General Insurance Level 1 - Alberta questions
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Terms in this set (102)
Your insured, a sole proprietor, b) $83,333
purchased a building valued at $1
million. The insurance policy has a
coinsurance clause based on the
replacement cost value of 90%.
Contrary to your advice, your insured
insures the building for only
$500,000. He suffers a windstorm
loss totaling $150,000. How much will
the insurer pay?
a) $75,000
b) $83,333
c) $150,000
d) $93.755
,An insured property is covered by c) Insurer A will pay $76,659. Insurer B will pay
two separate commercial policies $153,341
placed with two different insurers.
Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a
limit of $200,000. The insured suffers
an insurable loss of $230,000.
Assuming no deductibles apply, how
much will each insurer pay?
a) Insurer A will pay $100,000. Insurer
B will pay $130,000
b) Insurer A will pay $100,000, Insurer
B will pay $200,000
c) Insurer A will pay $76,659. Insurer B
will pay $153,341
d) Neither insurer will pay. Two
policies on the same property are
prohibited
On a Commercial Building, d) Temporary fixtures and fittings
Equipment, and Stock Form, that
insures the building owner, which of
the following would not be included
under the "building" definition?
a) Growing plants and trees inside
the building used for decorative
purposes
b) Building maintenance supplies
c) Fixed structures pertaining to the
building
d) Temporary fixtures and fittings
,Under a Commercial Building, d) all of the above
Equipment, and Stock insurance
policy, the definition of "stock"
includes
a) merchandise of every description
usual to the insured's business,
including packing and wrapping
materials
b) advertising material usual to the
insured's business
c) all stock including similar property
belonging to others for which the
insured is obligated to insure
d) all of the above
, The Commercial Building, Equipment b) Packing materials used to ship stock
and Stock insurance policy identifies
three types of equipment for which
coverage is provided. Which of the
following is NOT one of these three
types?
a) Tenants' improvements and
betterments if the insured does not
own the building
b) Packing materials used to ship
stock
c) Property belonging to others for
which the insured is legally liable
d) The contents usual to the business
the insured is engaged in, other than
stock
The basic principle of business d) to restore the income that would have been
interruption insurance is earned had the business not been interrupted
a) to arrange alternate employment
for employees while the building is
being repaired following an insured
loss
b) To restore the premises to the
condition they were in before the loss
c) to cover the cost of relocation the
business
d) to restore the income that would
have been earned had the business
not been interrupted
and answers latest update instant download
Save
Terms in this set (102)
Your insured, a sole proprietor, b) $83,333
purchased a building valued at $1
million. The insurance policy has a
coinsurance clause based on the
replacement cost value of 90%.
Contrary to your advice, your insured
insures the building for only
$500,000. He suffers a windstorm
loss totaling $150,000. How much will
the insurer pay?
a) $75,000
b) $83,333
c) $150,000
d) $93.755
,An insured property is covered by c) Insurer A will pay $76,659. Insurer B will pay
two separate commercial policies $153,341
placed with two different insurers.
Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a
limit of $200,000. The insured suffers
an insurable loss of $230,000.
Assuming no deductibles apply, how
much will each insurer pay?
a) Insurer A will pay $100,000. Insurer
B will pay $130,000
b) Insurer A will pay $100,000, Insurer
B will pay $200,000
c) Insurer A will pay $76,659. Insurer B
will pay $153,341
d) Neither insurer will pay. Two
policies on the same property are
prohibited
On a Commercial Building, d) Temporary fixtures and fittings
Equipment, and Stock Form, that
insures the building owner, which of
the following would not be included
under the "building" definition?
a) Growing plants and trees inside
the building used for decorative
purposes
b) Building maintenance supplies
c) Fixed structures pertaining to the
building
d) Temporary fixtures and fittings
,Under a Commercial Building, d) all of the above
Equipment, and Stock insurance
policy, the definition of "stock"
includes
a) merchandise of every description
usual to the insured's business,
including packing and wrapping
materials
b) advertising material usual to the
insured's business
c) all stock including similar property
belonging to others for which the
insured is obligated to insure
d) all of the above
, The Commercial Building, Equipment b) Packing materials used to ship stock
and Stock insurance policy identifies
three types of equipment for which
coverage is provided. Which of the
following is NOT one of these three
types?
a) Tenants' improvements and
betterments if the insured does not
own the building
b) Packing materials used to ship
stock
c) Property belonging to others for
which the insured is legally liable
d) The contents usual to the business
the insured is engaged in, other than
stock
The basic principle of business d) to restore the income that would have been
interruption insurance is earned had the business not been interrupted
a) to arrange alternate employment
for employees while the building is
being repaired following an insured
loss
b) To restore the premises to the
condition they were in before the loss
c) to cover the cost of relocation the
business
d) to restore the income that would
have been earned had the business
not been interrupted
