C12 INSURANCE ON PROPERTY EXAM 1 UPDATED QUESTIONS
AND ANSWERS
A Typical Thunderstorm cloud can hold the potential of - CORRECT ANSWER✅✅✅1 Million Volts
Falling object refers to an object - CORRECT ANSWER✅✅✅Striking the exterior roof or walls of a
building
Tornadoes are covered under the named-perils or all-risk policy as they fall within what peril? - CORRECT
ANSWER✅✅✅Windstorm or Hail Peril
The correct term for flooding caused by rain is - CORRECT ANSWER✅✅✅Pluvial Flooding
The correct term for flooding caused by the overflow of a river is - CORRECT ANSWER✅✅✅Fluvial
Flooding
How long is the average lifespan of a domestic hot water tank? - CORRECT ANSWER✅✅✅10-20
years
What is the scope of coverage under property insurance policy determined by? - CORRECT
ANSWER✅✅✅the interplay of all its elements
How does the definition of peril differ in respect to property insurance? - CORRECT
ANSWER✅✅✅The perils insured against in a property policy depend on the type of property policy.
What is risk? - CORRECT ANSWER✅✅✅The subject matter of insurance
What is the difference between all risks coverage and named perils coverage? - CORRECT
ANSWER✅✅✅Named perils covers direct physical loss or damage caused by listed perils All risks
coverage covers direct physical loss or damage caused by any peril provided that the insured satisfies
the conditions of the policy and the loss is not excluded.
,What is outlined under the exclusion list? - CORRECT ANSWER✅✅✅types of property not insured
and perils never or sometimes not insured against
What are specified perils? - CORRECT ANSWER✅✅✅A set of perils specified in an all risks form that
apply to property that would usually be covered for all risks.
How is fire defined in the named perils policy? - CORRECT ANSWER✅✅✅combustion manifested in
light, flame and heat for useful purposes (friendly fire) or destructive purposes (hostile fire). Hostile fire
is the subject of insurance.
What is a war risk? - CORRECT ANSWER✅✅✅A collection of related perils that includes riot, civil
commotion, war, invasion, act of a foreign enemy, civil war, rebellion, revolution or military power.
What coverage is provided for lightning under IBC's Named Perils form? - CORRECT
ANSWER✅✅✅loss due to lightning but not loss due to electrical devices or appliances caused by
lightning unless the fire originates outside of the article itself.
What is covered under the explosion peril? - CORRECT ANSWER✅✅✅Explosion of natural, coal or
manufactured gas in a building not forming part of a gas works.
What is a water hammer? - CORRECT ANSWER✅✅✅the shock wave created by closing a faucet or
tap
How is smoke defined in the IBC named perils forms? - CORRECT ANSWER✅✅✅smoke due to the
sudden, unusual and faulty operation of any heating or cooking unit but not smoke from fireplaces.
What constitutes a falling object? - CORRECT ANSWER✅✅✅any falling object that strikes the
exterior of the building.
How is impact defined in IBC's named perils forms? - CORRECT ANSWER✅✅✅Loss of or damage to
insured property caused by being struck by an aircraft or land vehicle.
, How is vandalism defined in IBC's Named Perils Forms? - CORRECT ANSWER✅✅✅Wilful or malicious
destruction of or damage to property.
What four scenarios involving water damage are covered in IBC's named perils forms? - CORRECT
ANSWER✅✅✅Sudden and accidental escape of water from a domestic water main, sudden and
accidental escape of water from within a plumbing, heating or domestic water container located within
the dwelling, sudden and accidental escape of water from a domestic water container outside of the
dwelling, entrance of water through an aperture created concurrently with another insured peril.
What is covered under windstorm or hail? - CORRECT ANSWER✅✅✅tornadoes, hurricanes and hail.
How is glass breakage defined? - CORRECT ANSWER✅✅✅accidental breakage of building glass or
doors however caused, unless breakage results from an excluded peril (under construction or vacant)
What does the transportation peril encompass? - CORRECT ANSWER✅✅✅loss of or damage to
personal property caused during the transportation of the property caused by collision by the
automobile transporting the property. Also includes derailment, stranding or sinking.
How is theft identified? - CORRECT ANSWER✅✅✅Theft is the wrongful taking of property of
another including holdup, robbery and pickpocketing.
What is excluded under theft including damage caused by attempted theft? - CORRECT
ANSWER✅✅✅theft at another location rented or owned by the insured, from a part of the dwelling
rented to others, to animals or caused by the voluntary parting of property.
How is electricity defined in the Named-Perils Form? - CORRECT ANSWER✅✅✅Sudden and
accidental damage from an artificially generated electrical current. (power surge)
Where do wild fires fall within the all-risks and named perils forms? - CORRECT ANSWER✅✅✅the
fire peril
What does the term Earth Movement mean? - CORRECT ANSWER✅✅✅A general term that includes
earth quake, landslide, snow-slide, and volcanic eruption.
AND ANSWERS
A Typical Thunderstorm cloud can hold the potential of - CORRECT ANSWER✅✅✅1 Million Volts
Falling object refers to an object - CORRECT ANSWER✅✅✅Striking the exterior roof or walls of a
building
Tornadoes are covered under the named-perils or all-risk policy as they fall within what peril? - CORRECT
ANSWER✅✅✅Windstorm or Hail Peril
The correct term for flooding caused by rain is - CORRECT ANSWER✅✅✅Pluvial Flooding
The correct term for flooding caused by the overflow of a river is - CORRECT ANSWER✅✅✅Fluvial
Flooding
How long is the average lifespan of a domestic hot water tank? - CORRECT ANSWER✅✅✅10-20
years
What is the scope of coverage under property insurance policy determined by? - CORRECT
ANSWER✅✅✅the interplay of all its elements
How does the definition of peril differ in respect to property insurance? - CORRECT
ANSWER✅✅✅The perils insured against in a property policy depend on the type of property policy.
What is risk? - CORRECT ANSWER✅✅✅The subject matter of insurance
What is the difference between all risks coverage and named perils coverage? - CORRECT
ANSWER✅✅✅Named perils covers direct physical loss or damage caused by listed perils All risks
coverage covers direct physical loss or damage caused by any peril provided that the insured satisfies
the conditions of the policy and the loss is not excluded.
,What is outlined under the exclusion list? - CORRECT ANSWER✅✅✅types of property not insured
and perils never or sometimes not insured against
What are specified perils? - CORRECT ANSWER✅✅✅A set of perils specified in an all risks form that
apply to property that would usually be covered for all risks.
How is fire defined in the named perils policy? - CORRECT ANSWER✅✅✅combustion manifested in
light, flame and heat for useful purposes (friendly fire) or destructive purposes (hostile fire). Hostile fire
is the subject of insurance.
What is a war risk? - CORRECT ANSWER✅✅✅A collection of related perils that includes riot, civil
commotion, war, invasion, act of a foreign enemy, civil war, rebellion, revolution or military power.
What coverage is provided for lightning under IBC's Named Perils form? - CORRECT
ANSWER✅✅✅loss due to lightning but not loss due to electrical devices or appliances caused by
lightning unless the fire originates outside of the article itself.
What is covered under the explosion peril? - CORRECT ANSWER✅✅✅Explosion of natural, coal or
manufactured gas in a building not forming part of a gas works.
What is a water hammer? - CORRECT ANSWER✅✅✅the shock wave created by closing a faucet or
tap
How is smoke defined in the IBC named perils forms? - CORRECT ANSWER✅✅✅smoke due to the
sudden, unusual and faulty operation of any heating or cooking unit but not smoke from fireplaces.
What constitutes a falling object? - CORRECT ANSWER✅✅✅any falling object that strikes the
exterior of the building.
How is impact defined in IBC's named perils forms? - CORRECT ANSWER✅✅✅Loss of or damage to
insured property caused by being struck by an aircraft or land vehicle.
, How is vandalism defined in IBC's Named Perils Forms? - CORRECT ANSWER✅✅✅Wilful or malicious
destruction of or damage to property.
What four scenarios involving water damage are covered in IBC's named perils forms? - CORRECT
ANSWER✅✅✅Sudden and accidental escape of water from a domestic water main, sudden and
accidental escape of water from within a plumbing, heating or domestic water container located within
the dwelling, sudden and accidental escape of water from a domestic water container outside of the
dwelling, entrance of water through an aperture created concurrently with another insured peril.
What is covered under windstorm or hail? - CORRECT ANSWER✅✅✅tornadoes, hurricanes and hail.
How is glass breakage defined? - CORRECT ANSWER✅✅✅accidental breakage of building glass or
doors however caused, unless breakage results from an excluded peril (under construction or vacant)
What does the transportation peril encompass? - CORRECT ANSWER✅✅✅loss of or damage to
personal property caused during the transportation of the property caused by collision by the
automobile transporting the property. Also includes derailment, stranding or sinking.
How is theft identified? - CORRECT ANSWER✅✅✅Theft is the wrongful taking of property of
another including holdup, robbery and pickpocketing.
What is excluded under theft including damage caused by attempted theft? - CORRECT
ANSWER✅✅✅theft at another location rented or owned by the insured, from a part of the dwelling
rented to others, to animals or caused by the voluntary parting of property.
How is electricity defined in the Named-Perils Form? - CORRECT ANSWER✅✅✅Sudden and
accidental damage from an artificially generated electrical current. (power surge)
Where do wild fires fall within the all-risks and named perils forms? - CORRECT ANSWER✅✅✅the
fire peril
What does the term Earth Movement mean? - CORRECT ANSWER✅✅✅A general term that includes
earth quake, landslide, snow-slide, and volcanic eruption.
