Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
66 Cards in this Set
- Front
- Back
|
Homeowners forms begin with a page called a guide to your policy the guide begins with what? |
- two explanatory statements - agreement between the insurer and the insured |
|
|
What is included in the first explanatory statement: property coverages? |
This describes the insurance as consisting of property coverages, including coverage of the insurance dwelling, detached private structures, personal property, and in certain circumstances additional living expenses |
|
|
What is included in the second explanatory statement: liability coverage? |
This describes the insurance regarding liability coverage, including coverage for the insurance legal liability for unintentional bodily injury to others or damage to their property arising out of the insurance personal actions. This also includes voluntary medical payments, voluntary property damage, and voluntary compensation for residenceand employees |
|
|
What is stated in the agreement between the insurer and the insured? |
It says simply that the insurer provides the insurance described in the policy in return for payment of the premium and subject to the specified terms. All monetary amounts are expressed in Canadian currency |
|
|
Describe the definition section |
- the first step in reading a policy is to review the definitions. The terms are presented in alphabetical order and may apply anywhere in the policy - definitions of significant terms simplify policy preparation and ensure clarity and uniformity in the use of certain words in the form |
|
|
The IBC homeowners forms begin with opening statements to the insured and then two sections that help the insured and other interested parties to review the policy form and to understand its provisions. What is included in the opening statements? |
- advise the insured that the policy contains a clause that may limit the amount payable under the policy - note various provisions and limitations of the policies coverage and advise the insured to read the policy carefully |
|
|
Describe business definition |
Habitational policies are not meant to cover business activities that form the primary source of income for the insured. Some insurers May cover a small, non-complex business activity for no additional premium, but it must be specified on the coverage summary page. More commonly, insurers prefer to offer a home-based business endorsement at an additional premium |
|
|
Describe cash cards definition |
Cash cards, also known as gift cards, store a cash value by electronic means for use as a mode of payment, without a pin and without access to a bank or other account |
|
|
Describe civil authority definition |
A civil authority includes any person acting under the authority of federal, provincial, territorial, or municipal legislation to protect persons and property in the event of an emergency |
|
|
Describe collection definition |
An accumulation of similar objects gathered for novelty, personal interest, rarity, or value, among other possibilities |
|
|
Describe data definition |
Representation of information or concepts, in any form. |
|
|
Describe data problem definition |
- erasure, destruction, corruption, misappropriation, misinterpretation of data - error in creating, amending, entering, deleting, or using data - inability to receive, transmit, or use data Data are not necessarily electronic |
|
|
Describe domestic water container definition |
Includes - hot water heating tanks and their piping and radiators - hot water storage tanks and associated piping - water reservoirs and dispensers, weather contained in an appliance or not - bathtubs, tanks, or toilets - aquariums or waterbeds - outdoor private swimming pools or wading pools - ornamental pools or fish ponds - hot tubs |
|
|
Describe dwelling definition |
Used to distinguish the residence building from out buildings or other structures that may be on the premises. |
|
|
Describe flood definition |
Waves, tides, tidal waves, tsunami, dam breaks, seiche, or the rising of, the breaking out, or the overflow of any body of water or water course, whether natural or human-made |
|
|
Describe fungi definition |
Includes but it's not limited to any form or type of mould, yeast, mushroom or mildew, whether or not allergenic, pathogenic, or toxogenic, and any substance, vapor, or gas produced by, emitted from, or rising out of any fungi or spores or resultant mycotoxins, allergens, or pathogens |
|
|
Describe groundwater definition |
Water found in the cracks and spaces in soil, sand, and rock beneath the ground surface. |
|
|
Describe insured definition |
Includes people other than the named insured, though those others are not named anywhere in the policy. They include, while living in the same household - the insured's spouse - the relatives of either the insured or the insured's spouse - any person under 21 in their care - dependent child who is temporarily living away from the principal residents while attending school or university |
|
|
Describe premises definitions |
Premises does not include municipal property adjacent to the insured premises, including boulevards, sidewalks, or roadways |
|
|
Describe residence employee definition |
A residence employee works for the insured, part-time or full-time, in connection with the maintenance or use of the premises but not with the insured's business. The term includes a babysitter or someone who takes care of yard duties, cutting grass, snow removal, and other occasional household tasks, working under the insured's direction Does not include contractors |
|
|
Describe spores definition |
Spores are part of fungi or mould and conform as quickly as 24 hours after a loss. The term spores includes but it's not limited to one or more reproductive particles or microscopic fragments produced by, emitted from, or arising out of any fungi |
|
|
Describe spouse definition |
Includes not only legally married partners but also heterosexual and same-sex partners who live together in a conjugal relationship outside of marriage and have continuously done so for at least 3 years. If the partners are the natural or adoptive parents of a child, the period is reduced to one year |
|
|
Describe surface water's definition |
Water on the surface of the ground that is not usually there. It could be due to a heavy downpour of rain or a rapid melting of snow or ice that cannot dissipate quickly enough |
|
|
Describe vacant definition |
The circumstance where, regardless of the presence of furnishings, all occupants have moved out with no intention of returning and no new occupant has taken up residence. In the case of a newly constructed home, no occupant has yet taken up residence. |
|
|
Describe watermain definition |
A pipe and a water distribution system conveying consumable water but not wastewater. |
|
|
What does coverage A apply to? |
The dwelling itself and other property on the premises. This includes structures attached to the house, such as carports, solariums, conservatories, patio covers, and decks. Outdoor swimming pools and their attached equipment And permanently installed outdoor equipment on the premises like fences, gates, gas barbecues connected to the natural gas pipeline, and garden lighting, as well as swings, children slides, where other similar property that remains fixed in the yard or garden |
|
|
What does coverage B apply to? |
Detached private structures. They must be separated from the dwelling by a clear space or be connected to the building only by a fence, utility line, or other similar connection. Common detached structures are detached garages, Garden sheds, greenhouses, pergolas, freestanding sundecks, or other similar structures |
|
|
What does coverage C apply to? |
The term includes all movable or temporary property - furniture, clothing, even stocks or bonds. |
|
|
In the policy wording, coverage C is broken down into what three parts? |
- contents of a dwelling and personal property owned, worn, or used on the premises - property away from the premises - property of a student |
|
|
What are the three types of property excluded under coverage C? |
1. Motorized vehicles or their equipment (except for watercraft, electric golf caddies, lawn mowers, other gardening equipment, snow blowers, wheelchairs, or medical scooters with more than two wheels and specifically designed to carry a person who has a physical disability, electric bicycles and electric scooters with a maximum speed of 32 km per hour or less on level ground, and electric vehicles intended for children with a maximum speed of 10 km per hour or less on level ground) 2. Camper units, truck caps, trailers, or their equipment 3. Aircraft or their equipment |
|
|
What does coverage D apply to (3)? |
- additional living expense - Fair rental value - prohibited access |
|
|
What is additional living expense? |
A loss caused by an insured peril May render the insured dwelling unfit for occupancy or force the insured to move out while repairs are being made. Under the additional living expense the insurer pays for any necessary increase in living expenses, including moving expenses incurred by the insured, so that the insurance household can maintain its normal standard of living. The indemnity. Is not limited by the expiry date of the policy and will continue until the dwelling is fit for occupancy or until the limit is used up, whichever comes first |
|
|
What is fair rental value? |
The insured is permitted to rent a part of the dwelling or detached private structures to a tenant or hold it available for rent, even if the insured has not informed the insurer, so long as the insurance still personally occupies the premises. If an insured peril renders the building unfit for occupancy, not only will the insured be displaced, but the insured may also lose the rental income paid by a tenant. |
|
|
What is prohibited access? |
This applies when a civil authority, such as the police or other authorized emergency personnel, government representatives, or military representatives, or does the insured dwellings occupants to move out for one of two reasons - a neighboring premises has sustained damage that poses danger to the insured premises - a mass evacuation is required as a direct result of a sudden an accidental event within Canada or the United States |
|
|
What are the six causes required for mass evacuation |
- flood - earthquake - war risks - terrorism - nuclear incident - radioactive contamination |
|
|
Extensions of coverage serve what four purposes? |
- temporary coverage for additional exposures - increase or add coverage for lost contents not contemplated in the limits for the primary coverages - expand or restrict the policies coverage under specific situations - encourage loss prevention or mitigation |
|
|
Explain what the extension, moving to another home, covers |
Coverage for property in transit and while getting situated at the new residence. Coverage runs for 30 days from the time the move from original residence commences, or the expiration date of the policy, whichever comes first. This extension is limited to moves within Canada |
|
|
Explain what the extension, property removed, covers |
Provides automatic coverage for property removed to a temporary location to prevent further loss or damage to that property. Applies either for 30 days from the date that removal of the property begins, or until the policy expires, whichever comes first |
|
|
Explain what the extension, credit or debit cards forgery and counterfeit money, includes |
This covers loss arising from unauthorized usage of insured credit or debit cards, forgery of checks, acceptance of counterfeit currency. Subject to certain limitations |
|
|
What are the six limitations under the credit or debit cards, forgery and counterfeit money extension? |
- coverage applies only to cards issued to, or registered in the name of, and personally used by, the named insured or person included by definition of insured - no coverage for loss arising from use of card by member of household or someone interested with the card - no coverage for liability arising from cards issued to the insured's employer or to the insured's business - insured most promptly notify issuer of card that it has been lost or stolen - insured must have complied with all the credit agreement conditions - coverage also available for lost suffered due to insured's acceptance, in good faith, of counterfeit Canadian or American currency |
|
|
Explain what the extension, change of temperature, includes |
Deals with consequential losses arising from damage to power supply for refrigerator, freezer, etc, where the loss originates from an insured peril |
|
|
Explain what the extension, refrigerator or freezer food, includes |
Deals with spoilage of food and freezer itself and it applies when the loss or damage has been caused by accidental interruption of the electrical power, on or off premises, due to mechanical breakdown of the freezer. There's usually a sub limit and no deductible applies |
|
|
Explain what the extension, data, includes |
Insurer will pay up to a specific amount for duty or licensing fees for the cost of downloading or restoring data for which the insured has paid duty or licensing fees, when the loss of data is caused by an insured peril. Data pertaining to business is not covered |
|
|
Explain what the extension, debris removal, includes |
If coverage A, B, or C limit is not sufficient, then up to 5% of coverage A, B, and C limit can be applied to debris removal costs, in addition to coverage limit in place for the category of property that is being removed |
|
|
Explain what the extension, tear out, includes |
Applies to covered water damage losses when undamaged portions of the dwelling have to be removed or torn apart to reach an area of the leak |
|
|
Explain what the extension, fire department charges, includes |
The charges levied against an insured for municipalities or volunteer fire departments to attend to fight a fire. |
|
|
Explain what the extension, lock replacement, includes |
If Insurance keys are stolen, insurer will pay to replace or relock keys. |
|
|
Explain what the extension, outdoor trees plants and shrubs, includes |
A specific percentage of the amount insurance carried on the insured dwelling can be applied to trees, plants, and shrubs on the insured premises. The insured perils are fire, lightning, explosion, impact by an aircraft or land vehicle, riot, and vandalism or malicious Acts Specific dollar amount applied to anyone item, including debris removal |
|
|
Explain what the extension, arson conviction reward, includes |
Pays for conviction for arson in connection with a fire loss due to insured's property. |
|
|
Explain what the extension, inflation protection, includes |
Increases amount of insurance for inflation since inception/most recent renewal, anniversary or policy change. |
|
|
What is the insured perils clause? |
Describes the causes of loss to ensure property that may be covered under the policy. |
|
|
What is the notice to authorities clause? |
Requires that loss or damage due to malicious acts, burglary, robbery, theft, or attempted that to be immediately reported by the insured to the police or other relevant law enforcement authority. |
|
|
What is the exclusions clause? |
The exclusions list types of property that are not insured, and perils that are never or sometimes not insured against |
|
|
Define: Guaranteed replacement cost |
An undertaking by the insurer to pay the cost of repairs to or replace the dwelling 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. |
|
|
What is actual cash value? |
The cost of replacing the property, less any depreciation to it Most insurers expand their definitions to recognize that a fair estimate of depreciation at the time of loss depends on several factors; not only the life expectancy of the property but also its physical condition, it's resale value, and it's obsolescence |
|
|
To qualify for replacement cost coverage, the insured must satisfy what 4 conditions? |
- replacement must be made promptly - replacement must be on the same location - payment will be limited to the cost of repairing or replacing, on the same site, with new materials or property of like, kind and quality, and for similar occupancy - settlement will be made only when the work is completed and then for no more than the actual cost of the work |
|
|
Qualify for guaranteed replacement cost, what three conditions must be met? |
- the amount of insurance on the dwelling building must be kept at not less than the cost to replace the dwelling building, as determined by evaluation guide acceptable to the insurer - the amount of insurance on the dwelling building must not be reduced below the amount determined by the evaluation guide - the insured must notify the insurer within 90 days of the start of work on any improvement, extension, or addition to the building |
|
|
Name six types of personal property that are not eligible for replacement cost coverage |
- Electronic media - other records - antiques, fine arts, paintings and statuary - memorabilia, souvenirs, and collectors items - property that has not been maintained in a good and workable condition - property that is no longer used for its intended purpose |
|
|
Explain the pair and set clause |
If any articles are lost or damaged that were a part of a set, the homeowners forms calculate the loss as a reasonable and fair proportion of the total value of the set. Such lost or damage will not be construed to mean the total loss of the set |
|
|
Explain the parts clause |
Lost or damage to any part of property that consists of several parts will be settled for not more than the insured value of the part lost or damaged, including the cost of installation |
|
|
Explain the deductible clause |
The deductible will apply to the amount of loss and not the limit or sub-limit |
|
|
Explain the amounts not reduced clause |
Automatic reinstatement of the policy limits immediately after a loss |
|
|
Explain the insurance under more than one policy clause |
Where one or more separate policies cover property on a scheduled basis. Typically, this can occur when an insurance has jewelry or other valuable property for which special policies are available We are the insured has other insurance on specifically described property, the homeowners forms become access to that scheduled insurance and will pay only after the scheduled insurance has been exhausted. |
|
|
Explain the subrogation clause |
Subrogation transfers the insured's rights of recovery against others to the insurer and entitles it not to sue in the insured's name when the insurer has made payment or assumed liability |
|
|
Explain the duties after loss cause |
A response to a disturbing number of fraudulent claims. It requires the insured, after submitting a proof of loss and at the insurers request, to submit to an examination under oath, produce relevant documents, and allow the insurer to make copies of them. |
|
|
Explain the statutory conditions clause |
Provides that the statutory conditions apply uniformly to all perils covered by the policy but allows for modifications of those conditions by the policy or endorsements to it |
