Fundamentals of Insurance Multiple Choice Exam Correct 100%

every policy of fire insurance ly covers fire,smoke, and specified types of explosions required by law to cover fire, windstorm,and lightning s fire,explosion, and windstorm required by law to cover at least fire, lightning, and specified types of explosions - A required by law to cover at least fire, lightning, and specified types of explosions when the insurer terminates an insurance policy, all of the following conditions apply, except one. pick the EXCEPTION insured is entitled to 15 days' written notice of termination sent by registered mail of 5 days' written notice personally delivered refund due the insured shall be calculated on a short rate basis s otherwise stated, the refund shall accompany the notice of termination refund shall be in the form of money, postal or Express company money order or cheque payable at par - A refund due the insured shall be calculated on a short rate basis under a policy of fire insurance, the insurer would be obligated to pay the following g loss only: damage caused to appliance following a sudden power surge damage to insured buildings occurring during a rebellion e to insured property due to radioactive contamination to property caused by a process involving the application of heat - A damage to insured buildings occurring during a rebellion when the insurer opts to repair, rebuild, or replace damaged property rather than make payment I the form of a cash settlement, it must: provide the insured with the option of accepting or rejecting the proposed basis of settlement de the insured with written notice of its intention to do so within 30 days after receipt of proof of loss the consent of the insured's mortgagee e the insured's broker or agent of its decision - Ade the insured with written notice of its intention to do so within 30 days after receipt of proof of loss if a burning log rolls out of your clients fireplace grate across the hearthand onto the rug in front, the loss to the rug is considered to be the result of a(n): t fire ect fire dly fire le fire - Ale fire your client's furniture store is insured under a commercial property insurance policy to which a replacement cost endorsement is attached. to qualify to settlement on a replacement cost basis the insured must comply with all of the following obligations, except one. pick the EXCEPTION cement shall be effected by the insured with due diligence and dispatch cememt shall be on the same site or adjacent site cement shall commence withing 45 days of the insurer agreeing to pay the loss nt of the loss on a replacement cost basis shall be provided only after the insured has actually repaired or replaced the property - Acement shall commence withing 45 days of the insurer agreeing to pay the loss statutory condition five: termination, sets out the provisions for cancellation of a contract of insurance the must be complied with by the insured and insurer. all of the following provisions regarding termination by the insurer are true, except one. select the EXCEPTION written notice of the termination is sent by registered mail, the insurer must give the insured 15 days' notice starting the day after the letter is received by the insured's post office written notice of termination is sent hand-delivered, the insurer must give the insured 15 days' notice starting on the date the letter was registered by the insurer's post office c. when written notice of termination is sent hand-delivered, the insurer must give the insured 5 days' notice the insured is entitled to a premium refund, the amount of the refund is calculated on a pro-rata basis. - A written notice of termination is sent hand-delivered, the insurer must give the insured 15 days' notice starting on the date the letter was registered by the insurer's post office one of the elements that determines whether a contract is legally enforsableor not is the "legal capacity of the parties". in all of the following contracts, except one, are the parties considered to have "legal capacity". select the one which does NOT meet this element insurance contract issued in the name of Marry Poppin d.b.a Little People Day Care Center b.a lease agreementnaming the tenant as the No Risk Denied Insurance Corporation c.a building contract showing the general contractor as Bricks and Mortar Inc. invoice for merchandise shipped to the order of Mandy's Souvenir and Gift Shop - A invoice for merchandise shipped to the order of Mandy's Souvenir and Gift Shop the following claim WOULD be insured by the homeowners basic form (IBC 1151) under the peril of theft: of insured's registered black labrador dog e to door and lock by persons attempting to break-in to the insured's dwelling of personal property from a seasonal dwelling owned by the insured and which had not been occupied by the insured for almost two months of building materials from site of insured's new dwelling prior to its completion - Ae to door and lock by persons attempting to break-in to the insured's dwelling all homeowners policies contain the section "extensions of coverage". all of the following losses are covered under this section, except one. pick the EXCEPTION e to personal property during g transportation to the insured's new principal residence located in Sydney, Nova Scotia, which is to be occupied by the insured within the next 10 days cost to repair the "tear out" damage to the insured's driveway that was necessarily caused to replace the ruptured water main cost to replace in insured's freezer foor, which spoiled as a result of a power failure caused by lightning of the insured's indoor trees and plant due to the exposure to extreme temperatures after a severe storm damaged part of the roof - A cost to repair the "tear out" damage to the insured's driveway that was necessarily caused to replace the ruptured water main the basis of claim payment is the same for all homeowners forms. all of these statements regarding the basis of claim payment are true except one. pIck the EXCEPTION ing building and detached private structures are covered on a replacement cost basis