Caib 2 - Chapter 3

Front 1

3 leading causes of fire losses in Canada

Back 1

Misuse of ignition

Arson

Electrical malfunction

Front 2

When is the policy period start date applicable on most policies

Back 2

12:01 am at the insured's address

Front 3

If the insurer pays the full amount of the claim to the insured but there is a mortgagee listed, does the mortgagee have any rights of action against the insurer?

Back 3

Yes. The insurer can be called upon to pay the full amount of the claim again to the mortgagee.

Front 4

Why do most insurers not provide a breakdown of charges for coverages provided?

Back 4

To keep the information from the competition

Front 5

Fire policies insure against 2 other perils. What are they?

Back 5

Lightning

Explosion of natural, coal or manufactured gas

Front 6

Why is it important for brokers to understand the workings of the fire policy?

Back 6

It is the basis for all other policies

Front 7

Identify one condition that serves to increase the physical hazard in a risk and is excluded from the fire policy.

Back 7

Vacancy

Front 8

Summarize the bylaws exclusion

Back 8

Any increase in costs to rebuild/repair after a loss to comply with municipal bylaws are not insured by the policy

Front 9

Summarize the removal clause

Back 9

Property was necessarily removed to prevent further loss

Amount of coverage is limited to amount of insurance remaining after payment of original loss

Coverage is limited to 7 days at unnamed location

Front 10

Summarize the debris removal clause

Back 10

Covers removal of debris from insured premises after loss or damage to insured property from an insured peril

Front 11

List the insured perils on a named perils policy

Back 11

Wind

Explosion

Lightning/fire

Leakage from fire protective equipment

Smoke

Impact by aircraft/spaceship/land vehicle

Riot/vandalism/malicious acts

Front 12

The following questions are True or False for the Named Perils policy

Back 12

True or false

Front 13

Coverage is excluded for damage to electrical devices/appliances by lightning

Back 13

False

Front 14

No coverage for explosion of a boiler that is owned/operated/controlled by insured

Back 14

True

Front 15

A tenant never needs to buy a Boiler and Machinery policy

Back 15

False

Front 16

Coverage is provided for explosion of pressure vessels not exceeding internal pressure of 25 ppsi

Back 16

False

Front 17

Impact losses include glass breakage due to rocks thrown up by a customers vehicle

Back 17

False

Front 18

Damage to insured property by a land vehicle driven by the insured/employee is not covered

Back 18

True

Front 19

Coverage provided is for cumulative damage

Back 19

False

Front 20

Riot includes coverage for freezing of water pipes resulting from the disruption of power by employees who have been locked out

Back 20

False

Front 21

No coverage for theft under the peril of riot/vandalism/malicious acts

Back 21

True

Front 22

Damage from smoke is covered if it is from the sudden, unusual and faulty operation of a stationary furnace

Back 22

True

Front 23

Damage to stock from accidental discharge of a sprinkler system is covered

Back 23

True

Front 24

Insured must provide evidence that interior damage by windstorm/hail was due to an entrance that was caused by such windstorm/hail for the insurer to pay the loss

Back 24

True

Front 25

What is the purpose of incorporating extensions of coverage into the policy

Back 25

To broaden coverage and make policies more competitive

Front 26

Do the limits of coverage to each extension increase the limits of liability.

Back 26

No. If the limits gave been fully paid out to cover other losses then there is no coverage under extensions.

Front 27

Summarize coverage for loss to personal property of officers and employees

Back 27

Max of $250 per employee. Applies at the locations listed on the declarations page.

Front 28

Summarize the coverage of building damage by theft

Back 28

Insured must own property

Max of $2500

Available on broad form only

Front 29

Summarize the coverage for growing plants in the open

Back 29

Damage by named perils excluding windstorm/hail

$500 per plant or

$5000 per occurrence

Front 30

4 coverages included in package policies

Back 30

Property insurance

Business interruption

Liability

Crime

Front 31

5 qualities of a risk that will influence the amount of rate credit given

Back 31

Age

Sprinklered

Alarmed

Occupancy

Claims free

Detachment

Increased deductible

Front 32

2 advantages of a package policy

Back 32

Simplicity of application

Costs determined on the spot

Adequate protection for smaller businesses

Broad coverages eliminate many claims problems

Front 33

2 disadvantages of package polcies

Back 33

One size does not fit all

No standard package policy forms.