Exam (elaborations)
C12 Property - Ch 1_2
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C12 Property - Ch 1_2
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C12 Property - Ch 1/2Q: What is the definition of property insurance - CORRECT ANSWER-: Property
insurance is first-party insurance that indemnifies the owner or user of property
for its loss, or the loss of its income-producing ability, when the loss or damage is
caused by a covered cause of loss, such as fire or explosion.
Q: What are some examples of types of property that might be covered by
property insurance - CORRECT ANSWER-: Some examples are real property
such as dwellings and detached buildings such as sheds or garages; personal
property; and commercial buildings, stock, and equipment.
Q: What is the principle of indemnity in property insurance - CORRECT
ANSWER-: The principle of indemnity is that the insured shall not receive more
than the actual loss suffered.
Q: What are the key elements of a contract of insurance in common law -
CORRECT ANSWER-: The key elements are an agreement, between legally
capable parties, for a consideration, demonstrating intent, to do something that is
legal.
Q: What are the additional principles that distinguish insurance policies from
other types of contract - CORRECT ANSWER-: The additional principles are
indemnity, uberrimae fidei, or utmost good faith, and insurable interest.
Q: What is the difference between personal-lines insurance and commercial
insurance - CORRECT ANSWER-: Personal-lines insurance covers
homeowners, tenants, and condominium owners, while commercial insurance
covers buildings, stock, equipment, and other property categories for businesses.
Q: What are some examples of classes of property insurance that cover specific
types of property or perils - CORRECT ANSWER-: Some examples are aviation
insurance, builders risk insurance, crop insurance, earthquake insurance,
equipment breakdown insurance, flood insurance, and marine insurance.
, Q: What are the key elements of a property insurance policy - CORRECT
ANSWER-: The key elements are the name of the insurer, the name of the
insured, the name of the person or persons to whom the insurance money is
payable, the amount or method of determining the amount of premium, the
subject matter of insurance, the indemnity for which the insurer may become
liable, the event on the happening of which liability is to accrue, the effective date
of the insurance, and the expiry date or method by which it is to be fixed.
Q: What are exclusions in property insurance policies - CORRECT ANSWER-:
Exclusions are clauses that limit coverage by excluding certain property types or
loss causes from the policy.
Q: What is a deductible in property insurance policies - CORRECT ANSWER-: A
deductible is the insured's portion of a covered loss, used to avoid handling small
losses and reduce premiums.
Q: What are the three perils covered by the basic fire policy - CORRECT
ANSWER-: The three perils are fire, lightning, and explosion of natural, coal, or
manufactured gas.
Q: What is the difference between the electrical devices exclusion and the
application of heat exclusion in the basic fire policy - CORRECT ANSWER-: The
electrical devices exclusion denies coverage for loss to electrical devices or
appliances caused by lightning or other electrical current, while the application of
heat exclusion denies coverage for loss or damage to an item due to heat
applied to it.
Q: What are some examples of war risks that are excluded from the basic fire
policy - CORRECT ANSWER-: Some examples are foreign or civil war, riot, or
civil disturbance.
Q: What are some examples of property that are excluded from the basic fire
policy - CORRECT ANSWER-: Some examples are money, books of account,
securities, automobiles, tractors, aircraft, and watercraft.
Q: What is the purpose of the bylaws exclusion in the basic fire policy -
CORRECT ANSWER-: The purpose is to exclude coverage for increased costs
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