CAIB 1 - Chapter 3

Insurance Training & Education

• Ensure provides training and education services.
• CAB1 General Insurance is a topic covered.
• An attendance poll was conducted.
• Students were asked to identify three key concepts learned previously.
• The importance of the forgetting curve was discussed.

Three Big Things

• Students had three minutes to note three significant concepts.
• The forgetting curve was emphasized.
• Students were asked if prior concepts had changed after further study.
• A reminder of the forgetting curve was given with a graph illustrating its impact.

Insurance Graphic Organizer (CAIB1 Chapter 2)

• Organized materials relate to insurance.
• Focuses on CAIB1 Chapter 2.
• A graphic organizer containing relevant information about insurance was presented.
• Includes details on various types of insurance policies related to personal property.

Example Exam Question

• Exam question: Identify and explain the three insuring agreements for personal property.

Insuring Agreements for Personal Property

• Three main agreements: On Premises Coverage, Off Premises Coverage, and Property of Students.
• On Premises Coverage extends to uninsured personal property of others while a part of the dwelling.
• Payment is regardless of if the insured is responsible for the loss; some exceptions apply.
• Off Premises Coverage applies to personal property temporarily removed from insured premises.
• Personal property located at another location owned by the insured isn't covered under this.
• Property of Students living temporarily away from home may be excluded.
• Examples include autos, all-terrain vehicles, snowmobiles, golf carts, and motorcycles.
  • Aircraft or equipment (exclusion all types aircraft while refurbished/refinished on insured's premises).
  • No coverage for equipment that is not operable or connected to the electrical system of the vehicle.

Chapter 3: Other Habitational Information

• Section 1 covers other habitational insurance forms.
• Mobile home insurance (IBC 1157) is discussed, as is construction different from conventional houses with three conditions: factory built, on own chassis, easily moveable.
• Also mentions on-site construction, using concrete blocks/heavy timbers for mobile home construction, and significant weights for those structures.

Major Causes of Loss

• Fire: Concerns about new construction standards and the likelihood of total loss compared to older houses.
• Windstorm: Plywood skirts/metal skirts reduce wind damage to homes.
• Hail: Metal siding may be affected (pitting); policy often has a dent clause.
• Transportation: Collision/upsetting common (resulting in loss) to mobile homes but not usual in non-mobile home cases.

Designing a Coverage Form

• IBC's Mobile Homeowners form (IBC 1157) covers conventional dwellings.
• Coverage A covers the mobile home building.
• Description of dwelling and amended descriptions of mobile home features.
• Appliances, furniture, equipment (permanent part of the building) fall under the coverage.
• Permanently attached elements such as carports/garages, awnings, skirting, and porches/tie downs are covered.

Building is in Process of Moving

• Leveling jacks/blocks are removed from the mobile home.
• Also, all utilities are disconnected during a move.

Designig a Coverage Form (Cont'd)

• Exclusions to the coverage for moving, losing ownership, and damage during moves of the buildings.

Basis of Payments

• Personal Property: Replacement cost is usually the payment basis.
• Unit Add'l Protection/unit Improvements: Replacement cost basis (without depreciation deduction).
• Insurance payments are often based on the replacement cost without any deduction for depreciation.

Seasonal Dwelling Insurance

• Seasonal residence form (IBC 1173).
• Not covered for mobile homes.
• Coverage for seasonal dwellings and outbuildings/personal property only.
• Property loss from temperature change excluded (i.e., damage to freezer food.
• Insured, under a similar form, for outdoor trees/plants/shrubs excluded from damages.
• Seasonal dwellings may, depending on whether they are insured yearly or seasonally, be under the coverage of the primary residence form (not applicable in all cases).

One-Minute Review

• Students were to summarize in three sentences, or write questions.

Term and Definition

• Students had two minutes for a flashcard activity, to define terms.

Personal Articles Endorsement

• Covers high-value personal property.
• Includes cameras, projectors, films, accessories, firearms, furs, jewelry, silverware, and stamps/coins.

Personal Articles Endorsement (Cont'd)

• IBC's habitational forms have special Limits of Insurance (for objects previously discussed.)
• Advantages of the endorsement include increased limits, broadened coverages, and reduction/elimination of deductibles.
• All risks are broadened under the endorsement.
• This includes loss/damage to sporting equipment.
• Accidental loss/damage to items while they're being worked on.
• Theft from or damage to tenant's, household member's, or tenant's employee belongings.

Personal Articles Endorsement (Continued)

• Valued coverage optional, with agreement about the value of the property.
• Exceptions exist for musical instruments used for profit.

Personal Articles Endorsement (Continued)

• Special conditions/provisions apply.
• Stamp/coin collection covers the total value of the collection.
• Partial losses have a maximum payable amount for individual articles.
• Total losses are usually 100% of the collection.

Personal Articles Endorsement (Continued)

• Newly acquired articles need coverage for up to 5,000 extra.
• Covers equipment insured for 30 days.
• Reinstatement includes the loss amount coverage; insurance isn't reduced if the property has to be replaced.
• Proper notice to the insurer regarding lost/damaged articles within 30 days.

Personal Articles Endorsement (Continued)

• Statutory/Add' Policy Conditions apply.
• Scheduled basis - Each article is described separately with its amount.
• Policies are often for personal/private purposes only and may be excluded if for business or remuneration.
• May include part-time musicians/photographers.

Personal Articles Endorsement (Continued)

• Independent appraisal when an item has a high value.
• Insurer may need more detailed information during the underwriting process.
• Not all insurers use this type of endorsement.

Increased Cost Demolition/Construction

• Purpose.
• Background.
• Coverages/Limitations.
• Industry Use.
• Special conditions/provisions.

Miscellaneous Property Endorsement Form

• Residence Glass Endorsement.
• Sewer Back-Up Endorsement.
• Earthquake Endorsement.
• Vandalism/malicious acts extension endorsement.

Miscellaneous Property Endorsement Form (continued)

• Watercraft.
• Property insured.
• Insured perils
• Loss/Damage not insured.

Miscellaneous Property Endorsements Form (continued)

• Dishonesty of those insured, excluding carriers that are hired.
• Watercraft when rented.
• Watercraft use.
• Limited coverage on watercraft use.
• Territorial limits, amount of insurance, basis of settlement, minimum retention premiums.
• Clause for refunding premiums for cancelled coverage (annual policy).

Miscellaneous Property Endorsement Form (continued)

• Travel trailer floater/contents endorsement.
• All IBC habitational forms cover owned trailers.
• Covers "All Risks".
• Limits insurance amounts to a percentage of coverage purchased.
• Ex. Jewellery, semi/precious stones, watches, fur garments.

Miscellaneous Property Endorsements Form (continued)

• Other endorsements for different types of motorized vehicles and business properties.
• Broker's detailed survey and analysis for every client's loss exposures.

Recall and Write

• Students had three minutes to summarize or ask questions.

Quiz (CAIB1 C3.S1)

• Quiz for review.

Questions (CAIB1 C3.S1)

• Questions for further clarification.

Test your knowledge on key concepts from CAIB1 Chapter 2 in insurance training. The quiz covers important topics such as the forgetting curve, various types of insurance policies, and insuring agreements for personal property. See how well you understand the material and identify areas for further study.