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138 Cards in this Set
- Front
- Back
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Who’s name is required to be shown on the contract |
The insurer and Insured |
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When is Insurance Bound on a risk |
The broker has committed the insurer to provide insurance on the risk |
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agency agreements are between: |
the insurer and broker |
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What does the insured not have to do with removal coverage |
Seek permission before removing the property |
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When subrogation not allowed |
when it is against a loss payee on the policy |
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A claim would be paid under effect of delivery when |
a policy was cancelled by non-payment suffers a claim 7 days after registered letter received |
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Coverage would be declined under misrepresentation when: |
the fire suppression system in a kitchen is not properly hooked up rendering it useless when a burglary to the premises occurs |
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example of material change |
a record store having local bands play in store every friday night to help promote the band |
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what is not a common exclusion under property and perils excluded |
Sporting Equipment |
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What is the limit for Debris removal under habitations insurance |
5% above the amount of insurance |
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What is not included in Additional Living Expenses |
the increased cost of food |
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What is not covered under Windstorm and Hail |
Shingles on rooftop |
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What does glass protection not provide coverage for |
glass lamp falling from a shelf |
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What is covered under the comprehensive form |
Smoke Damage |
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what would condo loss assessment not cover |
Inadequate insurance by the condo corporation |
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What would the limit of building insurance include |
Value of perimeter fencing |
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what does a tenant need to cover renovations |
Tenants Improvements and Betterment’s |
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What is the purpose of the co-insurance clause |
to punish the insured for not purchasing adequate insurance |
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Civil law is also referred to as: |
Private law |
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Type of watercraft not covered for bodily injury or personal damage when |
Outboard motor of no more than 20hp |
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when will homeowners liability cover a money making venture |
the rental of 3 parking lot spaces to neighbours |
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what type of insurance should a person who sells mail order toasters out of his home have |
Products Liability |
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does PIPP extend coverage to all Manitobans Injured in automobile accidents anywhere in Canada |
No |
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All perils would not cover this |
Insureds personal tools stolen from the vehicle |
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Who do Brokerages work for |
They are self employed |
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Is an insurance broker a party to the contract |
No |
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what is a factor taken i to consideration in the indemnity agreement |
The purchase price |
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describe criminal law |
Deals with the wrongs against society |
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describe civil law |
deals with settling disputes between individuals |
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What is common law also considered |
english law |
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statute law is also what |
written law |
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Describe Duty Owed |
people have the right not to be harmed and must refrain from causing harm |
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Misrepresentation |
Misstatement and or fraudulent omission of a fact |
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Property of others |
Not insured unless interest of insured is stated in contract |
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Change in Interest |
Policy continued to protect new insured where the change of title due to succession, operation of law or death |
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Material change |
any change which serves to increase the chance of loss arising after the policy is issued |
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Termination |
Insurer must provide 15 days notice by registered mail or 5 days hand delivered |
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Requirements After Loss |
notice required to be provided forthwith to insurer in writing |
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Fraud |
deliberate attempt to deceive with a view of securing some profit |
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Who May Give Notice |
any party of interest or agent of insured is entitled to make representations on behalf of insured |
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Salvage |
Insurers required to take all reasonable steps to protect insured property from further damage |
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Entry, Control, and Abandonment |
insurer not entitled to rights for ownership or control nor can insured abandon property to it |
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Appraisal |
Options available to either the insured or insurer where disagreement as to the value of property insured, saved of amount of loss |
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When Loss Payable |
within 60 days after completion of proof of loss, unless the contract provides for a shorter period |
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Replacement |
Notice required to be given by insurer 30 days after receipt of proof of loss |
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Action |
Must be commenced with 1 year (2 in MB) after loss occurs |
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Notice |
Insurer may contact insured by letter personally delivered to him or by registered mail addresses to him at his latest post office address |
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Fire or Lightning Covers: |
Damage to electrical devices |
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Explosion covers: |
Explosion of boilers and excludes only water hammer |
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Smoke coverage is only provided when:fallin |
a loss arises out of the sudden, unusual and faulty operation of certain types of appliances or units |
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Falling Object coverage applies when: |
an object can be proven to have hit the exterior of the building first |
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Impact by Aircraft or land vehicle excludes: |
loss caused by insured or loss to animal |
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Riot coverage |
No exclusions |
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Vandalism or Malicious Acts |
No coverage for loss or damage caused by theft or attempted theft |
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Waterscape, Rupture, Freezing |
Excludes loss caused by freezing occurring during usual heating season where inhabitants have been absent for more than a specified number of days |
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Windstorm or Hail |
covers certain watercraft to a limit of $1000 and then only if a loss while such property is inside a fully enclosed building |
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Glass Breakage |
Excludes loss caused while building under construction or vacant even if permission is given by insurer |
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Transportation |
Excludes coverage for property in a vacation or home trailer which you own |
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Theft including damage caused by attempted theft |
no coverage when property is lost from an unlocked vehicle away from the premises |
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Property in Transit |
Coverage is provided for insured property being transported in vehicles |
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Glass Insurance |
This coverage only has 3 exclusions, Fire, war and nuclear energy hazards |
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valuable papers and records |
provides coverage for all costs of reproducing lost or damaged documents |
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Burglary |
when property is taken from within premises and there are visible signs of forced entry or exit |
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Robbery |
when actual or threatened force is used to take insured property |
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Theft |
Broadest crime coverage available |
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Boiler and Machinery |
coverage for explosion of pressure vessels |
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Builders Risk |
Covers buildings in the course of construction |
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Installation floater |
provides protection for property in transit to the job site, while awaiting installation and during installation |
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Earnings form |
Coverage Commences at the time of loss and ceases when the properties rebuilt |
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Profits Form |
Commences at the time of loss and ceases when i come is restored to the level it would have been had the loss not occurred |
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Extra Expense |
insured all necessary additional expenses incurred by insureds in continuing normal business operations |
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Duty of Occupiers to Invitees |
Occupier has to make premises safe for use, they are owed the highest duty of care |
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Strict Liability Liab |
a person who is guilty until proven innocent is bound by strict liability |
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Intentional Torts |
Liability Policies do not pay |
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Unintentional Torts |
Liability Policies were designed to insure these |
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Negligence |
Legal equivalent of carelessness |
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Foreseeable |
if a person could have expected the results of his actions, this element of negligence is satisfied |
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Bodily Injury |
Sickness, Disease, Death |
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Property damage |
all resulting use of property |
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Third Party |
One who is not a party to the agreement or to a transaction but still has rights therein |
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Legal Liability |
only the courts have to power to determine this |
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occurrence |
this includes accidents but also includes continuous exposure to substantially general harmful conditions |
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compensatory damages |
designed to compensate the injured party |
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punitive damages |
designed to punish the responsible party |
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Plaintiff |
The wronged party |
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Personal Liability |
Coverage designed to insure the legal Liability of insureds in their role as private citizens |
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Non-Owned Watercraft |
coverage is provided for these, no restrictions to size and type |
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Products Liability |
business liability policies provide this coverage for loss resulting from products the business sold |
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personal injury |
injury other than bodily (libel, slander) |
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Age |
when this has been misstated, the benefits or premium will be adjusted |
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group insurance plans |
2 types of disability income coverage are available on this type of policy |
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90% of accidents occur where? |
away from work |
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the longer the elimination period... |
the lower the premium |
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Salvage |
Keeping the insured vehicle safe from further damage after loss |
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Highway Traffic Act |
outlines and regulates rules regarding vehicle registration and licensing of motor vehicles |
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Territory |
the factor for insurance rating that determines premiums by where you live and drive your vehicle |
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All Perils |
the broadest form of physical damage coverage available |
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private insurance plans |
AB, ONT, and Atlantic Provinces |
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registered owner |
someone who has exclusive use of the car |
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owned watercraft |
coverage is provided with size and type limitations |
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CLEAR |
Canadian Loss Experience Automobile Rating System |
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No-Fault insurance provinces |
SK, QC, MB, BC |
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Custom Duties |
The insurer must pay the duty on all repairs made to the vehicle while out of Canada |
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New/Leased vehicle protection |
policy provides up to 100% replacement cost |
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Insurance Act |
Provincial legislation regulates the licensing of brokers |
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step Licensing |
Various levels of license have been established |
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counter signing |
required when a sales person is not a resident in the province where the property is located |
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Rebating |
this practice is illegal in most provinces |
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Integrity |
if convicted of a criminal offense, this element of a brokers contract is missing |
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Unconscionable |
when a fee, which is charged over and above the premium, cannot be justified, it is to be unconscionable |
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business |
any continuous or regular pursuit undertaken for financial gain including a trade, profession or occupation |
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Risk |
the chance of financial loss to which the object of insurance may be exposed |
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The Principle of Indemnity |
Doesn’t allow for the insured to profit from their loss, they get no more and no less for their claim |
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when will insurance not pay for claims |
when the claim happened with the assistance of the insured |
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can the insured choose a cash settlement over replacement, repair or rebuild? |
No |
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Avoidance of Risk |
The least practical way to deal with risk |
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speculative risk examples |
Business ventures and gambling |
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What kind of risk is insurable |
Pure Risk |
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5 functions of insurance |
Spread of Risk Credit Employment Eliminates Worry Loss Reduction and Prevention |
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Direct Writing |
Employees only sell the insurers products |
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Independent Brokerage |
May represent many insurers |
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completed operations liability |
business liability policies provide this coverage for loss resulting from work the business has done for the customer |
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Agency |
small business who represents one insurer |
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5 Elements of a Contract |
agreement consideration legality of object genuine intention capacity to contract |
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Provincial Government monitors: |
financial stability of insurers to ensure they don’t become insolvent |
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4 fire exclusions |
application of heat lightning damage to appliances and devices electrical currents contamination of radioactive material |
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Who transacts a majority of business in Canada |
Private insurers |
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what does personal property insure |
dwelling building, detached private structures, and personal property |
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8 policy attributes |
No standard policy identify and define property insured and location insure direct damage conditions and warranties exclusions deductible clause how many claims are paid standard mortgage clause |
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Statutory Condition |
found in property policies, accident and sickness, and auto insurance. established in statute and are legally binding on all parties to contract |
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Factors of depreciation |
condition of the item, obsolescence, resale value and normal life expectancy |
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Replacement cost claims are subject to: |
shall be effected by the insured with due diligence and dispatch shall be on the same site or adjacent site settlement of replacement cost basis shall be made when replacement has actually been effected |
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professionals dis |
2 categories: those administering health care and those who give advice and counselling |
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disability |
physical or mental inability to work |
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would your work as a sales clerk be covered under liability coverage? |
No |
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sickness |
the leading cause of disabilities |
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workers compensation plan |
provincial legislation requires employers to participate |
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incontestable |
statements made on the application are incontestable after 2 years |
