Podcast
Questions and Answers
Which of the following is an example of a direct damage form?
Which of the following is an example of a direct damage form?
Endorsements are used to modify terms and conditions of existing insurance policies.
Endorsements are used to modify terms and conditions of existing insurance policies.
True
What is the purpose of using riders in insurance policies?
What is the purpose of using riders in insurance policies?
To add specific coverages to enhance existing policies.
The __________ form insures losses related to accounts receivable.
The __________ form insures losses related to accounts receivable.
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Which type of insurance is also known as the Boiler and Machinery Policy?
Which type of insurance is also known as the Boiler and Machinery Policy?
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Exclusions in property insurance can include specific on-premises losses.
Exclusions in property insurance can include specific on-premises losses.
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What can be a strategy to enhance insurance coverage?
What can be a strategy to enhance insurance coverage?
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Which of the following types of signs are covered by the described insurance?
Which of the following types of signs are covered by the described insurance?
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Wear and tear is covered under the common exclusions of the insurance policy.
Wear and tear is covered under the common exclusions of the insurance policy.
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What is the typical insurance rate for signs?
What is the typical insurance rate for signs?
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What is a recommended action for a broker when investigating by-law requirements?
What is a recommended action for a broker when investigating by-law requirements?
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Coverage for property in transit is limited to Canada only.
Coverage for property in transit is limited to Canada only.
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Coverage for glass and ornamentation is provided through the __________.
Coverage for glass and ornamentation is provided through the __________.
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What type of endorsement is recommended for comprehensive coverage?
What type of endorsement is recommended for comprehensive coverage?
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Coverage is restricted to locations specified on the __________ Page.
Coverage is restricted to locations specified on the __________ Page.
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Which of the following statements about the Glass Rider is correct?
Which of the following statements about the Glass Rider is correct?
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Interior glass has higher insurance rates compared to exterior glass.
Interior glass has higher insurance rates compared to exterior glass.
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Which of the following is considered a common off-premises coverage?
Which of the following is considered a common off-premises coverage?
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What must be explicitly described for coverage of lettering and ornamentation?
What must be explicitly described for coverage of lettering and ornamentation?
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Equipment and stock can be considered a temporary location when they are at a location owned by the insured.
Equipment and stock can be considered a temporary location when they are at a location owned by the insured.
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What is one example of a temporary location for insurance coverage?
What is one example of a temporary location for insurance coverage?
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What is the main purpose of the Instalment Sales Contract Floater?
What is the main purpose of the Instalment Sales Contract Floater?
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Physical possession of the property is required for coverage under the Custody Definition.
Physical possession of the property is required for coverage under the Custody Definition.
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What form of endorsement insures predictable stock value increases in advance?
What form of endorsement insures predictable stock value increases in advance?
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The key endorsement form that protects against property losses due to inflation is called __________.
The key endorsement form that protects against property losses due to inflation is called __________.
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Which of the following is NOT a key endorsement form?
Which of the following is NOT a key endorsement form?
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The Peak Season Endorsement has seen a decline in use due to the popularity of package policy coverages.
The Peak Season Endorsement has seen a decline in use due to the popularity of package policy coverages.
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What type of coverage does the Instalment Sales Contract Floater offer?
What type of coverage does the Instalment Sales Contract Floater offer?
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Which of the following is NOT covered under Broad Water Damage Coverage?
Which of the following is NOT covered under Broad Water Damage Coverage?
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Electrical Breakdown coverage includes loss from short circuits.
Electrical Breakdown coverage includes loss from short circuits.
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What type of insurance was formerly known as Boiler and Machinery Insurance?
What type of insurance was formerly known as Boiler and Machinery Insurance?
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Businesses relying heavily on _______ equipment should consider Equipment Breakdown Insurance.
Businesses relying heavily on _______ equipment should consider Equipment Breakdown Insurance.
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Which type of coverage is specifically available for in-transit or temporary off-premises losses?
Which type of coverage is specifically available for in-transit or temporary off-premises losses?
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Name one example of a common loss covered by Equipment Breakdown Insurance.
Name one example of a common loss covered by Equipment Breakdown Insurance.
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Coverage for explosion of boilers is typically included in Named Perils policies.
Coverage for explosion of boilers is typically included in Named Perils policies.
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Study Notes
Broker's Role and Considerations
- Brokers must investigate by-law requirements and inform clients about known laws.
- Recommend adjustments to policies that cover potential additional by-law-related expenses.
- Ensure clients purchase a Replacement Cost Endorsement for comprehensive coverage.
Insuring Off Premises Exposures
- Standard coverage limits property coverage to specified locations.
- Off-premises coverage includes stock, equipment, and property in transit.
- Common off-premises coverages: temporary locations, newly acquired buildings or contents, and sales representative's property.
Understanding Temporary Locations Coverage
- Temporary locations defined as unspecified areas not indicated in the policy.
- Examples include customer locations, repair sites, and local depot holds.
- Coverage excludes property owned or controlled by the insured.
Coverage Limits at Specified Locations
- Coverage limits are applicable only at locations specified in the policy details.
Dealing with Policy Exclusions
- Brokers must enhance client coverage through endorsements, riders, or separate policies.
- Different insurers may have varying coverage forms; comparisons are essential.
- Strategies to extend coverage: endorsements modify existing policies, while separate policies cater to specialty coverage needs.
Broadening On-Premises Coverages
- Standard policies exclude certain on-premises losses; endorsements can offer additional protection.
- Key direct damage forms include coverage for signs, glass, accounts receivable, and electronic data processing.
Sign Form (IFC 51037)
- Covers various types of signs with broader coverage compared to standard limits.
- Common exclusions: wear and tear, electrical currents (except lightning), and damages from installation or maintenance.
- Insurance rates typically run ~3per3 per 3per100 of sign value, with lower rates for interior signs.
Understanding the Glass Rider (IFC 45303)
- Critical for protecting significant investments in glass and ornamentation.
- Coverage limited to scheduled types and often required by tenant agreements.
- High rate structures for exterior glass and need for explicit description for coverage inclusion.
Additional Coverages and Exclusions
- Broad Water Damage Coverage covers issues like seepage, leakage, and flooding.
- Electrical Breakdown Insurance addresses machinery programming errors and operational failures.
- On-premises coverage typically limits losses to specified locations.
Introduction to Equipment Breakdown Insurance
- Formerly Boiler and Machinery Insurance, crucial for businesses with high-risk equipment.
- Common losses include burst boilers and electrical failures.
- Equipment types covered include telecommunications, computers, and HVAC systems.
Miscellaneous Endorsement Forms
- Key forms include Instalment Sales Contract Floater, Peak Season Endorsement, and Replacement Cost Endorsement.
- Instalment Sales Contract Floater protects property under deferred payment plans from vendors.
- Peak Season Endorsement addresses predictable stock level increases during specific periods without year-round coverage costs.
Peak Season Endorsement Considerations
- Popularity has declined due to packaged policy coverages offering automatic seasonal increases.
- Insurers may implement automatic increases (e.g., 25%) of current insured values, but details can vary significantly.
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Description
Explore the vital aspects of insurance restrictions based on property type, including key endorsement forms like Peak Season and Inflation Protection. This quiz will help you understand the definition of custody in relation to insurance coverage and common requirements for theft-prone items.
