Property Policies And Claims

Question 1

The type of property insurance covers available are many and varied, however they are all designed to provide what?

Answer 1

A sum of money, or replacement items, in the event of loss or damage to insureds property by insured events

Question 2

List the types of property policies?

Answer 2

Household is building, household is content, fire, transit, machinery breakdown, burglary and theft policies.

Question 3

Explain householders building policy.

Answer 3

Household is building design to protect the homeowner against defined event such as fire, water damage, impact and malicious or accidental damage. Most policies written in Australia and New Zealand have replacement conditions attached to them although an underwriter may impose indemnity conditions.

Question 4

Explain household is contents

Answer 4

Designed to protect the owner of contents of the dwelling. This need not necessarily be the owner of the building but it could be a tenant. Generally such policies include cover for the insurer and immediate members of family ordinarily residing with the insured against such to find events as per the building cover plus temporary accommodation etc.

Question 5

Explain conditions and exclusions of property cover.

Answer 5

All unsure of the policy is contain implied in express conditions. Property policies and exception of my while wording is varied from insurer to insurer basically they follow all establish and Established principles and practice. Property policies are also subject to various exclusions and extensions and This will vary from Risk Risk although again following general format.

Question 6

Explain issues relating to property cover

Answer 6

Assumption that all insurers treat defined events in a like manner will lead to incorrect acceptance or declinature of claim. The policy is in effect the evidence of the contract between the insurer and insured and it is a document that will be relied upon in the event of a dispute.

Question 7

Briefly explain duty of disclosure.

Answer 7

There is a duty upon the insured to disclose any relevant facts to an underwriter and adjusters are required to look out and report any apparent non-disclosures as the underwriter needs to consider what effect non- disclosure may have . It is not the responsibility of the adjuster to accept or deny liability for a claim it is for the insurer a principal to the side and act on it.

Question 8

The duty of disclosure applies to what hazards?

Answer 8

Physical and moral hazard

Question 9

Describe physical hazard.

Answer 9

Physical has it refers to the nature and condition of the property insured.

Question 10

What sections are relevant in the insurance law reform act in relation to disclosure?

Answer 10

Section 5, section 6

Question 11

What is section 5 of the insurance law reform act in relation to non-disclosure?

Answer 11

Section 5 applies to missstatements it refers to the insurers ability to void the policy if the statement is made that was substantially incorrect and was material.

Question 12

What is section 6 of the insurance law reform act in relation to non-disclosure and describe.

Answer 12

Incorrectness and materiality. In NZ there is a duty on the insurer to communicate to the insurer every factor material to the contract. A material fact would affect the mind of an insurer in deciding whether to except the risk or whether to alter the premiums. Non-disclosure of a material fact gives the insurer the right to avoid the contract. For the insurer to rely onnon-disclosure statement must be substantially incorrect and the material. The duty of disclosure arises each time a new contract of insurance comes about.

Question 13

What is a moral hazard.?

Answer 13

A moral hazard is the risk due to the possible lack of honesty by the insured. Investigation of moral hazard it is somewhat difficult and is governed by privacy laws. When investigating the insureds credit worthiness or police records it needs to be relevant to the issue. In any event prior consent from the insured and in writing would be required to attain such information.

Question 14

What legislation in New Zealand is relevant in relation to moral hazard?

Answer 14

The privacy act 1993 New Zealand
Official information act 1982 New Zealand
Insurance law reform act.

Question 15

What is the relevant legislation in relation to physical hazard?

Answer 15

The building act 1991 New Zealand.

Question 16

Describe section 10 of the insurance law reform act in relation to disclosure.

Answer 16

In New Zealand section 10 of the insurance the reform act covers agency and confirms that facts disclosed to the representative of the insurer are deemed to have been made to the insurer.

Question 17

Define Proximate cause.

Answer 17

Defined as the effective, or dominant, cause of the loss and it’s not necessarily cause closest in time to win the damage my have transpired. It may be necessary to investigate other causes to be certain of the proximate cause.