Notes From Chapter Review Flashcards
How regularly does electrical equipment need to be tested?
All new electrical installations must be inspected, the frequency normally being every one to five years, the inspection of portable electrical appliances is not required
Chapter 2C4
What does it suggest if a material is stored away from a plant at a low temperature?
It has a low auto ignition temperature
Chapter 2A1
Who needs to be consulted when assessing the reinstatement cost of a listed building?
The local planning authority
Chapter 2B2D
What type of building will fire resistant flooring have the most impact on?
A building with many stories (concrete or hollow clay block will be used)
Chapter 2B2A
Insurers will typically regard an adverse weather event as a storm only if …
A number of buildings in a specific area have sustained damage at the same time
Chapter 3B1
How many able bodied people are required to transport cash?
£2500-£5000: 2 people
£5000-£8000: 3 people
£8000-£12000: 4 people
Above £12000: approved security organisation
Chapter 4F3
What reporting should be undertaken by a surveillance tear?
When ever possible a watchman, guard, CCTV operator or security officer must have a fixed routine of reporting at set intervals during the surveillance
Chapter 4D3
What is a hinge bolt?
A bolt fitted to thehinge of a door to prevent it from being lifted of its hinges. These will often be fitted on external doors to prevent access
Chapter 4D1A
What is burglary?
Section 9 of the theft act defines burglary as entering any building as a trespasser and steal anything in the building or a part and inflicting or attempting to inflict on any person therein any grievous bodily harm.
What sources can an insurer use to identify patterns of theft risk?
Their own loss records
Pooled insurance figures (e.g. ABI)
Statistics from research & surveys
Published crime figures
Chapter 4B1
What is the definition of fire used by insurers?
In the absence of a legal definition insurers accept that fire must include:
Actual ignition
Something on fire that should not have been on fire
An event which must be accidental or fortuitous as far as the insured is concerned
Chapter 5A1A
Why is premium charged in the UK to insure earthquake & subterranean fire relatively high?
Because these events have a large potential geographic impact
If a window is knowingly left open will a claim be accepted?
No, any claim for lossor damage is likely to be denied. This is in line with the reasonable precautions policy condition, which means the insured is expected to act as if uninsured is always implied.
Chapter 5D3B
What is the intruder alarm condition?
The condition does not state an alarm must be fitted, but if one is fitted it must be used
What is floating insurance?
Insurance on stock belonging to an insured which is at various locations. Stock is insured at all or any location in one overall amount. An inner limit may be applied stating no more than £x will be paid for a single loss at one location
Chapter 6D4
What inflation index is used by insurers when looking at the effects of inflation on building items?
Inflation values provided by the royal institute of chartered surveyors
If a building is insured on a reinstatement basis with a rebuild time of 18 months, the sum insured should be based on rebuild costs how many months in the future?
30 months: 12 month policy + 18 months rebuild
Chapter 6A3
What is reinstatement to match?
A clause that caters to the fact it May not be possible to replace items as a like for like basis. The insurer will provide new similar equipment & also cover ang costs associated with compatibility
What is inadvertent omission to insure?
Provided the insurer is made aware of any omissions or errors in the sum insured as soon as it is discovered & provided Ag additional premium is paid full cover will apply retrospectively
What is the typical limit for money stolen during the day?
£5,000
A factory would take eight months to rebuild and a further two months before the factory was working at full capacity. Assuming they increase advertising on completion of the repairs, it is further estimated that profits would be restored to pre-incident levels after six months. What should the indemnity period be?
14 months (8 months rebuild + 6 months to return to profit)
What are business interruption policies based on?
Turnover of the business
Chapter 8B1
A furniture manufacturer sells 25% of its goods through its own shops with the balance sold through other retailers. If a fire at its factory halts production for three months, its business interruption insurance will cover the insured profits of the:
Manufacturer and it’s own shops
Chapter 8E
A manufacturer suffered a fire which resulted in the partial closure of its factory for two months. During that time, turnover reduced from £100,000 to £70,000 per month, but expenses only reduced by 12.5% from £24,000 per month due to overtime payments. Ignoring any excess, how much will the firm receive from its insurers for business interruption?
£54,000
Chapter 8A
