CAIB 1 - Chap 1 - 3 - Checkpoints Questions And Answers Graded A+

5 Properties subject to 'special limits' under the IBC homeowners' policy when stolen - • Jewellery and furs up to $ 2000 in all • Coin collections up to $ 200 in all • Stamp collections and manuscripts up to $1,000 in all • Collectible cards up to $1,000 in all • Each bicycle, its equipment and accessories, up to $500 in all Amount of Insurance for Emergency Removal Expense provided by the Mobile Homeowners Form. - Up to 5% of the amount of insurance on the dwelling Conditions Applying to Removal Clause (Homeowners Policy) - i) Only when insured property is necessarily removed to prevent loss, destruction or damage or further loss, damage or destruction. ii) The amount of insurance available while at the unnamed location will be reduced by the amount paid for the loss at the named location. iii) Coverage at the unnamed location for at least seven days or the unexpired term of the policy if less than seven days. Define Policy Period. - The policy takes effect at 12:01 a.m. standard time at the address of the named insured as stated herein. Explain 'Increased Cost Demolition or Construction" - Covers the increased costs to comply with existing building by-law, law or ordinance after a loss. Coverage can be purchased for one or both of the following: - Sprinkler By-Law Extension - Demolition or Construction Extension Explain Subrogation Clause - Allows the insurer to place itself in the insured's shoes to recover the amount of its loss from the responsible party.Explain the 'Personal Articles Endorsement' - Provides broader coverages than are available under most habitational forms for high valued personal property items. Anywhere in the world / e.g. firearms, cameras, jewellery, stamps / all risks Explain the 'Travel Trailer Floater' Endorsement - Covers the owned trailers and their contents. Explain the coverage provided for mass evacuation under homeowners forms. - Covers any necessary increase in living expense limited to two weeks in consequence of an order for "mass evacuation". *Direct result of a sudden and accidental event originating in Canada or the U.S.A. Explain the Effect of Delivery Policy - When the insurance policy has been delivered, but not paid for, it shall be as binding on the insurer as the premium had been paid. Explain the extension 'Lock Replacement' to all homeowners forms. - Provides up to $500 to replace or re-key the locks on the insured's principal dwelling (only when the insured's keys have been stolen). Explain the Extension of Coverage 'Change of temperature' for all homeowners forms. - Insures damage to personal property due to a change of temperature resulting from physical damage to the dwelling or equipment from an insured peril. Explain the extension of the Coverage 'Moving to another home' for all homeowners forms. - Extends coverage to insure property while in transit to and at another location which is to be occupied by the insureds as their principal residence Restricted to Canada and is provided for 30 consecutive days only. Explain the Fine Arts Endorsement - Provides broader coverages and more equitable basis of settlement than the most habitational forms available. Explain the Limitation of Liability Clause. - Printed or stamped upon the face sheet of the policy in red ink the words: "This policy contains a clause that may limit the amount payable".Two such clauses are (i) Deductible and (ii) Co-insurance Clauses. Explain the Removal Coverage under Homeowners Forms - (i) Only when insured property is necessarily removed to prevent loss, destruction or damage or further loss, damage or destruction. (ii) The amount of insurance available while at the unnamed location will be reduced by the amount paid for the loss at the named location. (iii) Coverage at the unnamed location for at least seven days or the unexpired term of the policy if less than seven days. Explain the Residence Glass Endorsement. - Covers accidental glass breakage coverage to buildings. Most frequently used to reduce the deductible for glass breakage under the policy. Explain the role of Property and Casualty Insurance Compensation Corporation. - The role of PACICC is to protect the consumer against insurer insolvency. • The maximum amount available for any one claim is $250,000. • The return of unearned premiums is subject to a maximum of $700 per policy.