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Alberta General Insurance- Level 2 > Personal Property > Flashcards

Personal Property Flashcards

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1
Q

Define Subrogation

A

Assume another legal rights and duties.

Places insurer in the shoes of the insured

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2
Q

Define Indemnity

A

Outlines how Insurance are going to be made whole

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3
Q

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

A
  • actual cash value
  • insurable interest
  • limits of insurance
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4
Q

Define replacement cost Option:

A

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

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5
Q

Define valued basis

A

Property is appraised and pays just that. No Depreciation.

Specialty items, Fine Art, jewelry, antiques.

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6
Q

True or False

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

A

False.

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

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7
Q

What are the three forms of misrepresentation?

IA

A
  1. False description of property to the Prejudice of insurer
  2. Misrepresentation of material fact
  3. Fraudulent omission of a material fact
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8
Q

Is property of others covered?

IA

A

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

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9
Q

True or false
Insurance transfers with the property
IA

A

False

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

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10
Q

True or false

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

A

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

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11
Q

How does an insurer terminate coverage?

IA

A

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

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12
Q

How does an insured cancel coverage?

IA

A

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

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13
Q

What are the requirements of the Insured after loss?

IA

A
  • 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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14
Q

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

A

Prorate. Sent by if insurer cancels

Short rate prorate - admin fees, insured request cancelled

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15
Q

What happens if fraud occurs in the proof of loss?

IA

A

Claim invalid not covered

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16
Q

Who can give proof or notice of claim?

IA

A

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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17
Q

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

IA

A

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

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18
Q

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

A

True

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19
Q

How you do you resolve a disagreement in value?

IA

A

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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20
Q

When is loss payable?

IA

A

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

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21
Q

What can the insurer choose instead of cash payment?

IA

A

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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22
Q

How is notice sent?

IA

A

Insurers send notice to the last known address of the insured

Insurance sends to Chief agency to provincial head office

23
Q

Define innocent party exemption

A

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

24
Q

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

A

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

25
Q

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

A

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

26
Q

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

A
  • 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
27
Q

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

A

A percentage of A’s limit- can be increased

28
Q

Name three expenses covered under coverage D?

A

Additional Living expenses

  1. Fair rental value
  2. Extra expenses to maintain normal standard of living
  3. Prohibited access
29
Q

Common extensions of coverage in Section 1

A

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

30
Q

What are the three types of homeowners insurance?

A

Basic
Broad
Comprehensive

31
Q

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

A

Covers named perils only listed on the policy.

Fire, lightning, explosions, smoke, falling object, riot, wind - hail

32
Q

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

A

All risks, anything not excluded is covered

33
Q

What does tenant insurance cover?

A

Personal property, tenant improvements, liability

34
Q

What is the limit of coverage D on tenant insurance?

A

20% of coverage C

35
Q

Name some common endorsements for personal property policies

A

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

36
Q

What are the three unique coverages for condo insurance

A
  • unit Improvement and betterments
  • loss assessment
  • unit additional protection
37
Q

Personal property special limits- all peril

What has a limit of $2,000

A

Business books and tools on premise

Securities

38
Q

Personal property special limits- all peril

What has a limit of $2,500

A

Personal property of students away

Software

39
Q

Personal property special limits- all peril

What has a limit of $1,000

A

Spare Auto Parts

Watercraft

40
Q

Personal property special limits- all peril

What has a limit of $200

A

Money and bullion

41
Q

Personal property special limits- theft only

What has a limit of $2,000

A

Jewelry, watches, furs

42
Q

Personal property special limits- theft only

What has the limit of $1,000

A

Manuscripts, stamps

Card collection

43
Q

Personal property special limits- theft only

what has a the limit of $500

A

I want to ride my bicycle

44
Q

Give some examples of a domestic motorized vehicle

A

Lawn mower, snow blower, wheelchair and equipment

45
Q

What is covered under broad form for home insurance

A

Basic coverage for C

Coverage for A B D apprehensive

46
Q

What is covered under an endorsement for personal property fine art

A 
Smoke damage
Earthquake
Insider theft including tenant or employee
Flood, sewer backup, seepage
Scratching, breaking can be added
47
Q

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

A

Tides, tsunami, storm surges

No guaranteed replacement cost coverage

48
Q

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

A

5% of the dwelling limit

49
Q

define Warranty

A

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

50
Q

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

A

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

51
Q

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

A

False.

Water hammers not covered. All other explosions are covered

52
Q

under a basic form

What kind of smoke damage is covered?

A

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

53
Q

Under a basic form

When is vandalism/malicious acts excluded:

A

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

54
Q

Under a basic form

When is damage by windstorm/hail excluded:

A

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

Alberta General Insurance- Level 2 (14 decks)

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