Name: Score:
92 Multiple choice questions
Term 1 of 92
What 3 Elements are found in the Indemnity Agreement?
1) ACV 2) Financial Interest 3) Amount of Insurance
DID / SHOULD X LOSS = SETTLEMENT
Chance of Financial Loss only
must be legal and cannot violate the public good
Term 2 of 92
What type of losses are co-insurance applied to?
Agreed value
Agency agreement
Total losses
Partial losses
Term 3 of 92
Define "Action"
Action against the insurer is barred unless commenced within 6 months after loss or
damage occurs
To have never existed
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
In the event of value disagreement
,Term 4 of 92
How much will PACICC pay for claims?
$250K for unpaid loss or up to 70% unearned premium up to $700
$1m for liability claims or up to 90% of earned premium up to $2000
$100k for property damage or up to 50% of earned premium up to $500
$500k for medical expenses or up to 80% of unearned premium up to $1000
Term 5 of 92
Define "Notice" - INSURED to INSURER - When is Notice required?
Where the Peril Actually Attacks the Object of Insurance
Expiration, Request for Appraisal, Notice of Legal Action
Complete and Total Honesty of all Parties - a Higher Degree of Honesty
Termination, Request for Appraisal, Notice of Legal Action
Term 6 of 92
Define "Proprietary Insurers"
They exist to make a profit and are owned by their shareholders. Majority of insurance
companies are written by incorporated proprietary insurers
The insured must give immediate notice to the authorities when loss is due to malicious acts
/ theft / burglary so as to improve the chances of recovery and reduce the amount of the
claim
To reduce the frequency or severity of the loss
Deliberate attempt to deceive with the intent of securing profit
,Term 7 of 92
How is payment calculated for co-insurance?
Pure risk
Agency agreement
Immediately prior to loss
DID / SHOULD X LOSS = SETTLEMENT
Term 8 of 92
What does the PACICC do?
Property And Casualty Insurance Compensation Corp - protects clients in the event of an
insurance company becoming insolvent
Collects fees from every federal insurer into a pool so in the event an insurer becomes
insolvent (financially unstable) claims and cancelled policies will still be paid
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
Term 9 of 92
Discuss "Removal Coverage"
Any insured property that is removed from the location to prevent loss shall be covered at
the property not insured up to 7 days
Allows the insurer to recover the amount of loss from the responsible party
Protection for property that is relocated within the same building for up to 7 days
Insurance for property that is temporarily stored in a different city for up to 7 days
, Term 10 of 92
List 2 Types of Risks
1) Speculative Risk 2) Pure Risk
1) ACV 2) Financial Interest 3) Amount of Insurance
basic level of honesty
To shift the financial obligation to someone better equipped to handle it (an insurance
company)
Term 11 of 92
When can courts choose the appraiser or umpire?
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
1) if one of the parties fails to appoint one with 7 days 2) if the appraisers fail to agree with
15 days 3) when appraiser or umpire refuses to act/is incapable of acting or dies
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
They oversee the content of policies, the licensing of agents and brokers and ensure
provincially licensed insurers are solvent
Term 12 of 92
Define "Appraisal"
In the event of value disagreement
Basic level of honesty
Deliberate attempt to deceive with the intent of securing profit
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
92 Multiple choice questions
Term 1 of 92
What 3 Elements are found in the Indemnity Agreement?
1) ACV 2) Financial Interest 3) Amount of Insurance
DID / SHOULD X LOSS = SETTLEMENT
Chance of Financial Loss only
must be legal and cannot violate the public good
Term 2 of 92
What type of losses are co-insurance applied to?
Agreed value
Agency agreement
Total losses
Partial losses
Term 3 of 92
Define "Action"
Action against the insurer is barred unless commenced within 6 months after loss or
damage occurs
To have never existed
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
In the event of value disagreement
,Term 4 of 92
How much will PACICC pay for claims?
$250K for unpaid loss or up to 70% unearned premium up to $700
$1m for liability claims or up to 90% of earned premium up to $2000
$100k for property damage or up to 50% of earned premium up to $500
$500k for medical expenses or up to 80% of unearned premium up to $1000
Term 5 of 92
Define "Notice" - INSURED to INSURER - When is Notice required?
Where the Peril Actually Attacks the Object of Insurance
Expiration, Request for Appraisal, Notice of Legal Action
Complete and Total Honesty of all Parties - a Higher Degree of Honesty
Termination, Request for Appraisal, Notice of Legal Action
Term 6 of 92
Define "Proprietary Insurers"
They exist to make a profit and are owned by their shareholders. Majority of insurance
companies are written by incorporated proprietary insurers
The insured must give immediate notice to the authorities when loss is due to malicious acts
/ theft / burglary so as to improve the chances of recovery and reduce the amount of the
claim
To reduce the frequency or severity of the loss
Deliberate attempt to deceive with the intent of securing profit
,Term 7 of 92
How is payment calculated for co-insurance?
Pure risk
Agency agreement
Immediately prior to loss
DID / SHOULD X LOSS = SETTLEMENT
Term 8 of 92
What does the PACICC do?
Property And Casualty Insurance Compensation Corp - protects clients in the event of an
insurance company becoming insolvent
Collects fees from every federal insurer into a pool so in the event an insurer becomes
insolvent (financially unstable) claims and cancelled policies will still be paid
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
Term 9 of 92
Discuss "Removal Coverage"
Any insured property that is removed from the location to prevent loss shall be covered at
the property not insured up to 7 days
Allows the insurer to recover the amount of loss from the responsible party
Protection for property that is relocated within the same building for up to 7 days
Insurance for property that is temporarily stored in a different city for up to 7 days
, Term 10 of 92
List 2 Types of Risks
1) Speculative Risk 2) Pure Risk
1) ACV 2) Financial Interest 3) Amount of Insurance
basic level of honesty
To shift the financial obligation to someone better equipped to handle it (an insurance
company)
Term 11 of 92
When can courts choose the appraiser or umpire?
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
1) if one of the parties fails to appoint one with 7 days 2) if the appraisers fail to agree with
15 days 3) when appraiser or umpire refuses to act/is incapable of acting or dies
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
They oversee the content of policies, the licensing of agents and brokers and ensure
provincially licensed insurers are solvent
Term 12 of 92
Define "Appraisal"
In the event of value disagreement
Basic level of honesty
Deliberate attempt to deceive with the intent of securing profit
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
