Podcast
Questions and Answers
What acronym is mentioned for memory in the content?
What acronym is mentioned for memory in the content?
- WHORP (correct)
- HOPED
- TOP HEG
- BRAIN
A high risk detachment is not considered significant if surrounded by less hazardous locations.
A high risk detachment is not considered significant if surrounded by less hazardous locations.
False (B)
What is typically required by a broker when dealing with high-risk policies?
What is typically required by a broker when dealing with high-risk policies?
An additional questionnaire
There are approximately ______ fire losses that occur in Canada each year.
There are approximately ______ fire losses that occur in Canada each year.
Match the following terms with their descriptions:
Match the following terms with their descriptions:
What would typically be a reason for the insurance company to accept a higher risk policy?
What would typically be a reason for the insurance company to accept a higher risk policy?
It is important to distinguish between moral and morale when studying insurance policies.
It is important to distinguish between moral and morale when studying insurance policies.
What is the annual property loss in Canada due to fire incidents?
What is the annual property loss in Canada due to fire incidents?
What is the maximum amount the policy will pay out in the event of a loss when the item is declared at $10,000 but the actual cash value is $15,000?
What is the maximum amount the policy will pay out in the event of a loss when the item is declared at $10,000 but the actual cash value is $15,000?
The co-insurance clause applies automatically when conditions are not met.
The co-insurance clause applies automatically when conditions are not met.
What may an owner decide regarding tenant improvements if the lease is not renewed after a loss?
What may an owner decide regarding tenant improvements if the lease is not renewed after a loss?
If an insured fails to disclose a prior theft claim, the insurer could _____ the contract.
If an insured fails to disclose a prior theft claim, the insurer could _____ the contract.
Match the following roles with their descriptions.
Match the following roles with their descriptions.
Which of the following could constitute a breach of warranty?
Which of the following could constitute a breach of warranty?
The insured is not required to provide all pertinent facts about their risk to the insurer.
The insured is not required to provide all pertinent facts about their risk to the insurer.
What is the maximum value an insurance policy will pay if a declared item is listed at $10,000 and its actual cash value is $8,000?
What is the maximum value an insurance policy will pay if a declared item is listed at $10,000 and its actual cash value is $8,000?
What is the average daily cost associated with the fires mentioned?
What is the average daily cost associated with the fires mentioned?
Local time at the insured's address changed from standard time to align with government auto policy.
Local time at the insured's address changed from standard time to align with government auto policy.
What is an example of coverage that will be discussed later for insureds regarding bylaws?
What is an example of coverage that will be discussed later for insureds regarding bylaws?
Until the ______ is removed, the property may not be able to be rebuilt or repaired.
Until the ______ is removed, the property may not be able to be rebuilt or repaired.
Match the type of commercial insurance policy with its description:
Match the type of commercial insurance policy with its description:
Which phrase is essential when reviewing commercial policies?
Which phrase is essential when reviewing commercial policies?
As more spacecraft are launched, the potential for loss decreases.
As more spacecraft are launched, the potential for loss decreases.
What might a client leasing property for a flower shop be responsible for according to their lease agreement?
What might a client leasing property for a flower shop be responsible for according to their lease agreement?
What happens if debris from the wind damages a customer's vehicle being worked on at an auto repair shop?
What happens if debris from the wind damages a customer's vehicle being worked on at an auto repair shop?
All personal lines coverage is applicable to commercial properties.
All personal lines coverage is applicable to commercial properties.
What is the reimbursement limit for damages caused to an employee's cell phone in the lunchroom due to a sprinkler system malfunction?
What is the reimbursement limit for damages caused to an employee's cell phone in the lunchroom due to a sprinkler system malfunction?
Under a broad form policy, ____________ are covered unless explicitly listed as exclusions.
Under a broad form policy, ____________ are covered unless explicitly listed as exclusions.
Match the terms with their corresponding coverage type:
Match the terms with their corresponding coverage type:
Which of the following is a key consideration in commercial property policies?
Which of the following is a key consideration in commercial property policies?
What is the primary focus of the exam in relation to coverage types?
What is the primary focus of the exam in relation to coverage types?
Exclusions from a broad form policy are the only situations that will be covered.
Exclusions from a broad form policy are the only situations that will be covered.
What acronym represents the five causes of mechanical and electrical breakdown for EDP policies?
What acronym represents the five causes of mechanical and electrical breakdown for EDP policies?
Exclusion policies are uniform across all insurers.
Exclusion policies are uniform across all insurers.
What should brokers be aware of when reviewing company wordings?
What should brokers be aware of when reviewing company wordings?
Coverage for additional perils can often be added to an Insured's policy through __________ forms.
Coverage for additional perils can often be added to an Insured's policy through __________ forms.
Match the following types of insurance forms with their descriptions:
Match the following types of insurance forms with their descriptions:
Which chart is used to review insuring property excluded in a broad form policy?
Which chart is used to review insuring property excluded in a broad form policy?
Recent times have shown that flood coverage is less available than before.
Recent times have shown that flood coverage is less available than before.
What event led to a high demand for adding earthquake coverage in Abbotsford?
What event led to a high demand for adding earthquake coverage in Abbotsford?
Flashcards
Insurance Claim Payout Limit
Insurance Claim Payout Limit
Even if a loss exceeds the declared value, insurers may pay only the lower amount.
Co-Insurance Clause
Co-Insurance Clause
Insurance clause requiring the insured to maintain a minimum level of coverage to be fully reimbursed.
Tenant Improvements Lease End
Tenant Improvements Lease End
Property owners may not restore improvements made by a tenant if the lease ends soon after a loss allowing for new tenant customization.
Breach of Warranty
Breach of Warranty
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Disclosure Requirements
Disclosure Requirements
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Risk Assessment
Risk Assessment
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Insurance Market Conditions
Insurance Market Conditions
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High-Risk Area Questionnaires
High-Risk Area Questionnaires
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Fire and Extended Coverage Essentials
Fire and Extended Coverage Essentials
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Commercial Property Liability
Commercial Property Liability
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Standard Policy Exclusions
Standard Policy Exclusions
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Annual Fire Losses (Canada)
Annual Fire Losses (Canada)
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Policy Extensions
Policy Extensions
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Specialized Coverage
Specialized Coverage
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Earthquake Coverage Extensions
Earthquake Coverage Extensions
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Evolving Insurance Policies
Evolving Insurance Policies
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Flood Coverage Improvement
Flood Coverage Improvement
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Study Notes
Insurance Claim Procedures
- When a client declares items worth $10,000, the payout will be the lesser amount, even if the actual cash value at the time of loss is $15,000.
- A 100% co-insurance clause applies if conditions are not met regarding fire insurance policies.
Tenant Improvements and Obligations
- If a tenant's lease ends shortly after a loss, the property owner may opt not to restore previous improvements, allowing the next tenant to customize as needed.
- Breach of warranty occurs if necessary conditions, like a monitored alarm, are neglected, leading to theft.
Insurers’ Disclosure Requirements
- Insured parties must reveal all relevant facts and prior claims; failure to disclose claims (e.g., a $10,000 theft) can lead to policy cancellation.
- Brokers utilize submitted information for risk assessment, including applications, photos, and other required documents.
Understanding the Insurance Market
- The current state of the insurance market can be categorized as soft or hard, reflecting trends in premium rates and coverage availability.
- Brokers may require additional questionnaires for high-risk areas, such as retail establishments near nightclubs or industrial facilities.
Fire and Extended Coverage Policy Essentials
- Understanding which perils are covered and their exclusions is crucial across all commercial policies.
- Equipment Breakdown Insurance can complement existing policies for enhanced coverage.
Commercial Insurance Key Points
- Commercial property policies usually have limited liability extensions for covered losses.
- Familiarity with standard exclusions within broad form policies helps brokers navigate coverage effectively.
Financial Considerations and Reporting
- Canada experiences approximately 50,000 annual fire losses, totaling around $1.5 billion, averaging over $4 million daily in damages.
- Data and examples from Chapter 3 illustrate important insurance policy structures and definitions.
Extensions of Coverage
- Most commercial property policies include extensions that limit the insurer's liability.
- Employers may be reimbursed for limited damages (e.g., cell phones) under coverage extensions based on specific scenarios like sprinkler system failures.
Specialized Coverage Considerations
- Specialized forms differ by insurer; brokers need an understanding of varying guidelines and exclusion differences.
- Additional coverage for risks like earthquakes includes provisions for landslides or other movements happening concurrently with seismic activity.
Recent Trends in Coverage
- Increased demand for specific coverage, such as earthquake protection, illustrates the evolving nature of insurance policies in response to recent events.
- Flood coverage availability has improved in personal lines, indicating changing risk assessments by insurers.
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Description
Explore the essential procedures related to insurance claims, tenant obligations, and disclosure requirements. This quiz delves into the complexities of the insurance market, offering insights into co-insurance clauses and the impact of tenant improvements on leases. Test your knowledge and understanding of these crucial concepts.
