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Identify two coverage sections and what they provide in Homeonwers Forms ?
- Section I: Property Coverage
- - Dwelling Building
- - Detached Private Structure
- - Personal Property
- - Additional Living Expense
- Section II: Liability coverage
- - Personal Liability
- - Voluntary Medical Payments
- - Voluntary Payment for Damage to Property
- - Voluntary Compensation for Residence Employees
What are the fiduciary obligation of insurers and brokers ?
Insurers: Premiums are not earned until expiry of policy
Brokers: commissions are not fully earned until expiry of policy
Fiduciary is one who handles other people's money. These people must ensure the money is not abused.
Identify the items insured under Coverage A - Dwelling Building
- a) The dwelling and attached structure such as sun deck, garages
- b) Permanently install outdoor equipment on the premises. for example swings, lawn sprinkler, satellite dish.
- c) Outdoor swimming pool and attached equipment on the premises
- d) Materials and supplies intended for use of construction on or adjacent to premises. We insure against theft only when dwelling is completed.
Explain the role of Property and Casualty Insurance Compensation Corp when an insurer becomes insolvent
If bankruptcy occurs, Corp pays all valid claims then charge insurers an assessment to cover the total amount of the claims. The amount of each insurers' contribution is based on total direct premiums written by it
Three ways in which insured's common law/spouse can be eligible for making a claim.
If they are able to prove:
- - proof of marriage
- - a person living with the Named Insured in a conjugal relationship outside of marriage for a period of 3 years
- - the natural or adoptive parent of a child living with the Named Insured for a period of one year
What is included in the limit of insurance for "dwelling building" ?
- - Building Fixtures and fitting temporarily removed: for example, for seasonal storage. Up to 10% of dwelling building insurance opt in for coverage
- - Outdoor trees, Shrubs and Plants: up to 5% of dwelling insurance. Limited to fire, lightning, explosion, impact of aircraft, riot, vandalism
But there is no coverage for windstorm or hail. Max $500/tree, no coverage for free grows for resale (indemnity), and lawns are excluded.
State the 3 Insuring Agreement included in Coverage C - Personal Property.
- 1. On premises coverage: except property of renters
- 2. Off premises coverage: when property is temporarily away anywhere in the world, ex travel luggage
- 3. Property of students: when students who are temporarily live away from home while attending schools.
Identify 4 persons included in the definition of "you" or "your" and who would be insured under the policy?
- 1. The person named on the policy
- 2. Spouse/partner of named Insured
- 3. Relative of either spouse/partner
- 4. Any person under 21 in the care of the Insured
Identify types of personal property items excluded under the Coverage C - Personal Property.
- - Motorized vehicle and their equipment (lawnmower, wheelchair are covered)
- - Camper units, trailers
- - Aircrafts and their equipments
- - Tape decks and compact disc players
- - Television sets
- - Recording and transmitting device when required to connected to aircraft.
- *However: spare auto parts are not equipments and are covered.
Identify two types of losses for which "Special Limits of Insurance" are provided and provide examples for each.
- 1. Those which apply to specified property items, regardless of the cause of the loss:
- - Business Property - up to $2k, due to grow of home business (this is a form of riders)
- - Securities - up to $2k, stocks, bond ....
- - Personal property used by any student insured by the policy and who is temporarily live away from home - up to $2.5k
- - Money including cash - up to $200
- -Garden type tractors, includes attachments+acessories - up to $5k
- - Watercraft - up to $1k
- - Computer software - up to $2.5k
- - Spare auto parts - up to $1k
- 2. Those which apply to specified property items which have been stolen.
- - Jewlerry, watches, gems, ... up to $2k
- - Numismatic property - up to $200
- - Manuscripts, stamps and philatlic property up to $1k
- - Collection cards up to $1k
- - Each bicycle + its equipment and accessories up to $500 in all.
*Additional coverage can be purchase. These are minimum to protect insurers
Identify the two coverages provided under Coverage D - Additional Living Expense
- 1. Additional Living Expense: for when insured was forced to living away from home due to circumstances. Expenses are limited to necessity
- 2. Fair Rental Value: when the rental income is loss due to dwelling is inhabitant for period of 2 weeks only when access to property os prohibited by order of civl authority and, peril which caused the order to be given is a peril insured by insured's own policy.
State the basic of claim payment for Additional Living Expense under Coverage D - Additional Living Expense.
Insurer only pays for what is would normally have cost the insured to live had the loss not occurred.
Payment is limited to those expense which were necessarily incurred in order for the insured to maintain their normal standard of living.
What are agreement under Extension of Coverage in Personal Property - Home Owners form. (11 in total)
- i) Debris removal: this coverage of available when loss/ damage is caused by an insured peril.
- ii) Property removed: for property which has been removed to prevent from loss/damage is insured for 30 days or until the policy expires whichever sooner
- iii) Moving to another home: COverage is extended to insured property while in transit to and at another location which is to be occupied by the insured as primary residence.
- iv) Fire department expense: up to $1k
- v) Change of temp
- vi) Freezer food: due to power failure/mechanical breakdown.
- vii) Lock replacement due to thief.
- viii) Tear out: for repair of walls, ceilings which must be torn apart before water damage can be repaired.
- ix) Arson reward: up to 1k in info which lead to conviction of arson in connection with a fire loss to property insured
- x) Credit/debit card, fake money: due to thief
- xi) Inflation protection: insurer will adjust insurance amount to inflation.
What is the basic of claim payment for property losses ?
- - A deductible applies to all property losses
- - Insurer agrees to pay the cost of repair or replacement whichever is less. And such is requireed to be completed within a reasonable time and must be a) on the same location b) for the same occupancy c) from materials of similar quality.
- Payment will be made on Actual Cash Value basis if loss is no repaired or replaced.
What are three form of the IBC Homeowner Forms.
- 1. Homeowner Basic Form: Insures loss or damage caused by 13 perils
- 2. Homeowner Broad Form: insures on all risks basis. Named Perils coverage is provided for personal property and with few exception, is equivalent to coverage under Basis Form
- 3. Homeowner Comprehensive Form: all risk basis with exclusions of wear and tear, maintance, damaged by birds/vermin/racoons, earthquakes, snowslides, water damage
Identify two expenses provided by the Mobile Home Insurance policy for "Emergency Removal expense"
- Expenses paid by the policy would include:
- - Expense incurred in disconnecting water and power services
- - Towing or transporting costs
- There is no coverage under Mobile Home Forms for loss or damage caused by moving
What other coverages for Condo Owner in addition to Condo Corp Insurance. ?
- 1. Unit Improvements and Betterments: as improvement can increase value of the units
- 2. Loss Assessment: in case of under insured by Corp insurance/breach of contracts/..., up to amount of $5k, only when the assessment is due to a loss insured by the owner's policy.
- 3. Unit Additional Protection: In case the Corp has no insurance or is inadequate/not effective.
State the responsibility of the Condominium Corp respecting the purchase of insurance ?
It is the responsibility of the Condominium Corp to insure the value of the building and all common elements. Owners are responsible for insuring the contents of their units.
Explain why the condominium unit owner should purchase "Loss Assessment" coverage ?
In case Corporation's policy is inadequate to cover a loss to collectively owned property, an assessment may be levied against unit owner as members of the corporation due to: under insurance, large deductible, application of a co-insurance penalty, cause of loss is not an insured peril or excluded, breach of policy condition.