Question: Real vs Personal Property - CORRECT ANSWER✔✔R: buildings or land (can't be
moved)
P: office desk or machinery (can be transported)
Question: Promise that Property Insurance is based on - CORRECT ANSWER✔✔-Insured
promise to pay a premium
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-Insurers promise to protect and indemnify
Question: Five elements of an Insurance Contract - CORRECT ANSWER✔✔1. Agreement (offer
and acceptance)
2. Capacity to contract
3. Consideration
4. Genuine intent
5. Legality
Question: Additional Features of Insurance Contract - CORRECT ANSWER✔✔1. Insurable
interest
2. Indemnity
3. Principle of utmost good faith
Question: Insurance Policy - CORRECT ANSWER✔✔-Formal agreement between parties
-Outlines the terms and conditions
-One year term
-Claims
Question: 2 Types of Classes of Insurance - CORRECT ANSWER✔✔1. Personal (habitational)
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2. Commercial (building, equipment, stock)
Question: Classes of Insurance - CORRECT ANSWER✔✔1. EBI - large machinery
2. Crop - growing of crops
3. Aviation - aircrafts
4. Earthquake
5. Flood
6. Marine - goods in transit
7. Builders risk - COC
Question: Elements of the Property Policy - CORRECT ANSWER✔✔1. Name of insurer / insured
2. Names to whom the insurance money is payable
3. Premium
4. Subject matter of insurance
5. Indemnity for which insurer may become liable
6. Events / perils of which liability will accrue
7. Effective / expiry date
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Question: Deductible definition - CORRECT ANSWER✔✔An agreed, specified amount that the
insured must pay on a claim before the insurance company will cover the rest of the claim
Question: Evolution of Property Insurance - CORRECT ANSWER✔✔-First insurance policy = fire
policy.
It covered fire, lightning and limited explosion
-Then it evolved into additional perils. So insurance against named perils or all risks
Question: Purpose of Exclusions - CORRECT ANSWER✔✔-Specific circumstances
-Temporary or permanent
-May exclude part of the coverage
-Restricts
Question: The 2 Groups of Basic Fire Policy Exclusions - CORRECT ANSWER✔✔1. Exclusions of
legislative considerations
2. Exclusions for underwriting and rating considerations
Question: Group 1: Exclusions for Legislative Considerations - CORRECT ANSWER✔✔1.
Electrical devices
2. Application of heat
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