Fundamentals to Insurance
what types of owned watercraft are covered?
outboard of less than 15 hp, inboard less than 50 hp, non motorized less than 26 feet, newly acquired watercraft regardless of size for 30 days from attaining
who is not included in you/your on homeowners policy?
roomers and boarders
where do safe driving discounts start?
-1 to -8 with 5% increase in discount each year
where does roadstar gold savings start?
-15 to -20 with 43% discount
what is the max level of CRS?
-20 with 43% discount
where does roadstar savings start?
-9 o -14 with 43% discount
you can get personal liability insurance for 4 habitational forms, which generally provide the same coverage. what are these 4 forms?
1) homeowner package 2) tenants package form 3) condo unit owner form 4) mobile homeowner's package
Definition of insurance (3 parts)
1) insurance provides a means of shifting ones financial responsibility from a loss to another party ii) payment will be made only in the event of the happening of a certain risk or peril iii) the amount of the payment is restricted to the amount required to indemnify the insured
4 ways to deal with risk
1) Avoidance (don't buy the car in the first place) 2) Controlling (car alarms) 3) Retention (increase in deductible or putting money aside) 4) Transfer (buying insurance)
3 components of the removal clause:
1) Coverage provided when property is removed to protect it from further loss 2) Coverage amounts are the remaining coverage after loss at named location 3) Coverage provided for 7 days or the unexpired term of policy, whichever is less
What are the 6 contents of insurance policies legislated? (first page of policy - declaration)
1) Parties to the contract 2) Policy period (policy takes effect art 12:01Am local time at the address of the name insured) 3) Loss payable (mortgagee) 4) Type of coverage and amount 5) Rate and premium 6) Subject matter (what is being insured)
3 conditions (rules) of removal coverage change - 3 conditions when someone needs to move their insured property
1) Removed to protect from future or further loss 2) Amount of coverage is whatever is left over 3) Up to 7 days of coverage maximum (or expiry of policy, whichever is first)
There are 4 ways changes can be made to a policy. What are the 4 ways?
1) Rider (adding additional coverage) 2) Floater (provides coverage for items not on the insured premise) 3) Endorsement (acknowledges changes in the actual contract) 4) Separate policy (additional coverage, but no change in the original contract - new policy altogether)
5 points of insurance
1) Shift financial responsibility for a loss 2) payment made only in the event of a loss 3) Payment restricted to amount to indemnify (no more, no less) 4) Cover loss to which object of insurance may be exposed (accidental and future) 5) Indemnify in form of money or other thing of value (rebuild/repair)
List the 5 functions of insurance:
1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity
3 components of the equipment definition for commercially insured properties (under clause 1 description of property)
1) all contents other than building or stock as defined 2) similar property belonging to other's which the insured is obligated to insure or are legally liable 3) tenant improvements
What are the 7 components of the standard property policy regarding the peril of fire?
1) contents of policy (declaration) - 6 things 2) removal coverage (3 rules) 3) limitation of liability clause (if pay less then indemnified, must state on contract) 4) right of subrogation 5) waiver of term or condition (must be agreed on and signed by insured) 6) effect of delivery of policy (if policy is delivered but not paid for, must still be treated as if it was paid for - promise to pay) 7) policies of insurance with fire peril (covered, exclusions, and statutory conditions)
under which conditions are employers not responsible for the torts of their employees? (3)
1) employees on a frolic of their own 2) employees use the employers property without permission for their own use 3) employees delegate past of their authority to someone else who is not an employee without the employers permission
What are 6 reasons a broker's license may be revoked?
1) guilty of misrepresentation or fraud 2) not following the insurance act 3) misuses funds 4) places insurance with an unlicensed insurance company 5) not giving premiums to insurer 6) incompetent with knowledge
3 components of the stock definition for commercially insured properties (under clause 1 description of property)
1) merchandise used by insured's business 2) packing, wrapping and advertising materials 3) similar property belonging to other's which the insured is obligated to insure or are legally liable
there are 15 statutory conditions. list them all
1) misrepresentation - false description, insurer can void 2) property of others - covered if stated in contract 3) change of interest - change of primary policy holder, can be due to 4 reasons: bankruptcy law, succession, death, or law (mental incompetency) 4) material change - any change within knowledge of insured, can cause loss, and is substantial must be reported 5) termination - must give 15 days notice in mail to 5 in person, if contract is terminated by client they receive any unearned premium as refund 6) requirements after loss - must provide notice, proof of loss, inventory count, etc. 7) fraud 8) who may give notice and proof - if insured is unable, any agent of insured can give proof of loss (friends, family, lawyer) 9) salvage 10) entry, control and abandonment - insured is entitled to see loss 11) appraisal - if disagreement on value, outside expert brought in 12) when is loss payable? - 60 days after proof 13) replacement - must give notice of intention to replace within 30 days of proof, and begin process within 40 days of proof 14) action - recovery of any claim done within a year of loss 15) notice - establishes rules of how insured and insurer communicate during policy period
list the 8 common attributes of property policies
1) no standard policy 2) must identify the property insured and location 3) only direct damage insured 4) conditions and warranties 5) exclusions 6) deductible clause 7) claims payment 8) standard mortgagee clause
what are the two sections in a homeowner's policy? list the coverages under each
1) property coverage -Coverage A: dwelling -Coverage B: detached private structure -coverage c: personal property -coverage d: additional living expense 2) liability coverage -coverage e: personal liability -coverage f: voluntary medical payment -coverage g: voluntary payment for damage to property -coverage h: voluntary compensation for residence employees
state the duties owed by the insured to the insurer in the event of an occurrence, claim, or action
1) provide with prompt notification of any occurrence which may lead to claim 2) immediately provide insurer with copies of any legal document 3) authorize insurer to obtain records 4) assist in the investigation, settlement or defense 5) do not provide payment, assume obligation or insure any expense other than first aid - will not get in return from insurance, unless for first aid such as ambulance
what 3 things do brokers have to the duty to provide their clients with?
1) provide with the correct info and not conceal anything 2) tell insurers the truth about the risks they submit 3) ensure client's receive the right coverage
independent contractors are usually found responsible for their own torts.. however, occupiers can be found partially responsible in 3 situations. list these:
1) when the occupier provides on going supervision and direction 2) when the work being performed is very dangerous 3) when defective machinery is being supplied by the occupier
what is the legal duty owed to children?
100% accountable for children who get hurt on property
When does insurance coverage commence?
12:01 am standard time at the address of name insured
What methods may insurers use to cancel fire policies? (to provide notice)
15 days notice by registered letter, 5 days notice when personally delivered
what is the license term in BC
2 years
how quickly should you report a theft
48 hours to police, within 7 days of making report advise ICBC
until what age are benefits paid?
65
what is a bailee? are they liable and to what extent?
A bailee is someone who has care, custody or control of another persons property for purposes other than sale Legal duty owed → must exercise the same level of care over the customer's property as the others in the same business (ordinary care)
What is a broker and their duties?
A broker works in an insurance office as an intermediary between clients and insurers - primarily represent the client's interest and provide the right coverage. They can represent various companies
Define warranty, and why is complete compliance to policy conditions present?
A warranty is a promise by an insured that requires certain facts that were stated as true are in fact true and remain true. Breach of warranty can occur even if loss isn't related
3 things considered in the indemnity act (choose which one?)
ACV, interest of client, and amount of insurance (choose the lowest)
Solvency refers to
Ability of an insurer to pay insured losses
What is ACV?
Actual cash value: replacement cost - depreciation
Identify the two coverage provided under coverage D - Additional living expense (with homeowner's insurance)
Additional living expense (hotel) and fair rental value (if you have a tenant who is displaced by the claim, you can claim them by the market value)
Identify 5 elements that must be present in all contracts
Agreement (offer and unconditional acceptance), consideration (exchange of something of value), legality of object (not illegal), legal capacity of the parties (not children, not mentally incompetent), genuine intention (no inducement, needs to be intended)
Define contract
An agreement between two or more parties, enforceable at law
what is loss of use coverage?
An insured that purchases the specified perils or comprehensive coverage option is laos insured for loss of use due to theft - provided only when loss or damage arises out the theft of an entire car
What is salvage?
Any attempt to save items as long as it does not endanger life,required by insurers of insureds
What is material change
Any substantial and continuing change to the property - must be reported
Define fiduciary
One who handles other people's money insurers and brokers are both fiduciaries
4 characteristics specific to individual accident and sickness insurance contracts
Application forms attached, insurable interest required, incontestability, and unpaid premiums can deny coverage
4 characteristics of individual S&A insurance
Application forms part of the contract (attached) Insurable interest Incontestability Unpaid premiums - when a premium is unpaid and claim is made, the insurer is entitled to deduct the amount of the unpaid premium from the claim amount
Is what situations may a new party benefit from a policy of insurance? ie. not named on the policy itself (4)
Authorized assignment in the bankruptcy act, change in title due to succession (inheritance), operation of law, or death
3 types of property and casualty insurance
Auto, property (home and business), and liability (injury or damage to a third party)
Identify four options people have when dealing with risk
Avoidance, risk control, retention, transfer
identify types of damages by courts and which is insured by liability insurance?
punitive, nominal, compensatory - only compensatory is covered
when will voluntary payment for damage to property insure damage cause intentionally?
when the damage is caused by children under 12 years of age
How are premiums for A&S determined by insurance companies? (Based on their wellbeing and standards)
Operating expenses, claims cost, and investment earnings
how much does ICBC offer for underinsured under basic autplan?
Basic autoplan offers 1mil underinsured motorist protection coverage
What are the three homeowner's forms?
Basic, broad, and comprehensive
Within the standard of conduct, explain what advising clients means in terms of upholding the standard
Brokers should be candid, honest, clear and open. They cannot use incentiv3s and no tied selling
what is ALWAYS true regarding providing liability insurance?
when the insured is deemed legally liable
Define peril
Cause of loss
Define risk
Chance of loss to which the object of insurance is exposed
Difference between a company claims adjuster (staff adjuster) and an independent adjuster?
Company adjuster work for the insurer and IA's work for multiple insurers and are brought in when there are staff adjuster shortages or specific expertise is needed
a child must be dependent in order to be under a travel insurance plane with the policy holder. what is a dependent child?
Children who are dependent, under 20 (26 if in school), unmarried, residing with and receiving full support from the application receive coverage
5 factors that help determine a premium in a commerical property policy
Construction of the building, Protection (both public and private), Occupancy (what is the building used for), Location, Claims history
What is business interruption insurance? (under commerical property insurance)
Contract of indemnity - insures the business will be paid that profit they will be making and any continuing expenses paid for in the event they cannot continue business. Payment occurs from point of loss to either the day the business starts operating again (earnings form) or until they start making a profit again (profit form)
what are the special limitations of liability insurance regarding motorized watercraft and vehicles?
Coverage provided for watercraft with outboard motor up to 16 HP Watercraft with inboard motor up to 50 HP Non motorized no more than 26 ft. in length Self propelled lawn mowers/tractors, etc. no more than 25 HP Motor golf carts while on a golf course only Motorized wheelchairs Coverage for non-owned watercraft (i.e. renting a boat) but only for the damage it may cause, not to the actual machine itself
What kind of damages covered under liability insurance. Explain
compensatory damage - intended to compensate a plaintiff (3rd party) for injury caused by the defendant (insured)
what is EXCLUDED from water damage coverage in a basic homeowners form
Damage caused by freezing of pipes during the heating season if you are away for more than 4 days (unless water pipes are shut off and drained or you have someone coming into check in regularly Damage caused by continuous seepage or leakage (i.e. not sudden, you could have stopped the leak) Damage caused by sewage back up Damage caused by groundwater or rising of the water table Damage caused by surface waters Occurring when the building is under construction or vacant
What are the extensions of coverages available on common homeowner's forms? (11) - provided to all insured's under this form
Debris removal, property removal (to protect from loss), moving to a new home (in transit protection), fire dept. expense, a change of temperature (damage caused by change in temperature - plants), freezer food, lock replacement, tear out, arson, credit card fraud, and inflation protection
what are two things different in a mobile homeowner's form vs. a regular homeowner's form
Description of dwelling amended to include coverage for skirts, awning, etc. Emergency removal expense removed (i.e. with regular homeowners there is 5% added to remove belonging's from site of loss, this does not exist with mobile home)
what does coverage E provide coverage for?
Designed to insure the legal liability of insureds in their role as private citizens anywhere in the world, Accidental injury or damage originating on the insured's premise or caused by the insured while away from home are insured by this agreement
What is the formula for determining the amount of settlement for a partial loss with commercial property insurance? What is it?
Did/should (80% of actual value) x amount of loss = settlement... Is used for partial loses to prevent individuals from underinsuring
Identify the two main distribution methods used by insurers for their products
Direct writers (work for one insurance company) and independent brokers (work for multiple insurance companies - can offer multiple options for insurance, not limited)
What is personal property? (3 things fall into this category)
Dwelling building, detached private structures, personal property
How are endorsements different than riders?
Endorsements are extra sheets or slips of paper that change the terms of an existing contract. Riders add additional coverage to those already in place - to have a rider you must endorse the contract
What is consideration?
Exchange of something of value
Policy of fire insurance covers smoke? T/F?
False
homeowner's form covers explosion from water hammer. T/F?
False
If fraud is proven, only that portion of the claim is invalid? T/F?
False - entire contract can be terminated
What 3 things does the basic fire policy cover?
Fire (hostile), lightning, and explosion due to natural gas, coal and manufactured gas
Property with a high degree of mobility associated with it is generally insured under a:
Floater
what are 6 basis for termination of an insurance license?
Guilty of misrepresentation, fraud, deceit, or dishonesty Disobeys insurance act Fails to pay insurer premiums Places insurance with an unlicensed insurance company Proves to be incompetent Misuses trust funds
What are reasons for an insurer to void the contract?
Fraud or misrepresentation
What are 2 kinds of fires and which type is insurable?
Friendly and hostile, only hostile is insurable
What two factors regarding losses must be present for them to be insured?
Future and accidental
Who would not have insurable interest? Business partner Heir or beneficiary Bailee Mortgagee
Heir or beneficiary
What does fee disclosure mean regarding the standards of conduct set by the insurance council?
If you choose t charge a fee for extra time, you must clearly explain and identify the fee as separate from the premium, going directly you the broker (not insurer) and why it is being charged
Why must unearned premiums be held in trust by the insurance company?
In order to refund to the clients when they cancel prior to expiry (pro rata)
What is the most common cause of errors and omissions?
Inadequate coverage
What are the 2 types of accident and sickness insurance contracts?
Individual and group
3 unique elements of insurance contracts
Insurable interest (insured person derives a financial or other kind of benefit), indemnity (no more no less), utmost good faith (honest, trust each other)
Which method of dealing with losses and risk is most practical?
Insurance
Describe direct damage and indirect damage
Insured object damaged directly by insured peril (fire), indirect is insured object damaged by consequence of peril (rent loss) - not insurable
Who retains the option to repair or replace damaged property rather than pay cash settlements?
Insurer
8 ethical standards broker must follow
Integrity (cannot be untruthful or unethical) Competence - must give good guidance Quality of service - failure to return phone calls, sufficient notice, etc. Advising clients - must provide correct coverage, the right amount, best for client, advise of all risk and warranty Confidentiality Fee disclosure - cannot charge any fee without telling the insured and explaining why Encouraging public respect (for the profession) Maintaining integrity of profession
List 3 standards of conduct
Integrity, competence, quality of service, advising clients, confidentiality, fee disclosure, public respect, integrity of profession
2 classes of tort
Intentional - no coverage, usually criminal Unintentional - involves carelessness rather than malicious intention. Insured by liability policies
Identify three circumstances that could cause a broker license to be revoked (under the standards of conduct)
Lack of integrity, lack of competence, lack of quality of service
3 levels of BC step insurance licensing system
Level 1 - sell all types of general insurance, with sales restricted to the brokerage office and must be supervised Level 2 - sell all types of general insurance on or off the brokerage premises Level 3 - sell all types of general insurance and can manage/own a brokerage
Identify 2 key coverages provided by a boiler and machinery policy under commerical property insurance
Loss or damage to building resulting from explosion of boilers, and electrical or mechanical breakdown
What type of risk control reduces loss frequency?
Loss prevention
what does the basic autoplan cover under accident benefits? when does payment begin and end?
Medical and rehabilitation expenses, Death benefits (paid to the surviving family and spouse), Funeral expenses (max. 2500). Wage loss benefits Payment begins on the 8th day and continues for the duration of the disability or when they reach 65
At what point in time is indemnity calculated?
Moments before the loss
additional insurance can be purchased for commerical property, including property away from the insured premise, both in transit and at a temp location. however, this is subject to a locked vehicle warranty. what are the conditions of this
Must be locked and enclosed, must show forced signs of entry
Which disability classification provides the broadest coverage?
Own - gives you time to recover for you own specific occupation and do not have to work another job
What is the role of the property and casualty insurance compensation corporation (PACICC) what up to what monetary value will they pay out if required?
PACICC provides insurers protection in case of insolvency (bankruptcy). They will pay up to $250,000 for single claim or 70% in premiums
who would purchase individual S&A?
People who purchase this are generally self employed, have no group plan at their work, high income, or people seeking better coverage than those in their group plan
3 categories of risk insurance
Personal (health, anything directly affecting you), property (house, care), and liability (3rd party)
2 types of hazards and 3 examples of each (property)
Physical hazards - type of building, occupancy, and housekeeping Moral hazards - financial intention, moral character, and indifference to loss
2 conditions/exclusions of contractors insurance under a commerical policy
Policy period is only how long construction is happening (COC) - coverages ceases when the project is unaltered or when no construction occurs for more than 30 consecutive days. Otherwise coverage ends when the building is occupied again Does not insure the construction worker's materials
9 exclusions of travel insurance
Pregnancy or miscarriage War Suicide Criminal act Alcohol related illness Participation in professional sports Participation in hazardous activity AIDS Covered by workers comp.
What are the 2 major types of insurers and provide an example for each
Private (stock profit or mutual policy holder), or government (ICBC, employment insurance)
Main purpose of stock companies?
Profit maximization
What is the standard mortgage clause used for?
Protects the interest of the mortgagee, ensures they get all their money back and have notice or termination or change
what are the duties of the insured to the insurer in the event of a liability claim being filed
Provide insurer with prompt notification of any occurrence which may lead to claim or action Provide insurer with any legal documents received Authorize insurer to obtain records Assist in investigation Do not voluntarily make a payment, assume any obligation, or incur any expense to the plaintiff, except for first aid (ambulance). If done, insurer will not pay you back
What type of risk is insurable?
Pure risk
What are the 2 kinds of risk? Which one is not insurable?
Pure risk (no chance for profit gain, insurable), and speculative (chance for profit or loss, for example gambling or starting a new business, not insurable)
Broker's must adhere to 5 standards specific to the license itself. What are they?
Qualifications for licensing (course and pass exam), class, term, jurisdiction, basis for termination
If a broker is failing to return phone calls which standard of conduct is he failing to meet?
Quality of service
Define remarketing clients coverage
Replacing insurance with another insurer after termination
Right of subrogation
Right of insurer to go after 3rd parties for damage they had to pay to client in claim
What are characteristics of people who might purchase individual accident and sickness insurance?
Self-employed, people with no group plan, high income, people seeking better coverage than provided through group plan
What is the difference between mutual companies and stock companies?
Stock - main purpose is to derive a profit, ownerships in the hand of the company's shareholder. Money to operate comes from private funds and public sales of stock Mutual - main purpose is to provide insurance at the lowest cost possible, corporation owned by policy holders, money made goes to policyholders
Major function of insurance is to:
Share losses of the few among the many
What is solvency, how is it different than insolvency?
Solvency is when insurers are capable of fulfilling their financial obligations. If they are unable to meet these obligations, they are insolvent
what is underinsured motorist protection?
Some BC residents choose to purchase only minimum limits of third party liability insurance, and when these people get in an accident they may be insufficient insurance to play the claim. The BC government has take the position that it is important for innocent victims of auto accidents to be fully indemnified for injury or death caused by underinsured motorists
What is known as the major function of insurance?
Spread of the losses of the few among the many
define strict liability. who undergoes it?
Strict liability: usually in court it is "innocent until proven guilty", but with strict liability it is "guilty until proven innocent" - certain acts are held to a higher duty of care. pilots, people who start fires, people who have the chance to prevent loss and thus have a higher duty of care
what is included in water damage coverage in a basic homeowner's form?
Sudden and accidental escape of water from a water main Sudden and accidental escapes of water within a plumbing, hearing or AC system located in the dwelling Sudden and accidental escape of water from a domestic water container outside your building Water that enters your dwelling from an opening which has been created suddenly and accidentally by an insured peril other than water damage (i.e. roof of building collapse due to hail storm)
What are binders?
Temporary insurance placed by brokers on behalf of clients, written or oral commitment by the broker to provide a contract of insurance on the subject matter under discussion
What are the 6 types of property insurance policies?
Tenants insurance, homeowner's, mobile home, condo unit owner, secondary dwelling, seasonal dwelling
Where is the definition of insurance usually found
The Insurance Act
Who is insured on a homeowner's policy?
The person named on the policy is referred to as the insured "you" or "your", the spouse, common law, relatives, under 18, and students dependent
when can ICBC refuse renewal?
The applicant has outstanding debt with ICBC, a motor debt, or outstanding liquor fine
how is coverage under additional living expense limited with homeowner's policies?
coverage is limited by the amount required to maintain normal standards of living for a reasonable time required to rebuild the dwelling
what is the reinstatement clause (commerical property insurance)
The limit of insurance provided by the policy remains unchanged for the entire period, regardless of the number of claims
What is the elimination period and why is it important to determining the premium?
The elimination period is the time between when the accident occurs and benefit payments become eligible. It is important because it allows individuals to self-insure and take risk - if elimination period is longer, premium is generally lower (like a deductible)
What is the difference between a named perils form and the broad form? (for commercial property insurance)
The name perils form lists what you are insured against, the broad form lists what you are not insured against
What is the broker's primary duty? (to client and to insurer)
To clients - ensure they receive the right insurance advice and coverage, and exercise reasonable skill, care and diligence. To insurers - follow legal standards and tell the truth
What is the fiduciary responsibility of insurers? When is the full premium earned?
To clients. Premium not fully earned until expiry of policy
T/F: in order for a person to be legally liable, the results need to have been unforeseeable
True
Define dependent children
Under 20, unmarried and reside with parents who fully support them, or student under 26. Mentally and physically disabled always covered
when does underinsured coverage not apply?
Underinsured motorist protection is not included under basic autoplan for vehicles used as buses, limo's, or taxis When an insured is an occupant of an unlicensed vehicle When an insured is operating a vehicle without the owner's consent When an insured is an occupant of a vehicle exempt from auto insurance the crash happened in a province to state where the law does not allow anyone to sue and recover damages for injury or death
What is a major fiduciary responsibility placed on brokers by law?
Unearned commissions must be held in trust to refund to the insured in the event the policy is cancelled prior to expiry date
What do underwriters do?
Use 4 aspects in decision making to make policies: 1) Application (positive or negative response) 2) Broker (ask for more info) 3) Loss experience data (for type of risk) 4) Inspection reports (previous claims data investigation and field reports)
What items are included as additional coverage in a broad policy for commercial property insurance?
Vehicle damage to building (by insured or employees), all sources of smoke, water damage (excluding flood, sewage and seepage), theft, collapse, and all other perils
what are some major advantages of a commerical property broad form? (i.e. what is covered?
Vehicle impact damage to insured's buildings, even when caused by the insured or their employees All sources of smoke damage, excluding agricultural smudging Water damage due to freezing or rupture of water lines (Water exclusions for flooding, overflow, seepage, or sewer backup) Theft Collapse (Excluding collapse by earthquake or resulting from improper workmanship) All other perils not specifically excluded
2 types of group S&A insurance?
Weekly - coverage for short term disability, payment made for 13, 26 or 52 weeks Long term - includes things such as major medical and dental
What is the rationale for deductibles?
What the client has to pay when they make a claim - help to keep insurance affordable and it prevents people from claiming small incidents too often... Higher deductible = lower premium
what is the 90/10 rule?
When a claim for both bodily injury and property damage equals or exceeds the third party liability limit , bodily injury claims are given priority - i.e. 90% of third party is covering bodily, 10% for property
What does incontestability mean and which 2 factors are immune?
When an individual submits an application it must be 100% truthful à the insurance company has 2 years to content any of the stated info, after 2 years it is uncontestable. However, fraud and misstatement of name are always contestable
what is joint liability? what does this mean for being sued?
When two or more persons act negligently to cause harm or damage they are joint tortfeasors. When this happens, both are liable for the entire cost of damages (if being sued for 1mil, both pay 1mil). The division of this is then decided at a different court date and trial
Does insurance allow payment to be in another form than money?
Yes, replacement or repair
define hazard
a condition that may cause a peril to occur
a subjective characteristic of an applicant that could cause a peril to occur...?
a moral hazard
define tort
a wrongful act of negligence that caused damage to another, could be intentional, negligent or failure • Trespassing, nuisance, defamation (libel and slander) • False arrest • Invasion of privacy • Negligence
list 8 PERIL exclusions under a basic property policy
earthquake, flood, smoke due to agricultural smudging, wear and tear, rust, corrosion, war, nuclear incident, sewer
Two usual definitions for disability - when a person is considered to be disabled. which provides the broadest coverage?
any occupation or own occupation. own provides the broadest
what are the 3 types of disability classification?
any, regular, own
t/f the condo mgmt. is not responsible for any insurance
false, the condo corporation has to insure the building and common elements such as lobby, recreational areas, landscaping, etc.
define bodily injury (3 things classify)
actual physical injury to the body, sickness/disease, death
what is covered under coverage d?
additional living expense (hotel, kennel, etc.) and fair rental value (if you are renting and lose income)
identify 3 values that must be considered when insuring buildings in the course of construction
all materials to enter the project, landscaping, temporary buildings
what class of license can you sell?
all other than life
what is a homeowner's comprehensive form (similar to broad)
all risk basis, focus on exclusions, not what is included
policies for habitational or commercial property can vary in the perils they insure. the broadest policies insure
all risks of direct physical loss or damage subject to policy changes and exclusions
define damages, and what is the one kind that insurance covers
amount be paid to the 3rd party, liability insurance only covers compensatory
define occurrence
an accident -either random and quick or repeated exposure (toxin)
what perils are excluded in a basic firepolicy
applied heat, lightning damage to electrical device, electrical currents, contamination by radioactive material
what are valued policies used for?
apply to property difficult to replace (family jewlery and art) - value is agreed on before loss usually with help from appraiser
what options do insureds have under homeowner's insurance if they wish to maintain freezing coverage while away on winter vacation?
arrange for a competent person to enter the dwelling daily to ensure the heating is working OR shut off the water and drain all pipes and domestic appliances
who is eligible for auto insurance?
auto owners, people who drive cars they do not own (rentals), and people without a vehicle or driver's license (need insurance in the event they are injured in an accident with an underinsured or uninsured motorist)
which is not included under coverage c in homeowners (personal property of the homeowner's form) a) riding lawn mower b) compact disc player powered by the electrical system in the insured's car c) motorized wheelchair d) 14' aluminum aircraft
b - does not include automobile coverage or things attached to the automobile
what are the 3 basic types of homeowner's forms?
basic, broad, and comprehensive
3 types of property covered in a commercial property policy?
building, stock, equipment
What does the term all property include in commercial property insurance?
building, stock, equipment
what is involved in the description of property in a commerical policy, explain each
building- Fixed structures pertaining to the building, Additions and extensions, Permanent fittings and fixtures forming part of the building, Materials and equipment on the premises for the maintenance of normal repairs, Growing plants and trees stock - Merchandise of every description used to the insured's business, Similar property belonging to others that the insured is under obligation to insure or is legally accountable for equipment - All contents used in the insured's business (furniture, machinery, tools) other than stock, Similar property belonging to others that the insured is under obligation to insure or is legally accountable for, Tenants improvements
explain the differences between burglary, robbery and theft
burglary shows signs of forced entry to take property, robbery is when actual or threatened force is used, theft covers both and can also cover money and securities
what is CRS?
claim rated scale - all new drivers star at 0, move up or down scale based on your claims made, discounts or subcharges made according to where you stand
what is the legal duty owed to trespassers?
cannot set traps and cannot intentionally harm them
define moral hazard
characteristics of the applicant that may cause a peril to occur
define physical hazard
characteristics of the premises that may cause a peril to occur
what 3 factors affect premium rate decision making for insurance companies (with A and S insurance)
claims cost, operation expenses, and investment income
3 things used to determine the cost of a premium in and S&A insurance policy
claims costs (type of policy, type of benefit requested, applicants info), operations expenses and investment earnings
3 advantages of broad form coverage under commerical property insurance - what does it provide in comparison to basic peril insurance
collapse, theft, impact by vehicles owned or operated by insured or employees
if you want the best own damage coverage, which coverage(s) would you purchase?
collision and comprehensive
how are laws interpreted (2 ways)
common law (precedent) and statute
define compensating damages
compensating damages are those which are intended to compensate the third party - only kind of damage covered by liability
what is the goal in any civil action?
compensation
3 factors that will affect the basic fire rate for commerical property policies
construction (of property), occupancy (what business is being done), and protection (public and private)
What are 4 factors that will affect the basic fire rate? (for commerical property form)
construction (type of building), protection on premise (public and private), occupancy, location, and claims history
what are the two branches of civil law
contract and tort
what are the two branches of civil law?
contract and tort
who has the ability to impose legal liability?
courts
what is personal injuries liability under a business ?
coverage from claims such as libel, slander, malicious prosecution, wrongful entry, or discrimination
which branch of law deals with crimes against society
criminal
what are the 2 branches of law?
criminal and civil
name the 2 legal systems and 2 branches of civil law
criminal and civil law are systems, contract and tort law are branches of civil
although glass coverage is broad in the homeowner's basic form, it does not cover glass breakage to:
damage to lamps and other glass not in window/facing outside
what are the 11 extensions of coverage that apply to all homeowner's policies?
debris removal, property removed, move to another home, fire department expense, change in temp, freezer food, lock replacement, tear out, arson conviction, credit or debit fraud, inflation protection
identify three costs insured by supplementary payments
defense cost, court costs, investigation costs
3 popular coverages in group insurance policies (A and S)
dental, extended healthcare, accidental death and dismemberment
explain the co-insurance clause under commerical insurance policies
designed to penalized insured who purchase less insurance than is required
how is a homeowner's form underwritten (ie. classes of categories)
determine the replacement cost of the dwelling (coverage a), the other coverages are a percent of that value coverage b 10% of a coverage c 70-90% of a coverage d 20% of a
give an example of a direct loss vs. indirect loss
direct: destruction by windstorm indirect: loss of profit for business after an earthquake
3 conditions found in replacement cost clauses used for buildings?
due diligence and dispatch, rebuild in same or adjacent site, begin within reasonable time
3 elements of tort
duty owed, duty breached, damage as a direct result of breach
3 elements required to be present in every tort action
duty owed, duty breached, damage suffered as a result of breach
what 3 things must be required for a tort to have occurred?
duty owed, duty breached, damage suffered as a result of breach
what are the 3 necessary elements of a tort?
duty owed, duty breached, damage suffered as a result of breach
3 elements of a tort
duty owed, duty breached, direct damage as result
What does coverage A (property coverage) provide coverage for?
dwelling and attached structures, pools, outdoor trees and shrubs, temporarily removed building fixtures
what 4 coverage's are insured under section 2 of a homeowner's form
e) personal liability f) voluntary medical payment g) voluntary payment for property damage h) voluntary payment compensation for resident employees
how do profits forms differ from earning's forms
earnings forms pay from the date of loss until reopening, profits forms pay from the date of loss until sales have been reestablished
what are 3 situations where the employer's may not be held accountable for the tort's of their employees? (most of the time they are)
employees delegate work to others without permission, employees use employers property for their own use without permission, employees frolicking
explain the umbrella liability policy
extend coverage for known exposures such as auto, watercraft, aviation, business operations or residences. insured's must already have an existing liability policy in place. it is a new policy - can be used to either provide more coverage when initial coverage does not fully cover, or can provide coverage for new things all together
define negligence
failing to do what a reasonable person would do in similar situations
what is a multi trip travel insurance policy
fake question, does not exist, only annual and single trip
bodily injury and personal injury are the same thing, t/f?
false
liability coverage for motorized vehicles and watercraft: an insure company would cover golf cart damage while driving around in the back yard of a cottage
false
license for insurer is issued for an unlimited amount of time. t/f?
false
pre existing conditions are always insured by travel policies. t/f?
false
t/f an insurance company will insure you even if you are not legally liable, but feel morally obligated to do the right thing
false
t/f damage to antenna's from hail and windstorm is covered
false
t/f landlords are responsible for ensuring tenants building is safe
false
t/f liability insurance does cover damage done by the transmission of STDs such as AIDS
false
t/f there is coverage for property being "worked" on by the insured
false
t/f travel insurance cannot be purchased for families
false
t/f you cannot purchase additional insurance for items under special limits
false
travel insurance plans have deductibles.T/F?
false
t/f you can only pay for auto insurance annually?
false - can pay monthly or quarterly with premium financing
insured's are charged depreciation on a replacement cost? t/f?
false - depreciation does not apply with replacements
coverage for travel is covered for home city?
false - only across country or world
the co-insurance clause applies to full loss situations. T/F?
false - only in partial lose
if your child begins driving your car, they are on your CRS level, t/f?
false - vehicle is back at 0 for everyone
personal property (c) only applies to property within the house, t/f?
false, anywhere in the world
t/f you cannot bring a car from out of province into BC and get it insured
false, but you need to have a full inspection done first
t/f personal liability coverages are different for homeowners, tenants, condominium, and mobile home?
false, generally all the same
t/f once licensed in BC one can sell insurance all across canada, but not the US
false, need to be licensed in every province
you can go get a nice expensive dinner with your additional living expense? t/f
false, only overs what it takes to maintain a normal standard of living
t/f you can have one general liability coverage policy?
false- liability policies generally deal with specific activities and are not designed to insure all exposures faced by insureds - will need a separate policy for personal, business, professional, car, aircraft, etc. liability exposures
t/f: most settlement's for homeowner's are made with ACV?
false- usually replacement or repair
what does roadstar plus offer (in addition to the 4 provided by roadstar)?
family world wide transportation, Theft deductible waiver, Destination assistance - insured transportation to the intended destination from the scene of where the vehicle became inoperable due to a collision, theft, or vandalism, Emergency roadside expense repayment
describe the process broker's should follow when charging a fee over the premium
fee must be shown as separate from the premium, fee must be clearly explained to client, reason for fee shown
what are the 13 perils in a basic homeowner's form? (excludes all others)
fire and lighting, explosion, smoke (sudden and accidental from cooking or heating unit), falling object, impact by aircraft or vehicle (not operated by insured), riot, vandalism, water, windstorm or hail, glass breakage, transportation, theft, electricity
What are the 8 named peril's in the named perils form for commercial property insurance?
fire, lightening, explosion, impact by aircraft, riot, smoke, leakage from fire equipment, wind storm/hail
what perils are covered in a basic fire peril policy?
fire, lightning, explosion due to natural gas, manufactured gas, or coal
a broad commerical policy has only 3 exclusions for glass coverage in an additional policy (pay more for). what are they
fire, ware, nuclear hazard
what are 4 perils insured when damage is caused to premises?
fire, water damage, explosion, smoke
3 examples of perils excluded from most property insurance policies
flood, war, nuclear accidents
the builder's risk extension in the broad form for commerical property insurance covers, but does not cover 1 thing
forms and hoardings, temporary buildings on site, and cost of landscaping - does not cover contractor's tools
3 examples of lack of integrity
fraud, misrepresentation, taking advantage of client's inexperience
3 examples that demonstrate lack of integrity
fraud, misrepresentation, taking advantage of client's inexperience
what two factors are still contestable after 2 years for A and S insurance?
fraudulent statements and misstatements of age
what glass items are covered in a basic homeowner's and which are not
glass that is part of the building is covered, glass lamps or plates are not
what are some common exclusions of travel policies?
hazardous activities (parasailing), injury by war, or injury by fraud, damage to vehicle while on vacation (auto insurance)
what kind of professionals can get liability insurance for their specific professions?
healthcare field - malpractice insurance counselors or those that give advice (lawyers, insurance, etc.) - errors and omissions insurance
what is units improvements and betterments coverage?
if condo owner renovates place, value of it goes up and they must insure - original insurance is based on the generic condo
explain new vehicle replacement plus
if the insured is the first owner of a new vehicle (current or future model year) and have any optional autoplan coverage with at least 4 -20% CRS, they are entitles to purchase. benefits are: Allowance is made for the effects of inflation in total losses, and the insured can chose to replace the vehicle with a new one of the same make and model, or replace it with another model, or receive cash payout
3 situations where parents are responsible for the tort's of their children
improper supervision, parents give child something dangerous, children acting on parents supervision, children working for parents (employees)
what is inverse liability?
in some parts of Canada and the US the law does not permit seeking compensation from the other driver after an accident When the insured is involved in this circumstance, basic autoplan will pay the cost of the repair of the vehicle to the degree the insured was not at fault - applies even if insured did not purchase collision coverage
leading cause of errors and omissions from brokers?
inadequate coverage
what are the two types of S&A insurance
individual and group
define all risk policies
insure against all risks of direct physical loss or damage, subject to policy conditions and exclusions
who can attain a roadstar package?
insured at minus 9 on CRS
explain the provisions of the locked vehicle warranty under commerical property insurance properites
insured must keep property in passenger compartment tor in fully enclosed metal body, insured must lock vehicle, must be force used to gain access to vehicle, and there must be evidence of this force
what is supplementary payment? what costs are covered? (4 payments)
it is a separate insuring agreement 1) cost of defense 2) reasonable expenses the insured will cover to assist in the investigation 3) courts cost 4) interest from date of judgement
What are some examples of things that would not be able to be settled on a replacement cost basis, and instead would need to use a predetermined ACV
jewelery, antiques, art, memorabilia,
give 3 types of property that receive special limits under homeowner's insurance when they are stolen (theft)
jewelry, fur, coin, stamp
3 characteristics that could cause a broker's license to be revoked (under the standard's of conduct)
lack of integrity, lack of competence, lack of quality of service
describe BC's level licensing system
level 1: cannot sell outside office, cannot manage brokerage level 2: can sell outside office, cannot manage brokerage level 3: can sell outside office, can manager brokerage
what is an elimination period?
like a deductible, the time between the onset of the disability and the commencement of benefits. The longer the wait the lower the premium
Describe "name perils" policies
list perils that are insured against
how do elimination periods affect premiums (A and S insurance)
longer elimination periods result in lower premiums
how do you calculate how much the shortfall was for an underinsured policy (co-insurance clause)
loss minus the calculated settlement
give 3 examples of indirect damage
loss of food, loss of rent, loss of business
what are the 4 essential coverages provided by a roadstar package?
loss of use (up to $500), rental vehicle coverage, vehicle travel protection, and locked keys
which premises's are insured on section 2 of a homeowner's form?
main dwelling, seasonal dwellings, temporary residing, new residence, cemetery plots, vacant land, home under construction
4 variables that affect the premium charged
make, model and year, type of own damage coverage selected, amount of deductible (higher deductible = lower premium), other coverages selected
describe tied selling
making the sale of one policy contingent on the sale of another
what is the minimum coverage for 3rd party, what is the max?
minimum of 200,000 max of 5 mil, standard of 2mil
3 examples of property excluded from most property insurance policies
money, cars, watercraft
give 3 types of property that receive special limits under homeowner's insurance, regardless of the cause of loss
money, computer software, business property
what are some coverages that can be purchased for new vehicles?
new vehicle replacement plus, replacement cost plus, and limited depreciation coverage
do you need to purchase coverage for unlicensed vehicles?
no
do claims from travel insurance carry over when you renew?
no - start from fresh
what personal property is excluded under homeowners coverage c?
motorized vehicles (besides lawnmowers, wheelchairs), camper units, aircraft, compact disk, TV
what is the legal duty owed to licensees?
must point out unusual dangers known to be present
define negligence, what are two elements needed to be present in every tort action
negligence is the fail to do or not do what a reasonable person would do or not in a similar situation, which can result in property damage or injury/death. tort actions must be PROVEN and legal duty BREACHED
do voluntary payments have a deductible?
no, but they count as a claim (increase the premium)
do insured's pay inflation cost on replacement
no, just ACV
do liability insurance policies cover intentional damage or injury?
no, only unintentional
is the property of roomers and boards insured under coverage C, personal property insurance
no, they need their own coverage for their belongings
how long do you have to give ICBC notice of loss? proof of loss?
notice - immediately proof - 90 days
identify three business activities insured by section 2 of a homeowner's policy
occasionally rented to home to others (while on vacation), renting out a portion of your home to others, business conduction of children under 21
2 ways to pay for liability damages
occurrence (new money every new occurrence) or aggregate (big bucket)
3 things necessary for insurance company to pay for liability damage of insured
occurrence, take place in policy period, and must take place in territory
What is the difference between an occurrence limit policy and an aggregate limit policy?
occurrence: set limit per occurrence, will pay to limit of each item aggregate: set limit per policy, no payment beyond that (bucket)
define variable sanctions
olicies with claims will have a sanction applied based on the risk they present, the better the risk the lighter the sanction
list rules for "pair and set" and "parts" under a property policy
pair and set (earrings): loss or damage of one item of a pair or set does not constitute loss or damage to the entire pair - the item not lost continues to have value and this amount is deducted from the amount in the claim payment parts (paint on carpet): when there is loss to only one part of the property which consists of several parts, the basis of settlement shall be the value of the lost or damaged part, including the cost of installation
who would not have WCB?
people in trades, can purchase
define you and your as used in homeowner policies
person named in policy, spouse (married to named person or common law), relatives of either, anyone under 21 in their care, students away from home enrolled in and attending school and are dependent on name insured or spouse
define and give 5 examples of "personal injury liability"
personal injury liability is injury other an bodily examples include: libel: written character defamation slander: speech/spoken defamation malicious prosecution wrongful entry or eviction - landlords discrimination *paris hilton
list the 3 things you get covered for a) personal property, and b) commerical property
personal: dwelling, detached private structures, personal property commerical: building, stock, equipment
define bodily injury
physical injury sustained by external causes, sickness and disease, death from deemed bodily injury
define property damage (what is covered under property damage liability insurance)
physical injury to tangible property the property damage itself as well as any additional loss of use that implies further cost for the plaintiff (hotel) will be covered and insured by the insurer for the defendant
What is included in property damage under liability insurance?
physical property to tangible property and the resulting loss of use (ie. person loses house in fire you started, has to pay for hotel)
explain the importance of pre existing conditions
pre existing conditions are insured when the client is 60 years old or less and has this condition under control for 3 months, when they are over 60 need it under control for 6 months, and all cardiac conditions are insured only when under control for 6 months regardless of age
identify three liability exposures faced by most businesses
premises, product, operations
define warranty
promise by the client that certain facts are true and that they will remain so
Identify the primary obligation brokers owe their customers
provide the right advice and coverage
what are accident benefits?
provided on a no fault basis - i.e. the insured does not need to prove that anyone is at fault
5 coverages under ICBC basic autoplan, which is what you are required to purchase at a minimum. what is third party liability
provided when an insured is legally liable to a third party for bodily injury or property damage arising out of the use of the insured vehicle
define "dependent" regarding travel insurance
under 26 when attending school or 20 when not attending school, must be unmarried , residing with parents and fully supported by parent. no age constriction on children with disabilities
what factors affect the rate charged for auto insurance?
rate class (intended use of vehicle), territory, claim record (CRS level), autoplan renewals, make, model and year of vehicle
3 common extensions found in homeowner policies
removal, debris removal, moving to another home
how do you calculate ACV?
replacement cost less depreciation
list 6 PROPERTY exclusions under a basic property policy
securities, money, cars, aircraft, watercraft, books of account
what is covered under coverage b (detached private structures)?
separated from dwelling by clear space, i.e. fence, park, shed
what does civil law deal with
settling disputes between individuals or companies, COMPENSATION for the wronged party.
what two types of trips are insurable for travel insurance policies?
single trip and annual policies both available
commerical broad form does not insure what loss? (smoke)
smoke damage caused to building from industrial operations located on the insured's premises
define the smoke peril on the homeowner's basic form
smoke due to the sudden and unusual or faulty operation of a heating or cooking unit on the premise
what kind of smoke is excluded from coverage in a basic homeowner's form
smoke from heating or cooking unit that is not sudden or accidental (i.e. you left the pot on the stove too long), and smoke from fire
the liability coverage provided by homeowner's forms covers the insured's legal liability for loss or damage to the premise of other which the insured is using or 4 renting for 3 losses, name these:
smoke, water escape, explosion
what is loss assessment coverage used for?
sometimes the coverage of the corporations policy is not enough to cover a loss to collectively owner property
own damage coverage can be purchased in addition to the 5 basic autoplan components. what are 3 types of own damage coverage?
specified perils, collision, comprehensive (vandalism, animals, windshield, theft, etc.)
what is excluded from a homeowner's comprehensive form? (10)
sporting equipment damaged due to use, personal property being worked on, wear and tear, settling and expansion, birds vermin rodents and insects, snow slide, earthquake, landslide, water damage exclusions (same as peril)
3 exclusions on a homeowner's comprehensive form
sporting equipment when loss or damage is due to its use, birds and vermin, wear and tear
what is incontestability?
statements from insured cannot be contested/disputed by insurer after 2 years except for fraudulent statements and misstatement of age
difference between statutory and policy conditions
statutory - used for fire, sickness and accident, and auto policy - used for property
name and explain the 2 ways the law can be interpreted
statutory law: written conditions common law: based on past cases
Wild Animals: what is the legal duty owed in common law?
strict liability - inherently dangerous
who administers the british columbia insurance act?
superintendent of insurance - superintendent of financial institutions
legal duty to invitees?
tell him of dangers he knows as well as those with reasonable care he might discover
primary obligation brokers owe to their INSURERS
tell the truth
what are some examples of why a liability claim may arise against a business ?
the condition of the premise, business operations, product liability, completed operations liability, etc.
the loss assessment coverage provided by the condominium unit owner's package form will respond when?
the coverage or limits of the corporations policy are inadequate to cover collectively owned property (lobby etc.) and they call on condo owners
what is uninsured or hit and run coverage? how much does it cover? what deductible is applied when this happens?
the insurance act proves up to 200,000 for any claim for bodily injury or death caused by an uninsured hit and run driver on a highway in BC, or property damage caused by an uninsured driver or hit and run driver When the claim is for a car as a result of a damage caused by an unidentified driver, a deductible of $750 will be applied
what does "voluntary" mean (for coverages F, G and H?)
the insured is not liable
who pays voluntary payments?
the insurers
what is coverage E on homeowner's forms designed to insure?
the liability of private citizens for their actions
what is an aggregate limit?
the maximum amount paid for all valid claims during the policy terms
define negligence
the omission to do something which a reasonable person would do, or doing something a reasonable person would not do
who is insured under your autoplan?
the owner and anyone else who drives the vehicle with the consent of the Named Insured - anyone who has their license and has the owner's [permission to drive the insured vehicle is covered by the owner's policy (do not have to be named in the policy)
who is the tortfeasor?
the person who commits the wrong
what do condo owners have to insure
their own personal belongings in the building
Why do people need travel insurance when they never leave canada?
their provincial health care plan may not cover all expenses while away from home
when do employees give up the right to sue their employers if hurt in workplace
then they have WCB
what does a special limit mean? what items are under a special limit regardless of type of loss under coverage c? what about only for theft?
there is a set limit on how much it will be insured for. regardless of loss includes business property, securities, personal property of students, money, watercraft ($1000), computer software, spare auto parts theft: jewelry, collectibles, fur stamps, etc.
4 exceptions when landlords are liable to tenants
they specially warrant the fitness for such purpose, conceal an adverse conditions, when they rent a furnished premise, it is presumed they are safe, If they make a promise (contract) to come fix something and fail to do so within reasonable time, liable
what are the 5 main types of coverage under basic auto plan
third party liability, accident benefits, underinsured motorist, hit and run/uninsured, and inverse liability
what are supplementary payments? list the four
those costs that are covered while investigating, settling, and defending a claim - go above the policy limit, which is strictly intended for payment to plaintif 1) cost of defense 2) reasonable expenses to assist in the investigation of a claim 3) court costs 4) interest (only to amount within policy limit)
define elimination period (A and S insurance)
time between onset of disability and commencement of benefits
3 factors that affect the premium rate for an individual with travel insurance
travel area, length of trip, health
T/F: the same people are insured in section II of homeowner's insurance as section I.
true
accidents from wars are not insured by travel insurance. t/f?
true
personal property under the homeowner's forms is covered around the world. T/F?
true
t/f it is the law for every auto owner to purchase ICBC
true
t/f there is no coverage for property in the care custody or control of the insured?
true
travel policies can be issued to families or individuals. t/f?
true
t/f BC has compulsory auto insurance
true, ICBC, government ran , car owners are required by law to purchase specific insurance coverages and limits from the government (different for each)
t/f contents of trailers not insured
true, but coverage for these can be added to homeowner's
t/f wild animals are insurable
true, but under strict liability
there is no coverage in mexico, t/f?
true, just canada and US
damage done for disability is always unintentional, t/f?
true, not for intentional damage
other than coverage on personal property, what are two additional coverages condominium units owner's may wish to purchase
unit improvements and betterments and loss assessment coverage
if you make a claim, do u move up or down the CRS
up - go to a + level and have a subcharge, not discount
CRS follows the person or vehicle
vehicle
define an accident (in terms of travel insurance)
violent, sudden occurrence outside client's control
what must an insured not do after a loss has occurred? (regarding payment)
voluntarily make a payment to injured party - will not be covered by insurance, only first aid will (ambulance)
what type of explosion coverage in a basic homeowners form is excluded
water hammer
identify two types of disability income coverages in group insurance policies (A and S)
weekly (short term) and long term
when will voluntary payment for damage to property insure damage caused intentionally?
when damage is caused by an insured person in 12 years of age or younger
when is vandalism excluded from coverage in a basic homeowner's form
when it happens during construction, is caused by the insured, or is a result of theft
when are independent adjusters contacted by insurers to adjust claims?
when staff adjusters are too busy and when special skills are required
another additional coverage that can be purchased under commerical property is valuable papers and records insurance. what is a requirement of this?
when the premises are closed, the records must be stored in a receptacle specified on the form
what benefits do mortgagees receive with the standard mortgage clause?
will receive their interest when client breaches policy due to act, neglect, omission or misrepresentation, policy will not be changed or terminated without mortgagee knowing
identify 2 perils that are not insured under homeowner's policies
wind and hail
up to how long will the insurer make voluntary medical payments under coverage F of section 2 of a homeowner's form?
within 1 year of the accident
how are medical payments losses paid (voluntary)?
without regarding to fault
what legislation may affect employer's responsibility to their employees? (i.e. under what terms can employee not sue employer if hurt?)
workers compensation benefits
are pools covered under homeowners?
yes
are shrubs covered under homeowners?
yes
do insurer's have to be licensed in every individual province to sell insurance?
yes
can you purchase additional coverages outside of icbc?
yes from private insurers, but only additional not basic
can ICBC deny coverage?
yes, if insured is racing, drunk, committing violence, illicitly transporting, escaping, not authorized to take the car, etc.
what is compensatory damage and does liability insurance cover it
yes, this is the only damage liability insurance covers, and it is damages which are intended to compensate the third party for the injury or damage caused by the insured
are tenants liable to landlords?
yes, when the damage arises out of their negligence
which person's are insured on section 2 of a homeowner's form?
you and yours
who is covered under section 2 of a homeowners form - liability
you and yours (same as people insured under section 1)
who's personal property is protected under coverage c?
you and yours, people living in the house, students away from home
4 things workers comp plans cover
• Any necessary healthcare costs • Necessary medical rehab • Replacement for lost earnings time • Death benefit