Identify the company which assumes the greatest portion of an account? (Ch. 1) - ANSWERLead company
What is "reinsurance" (Ch. 1) - ANSWERReinsurance is when an insurance company "cedes" part of the risk to a reinsurer.
What are three considerations used when determining amounts of indemnity?...
CAIB 2 Chapter 1-7 Review
Questions & Answers 100%
Correct
Identify the company which assumes the greatest portion of an account? (Ch. 1) - ANSWERLead
company
What is "reinsurance" (Ch. 1) - ANSWERReinsurance is when an insurance company "cedes" part of
the risk to a reinsurer.
What are three considerations used when determining amounts of indemnity? (ch 1) - ANSWER1.
Actual cash value of property as it existed immediately prior to loss. 2. The interest of the insured in
the property. 3. The amount of insurance as shown on the policy.
Why do co-insurance clauses contain waiver provisions? (Ch. 1) - ANSWERTo waive application of the
co-insurance clause when the less is less than amounts indicated on the waiver.
What is the purpose of "stated amount" co-insurance clauses? (Ch.1) - ANSWERTo replace the
provisions of the standard co-insurance clause with the requirements of the stated amount co-
insurance clause.
What requirements must be met by insured when co-insurance clauses are replaced by "stated
amount" co-insurance clauses? (Ch.1) - ANSWER1. Insureds must submit a statement of values
indicating all property insured. 2. Values indicated on statement must be verified by appraiser. 3.
These values must be insured for duration of policy.
All policies contain exclusions. List 5 types of exclusions and give two examples of each. (Ch.1) -
ANSWER1. Commercially uninsurable ex. War, nuclear.
2. Maybe be catastrophic ex. Flood, Earthquake.
,3. Other forms of insurance may be available. Ex. Automobiles, Valuable papers.
3. Insured must notify insurer when notification or suspension of police service is received regarding
response to any property protection systems.
How are losses paid on: 1) unsold stock 2) sold stock 3) customers property upon which work is being
performed? (Ch.1) - ANSWER1) unsold stock- actual cash value.
2) sold stock- paid on basis of sale price less discounts given to customer.
3) customers property upon which work is being performed - these losses are paid on the basis of
value of the parts used in repair and value of labour. Customers will be paid in ACV or periphery
when initially dropped off for repair.
Describe the 4 elements of "locked vehicle warranties" (ch.1) - ANSWER1. All property must be in
vehicle or fully enclosed metal compartment.
2. All doors and windows of vehicle must be closed/locked.
3. Force must be used to gain access to vehicle containing property insured.
4. Visible signs of use of force are present on the vehicle containing property insured.
What is a material fact? (Ch.1) - ANSWERA material fact is a fact which if known by the insurer, would
induce it to charge a higher premium, add conditions to coverage, or decline the account all together.
What are 4 facts considered "material" relative to the personal information about the client? (Ch.1) -
ANSWER1. Previous claims.
2. Number of loss payables/mortgages.
3. Previous declinations/cancellations from other insurers.
4. Fear of persons harbouring ill will against the insured.
, What rights do insurers have when misinformation occurs? (Ch.1) - ANSWERInsurers may void the
policy on which the misinformation was linked.
What does "notice of authorities" require an insured to do? (Ch.1) - ANSWERAny loss involving
criminal activity must be reported to authorities.
What does "sue and labor" mean? (Ch.1) - ANSWERInsureds must take all steps reasonable to
recover lost or damaged property.
4. May be expected by the insured and/or in control of the insured. Ex. Wear and tear, mechanical
breakdown.
5. Not common exposures. Ex. Buildings under construction, exterior communication towers.
What is a condition? (Ch.1) - ANSWERA condition requires insureds to do or not do something.
Insureds will not exercise its right of subrogation against certain parties. Explain. (Ch.1) -
ANSWERWhen persons responsible for a loss have an interest in the proceeds of the policy, the
insurer will not exercise their right of subrogation against these parties...(bank or other person who
lent money to insured and are shown as loss payable on policy)
What are the provisions of "waiver of co-insurance" clauses? (Ch.1) - ANSWERWhen losses are less
than 2% of the amount of insurance and less than $5000 the provisions of co-insurance clauses will
not be applied.
Will the "waiver of co-insurance" apply to the following loss: Loss - $1200.00 Policy Limit - $150,000
ACV of Property - $250,000. (Ch.1) - ANSWERYes. (Amount of insurance x .02)
Identify 3 stipulations of property protection system clauses placed upon clients. (Ch.1) - ANSWER1.
Insureds must notify insurer of any interruption/defect in any property protection system that comes
to their knowledge.
2. The insured must notify insurer of any lapse/cancellation/non renewal or any maintenance or
monitoring contract.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper papersmaster01. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor $15.49. Je zit daarna nergens aan vast.
