Property Insurance

Question 1

First Party Insurance

Answer 1

Protects the named insured and others with insurable interests against loss to the insured property.

Question 2

Insurable Interest

Answer 2

A person who is disadvantaged due to a loss and financially benefits from the ongoing existence of it.

Question 3

Real Property

Answer 3

Fixed ex. Land, buildings

Question 4

Fire Insurance Basic

Answer 4

Fire,
Explosion of natural, coal or manufactured gas.
Lighting

Question 5

Proximate Cause

Answer 5

An event or unbroken chain of events that leads directly to a loss.

Question 6

Peril

Answer 6

The event that causes a loss.

Question 7

Named Peril

Answer 7

A peril that is named or listed on a policy

Question 8

All Risk

Answer 8

Any peril that is not excluded

Question 9

Multi-peril

Answer 9

Multiple lines of insurance packaged together in one policy.

Question 10

Physical Hazard

Answer 10

An agent, fact or circumstance that can cause harm with contact. ex. faulty wiring

Question 11

Moral hazard

Answer 11

Has a human element. ex. smoking

Question 12

Three parts of property insurance Policy

Answer 12

1. Coverage Summary and Declarations
2. Policy Wordings
3. Endorsements

Question 13

Replacement Cost Value RCV

Answer 13

Insurer replaces at replacement cost without any deduction for depreciation

Question 14

Guaranteed Replacement Value GRV

Answer 14

Insurer guarantees the cost of replacement or repair to a dwelling building even if it exceeds the limit of insurance on the building.

Question 15

Co-Insurance

Answer 15

a clause whereby the insured shares in the loss with the insurer if they are under insured.

Question 16

Contract - 5 Elements

Answer 16

1. Agreement
2. Consideration
3. Legality
4. Legal Capacity of Party
5. Genuine Intention

Question 17

Statutory Conditions

Answer 17

1. Misrepresentation - voids policy
2. Property of Others - Only the insured is covered
3. Change of Interest - No longer own due to change of title or interests
4. Material Change - Anything that changes the agrees upon contract
5. Termination - insured (cancel anytime) insurer ( 5 days hand delivered, 15 days registered letter with refund
6. Requirements after loss - insured - forthwith give notice in writing
   Proof of loss – signed by notary soon as
   possible
   insurer - 30 days - notify insured of decision
   60 days - cash or payment
   45 days - can start replacing
7. Fraud
8. Who may give notice and proof - Only the named insured or agent
   thereof.
9. Salvage - insured - save things from future loss.
10. Entry, control and abandonment - cannot abandon - insurer must have
    access.
11. Appraisal - mediation is cheapest
12. When loss is payable
13. Replacement
14. Action - Insurer has one year.
15. Notice - Registered Letters to last known address

Question 18

Home Owners Policies Section 1

Answer 18

A. Dwelling - amount insured
B. Detached outbuildings 10% of A
C. Personal Property 80 to 100%
D. Additional Living Expenses 20 % of A

Question 19

Faculative

Answer 19

Insurers looking for reinsurers