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100 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is insurance |
Based on risk sharing Spreading loss of the few among the many |
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When and where did fire insurance start |
London, England. September 1666 |
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Five Fuctions of Insurance |
Spread of risk Basis of credit system Eliminates worry Loss prevention Employment |
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Where is the long definition of insurance found |
In the Insurance Act |
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What is covered in P&C insurance |
Auto insurance Property insurance Liability insurance |
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Civil law addresses what areas |
Tort law and contractual law |
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What does Additional living expenses coverage provide |
Increased costs incurred after an insured loss (I.e. hotel, restaurant, transportation) |
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What are the major types of liability exposure |
Personal Auto Professional |
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For how long is a fire policy required to cover removal |
Max of 7 days, or expiry of the policy |
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Which provinces are government insurance provinces |
Manitoba Saskatchewan British Columbia |
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Define negligence |
Failing to do what a reasonable person would do |
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What are the essential elements specific to insurance contracts |
Insurable intrest Indemnity Utmost good faith |
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Materials used for packing are considered: |
Stock |
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Materials used for maintenance to a commercial building are considered: |
Building |
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What do the statutory conditions in a fire policy outline? |
Rules of conduct between the insured and the insurer |
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What does subrogation mean |
The right of the insurance company to recover payments from the responsible party |
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Improvements made to the interior of a commercial building fall under: |
Equipment |
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What time does a fire policy begin |
12:01am at the address of the named insured |
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In an insurance contract, what does consideration mean |
Something of value |
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What does insurable intrest mean |
The financial intrest a person has in something of value |
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Which coverage would a permanently installed swing set be under |
Coverage A: Dwelling |
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Which coverage would a storage shed be under |
Coverage B |
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What does the reinstatement clause do |
Automatically re-intstates coverage after an insured loss |
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What does Indemnify mean |
Restoring the insured to the same financial position they were in immediately before their loss |
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What can a registered owner do |
They have the right of possession, they can make insurance decisions, but they cannot sell the vehicle |
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What is a deductible |
The amount the insured is responsible for paying |
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What is a material change |
A new feature that increases the chance of loss |
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Is it covered: insured left their bathtub faucet running |
Yes |
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Is it covered: sewer backup in basement |
No |
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Is it covered: Water seeping through the basement walls |
No |
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What is the purpose of the co-insurance clause |
Discourage insured from under insuring and gambling on suffering only a partial loss |
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How many days offer the proof of loss must the insurer make a payment |
60 days,unless the contract provides a shorter period |
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Freezing is covered if the insured has not been away for more than how many days |
4 days |
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What does the federal department of insurance do |
Regulate the financial stability of insurers |
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What is a physical hazard |
A physical feature that may give way to a loss |
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What us the purpose of business interruption insurance |
To restore the income that would have been earned if the buiness hadn't been interrupted |
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What is a peril |
The cause of loss |
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What is the SAF#1 used for |
To apply for insurance in private auto provinces |
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What are the 4 ways to deal with risk |
Avoidance Retention Transfer Controlling |
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What is the most practical way to deal with risk |
Transfer the risk |
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What is the least practical way to deal with risk |
Avoidance of risk |
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What are the 3 most common exclusions on glass insurance policies |
Fire, war, and nuclear energy hazard |
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What is the ACV, and what is the definition |
Actually cash value, replacement cost at the time of loss minus the depreciation |
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What level of government is responsible for licensing brokers |
Provincial government |
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What is a guest called |
Licensee |
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Which type of risk is not insurable |
Speculative risk |
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What does salvage mean |
To take all reasonable steps to reduce or prevent more damage |
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Is the broker a party in the insurance contract |
No |
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What is the main job of an underwriter |
To make the decision to accept or deny a risk |
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What does moral hazard mean |
Subjective characteristics of the applicant that could cause peril |
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Which is covered: Indirect loss or Direct loss |
Direct loss |
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What does all risk policy mean |
Covers everything that is not specifically excluded |
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What does single limit policy mean |
Coverages A-D are combined into a single limit of insurance |
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When is the there a waiver of co-insurance |
When the loss is less than 2% or $5,000 |
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What is the formula for the co-onsurance clause |
Did/should × Loss =Settlement |
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What are the 3 types of crime insurance |
Burglary insurance Robbery insurance Theft insurance |
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Which of the 3 types of crime insurance is the broadest |
Theft insurance |
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What does solvency mean |
The insurer is able to pay for losses |
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What is loss assessment |
Condo company's policy is inadequate, so a special assessment may be levied against unit owners |
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What does voluntary medical coverage cover |
Surgical Dental Hospital Nursing Ambulance services Funeral expenses |
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What three elements must be present in a tort |
Duty owed Duty breached Damages suffered as a result of the defendants actions |
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What is the most common cause of Errors and omissions claims for brokers |
Inadequate coverage |
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When does the umbrella insurance policy cover |
Not enough coverage under primary policy No coverage under primary policy |
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What is an example of controlling risk |
Fire alarm, smoke detector, burglar alarm, sprinkler system, etc |
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What does the tenants insurance cover |
Provides coverage for contents only |
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What termination notice must be provided by the insurer |
15 days by registered mail, or 5 days hand delivered |
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What is valuable paper coverage |
Coverage for important paper documents that would be costly to reprint, provided they are in their specified storage container |
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What is civil law |
Concerned with settling disputes between individuals in matters not involving criminal acts |
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In habitations insurance, who is insured |
Person named Spouse or partner of named Relatives of insured and partner Any person in their care under 21 Students |
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What is freezer food coverage |
Provided up to $2,000 for food in a freezer due to, power failure or mechanical breakdown |
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What are the requirements for the locked vehicle warranty |
Must be an enclosed body or compartment that is locked with windows closed |
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What are the supplementary payments coverages |
Cost of defense Reasonable expense to assist in investigation Court costs assessed against insured |
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What are the standards of conduct for brokers/agents |
Integrity Competence Quality of service Advising clients Confidentiality Fee disclosure Encourage public respect Maintaine integrity of profession |
There are 8 of them |
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What is the most important difference between the highway traffic act and the off road vehicle act |
The off road vehicle act isn't subject to PIPP |
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Which provinces use private insurers for auto |
Albert, Ontario and the Atlantic provinces |
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Who does the occupier owe the highest duty of care to |
Children |
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Which party would not have insurable intrest? Mortgagee, owner, Bailey, broker |
Broker |
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How would the courts seal with a case where the parties aren't willing to share legal responsibility |
They each would then be held liable for the whole amount. Generally they would then share the responsibility |
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What is a third party |
Anyone not named in the policy |
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What way of dealing with risk is a fire alarm |
Controlling |
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What is a floated used for |
To cover things with a high degree of movement, (ei. Contractors tools, instruments, etc.) |
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What is the role of PACICC |
To pay the claims of insurers who went bankrupt |
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What is the fiduciary responsibility of the broker |
Commissions are not fully paid until the end of the policy period. |
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Waiver of term or contract us carried out by who |
Person authorized for that purpose by the insurer |
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What are the three basic coverages under a fire policy |
Fire Lightening Expolision of natural gas, coal, or manufactured gas |
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Which peril would outdoor trees and shrubs be excluded |
Windstorm or hail |
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What are the 13 named perils |
Fire or lightning Explosion Smoke Falling object Impact by aircraft or vehicle Riot Vandalism or malicious act Water damage Windstorm or hail Glass breakage Transportation Thef, including damage Electricity |
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When would somebody be sent to Lloyd's of London |
When their risk is too much for a single insurance company to take on |
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Which is considered a legal entity: a corporation or a trade name |
The corporation. Examples: Inc. Ltd |
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What factors influence the depreciation |
Condition of item(s) Obsolescence Resale value Normal life expectancy |
There are 4 factors |
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Who is considered dependent children under travel insurance |
Under the age of 20 (26 if attending school) unmarried, and residing with and receiving support from the applicant |
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Is it covered: steak burnt while barbecuing |
No |
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Is it covered: son acquired parents house from their will, and there was a hostile fire |
Yes |
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Is it covered: dishwasher malfunction, water ruined hardwood floors |
Yes |
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Is it covered: hot tub had a sudden escape of water that caused damage to home |
Yes |
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Is it covered: major windstorm, client lost shingles and the roof was damaged |
Yes |
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Is it covered: earth movement causing crack is foundation |
No |
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Is it covered: damage to door from attempted theft |
Yes |
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Is it covered: loss to palm tree in a show room |
Yes |
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Is it covered: valuable papers left on someone's desk when a fire happened |
No |
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