Caib 2 Chapter 3 Policy Forms

Front 1

What are the leading causes of fire?

Back 1

Failure of electrical or mechanical equipment, arson, misuse of source of ignition.

Front 2

What information is always shown on the declaration page?

Back 2

Names of party to the contract, the policy period, loss payable, summary of coverage and amount insured liable for, rate and premium, the subject matter of the insurance.

Front 3

What two other perils must be insured on a fire policy?

Back 3

Explosion by coal, natural or manufactured gas; lightning.

Front 4

What provisions are necessary for the removal extension of coverage?

Back 4

Coverage is provided for property moved to another location if necessary to remove to prevent loss. In the event of a loss the amount of insurance is limited to the remaining insurance after paying losses at the policy location.

Front 5

What can be claimed under the debris removal extension?

Back 5

If any money left after paying loss, the insured can use up to 25% of policy for debris removal. The policy will also remove windstorm debris which has been blown onto the location.

Front 6

What perils are excluded from the basic fire policy?

Back 6

1. Loss or damage to electrical appliances from artificial electrical currents. 2. Loss to goods undergoing application of heat. 3. Loss caused by war, invasion, act of foreign enemy. 4. Loss caused by nuclear incident.

Front 7

What property is excluded from basic fire policy?

Back 7

Money, bullion, stamps, or securities. Autos, aircraft, watercraft. Property at vacant location. Loss related to enforcement of by laws.

Front 8

What types of losses could be associated with by-laws?

Back 8

Use of improvement construction material. Installation of fire systems. Installation of ramps and accessibility features. Observing min/max regarding height and floor area.

Front 9

What perils are insured under the Named Perils form?

Back 9

Fire and lightning, smoke, wind and hail, impact from land, air, space vehicle, leakage from fire protection system, explosion, riot.

Front 10

What is covered under named perils, explosion?

Back 10

Coal, natural and manufactured gas. Losses from exploding portable propane, acetylene or argon tanks.

Front 11

What is covered under named perils, smoke?

Back 11

Only sudden, faulty operation of furnace causing smoke.

Front 12

What are the exclusions to impact under named perils?

Back 12

No damage or loss to vehicle causing the loss. Caused by vehicle being taxied inside a building. Owned or in control of insured or employee.

Front 13

What are the exclusions to riot under named peril?

Back 13

No coverage for work interruption cause by employees walking off the job or change in temp. No coverage for flood. No coverage due to theft or attempted theft.

Front 14

Under the broad policy, would damage to water mains or sewers outside your home be covered?

Back 14

No, insured has no insurable interest.

Front 15

Under the broad policy, what coverage is provided for growing plants and trees.

Back 15

None, sucker.

Front 16

What is the coverage provided for animals, fish and birds under the broad form?

Back 16

Loss due to named perils and theft only.

Front 17

What are examples of property exclusions that have no coverage?

Back 17

Money, stamps, bullions, cash cards; auto, aircraft, watercraft.

Front 18

What is the loss payable on $3,000 of jewellery stolen from a business which has a broad form policy?

Back 18

$1,000 would be paid. If it was lost to a named peril like fire, $3,000 would be covered.

Front 19

Is there coverage for property loaned, rented or leased to others or property sold but not yet paid for?

Back 19

No.

Front 20

Is there coverage for property in the possession of a sales rep?

Back 20

No, not while off premises.

Front 21

What is the loss payable limit on a parking lot?

Back 21

$10,000

Front 22

What is the limit on exterior glass?

Back 22

$2,500 unless loss or damage cause by named peril.

Front 23

What are the excluded perils on the broad form policy?

Back 23

Earthquake, flood, seepage, dampness/dryness, rodents/insects/vermin, delay or loss of market, war, nuclear incident, dishonesty, earth movement, explosion, settling, by laws, drugs activity.

Front 24

Other losses not not insured?

Back 24

Wear and tear; gradual deterioration; latent defect; the cost of making good; mysterious disappearance

Front 25

What are some advantages to choosing broad over named? (6)

Back 25

Impact by insured or employee; theft; roof collapse; rupture of hot water heater up to 24 inches in diameter; all sources of smoke; freezing of waterlines

Front 26

What are some common extensions of coverage under broad?

Back 26

Removal; debris removal; personal property of employees and officers; building damage by theft; growing plants and trees

Front 27

What is the coverage under personal property of employees and officers?

Back 27

- Must be obligated to keep insured; coverage up to $250, loss must have occured on premises

Front 28

What is the growing plants and trees extension coverage?

Back 28

Indemnifies damage cause by named perils, except wind, for up to $500 per tree/$5,000 per occurance.

Front 29

Do deductibles apply to extensions?

Back 29

Yes.

Front 30

What features might get a risk rate credits?

Back 30

Sole occupant; monitored alarms; newer construction; higher deductible; claims free, has sprinklers

Front 31

What advantages are there to brokers using package policies?

Back 31

Rates available on the spot; simple form; broad coverage eliminates claims problems.

Front 32

What is the purpose of extension products?

Back 32

To broaden coverage and be more competitive.

Front 33

What a four coverages ordinarily included in commercial package policies?

Back 33

Liability; crime; business interruption; property

Front 34

What are two disadvantages to using the package policy approach?

Back 34

One size does not fit all; no standard forms.

Front 35

What exclusions might you warn delis and restaurants about?

Back 35

Wear and tear; changes in temperature; interruption in supply of utilities

Front 36

What exclusions might you warn a furniture store about?

Back 36

Marring, scratching or crushing (under shrinkage); dishonesty of employees

Front 37

What exclusions might you warn a repair shop about?

Back 37

Wear and tear; cost of making good faulty workmanship; loss to property while being worked on.

Front 38

What exclusions might you warn a small retail store about?

Back 38

employee dishonesty; mysterious disappearance - shortage upon taking inventory.