Caib 1 - Chapter 3 Study Guide Questions

Front 1

Identify four perils that mobile homes are more susceptible to than conventional homes

Back 1

Fire, Windstorm, Hail, Transportation

Front 2

Identify the purpose of "tie downs"

Back 2

To provide greater stability against windstorm

Front 3

Explain the purpose of the "dent clause"

Back 3

To exclude payments unless the exterior siding has been actually torn or punctured by the storm

Front 4

Identify two expenses included in the "Emergency Removal Expense" and state the amount available

Back 4

Expenses incurred in disconnecting water & power services; towing or transporting costs

Front 5

Identify two exclusions to the Mobile Home Insurance Form (IBC 1157)

Back 5

Loss or damage caused by moving; Loss due to conversion, embezzlement or secretion by any person in possession of the building

Front 6

Identify four prospects for a Tenant's package policy

Back 6

Those living in apartments; those renting a dwelling or any portion of it; those who, as a part of their remuneration, received the use of a dwelling; owner(s) of a business who occupies private living quarters in a mercantile or commercial building owned by the business

Front 7

Identify two items normally insured within the definition of personal property.

Back 7

Improvements or betterments made by or acquired at the expense of the tenant; Up to $500 for the following damage (excluding fire damage) to the portion of the building occupied by the insured (damage resulting from theft or attempted theft, and damage caused to the interior if the building by vandalism)

Front 8

Define "condominium"

Back 8

A system of separate ownership of individual units in a multiple unit dwelling

Front 9

Identify the two items that the Condominium Corporation is responsible to insure

Back 9

The value of the building (as it was originally constructed), including the vale of those units owned by its members AND the value of the common elements

Front 10

Identify three "common elements"

Back 10

Parking area, Landscaping, Recreational areas

Front 11

In addition to personal property, identify the three unique coverages available to unit owners

Back 11

Coverage UI - Unit Improvements & betterments; Coverage U2 - Loss Assessment; Coverage U3 - Unit Additional Protection

Front 12

Under Coverage U2, identify four situations where a special assessment may be levied against each unit owned

Back 12

Under insurance; application of a co-insurance penalty, cause of the loss is not an insured peril or is specifically excluded under the Corporation's policy; breach of policy condition

Front 13

The Seasonal Resident form is used to insure premises used on a seasonal basis. Coverage is available for Named Perils, the same as those provided by the Homeowners Basic Form with two important exclusions or conditions, which are:

Back 13

No coverage provided for the peril of transportation AND the following coverages are provided only when indicated on the Coverage Summary page: burglary or robbery, vandalism or malicious acts, glass breakage.

Front 14

On seasonal residence, some insurers will agree to provide the broader coverages of the Homeowners forms, subject to certain eligibility requirements.

Back 14

Principal residence must be insured with same insurer; Building must be constructed as a year round residence and occupied at least one day in a 60 day period throughout the year; building not rented to others; primary heating must be by thermostatically controlled furnace or electricity; building must be accessibly by maintained roadway year round

Front 15

Identify the five underwriting guidelines most insurers follow before they will provide a dwelling under construction with an "All Risk" policy

Back 15

1. Coverage limited to single or two family dwellings; 2. Dwelling must be owner occupied upon completion of construction; 3. Coverage must be purchased not later than the completion of the foundation; 4. Amount of insurance purchased must be no less than the estimated completed value; 5. Coverage limited to one year

Front 16

List three exclusions generally contained in rental dwelling or revenue property policies.

Back 16

Vandalism or malicious acts, sewer back-up and theft

Front 17

Define "endorsement"

Back 17

An extra sheet(s) or slip(s) of paper attached to the policy indicating in writing that the insurer and the insured have agreed to a change in the terms of the insurance contract

Front 18

List five functions that endorsements serve

Back 18

Provide coverage for excluded property or perils; increase limits for property subject to Special Limits of Insurance; broaden coverages; decrease the deductible; remove coverage

Front 19

Identify six objects that are generally regarded as "fine arts"

Back 19

Paintings, pictures, valuable rugs, marbles & bronzes, rare books, manuscripts, rare glass

Front 20

Identify three perils that are included in the Fine Arts form that not included under either Homeowners forms

Back 20

Marring or scratching; All sources of Smoke; Earthquake

Front 21

List three exclusions to the Fine Arts form

Back 21

1. Breakage unless caused by perils named in this endorsement; 2. Birds, vermin, rodents or insects; 3. Any process or work

Front 22

Briefly explain the special provision of Newly acquired articles (fine arts endt)

Back 22

Up to 25% of the amount of insurance is provided for newly acquired articles. Coverage is limited to a period of 30 days.

Front 23

Briefly explain the special provision of Packing and Unpacking (fine arts endt)

Back 23

Condition of endorsement that fine art be packed and unpacked by competent packers

Front 24

Identify six types of high value property that would be insured under a "personal articles" endorsement

Back 24

Cameras, projectors, films & accessories; Firearms; Furs; Silverware; Stamps & coins; Jewellery, precious stones & watches

Front 25

Identify three perils that are included in the personal articles form that are not included under either Homeowners form

Back 25

1. Loss or damage to sporting equipment due to its use; 2. Accidental loss or damage while actually being worked upon; 3. Snowslide, earthquake, landslide or any other earth movement

Front 26

Briefly explain the "valued coverage" option

Back 26

The insured has an option to purchase coverage on the basis of the agreed value of the object(s) insured

Front 27

Briefly explain the special provision of Partial loss to a coin collection

Back 27

The maximum amount payable for a single article is $250

Front 28

Briefly explain the special provision of newly acquired articles (personal article endt)

Back 28

Up to $5000 additional coverage is provided for newly acquired articles which are of the type already insured by the endorsement. When coverage is provided on a scheduled basis, new acquisitions are covered for 30 days

Front 29

Identify three underwriting considerations of the personal articles form

Back 29

1. When coverage is provided on a scheduled basis, each article must be separately described & specified amount set for each; 2. Coverage is for items used for personal and private purposes only. If coverage is required for property being used professionally or for remuneration, full details are required to be submitted to the insurer; 3. Before agreeing to provide coverage on a valued basis, the insurer may require that an independent appraisal be provided

Front 30

Briefly explain the purpose of the "increased cost - demolition or Construction" Endorsement

Back 30

Pays additional costs which are required to comply with any law regulating demolition, repair or construction of buildings after a loss

Front 31

Briefly explain the special provision of Sprinklered by-law extension

Back 31

The insurer agrees to pay the additional cost of installation or repair to comply with any by-law or ordinance requiring the installation of a sprinkler system, limited to the minimum amount required

Front 32

Briefly explain the special provision of Demolition or Construction extension

Back 32

The insurer agrees to pay the additional cost of demolition, construction or repair to comply with any law regulating demolition, repair or construction of buildings. The insurer will not pay more than the minimum amount required.

Front 33

Briefly explain the purpose and any special provision of the Residence Glass endorsement

Back 33

Adds accidental glass breakage coverage to buildings insured under the policy. Generally not provided on dwellings in the course of construction or on rented or vacant properties

Front 34

Briefly explain the purpose and any special provision of the Sewer Back-Up endorsement

Back 34

Broadens coverage to include loss or damage caused by the backing up or escape of water from a sewer or drain, sump, septic tank, eavestrough or downspout. Some insurers forms restrict coverage to loss or damage caused by water which backs up or escapes from a sewer or drain at or below the level of the lowest floor

Front 35

Briefly explain the purpose and any special provision of the Earthquake endorsement

Back 35

Removes the exclusion for this peril. Coverage is subject to a percentage deductible which is normally no less than 10% of the total amount of insurance on the dwelling

Front 36

Briefly explain the purpose and any special provision of the Vandalism or Malicious Acts endorsement (Seasonal dwellings)

Back 36

Removes this exclusion. Coverage is excluded for loss or damage occurring while a building insured is vacant, in course of construction, to glass constituting part of the building, to property caused by theft or attempt thereat, or caused by insured's spouse or any member of same household

Front 37

Identify the four items, when described on the Coverage Summary page, are insured un the Outboard Motor and Boat policy

Back 37

1. The boat, including permanently attached equipment (except outboard motors); 2. The motor(s), including fuel containers & electric stating equipment or controls supplied as integral equipment by the manufacturer; 3. the boat trailer; 4. Boat equipment, including batteries & battery chargers, oars, oarlocks, boat covers, boxes, cushions, flares, life preservers, fire extinguishers, horns, pumps & similar equipment

Front 38

Identify two types of losses to which this form will respond

Back 38

Transportation losses & collision with underwater rocks and other objects, including objects floating on the water

Front 39

Identify three exclusions common to the Outboard Motor & Boat policy form

Back 39

1. Accumulative damage, however caused; 2. Wear & Tear, gradual deterioration, latent defect, mechanical breakdown, corrosion, rust, dampness of atmosphere, freezing or extremes of temperature; 3. While insured property is rented or leased to others, used to carry passengers for compensation or being operated in any race or speed test

Front 40

Briefly explain the "Loss of Use" coverage provided by the Outboard Motor & Boat policy form

Back 40

Limited coverage in the amount of $20/day subject to $200 limit during policy period, for the rental of a substitute motor and/or boat when the insured watercraft is damaged by an insured peril

Front 41

Briefly explain the "minimum retained premium" provision of the Outboard Motor & Boat policy form

Back 41

Clause limiting the amount of premium to be refunded to the insured if the coverage is cancelled during the policy term

Front 42

Briefly explain the purpose of the "Travel Trailer Floater".

Back 42

Removes the exclusion for owned trailers and their contents present on all habitational forms. Coverage is generally on an "all risks" basis and restricted to losses occurring in Canada and the continental USA. No need to purchase additional physical damage coverage under separate auto policy.

Front 43

Identify five other types of property for which special endorsements are available

Back 43

Motorized vehicles such as golf carts, ATVs and snowmobiles; horses & livestock; bicycles; business property; sports equipment, including sportswear