Property losses Flashcards

1
Q

What does MD stand for

A

Material damage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Material damage policy

A

Provides a sum of money in the event of movable or immovable property becoming lost, destroyed or damaged

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What would a land MD policy protect from

A

From being destroyed or polluted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the form of indemnity usually in MD policies

A

Reinstatement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Perils in an MD policy

A

Flood, Fire, storm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Movable property

A

Included P&E , stock, office contents, household contents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Durable goods / white goods

A

Furnisher and appliances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the form of reinstatement on durable goods

A

New for old

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Consumer goods

A

Curtains, clothing etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the form of reinstatement on consumer goods

A

Cost replacement less ware and tare

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

All risks policy

A

Covers everything except for what is listed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define fire

A

Must be sudden and accidental, requires slow build up of heat (conflagration), ignition, heat and visible light.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Can fire be an implied term

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Is arson usually covered in MD policies?

A

Yes as long as the insured had nothing to do with it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Is the damage caused by extinguishing a fire covered by a fire MD policy?

A

Yes as the PC was a fire.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Theft

A

Dishonest apprehension of property with the intention of permanently depriving you of it.

17
Q

Burglary

A

The crime of entering and stealing / attempting to steal. Must be forceful

18
Q

What would invalidate a burglary claim?

A

If the door was unlocked

19
Q

Do burglary policies cover employees robbing form the company?

20
Q

Hard fraud

A

Insuring something that doesn’t exist

21
Q

Soft fraud

A

Exaggerating the claim

22
Q

What happens when the cost of repair is higher than the cost of replacement

23
Q

What is covered in partial loss?

A

The cost of repairs

24
Q

Explain indemnity on an MD policy for stock in process

A

Cost of labour + raw materials + overheads up until the point where production stopped

25
Explain indemnity on an MD policy for completed stock
Cost of labour +raw materials +overheads
26
Explain indemnity on an MD policy for raw materials
Invoice cost
27
Methods of recovery
Salvage, tortfeasors, other insurer under average
28
tortfeasors
Suing the responsible party under tort
29
Steps in assessing property claims
1 protect from further damage 2 inspect property and determine if the loss falls under an insured peril 3 Determine subrogation or contribution 4 Establish the value of the property and damage 5 Settlement with insured
30
When do you subrogate and when do you look for contribution
Contribution when there is a second insurer, Subrogate when there is a negligent party