Study 9-10: Key terms

Question 1

Collision or upset insurance

Answer 1

An item of coverage in an automobile physical damage policy that insures against loss or damage resulting from the act of striking against something with force or from tipping over.

Question 2

Ridesharing

Answer 2

An arrangement set up by means of a website or mobile app in which a passenger travels in a private vehicle driven by its owner, for free or for a fee.

Question 3

Hostile fire

Answer 3

A fire that occurs in or escapes to a place not anticipated.

Question 4

Friendly fire

Answer 4

A fire that has been intentionally ignited and remains controlled and confined to its intended size and space, such as a fire in a fireplace or a furnace flame.

Question 5

Water hammer

Answer 5

A pressure shock wave induced in plumbing supply systems when a sudden change occurs to the stability of the water, causing a banging noise in pipes.

Question 6

Estimate

Answer 6

The costs a contractor anticipates for a project.

Question 7

Appraisal

Answer 7

An independent professional evaluation of the physical condition and/or market value of an item of real property.

Question 8

Guaranteed replacement cost

Answer 8

An undertaking by the insurer to pay the cost of repairs to or replace the welling building even if it is more than the amount of insurance on the dwelling building, provided certain conditions are met in addition to those that normally govern settlement at replacement cost. Called “enhanced replacement cost” in Quebec.