Exam (elaborations)
CIP C12 - CH06 -Anatomy of a Property Policy_ Exclusions.
- Institution
- Captains Career Course Module 5 Post Test 2
CIP C12 - CH06 -Anatomy of a Property Policy_ Exclusions.
[Show more]
Seller
Follow
Content preview
CIP C12 - CH06 -Anatomy of a PropertyPolicy: Exclusions
What is the purpose of an exclusion? - CORRECT ANSWER-To remove certain
losses from the policy's coverage.
Exclusions list types of property that are not insured, and perils that are never or
sometimes not insured against.
Restrict coverage, remove exposures to loss considered undesirable or
uninsurab;e
What two types of exposure are typically listed in exclusions? - CORRECT
ANSWER-Exposures to trade risk or maintenance cost or exposures that are
inevitable (that is non-fortuitous).
And exposures that reflect underwriting and rating considerations
What is an exception? - CORRECT ANSWER-A case where a rule does not
apply.
In an exclusion under an insurance policy, an exception is a case where the
exclusion does not apply.
What does named-perils coverage insure against? - CORRECT ANSWER-Only
loss or damage caused by the listed perils.
What are the 3 steps in reading a policy? - CORRECT ANSWER-Determine
whether there is coverage under the policy.
If there is coverage, whether exclusions apply?
If there is an exclusion, is there an exception to the exclusion that restores
coverage.
, Outline the extended instructions under Step 3 in reading a policy. - CORRECT
ANSWER-If an exclusion applies, determine whether there is an exception to the
exclusion that restores coverage despite the exclusion. The onus falls back to the
insured to establish that an exception is triggered.
Why are perils typically excluded under the Homeowners forms? - CORRECT
ANSWER-Because the property does not fall under the named-perils coverage of
either form, is specifically excluded within the description of a named peril, or
falls within the exclusions listed in the form.
What are the main differences in how exclusions are applied in the various
Homeowners forms? - CORRECT ANSWER-In the progression in the 3 forms
from named-perils to all risk coverage for Coverage A, B, C
Why does property on exhibit face unique exposures? - CORRECT
ANSWER-Property on exhibit faces unique exposures to loss not contemplated
in the design of these forms - part 2 of coverage C.
Exhibits can be insured under an Exhibition Floater at terms reflective of risk and
according to circumstance.
Why does the Homeowners Comprehensive Form exclude property illegally
acquired or subject to forfeiture? - CORRECT ANSWER-Property is subject to
forfeiture for a period of 6 years after it is illegally imported into Canada.
It would be against public policy to provide coverage for property that can be
lawfully subject to forfeiture.
E.g. illegallable imported good not declared at customs.
What is excluded under Evidence of Debt or Title? - CORRECT
ANSWER-Coverage for property that may be insured by other forms specifically
designed for it.
Why is sporting equipment excluded under the Comprehensive Form? -
CORRECT ANSWER-Sporting equipment should be designed and manufactured
to standards appropriate to the stress it will sustain when used for its intended
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lydiaomutho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.48. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now