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50 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Loss Prevention measures: |
Address frequency of losses |
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Loss reduction measures: |
Address severity of losses |
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Insurable interest are these people: |
Owners Mortgagees Bailees Not present when you “expect” to inherit property |
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Binders |
Can be done orally or in writing To commit insurers to provide insurance on risks |
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Endorsement definition: |
Change the terms or existing policies |
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Rider definition: |
Add additional coverage |
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PACICC pays what? |
Pays insured losses when insurers become insolvent |
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Federal government role |
Monitors federally licensed insurers to ensure financial health |
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Provincial government role |
Approves content of insurance contracts Monitors financial health of insurers |
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Provincial Insurance Act-removal coverage |
Coverage is provided for 7 days or unexpired term of policy, whichever is less |
How many days? |
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FIRE POLICIES- coverages legislated |
Fire Lightening Explosion of natural coal or manufactured gas |
There are 3 |
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FIRE POLICIES- statutory conditions legislated— change of interest |
-when sales of properties occurs, permission of insurers is required for existing policies to continue coverages for new owners -only those who are part of a contract can receive payment for losses; ie. authorized assignment through Bankruptcy Act, or change in title by death |
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FIRE POLICIES- termination by insurer |
15 days notice by letter Refund on pro rata basis |
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FIRE POLICIES- termination by insured |
Refund shall be on short rate basis Any time requested |
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FIRE POLICIES- fraud |
When proven entire loss may be denied |
What happens if true? |
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Insurance Council Standards- Integrity |
not taking advantage of client’s inexperience |
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Individual Accident and Sickness Contracts- elimination periods |
Represent time between the onset of the disability and the commencement of coverage |
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Individual Accident and Sickness Contracts- common characteristic and how long |
Inconstestability- statements made on the application are incont. by insurers after 2 years |
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Group Insurance Accident and Sickness Policies- period of time |
Weekly indemnity OR Long term disability |
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Underwriter |
Employed by insurance company Select risks which produces profits for their company Involved in hazard indemnification |
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Hazard definition: |
Conditions that may cause perils to occur, either physical or moral |
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How Property Policies are similar- property exclusions |
Automobiles Money and securities Books of accounts Watercraft Vacant properties for more than 30 consecutive days |
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How Property Policies are similar- perils exclusions |
Flood Earthquake War Nuclear accidents |
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How Property Policies are similar- contain standard mortgage clause |
Mortgagees receive additional promises from insurers: -mortgagee will be paid outstanding loan amounts (mortgagee’s interest) when clients breach policy -policy will not be terminated without notice to mortgagee -policy will not be changed to the prejudice of mortgages without notice to mortgagee |
3 promises |
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Homeowners Coverage A- dwelling building includes: |
1)Outdoor pools and attached equipment on the premises 2)Named perils coverage for outdoor trees, shrubs, and plants -no coverage for windstorm/hail -no coverage for lawns -coverage limit is 5% of dwelling limit |
Both outdoor |
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Homeowners Coverage C- personal property excludes: |
Motorized vehicles or their equipment (except lawnmowers, snowblowers, watercraft and motorized wheelchairs) Camper units, truck caps, trailers or their equipment Aircraft or their equipment |
3 moving things |
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Homeowners Coverage C- special limits All Losses |
Business property $2,000 Securities $2,000 Money and bullion $200 Garden type tractors $5,000 Watercraft $1,000 Software $2,500 Spare auto parts $1,000 |
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Homeowners Coverage C- special limits Theft Losses Only |
Jewellery, fur garments $2,000 Coin collection $200 Stamp collection $1,000 Collectible cards $1,000 Bikes $500 |
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Homeowners basic (IBC 1151) Coverages |
Fire and lightening Explosion Smoke (not from fireplace) Falling object Impact by aircraft/land vehicle Riot Vandalism/malicious acts Water damage (not freezing when away from home for more than 4 cons. days, not sewer back up) Windstorm/hail Glass breakage (no coverage for glass that is personal property ie. lamps) Transportation Theft/related damage Electricity |
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Condo unit insurance |
When collectively owned property is damaged and the corporation had inadequate insurance, this coverage will pay any special assessments made to cover uninsured losses. |
When collectively owned property is damaged… |
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Personal Articles Endorsement purpose |
Provides coverage for high values items anywhere in the world |
Where? |
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Personal Articles Endorsement special conditions and underwriting considerations |
Jewellery and furs usually require appraisal or bill of sale to adequately insure (no special limit) |
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Standard Commercial Property Coverages: all risks/broad form advantages |
All smoke damage insured except when arising from agricultural smudging or industrial operations Impact by vehicle insured when operated by client or employees |
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Standard Commercial Property Clauses- Reinstatement definition: |
Clients will have as much insurance on their property after a loss as before a loss. |
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Miscellaneous Commercial Property Coverages- business interruption insurance |
Pays the continuing expenses and lost profit after insured losses Duration of coverage not limited by expiry date of policy |
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Miscellaneous Commercial Property Coverages- contractors coverages |
Builder’s risk insurance does not cover tools and equipment |
Builders risk insurance |
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Miscellaneous Commercial Property Coverages- surety bonds |
It is a promise to provide credit, if and when needed, to ensure the faithful performance of the obligation. Sureties review 3 criterions; character, capacity and capital There are bud bonds, performance bonds, labour and material payment bonds, and maintenance bonds |
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Liability of children for their wrongs |
Generally parents are not responsible for torts of their children An exception: parent(s) demonstrated failure to properly supervise children |
Who and why |
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Which province does not have a provincial automobile insurance program? |
Ontario |
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Liability Insurance Policies- responsibility after a loss |
Clients not voluntarily pay plaintiffs or assume any obligation except first aid. May give rise to lawsuit. |
Don’t do this |
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Loss of Use coverage responds to: |
Pay expenses incurred to rent a substitute automobile, paying for taxi or public means of transportation when insured automobile can’t be used due to damage from an insured loss |
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Liability Insurance Policies- insuring agreement |
Insures only when client is legally liable |
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Liability Insurance Policies- responsibility after a loss |
Clients not voluntarily pay plaintiffs or assume any obligation except first aid. May give rise to lawsuit. |
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Section II personal liability- premises insured: |
Individual/family cemetery plots or burial vaults Vacant land in Canada you own/rent other than farm land |
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Coverage E- personal liability exclusions |
No coverage for property in clients care custody’s or control except: Coverage is provided for losses due to unintentional damage to premises or their contents rented by clients when caused by fire, explosion, water damage, or smoke (not fireplace smoke). |
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Coverage G- Voluntary Payment for Damage to Propery |
Insures property damage resulting from unintentional acts of clients Coverage is extended to include damage caused intentionally by persons covered by this policy 12 years old or younger |
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Special limitations to all coverages- watercraft |
Coverage is provided to non motorized watercraft less than 26 feet in length |
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Which province does not have a provincial automobile insurance program? |
Ontario |
Terrible |
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Loss of Use coverage- fault |
Fault is not a factor in coverage unless there is a breach of contract |
Is it or no? |
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Travel insurance covers: |
Expenses from pre-existing conditions are not insured (when controlled for 3 or 6 months coverage may be available) Payments for non refundable travel expenses, incidental hotel expenses, return costs for automobiles or corpses, lost baggage or passports, AD&D or legal counsel |
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