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8 Cards in this Set
- Front
- Back
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The Basic Fire Policy: The Insuring Agreement
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States that the insurer will pay the insured for direct loss arising from the damage or destruction caused by a covered peril of the described that occurs during this policy period up to the amount of insurance...
-Contracting Parties -Perils Insured -Amount of Insurance -Basis of Indemnity |
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The Basic Fire Policy: Exclusions
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Exclusions Restrict Policy Coverage Relating To:
-Property -Circumstances or causes -Temporary or Permanent -Apply to part of the coverage or render the entire policy inoperative -May be LIMITED and show there is some coverage Unless the fire is deliberately set by or on behalf of the insured or an exclusion applies the cause of the fire is not important |
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The Basic Fire Policy: Extensions of Coverage
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Removal of Insured Property
-Provides coverage for property being protected from further loss -7 days or to policy expiry -same policy terms in place -Coverage is pro-rated between multiple locations Debris Removal -Occasioned by loss -Shall not increase the amt of insurance -Does not factor into ACV calculation -Coverage is not required by the Prov Ins Act |
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The Basic Fire Policy: The Insuring Agreement: The Contracting Parties
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Refers to the contracting parties and their intentions in basic terms but the names and addresses are not part of the Insuring agreement
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The Basic Fire Policy: The Insuring Agreement: Perils Insured Against
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-Fire incl loss by lightening or explosion
-Lightening incl resulting fire excluding electrical devises or appliances, -Explosion of natural, coal, or manufactured gas) As per Provincial Acts and Quebec's Civil Code ARticle 2485 |
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The Basic Fire Policy: The Insuring Agreement: Amount of Insurance
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-States the limit of the insurers liabilty: that the insurer will pay for loss that occurs during the policy period up to the amount of insurance.
-Sub limits may apply if there are seperate insured items within the policy, in which case the limit will be the sum of the sub-limits Unless states otherwise each loss payment made during the policy period will reduce the remaining amount of insurance |
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The Basic Fire Policy: The Insuring Agreement: The basis of Indemnity
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Gives effect to the Principal of Indemnity by making the amount payable to the insured the least of:
-The ACV of the damaged or destroyed property at the time of the loss -The interest of the insured in the property -The amount of insurance |
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Actual Cash Value
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-Replacement cost less depreciation
-Depreciation Factors: -Physical Condition -resale value -normal life expectancy -market value -obsolescence |
