Section 1 - Property Loss And Overview Flashcards

1
Q

What is the purpose of property insurance cover?

A

Is to protect the interest of persons or entities that have an insurable interest in the subject matter those persons need not be named on the contract yet may still have an interest in the property

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

The dictionary defines property as what?

A

That which one owns the position all positions of a particular owner can also be described as something real and tangible.

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

List some examples of property in the context of property insurance.

A
Buildings and the contents. 
Jewellery and personal effects. 
Stock. 
Plant and equipment. 
Tools.
Fixtures and fittings. 
Money. 
Goods in transit.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A person suffering the loss of or damage to property could be deprived of it what?

A

Use and or enjoyment of at its existence. Consequently that person has suffered an economic loss sometimes referred to as a financial or pecuniary loss.

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

Claims are triggered by the occurrence of?

A

Policy defined events.

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

List four policy defined events.

A

Fire. Water. Burglary. Accidental damage.

Subject to conditions and exclusions attached to the policy.

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

Is it essential to any claim that the claimant has an insurable interest in the lost or damage property?

A

Yes

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

And common-law insurable interest was defined by what case?

A

Lucina V Crawford.

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

When is there an insurable interest?

A

When a person or an entity will benefit from the continuance and sound this of the item and be deprived of its loss or damage.

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

What sections of the insurance law reform act 1985 New Zealand apply to insurable interest?

A

Section 6 in section 7.

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

What is section 6 of the insurance law reform act?

A

Section 6-need for insurable interest in a life policy abolished.

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

Provide an example of section 6 for the insurance law reform act in relation to insurable interest.

A

A typical example is where I wife takes out a life policy on her husband, or where I company takes out a policy on a key employee.

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

What is section 7 of the insurance law reform act?

A

Section 7-need for insurable interest restricted.

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

Provide an example of section 7 of the insurance law reform act in relation to insurable interest.

A

A typical transaction for the purchase of goods with the ownership of the goods does not pass until the invoice has been paid. The receiver may insure the goods already delivered into the position, even though ownership has not actually passed.

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

What is section 13 of the insurance law reform act?

A

Purchaser of land entitled to benefits of insurance between dates of sale and possession.

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

Provide an example of section 13 of the insurance law reform act in relation to insurable interest.

A

Section 13 of the insurance law reform act gives the purchaser of the land session entitlements to claim from the vendor’s insurer should a loss occur.

17
Q

Describe section 4 of the contracts privity act in relation to insurable interest.

A

Section 4 of the contracts privity act 1982 NZ looks at the right of a named party to sue and insurer directly, although not party to the insurance contract.

18
Q

List the titles of practical applications of insurable interest.

A
Sole Owner (Bailee/Bailor)
Lessor/ lessee
Mortgagee/mortgagors
Vendor/purchaser
Trustee/beneficiary
Interest of third parties
19
Q

Describe a sole owner in terms of insurable interest.

A

As a sole owner of a piece of property such as a factory, house or motor vehicle there can be no dispute as to insurable interest this also covers the contract of Bailment.

20
Q

Describe bailment.

A

A contract of bailment arises when one party the bailor delivers good to another the Bailey on condition, and writing or otherwise, that the goods are returned at the end of the period.

21
Q

What are the two classifications of bailment?

A

Gratuitous Bowman and bailment for reward.

22
Q

Describe Lessor and lessee in terms of insurable interest.

A

At lessee may have insurable interest in a property owned by a lessor. This can be due to the leasee operating a business that requires sound this of the property.

23
Q

Describe mortgagee and mortgagor in terms of insurable interest.

A

A mortgagee certainly has insurable interest with respect to the subject matter for which finance (mortgage) was provided. That interest is limited to the undischarged value of the mortgage and less otherwise provided in the mortgage contract.

24
Q

Describe vendor and purchaser in terms of insurable interest.

A

Purchases of property have an insurable interest to the extent of the deposit that might have been paid and any liability that arises due to the contract of sale ordinarily the full purchase price of the property. Section 13 of the insurance law reform act in New Zealand relates.

25
Q

Describe trustee and beneficiary in terms of insurable interest.

A

There is no statutory provision in New Zealand specifically dealing with trustee/ beneficiary rights but both could claim from an insurer by virtue of section 7 of the insurance law reform act.

26
Q

Describe interest of third parties in terms of insurable interest.

A

In establishing such interest, general loss adjusters will need to a certain through ownership documents from claimant in relation to property that may be damage, indicating by home it was purchased and on what basis the purchase was made and whether any finances are a involved.

establish the nature and extent of the insurable interest.