What are the three forms of misrepresentation? IA

1. False description of property to the Prejudice of insurer 2. Misrepresentation of material fact 3. Fraudulent omission of a material fact

Personal Property Flashcards by Jen Mac

Define Subrogation

Assume another legal rights and duties.

Places insurer in the shoes of the insured

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Define Indemnity

Outlines how Insurance are going to be made whole

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The basis of claim payment clause states the insurer will pay the lessor of:

actual cash value
insurable interest
limits of insurance

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Define replacement cost Option:

Replaces property with brand new item of like-kind quality. No depreciation

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Define valued basis

Property is appraised and pays just that. No Depreciation.

Specialty items, Fine Art, jewelry, antiques.

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True or False

Insurer will pay out full cost if one shoe is lost.

False.

The undamaged portion still has value and won’t be replaced

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What are the three forms of misrepresentation?

False description of property to the Prejudice of insurer
Misrepresentation of material fact
Fraudulent omission of a material fact

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Is property of others covered?

No coverage unless they have an insurable interest or included in the policy

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True or false
Insurance transfers with the property
IA

False

Insurance doesn’t transfer with the property. Unless it was due to Illegal operation, bankruptcy, succession, death.

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True or false

You can start a home based business at anytime and be covered by insurance. IA

False. Change of risk. Must notify insurer of any changes. May affect coverage.

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How does an insurer terminate coverage?

5 days noticed if hand-delivered
15 days by registered mail
Send Pro rata refund ASAP

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How does an insured cancel coverage?

Can cancel anytime. Give notice to broker to forward to ensure. May have short rate refund

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What are the requirements of the Insured after loss?

Notify Insurance in writing immediately
deliver proof of loss report
inventory of undamaged property if required
books of account, inventory, invoices if required and practical ( business)

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What’s the difference between a pro-rated refund and a short rate refund
IA

Prorate. Sent by if insurer cancels

Short rate prorate - admin fees, insured request cancelled

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What happens if fraud occurs in the proof of loss?

Claim invalid not covered

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Who can give proof or notice of claim?

Agent- someone appointed by the insured
Insurable interest holder- lienholder

If unable to they must be either injured or out of country

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True or False
You have a hole in your roof. A rain storm hits, you do nothing because all damage will be covered.

False Insured must take reasonable steps to prevent further loss. Ensure will share cost

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True or false
Insurer can enter property after lost to adjust but cannot take control
IA

True

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How you do you resolve a disagreement in value?

Both parties pick an adjuster, they debate it. If no decision the two appraisers pick umpire. Majority vote wins. Cost of umpire shared.

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When is loss payable?

Within 60 days of receiving proof of loss report. Unless contract says otherwise

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What can the insurer choose instead of cash payment?

Repair or replacement. Insurer will notify insured within 30 days of proof of loss. Must start with in 45 days of proof of loss

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How is notice sent?

Insurers send notice to the last known address of the insured

Insurance sends to Chief agency to provincial head office

Define innocent party exemption

Innocent party is Exempted from the criminal - intentional acts exclusion
- must prove you were completely innocent

What is covered under Section 1 of a personal property policy?

A- dwelling building
B- detached Private Structure
C- personal property
D- additional living expense

What is covered under Section 2 of a personal property policy?

E- personal liability F- voluntary medical payments G- voluntary payment for damaged property H- voluntary compensation for residents employees

What are the six types of property covered under coverage A- dwelling building?

- Dwelling and attach structures - Permanently installed Outdoor Equipment - Outboard Pool and attached equipment - Nearby material and supplies used for construction and repair example carpet or shingles - building fixtures - temporarily removed for repair / seasonal storage - outdoor plants

What is the coverage limit for coverage B- detached private structures?

A percentage of A's limit- can be increased

Name three expenses covered under coverage D?

Additional Living expenses 1. Fair rental value 2. Extra expenses to maintain normal standard of living 3. Prohibited access

Common extensions of coverage in Section 1

Debris removal, moving, fire department charges, freezer food, lock replacement, Terre Haute, inflation, arson conviction reward

What are the three types of homeowners insurance?

Basic Broad Comprehensive

Define basic standard form homeowners insurance. Give some examples of what's covered.

Covers named perils only listed on the policy. Fire, lightning, explosions, smoke, falling object, riot, wind - hail

What does the comprehensive form on Homeowners policy provide coverage for?

All risks, anything not excluded is covered

What does tenant insurance cover?

Personal property, tenant improvements, liability

What is the limit of coverage D on tenant insurance?

20% of coverage C

Name some common endorsements for personal property policies

Earthquake, business property, fine art, guaranteed replacement cost, inflation protection, Overland water, personal articles, sewer backup, vandalism, watercraft

What are the three unique coverages for condo insurance

- unit Improvement and betterments - loss assessment - unit additional protection

Personal property special limits- all peril What has a limit of $2,000

Business books and tools on premise Securities

Personal property special limits- all peril What has a limit of $2,500

Personal property of students away Software

Personal property special limits- all peril What has a limit of $1,000

Spare Auto Parts Watercraft

Personal property special limits- all peril What has a limit of $200

Money and bullion

Personal property special limits- theft only What has a limit of $2,000

Jewelry, watches, furs

Personal property special limits- theft only What has the limit of $1,000

Manuscripts, stamps Card collection

Personal property special limits- theft only what has a the limit of $500

I want to ride my bicycle

Give some examples of a domestic motorized vehicle

Lawn mower, snow blower, wheelchair and equipment

What is covered under broad form for home insurance

Basic coverage for C Coverage for A B D apprehensive

What is covered under an endorsement for personal property fine art

``` Smoke damage Earthquake Insider theft including tenant or employee Flood, sewer backup, seepage Scratching, breaking can be added ```

What is excluded under endorsements for personal property, overland water?

Tides, tsunami, storm surges | No guaranteed replacement cost coverage

There are many extensions of coverage automatically provided for Section 1 coverage under debris removal extension will give you a limit of

5% of the dwelling limit

define Warranty

A promise by the insured that certain facts are true and will remain so

The peril of fire, as defined by the insurance act is to mean:

Fire, whether resulting from explosion of natural, coal or manufactured gas.

True or false Under a basic form All explosions are covered including water hammer

False. Water hammers not covered. All other explosions are covered

under a basic form | What kind of smoke damage is covered?

from sudden, unusual and faulty operation of heating or cooking unit. Fireplace is excluded

Under a basic form | When is vandalism/malicious acts excluded:

When property is vacant or under CoC If damaged by the insured attempted theft

Under a basic form | When is damage by windstorm/hail excluded:

If damage is to outdoor antennae ice/snow melt/weight waves/flood