4944780
Description
Flashcards by katiejerez, updated more than 1 year ago
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Created by katiejerez
over 8 years ago
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| Question | Answer |
| What are the provisions of the Stated Amount Co-Insurance Clause? | -Insured must file a statement of values with the Insurer representing 100% of value of all property insured, as verified by appraisal or other means. -Must maintain those values throughout the term of the policy. |
| Who does the Insurer agree NOT to exercise the right of subrogation against? | any corporation, firm, individual or other interest with respect to which insurance is provided by the policy |
| What is the provision of the "Sue and Labour" Condition? | obligates the Insured to take all reasonable mean to recover lost or stolen property |
| What is the provision of the "No Benefit to Bailee" Condition? | the policy is not intended to remove the responsibility for the Insured's property from the bailee. |
| What is a submission? | a proposal for insurance which has been presented to the underwriter for consideration |
| What is Individual Risk Underwriting? | it considers individual submissions on their own merit, regardless of the class to which they belong |
| Under Statutory Condition 1, Misrepresentation, what are the three breaches of good faith? | 1. any false description of the property to the prejudice of the insurer 2. any misrepresentation of a material fact 3. any fraudulent omission of a material fact |
| What information has been deemed to be material? | -previous claims -use of business premises by Insured -# of mortgages/encumbrances -existence of other insurance -previous cancellations/refusals -vacancy -fear of damage to property from persons harbouring ill-will towards insured |
| Manuscript Policies | designed for risks having a specialized exposure and for which no standard coverage form exists. |
| What are the 3 rules/guidelines to Reinsurance Policies? | 1. All insurers share in both premiums collected and losses incurred. 2. The contract is between the primary insurer and the Reinsurer. 3. The policy is controlled by the primary insurer and all claims are paid by it. |
| What are the characteristics of a subscription policy? | 1. Participating insurers share in both the premiums and losses 2. Each agreement is usually required to be negotiated separately 3. Lead company normally issues the policy and provides all policyholder's services, including handling claims. |
| What types of exposures are insured by the "Property In Transit" optional coverage extension? | all means of transport, incoming or outgoing goods, courier service, Insured's own vehicles, air, rail. |
| What are the 5 Insuring Agreements of the 3D Policy? | I- Employee Dishonesty (Form A/Form B) II-Loss Inside the Premises Coverage III-Loss Outside the Premises Coverage IV-Money Orders and Counterfeit Paper V- Depositors Forgery Coverage |
| What are Form A & Form B (Employee Dishonesty) called? | A- Commercial Blanket Bond B- Blanket Position Bond |
| What are the 5 supervisory levels of alarms? | -Central Station Service - Monitoring Station Service -Emergency Station Service -Digital Communicator Service -Local Alarms |
| What is the purpose of an alarm system? | -to detect any breach of, or attempt to breach, the physical security of the premises; and -to provide a warning signal so that effective and immediate response can be instituted. |
| What are the four key areas addressed by Crime Riders? | 1. Property covered 2. Perils Insured against 3. Location of property covered 4. Persons causing loss |
| What are the provisions of 'Debris Removal'? (Broad Form or Named Perils) | -covers costs of removal of debris of insured property, as a result of insured loss -coverage included for removal of debris blown on to an insured location by windstorm -amount not considered in determination of ACV for application of co-insurance |
| What are the provisions for the 'Personal Property of Officers & Employees' extension? | -if policy covers equipment, at option of insured, extension can be applied to cover property of officers & employees -if property insured elsewhere, then only covered if Insured is liable -up to max of $250 per officer/employee -applies only at location on Declaration Page or Newly Acquired Location |
| What are the provisions for the 'Building Damage by Theft' extension? | -available on Broad Form only -covers damage from theft, attempted theft or vandalism or malicious acts to building owned by insured by not covered by Broad Form policy or for which insured is liable -max amount of $2500 -glass and lettering or ornamentation is excluded |
| What are the provisions for the 'Growing Plants, trees, shrubs or flowers in the open' extension? | -covers damage caused by named perils (except windstorm or hail) or from theft or attempted theft -up to $500 for each growing plant, tree, shrub or flower, and -up to $5000 for any one occurence |
| What are the advantages to owners who purchase their own transportation insurance? | 1. prompt recovery of losses available directly from the Insurer 2. policy will respond to provide payment for any loss in excess of the liability of the carrier 3.broader perils insured against 4. reduced costs of insurance 5. reporting provision feature provides automatic coverage for all insured's shipments |
| What classes of property are insured under the Builder's Risk form? | 1. all materials owned by Insured or others which will enter into and form part of the completed project 2. landscaping, growing plants, trees, shrubs, flowers, all to enter into and form part of completed project 3. temp buildings, scaffolding, falsework, forms, hoardings, excavation, site prep, etc, only to extent that replacement or restoration is necessary to complete the project. (2 & 3-value of property must be incl. in amount of insurance) |
| Hows does the Insurer deal with the potential for Insured's to under-insure on Builder's Risk forms? | the premium adjustment provision allows the Insurer to charge the total premium on the values that would have been required to complete the project. |
| Robbery (criminal meaning) | involves the wrongful taking of property from the possession of another against their will, accomplished by means of force or fear |
| Identify two other factors which would increase the amount of credit available to Insureds in addition to having property protection systems installed | 1. when alarms are monitored 2. when a watchman or guard service is provided to the building when it is closed |
| Identify two advantages of Infrared detectors | 1. several patterns of coverage are available 2. a number of detection units can be operated from one master device |
| What coverages does the Stock & Equipment Burglary rider provide? | -actual or attempted burglary -robbery of a watchman -vandalism or malicious acts committed on the same occasion -damage to interior of premises, showcases or show windows is also insured when due to any of the above perils |
| What are two categories of alarm system control? | 1. Locally Supervised Alarm Controls 2. Central Station Supervised Alarm Controls |
| Outline the coverages provided for Money & Securities by Agreement III- Loss Outside the Premises Coverage? | Insures actual destruction, disappearance or wrongful abstraction of money & securities while being conveyed by a messenger, armoured motor vehicle company or within the living quarters in the home of any messenger |
| What are the exclusions of Insuring Agreement II- Loss Inside the Premises Coverage? | 1. Money contained in vending machines unless machine is equipped with a continuous recording instrument 2. Loss by fire to property other than money, securities, a safe or vault 3. Loss of money, securities and other property which has been transferred by any computer on basis of unauthorized instruction |
| What are 3 reasons a client may not want to discuss Business Interruption Insurance? | 1. Perceived to be too technical 2. Reluctance to reveal earnings 3. Lack of consumer knowledge |
| What kinds of businesses would purchase Extra Expense Insurance? | Businesses which need to resume operations as soon as possible after a loss or face a permanent loss of customers. |
| How is payment made in the event of a loss for Extra Expense Insurance? | amount of insurance available is based on the time needed to resume normal operations referred to as 'period of restoration' -less than 1 month = 40% of limit of ins. -up to 2 months = 70% " -up to 3 months = 90% " -up to 4 months = 100% " |
| Identify 3 factors which will be considered in determining the amount of a loss which is insured by the Rent or Rental Value Endorsement. | 1. Actual annual rents 2. Estimated annual rental value of unoccupied portions 3. Fair rental value of portions of building occupied by the Insured |
| What two factors might affect the amount of 'actual loss sustained'? | 1. Competition increase or decrease 2. Economic conditions getting worse or better |
| What does Gross Earnings insure? | covers the reduction in gross earnings less charges and expenses which do not necessarily continue during the interruption of the business. |
| What are 5 characteristics common to Business Interruption Forms? | 1. Insure against same perils as are insured by Property policy 2. Are contracts of indemnity 3. Period of indemnity not limited to policy period 4. Provide payment of expenses necessarily incurred to reduce amount of loss 5. Provide for payment when access to Insured's premises is prohibited by order of civil authority |
| Identify possible sources of business interruption losses | -Failure or breakdown of public utilities -Actions of regulatory authorities -Transportation related accidents -Physical damage to property -Loss caused to property of major supplier/customer -Ancillary causes -i.e. strikes/lockouts -Physical damage to neighboring premises |
| Outline 4 provisions contained in the Premium Adjustment Clause (business interruption) | 1. Application for premium adjustment must be made within 12 months 2. When Insurer has made payment for any loss, premium is deemed fully earned 3. When coverage is on 50% coinsurance basis, Insured is entitled to max refund of 25% of annual premium. 4. When on 80% coinsurance, entitled to max refund of 50% of annual premium |
| What are 3 coverages provided by the "outside" robbery exposure in the "Inside/Outside Robbery" rider? | 1. actual or attempted robbery of a custodian away from the premises while engaged in his/her regular duties in connection with insured property 2. theft from home of custodian not exceeding limit of insurance or $500 (whichever is less) 3. theft from a night depository safe provided by a bank or trust company for the use of its customers |
| What are 3 coverages provided for the "inside" robbery exposure in "Inside/Outside Robbery" rider? | 1. actual or attempted robbery of a custodian on the premises, incl. damage cause to premises by such actual or attempted robbery 2. kidnapping 3. theft from a window display area inside the premises while the premises are open for business by a thief or accomplice having broken the window at the time of theft. |
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