CAIB 2 - Chapter 3 - Flashcards

The total amount paid annually by businesses for property insurance in Canada is covered by fire insurance.

A named perils form covers almost any cause of loss, except those specifically excluded.

A broad form policy covers losses from almost any cause, except those specifically excluded.

Fire is the leading cause of fire claims for businesses.

Arson/set fires are a leading cause of fire losses for businesses, accounting for around 20% of all losses.

A declarations page contains crucial details about the policy such as coverage period and insured items.

Damage from heat and electricity is covered by a fire insurance policy.

Coverage for temporarily removing property to prevent further fire loss is provided by a fire insurance policy.

Compensation for cleaning up after a fire is capped at a percentage of the loss.

Money and vehicles are always covered by a standard fire insurance policy.

Properties unoccupied for over 30 days are fully covered by a fire insurance policy.

Specialized pools cover and provide insurance for nuclear incidents for institutions with specific nuclear exposures.

The insuring agreement is a statement that the insurer will pay for the insured perils.

Explosion coverage provided by insurance policies includes coverage for insured equipment.

Portable gas cylinder coverage is offered by fire insurance policies.

Coverage for damage from impacts by aircraft or spacecraft (if owned or controlled by the insured) is provided by fire insurance policies.

Coverage for damage from riots or malicious acts also covers business interruptions due to interior damage caused by said events.

Riot/vandalism/malicious acts coverage is an example of a comprehensive coverage policy offering coverage for almost any peril.

A very comprehensive insurance policy is one which has complete coverage for any peril without any exclusions.

If a claim is denied by an insurance company, it must provide proof of exclusion if they want to deny the claim.

Electrical malfunction is a covered peril under a fire insurance policy.

The insured may have to pay the full amount of the claim again to the mortgagee if a claim is denied.

Coverage for costs to rebuild or repair after a loss to comply with municipal bylaws are insured by the insurer.

Coverage for loss or damage to insured property from an insured impact by aircraft/spaceship/land vehicle is provided by fire insurance policies.

Coverage is provided for riot/vandalism/malicious acts under a fire insurance policy.

Broadening coverage and making policies more competitive is a significant driver for the development of new insurance policies.

A maximum of $2500 per employee can be claimed under a broad form policy.

A broad form policy is only available for small businesses.

The maximum amount payable under a broad form policy is $500 per occurrence.

Detachment coverage is a feature of broad form policies that is designed specifically for smaller businesses.

Broader coverage in insurance policies helps to eliminate many claims problems.

There are standard package policy forms available in the insurance industry.

What is the primary difference between a named perils policy and a broad form policy?

What is the significance of the declarations page in an insurance policy?

What are two advantages of a package policy?