Caib 2 chapter 1 stuvia - Study guides, Class notes & Summaries

1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge - CORRECT ANSWER-Identify three reasons or obstacles to selling business interruption instance 1. Physical damage to property 2. Failure or breakdown of public utilities 3. Transportation related accidents 4. Physical damage to neighbouring premises 5. Loss caused to property of major supplier or costumer 6. Actions of regulatory authorities 7. Ancillary cause (strikes, l...

Identify the company which assumes the greatest portion of an account - ANSWER-Lead Company What is re-insurance - ANSWER-an insurance company 'ceding' part of the risk to a re-insurer What are three considerations used when determining amounts of indemnity? - ANSWER-i) Actual Cash Value of the property as it existed immediately prior to the loss ii) The interest of the insured in the property iii) The amount of insurance as shown on the policy i) Actual Cash Value of the property a...

the company which assumes the greatest portion of an account - ANSWERLead Company What is re-insurance - ANSWERan insurance company 'ceding' part of the risk to a re-insurer What are three considerations used when determining amounts of indemnity? - ANSWERi) Actual Cash Value of the property as it existed immediately prior to the loss ii) The interest of the insured in the property iii) The amount of insurance as shown on the policy i) Actual Cash Value of the property as it existed...

Define Endorsement. - ANSWEREndorsements change terms of existing policies Define Rider. - ANSWERRiders add coverages to those all ready on policy Indicate Covered or Not Covered on Sign Form (C/NC) a) mechanical breakdown b) damage caused by power surge c) damage caused when dropped during installation d) damage caused by freezing e) damage caused by striking employees - ANSWERa) NC mechanical breakdown b) NC damage caused by power surge c) NC damage caused when dropped during in...

Explain what it means to issue insurance on a scheduled basis - ANSWEROnly the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description - ANSWERBuilding, stock and equipment are insured under a single limit of insurance Explain what it means to issue insurance on an all property (blanket) basis - ANSWERAll property owned by the insured is insured under a single limit of insurance. All property blanket may i...

Provide four sources of Business Interruption losses and an example of each. - ANSWERi) Physical damage to business example: Fire destroys business and customers cannot make purchases ii) Failure of public utilities example: Ice storm damages power lines and power cannot be restored for several weeks. This results in sales at the business to plummet iii) Transportation related accidents example: Railcar containing hazardous gas overturns causing evacuation of town. As a result, of this ra...

1. Is perceived as being too technical 2. Reluctance of insured to reveal earnings 3. Lack of consumer knowledge - ANSWERIdentify three reasons or obstacles to selling business interruption instance 1. Physical damage to property 2. Failure or breakdown of public utilities 3. Transportation related accidents 4. Physical damage to neighbouring premises 5. Loss caused to property of major supplier or costumer 6. Actions of regulatory authorities 7. Ancillary cause (strikes, lock-outs)...

1) Failure or malfunction of mechanical or electrical equipment; 2) Arson; 3) Misuse of ignition source. - CORRECT ANSWER-The three leading causes of fire losses in Canada. Policy period takes effect at 12:01 a.m. standard time at the address of the Named Insured as stated on the policy. - CORRECT ANSWER-The policy-period start that's applicable to most commercial property policies. The insurer is liable to that party, meaning that it may have to pay the claim twice. - CORRECT ANSWER-Th...

Three purposes of survey forms. - CORRECT ANSWER-1) Assists to identify loss exposures; 2) Helps eliminate purchase of coverage that isn't needed; 3) Assists in development of underwriting information the insurer needs. Three advantages of using a property checklist with clients. - CORRECT ANSWER-1) Alerts broker to possible loss exposures; 2) Ensures needed coverages are not overlooked; 2) Helps reduce potential for an E&O claim. The age a building has to be for an insurer to request...

Explain what it means to issue insurance on a scheduled basis - ANSWEROnly the property listed or scheduled on the policy is insured Explain what is meant to issue insurance on the basis of Property of Every Description - ANSWERBuilding, stock and equipment are insured under a single limit of insurance What are three ways property may be values - ANSWER1) Actual cash value 2) Replacement cost 3) Book vale ii) Plateau Accelerated depreciation - applies large amounts of depreciation d...