Property losses

Question 1

What does MD stand for

Answer 1

Material damage

Question 2

Material damage policy

Answer 2

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

Question 3

What would a land MD policy protect from

Answer 3

From being destroyed or polluted

Question 4

What is the form of indemnity usually in MD policies

Answer 4

Reinstatement

Question 5

Perils in an MD policy

Answer 5

Flood, Fire, storm

Question 6

Movable property

Answer 6

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

Question 7

Durable goods / white goods

Answer 7

Furnisher and appliances

Question 8

What is the form of reinstatement on durable goods

Answer 8

New for old

Question 9

Consumer goods

Answer 9

Curtains, clothing etc.

Question 10

What is the form of reinstatement on consumer goods

Answer 10

Cost replacement less ware and tare

Question 11

All risks policy

Answer 11

Covers everything except for what is listed

Question 12

Define fire

Answer 12

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

Question 13

Can fire be an implied term

Answer 13

Yes

Question 14

Is arson usually covered in MD policies?

Answer 14

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

Question 15

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

Answer 15

Yes as the PC was a fire.

Question 16

Theft

Answer 16

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

Question 17

Burglary

Answer 17

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

Question 18

What would invalidate a burglary claim?

Answer 18

If the door was unlocked

Question 19

Do burglary policies cover employees robbing form the company?

Answer 19

No

Question 20

Hard fraud

Answer 20

Insuring something that doesn’t exist

Question 21

Soft fraud

Answer 21

Exaggerating the claim

Question 22

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

Answer 22

Right off

Question 23

What is covered in partial loss?

Answer 23

The cost of repairs

Question 24

Explain indemnity on an MD policy for stock in process

Answer 24

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

Question 25

Explain indemnity on an MD policy for completed stock

Answer 25

Cost of labour +raw materials +overheads

Question 26

Explain indemnity on an MD policy for raw materials

Answer 26

Invoice cost

Question 27

Methods of recovery

Answer 27

Salvage, tortfeasors, other insurer under average

Question 28

tortfeasors

Answer 28

Suing the responsible party under tort

Question 29

Steps in assessing property claims

Answer 29

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

Question 30

When do you subrogate and when do you look for contribution

Answer 30

Contribution when there is a second insurer, Subrogate when there is a negligent party