #6

A

Boston pizza. Employees using vehicle for work

Standard Non-owned automobile policy

257
Q

SPF #9

A

Ubers

258
Q

Fleet policy

A

5 or more vehicles.
One insuring several automobiles for one owner.
ex. Dealerships

259
Q

Marine

A

Vessel and cargo covered

260
Q

Farm insurance

A

Two part insurance policy

Home and Farms

261
Q

Buildings rates and types covered based on;

A

construction, use of building, type of heating and age

262
Q

Livestock

A

Has theft, not covered at stockyard

263
Q

Broad Form

A

Theft while open

264
Q

Stock

A

anything you give customer

265
Q

Equipment

A

furniture, fitting, fixtures, tools, equipment, telephone system, improvements and betterments

266
Q

Builder’s risk

A

No coverage for contractors tools and equipment

Covers buildings in course of contruction

267
Q

Umbrella Liability policy

A

A self-insured retention (SIR)
applies to all losses covered by the Umbrella Liability policy and which are not insured by the primary policy or policies. The SIR really functions as a deductible, the amount of which often does not exceed $250

268
Q

If whole premium not paid and there’s a loss

A

The insured’s claim is paid out up to the policy limits stated

269
Q

Bankruptcy or insolvency of a policy holder

A

It has no bearing on the insurance contract

270
Q

A broker’s binding authority is granted through;

A

their contracts with the individual companies

271
Q

The sponsor of an applicant for an insurance license must

A

Vouch for the applicants general character

272
Q

Consideration means

A

anything of value

273
Q

A temporary motor vehicle liability insurance card is valid for

A

30 days

274
Q

Ordinary negligence must be established before payment will be made under

A

Bodily injury liability

275
Q

Material change

A

15 days to pay additional premium

276
Q

Subrogation

A

after paying loss, can go to person at fault to get the money

277
Q

Dwelling coverage A

A

Stuff you take on and off your house is covered anywhere. It’s part of your home

278
Q

Risk is

A

chance of loss

279
Q

Hazard

A

a feature of a risk may give rise to a loss

280
Q

Tort

A

legal wrong, civil wrong doing

281
Q

Liability

A

world wide

282
Q

Licensee

A

One who comes onto the premises for his own purpose but with the occupiers consent

283
Q

Condominium policies include common elements such as

A

parking and party room

284
Q

Animals are

A

property

285
Q

Bodily injury and property damage

A

paid first

286
Q

No deductible for

A

fire, lightening, theft of the entire vehicle

287
Q

Salvage

A

Insurer

288
Q

Personal property covered

A

anywhere in the world

289
Q

cant rent more than

A

1 vehicle at once per family

290
Q

Section C, Subsection 4 - Specified Perils

A

Fire, lightening, theft, attempted theft, the stranding, sinking, burning, derailment, transported on land or water, windstorm, hail, riot, rising water

291
Q

Third party coverage

The coverage is designed to protect the insured against losses arising out of his legal liability for

A

bodily injury to, damage to the property of,, others

Insurance Level 1 (8 decks)

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