C12 PROPERTY INSURANCE MIDTERM PREP
QUESTIONS
What is covered by Named Perils? - Answer -direct physical loss or damage, caused
by only the listed perils. Onus is on the insured to prove that the loss is insurable, and
that no exclusion applies.
What are All Risk Policies? - Answer -provide coverage for any peril, unless specifically
excluded. The insured must prove that the loss was fortuitous, and that it was an
insured location.
What is a peril? - Answer -Cause of loss.
What is an exclusion? - Answer -List types of property that are not insured and perils
that are never or sometimes not insured.
What are the exceptions to the exclusions? - Answer -Specified perils: Often written as
all losses except those caused by a specified peril.
Define Fire: - Answer -Combustion manifested in light, flame, and heat for useful
purposes or destructive purposes. Hostile fire is the subject of insurance.
When Is Lightning covered? - Answer -Only resultant fire damage, not electrical
damage.
Define Explosion - Answer -it is a named peril, extends to natural gas and coal.
Excludes water hammer.
When can fire be excluded? - Answer -property undergoing a heat process (resulting
damage insured); Riot, civil commotion, war, invasion or act of a foreign enemy, of
military power, radioactivity.
What is smoke coverage? - Answer -sudden and unusual faulty operation of a heating
or cooking system. But not from a fireplace
What coverage is provided by the peril Falling object? - Answer -any falling and striking
object. it Must strike the exterior of the building, Meteorite, aircraft and satellite strike are
included.
What coverage is provided by the peril Impact by aircraft or land vehicle? - Answer -
Strike by aircraft or land vehicle. Animals struck by a vehicle are not included in this,
they must be harmed by fire. Delivery truck repeatedly striking a building is not insured.
,What coverage is provided by the peril Riot? - Answer -an act of violence by one or
more persons who are part of an assembly of 3 or more. Strikers and locked-out
employees included.
What coverage is excluded in the peril Vandalism/ malicious acts? - Answer -Excluded
for buildings under construction, vacant, caused by an insured, and caused by theft.
What coverage is provided by the peril electricity? - Answer -power surge if artificially
generated, and must be sudden and accidental.
What coverage is provided by the peril Hurricane? - Answer -fall within the windstorm
peril. Tornadoes also fall within the windstorm & hail.
What coverage is provided by the peril accidental breakage? - Answer -Breakage by
household property is either not Named or excluded under All Risks policy. Faulty
workmanship, and undergoing work process is excluded. Fragile articles are also
excluded except by Peril.
What coverage is provided by the peril collapse? - Answer -not covered, commonly
seen with Snow Load or with Faulty Workmanship.
What coverage is provided by the peril earthquake? - Answer -excluded except for
resultant Fire.
Are animals covered? - Answer -Not unless harmed in fire.
How is windstorm or hail established? - Answer -by exclusion, only covered if it creates
an opening in the home.
What Other perils commonly covered? - Answer -Wildfire, Hurricane
Define Flood: - Answer -Waves, tides, tidal waves or the rising of the breaking out or
the overflow of any body of water whether natural or man made. Also referred as
overland water.
What are the types of hazards? - Answer -Physical & Moral Hazard
What is a physical hazard? - Answer -Property condition. property insured and
protection, no fire department close by
What is a moral hazard? - Answer -- the attitude of the owner, and whether they intend
to profit from a loss.
, What are Fire hazards? - Answer -Canadian cold weather begets fire. increased use of
Cooking, heaters, and household appliances. Electrical circuits, fireplaces, and careless
smoking.
What is Cope? - Answer -Construction, Occupancy, Protection, and Exposure
What is a lightning hazard? - Answer -tall trees, likely to be struck by lightning, the
tallest structure.
What coverage is provided by the peril water damage? - Answer -Sudden and
accidental release, no coverage If the insured is away for more than 4 days, no
coverage From freezing in an unheated home portion, Entrance of water through an
aperture (hole in roof).
What coverage is provided by the peril glass breakage? - Answer -Included in all but:
tenants forms, condo forms, basic residential forms, seasonal residences. Caused by
any peril unless excluded, under construction, and while the building is vacant.
What coverage is provided by the peril transportation? - Answer -intended to cover
transported personal property. excludes watercraft.
How is coverage determined for the peril Theft, including Damage Caused by Theft. -
Answer -Established by exclusions: any owned dwelling unless occupied, from the part
of the dwelling rented to others, under construction, to animals, or voluntary parting
under false pretense.
What is earthquake Hazard? - Answer -Zones established in Canada. Geology, method
of construction, age of the structure and its height are all contributing factors.
Conflagration is a risk from underground pipes.
What is Fuel Oil Hazard? - Answer -External fuel tanks: theft, vandalism, impact.
Fire & explosion. Spill from faulty connection.
What is water damage hazard? - Answer -Flood hazard. Sewer backup hazard. Ice
damming hazard.
What is an age hazard? - Answer -Roof waterproofing, Domestic water containers,
Plumbing and Wiring, Furnace and food freezers.
What is a key condition hazard? - Answer -a hazard that may give rise to multiple perils
Name some key condition hazards? - Answer -Fuel Oil hazard, Collections Hazard,
Hoarding Hazard, Vacancy hazard ,Age Hazard , Theft Hazard,Neighborhood hazard,
What are some unusual hazards? - Answer -Fuel, Ham radio, Automobile
maintenance, Race car, other hobbies.
QUESTIONS
What is covered by Named Perils? - Answer -direct physical loss or damage, caused
by only the listed perils. Onus is on the insured to prove that the loss is insurable, and
that no exclusion applies.
What are All Risk Policies? - Answer -provide coverage for any peril, unless specifically
excluded. The insured must prove that the loss was fortuitous, and that it was an
insured location.
What is a peril? - Answer -Cause of loss.
What is an exclusion? - Answer -List types of property that are not insured and perils
that are never or sometimes not insured.
What are the exceptions to the exclusions? - Answer -Specified perils: Often written as
all losses except those caused by a specified peril.
Define Fire: - Answer -Combustion manifested in light, flame, and heat for useful
purposes or destructive purposes. Hostile fire is the subject of insurance.
When Is Lightning covered? - Answer -Only resultant fire damage, not electrical
damage.
Define Explosion - Answer -it is a named peril, extends to natural gas and coal.
Excludes water hammer.
When can fire be excluded? - Answer -property undergoing a heat process (resulting
damage insured); Riot, civil commotion, war, invasion or act of a foreign enemy, of
military power, radioactivity.
What is smoke coverage? - Answer -sudden and unusual faulty operation of a heating
or cooking system. But not from a fireplace
What coverage is provided by the peril Falling object? - Answer -any falling and striking
object. it Must strike the exterior of the building, Meteorite, aircraft and satellite strike are
included.
What coverage is provided by the peril Impact by aircraft or land vehicle? - Answer -
Strike by aircraft or land vehicle. Animals struck by a vehicle are not included in this,
they must be harmed by fire. Delivery truck repeatedly striking a building is not insured.
,What coverage is provided by the peril Riot? - Answer -an act of violence by one or
more persons who are part of an assembly of 3 or more. Strikers and locked-out
employees included.
What coverage is excluded in the peril Vandalism/ malicious acts? - Answer -Excluded
for buildings under construction, vacant, caused by an insured, and caused by theft.
What coverage is provided by the peril electricity? - Answer -power surge if artificially
generated, and must be sudden and accidental.
What coverage is provided by the peril Hurricane? - Answer -fall within the windstorm
peril. Tornadoes also fall within the windstorm & hail.
What coverage is provided by the peril accidental breakage? - Answer -Breakage by
household property is either not Named or excluded under All Risks policy. Faulty
workmanship, and undergoing work process is excluded. Fragile articles are also
excluded except by Peril.
What coverage is provided by the peril collapse? - Answer -not covered, commonly
seen with Snow Load or with Faulty Workmanship.
What coverage is provided by the peril earthquake? - Answer -excluded except for
resultant Fire.
Are animals covered? - Answer -Not unless harmed in fire.
How is windstorm or hail established? - Answer -by exclusion, only covered if it creates
an opening in the home.
What Other perils commonly covered? - Answer -Wildfire, Hurricane
Define Flood: - Answer -Waves, tides, tidal waves or the rising of the breaking out or
the overflow of any body of water whether natural or man made. Also referred as
overland water.
What are the types of hazards? - Answer -Physical & Moral Hazard
What is a physical hazard? - Answer -Property condition. property insured and
protection, no fire department close by
What is a moral hazard? - Answer -- the attitude of the owner, and whether they intend
to profit from a loss.
, What are Fire hazards? - Answer -Canadian cold weather begets fire. increased use of
Cooking, heaters, and household appliances. Electrical circuits, fireplaces, and careless
smoking.
What is Cope? - Answer -Construction, Occupancy, Protection, and Exposure
What is a lightning hazard? - Answer -tall trees, likely to be struck by lightning, the
tallest structure.
What coverage is provided by the peril water damage? - Answer -Sudden and
accidental release, no coverage If the insured is away for more than 4 days, no
coverage From freezing in an unheated home portion, Entrance of water through an
aperture (hole in roof).
What coverage is provided by the peril glass breakage? - Answer -Included in all but:
tenants forms, condo forms, basic residential forms, seasonal residences. Caused by
any peril unless excluded, under construction, and while the building is vacant.
What coverage is provided by the peril transportation? - Answer -intended to cover
transported personal property. excludes watercraft.
How is coverage determined for the peril Theft, including Damage Caused by Theft. -
Answer -Established by exclusions: any owned dwelling unless occupied, from the part
of the dwelling rented to others, under construction, to animals, or voluntary parting
under false pretense.
What is earthquake Hazard? - Answer -Zones established in Canada. Geology, method
of construction, age of the structure and its height are all contributing factors.
Conflagration is a risk from underground pipes.
What is Fuel Oil Hazard? - Answer -External fuel tanks: theft, vandalism, impact.
Fire & explosion. Spill from faulty connection.
What is water damage hazard? - Answer -Flood hazard. Sewer backup hazard. Ice
damming hazard.
What is an age hazard? - Answer -Roof waterproofing, Domestic water containers,
Plumbing and Wiring, Furnace and food freezers.
What is a key condition hazard? - Answer -a hazard that may give rise to multiple perils
Name some key condition hazards? - Answer -Fuel Oil hazard, Collections Hazard,
Hoarding Hazard, Vacancy hazard ,Age Hazard , Theft Hazard,Neighborhood hazard,
What are some unusual hazards? - Answer -Fuel, Ham radio, Automobile
maintenance, Race car, other hobbies.
