C12 - Insurance on Property questions
well answered to pass
Outline the Statutory Condition "Notice." - correct answer ✔✔*Official notices from all parties*
must be via
*registered mail or hand delivered*.
Insured has the onus to
*notify the insurer of address changes*.
Outline the Statutory Condition "Replacement". - correct answer ✔✔*Settlement option for the
Insurer offering an alternative to paying money*.
*cannot rescind notice,*
* 45 days to begin work* and
* incur any costs* associated with the replacement to follow.
*changes to a contract to repair, rebuild, or replace*
and no longer is a contract of indemnity.
Outline the Statutory Condition "When Loss is Payable." - correct answer ✔✔*60 days* to pay
or deny *after proof of loss*.
*Whole contract* requires changes to shorten time.
,Outline the Statutory Condition "Salvage." - correct answer ✔✔Insurer will cover salvage
expenses
*pro-rata*. (without liability to protect damaged property until it takes possession).
Only salvages property *worth less than the total insurance.*
Outline the Statutory Condition "Change of Interest." - correct answer ✔✔*Insurer must agree*
unless...
*Bankruptcy*
*Change of title* (succession, operation of law, death of the named insured)
Outline the Statutory Condition "Property of Others." - correct answer ✔✔*None* unless
stated as a description of property
What are the application requirements for property insurance? - correct answer ✔✔*No
written application* is required for property insurance.
*Written applications for duplexes* are often necessary.
*Policies that differs from the application forms*, allow the insured the option of
*accepting or rejecting* the policy
*No number of occupants residing* in the property is necessary unless it is expected to be
vacant.
In the common law provinces, what role do Statutory Conditions serve? - correct answer
✔✔*Guidelines* applicable to all fire insurance contracts, oral and written.
,They were not designed to govern fire and any other perils but are designed to
*govern the insurance of property.*
*Binding to all parties* and not binding only on the insured.
*Variable by the insurer* but only to
*the insurer's benefit*.
What are the 15 Statutory Conditions? - correct answer ✔✔*CaMP MaRT FlEWS PiRANA*
3: Change of interest
1: Misrepresentation
2: Property of others
4: Material change
6: Requirements after loss
5: Termination
7: Fraud
10: Entry, Control, Abandonment
8: Who may give notice and proof
9: Salvage
12: when loss Payable
13: Replacement
, 11: Appraisal
15: Notice
14: Action
List the perils that are included on the Basic Property Fire Insurance Policy. Give a brief
explanation of each. - correct answer ✔✔*FELl*
Peril #1.
*Fire*
- *Application of heat* damage to goods is excluded.
- *Riot, war invasion, civil* commotion and so on is excluded.
- *Indirect contamination* from a fire is excluded.
Peril#3.
*Explosion* - explosion of natural, coal or manufactured gas.
- *Indirect contamination* from an explosion is excluded.
Peril #2.
*Lightning*
- *Power surges* caused by lightning are excluded.
- *Indirect contamination* from a lightning strike is excluded.
What action must an insurer take if they issue a policy that differs from the application
completed? - correct answer ✔✔*Insurer must inform the insured.*
*clearly on the first page* of the policy and some companies even add the text in red ink.
well answered to pass
Outline the Statutory Condition "Notice." - correct answer ✔✔*Official notices from all parties*
must be via
*registered mail or hand delivered*.
Insured has the onus to
*notify the insurer of address changes*.
Outline the Statutory Condition "Replacement". - correct answer ✔✔*Settlement option for the
Insurer offering an alternative to paying money*.
*cannot rescind notice,*
* 45 days to begin work* and
* incur any costs* associated with the replacement to follow.
*changes to a contract to repair, rebuild, or replace*
and no longer is a contract of indemnity.
Outline the Statutory Condition "When Loss is Payable." - correct answer ✔✔*60 days* to pay
or deny *after proof of loss*.
*Whole contract* requires changes to shorten time.
,Outline the Statutory Condition "Salvage." - correct answer ✔✔Insurer will cover salvage
expenses
*pro-rata*. (without liability to protect damaged property until it takes possession).
Only salvages property *worth less than the total insurance.*
Outline the Statutory Condition "Change of Interest." - correct answer ✔✔*Insurer must agree*
unless...
*Bankruptcy*
*Change of title* (succession, operation of law, death of the named insured)
Outline the Statutory Condition "Property of Others." - correct answer ✔✔*None* unless
stated as a description of property
What are the application requirements for property insurance? - correct answer ✔✔*No
written application* is required for property insurance.
*Written applications for duplexes* are often necessary.
*Policies that differs from the application forms*, allow the insured the option of
*accepting or rejecting* the policy
*No number of occupants residing* in the property is necessary unless it is expected to be
vacant.
In the common law provinces, what role do Statutory Conditions serve? - correct answer
✔✔*Guidelines* applicable to all fire insurance contracts, oral and written.
,They were not designed to govern fire and any other perils but are designed to
*govern the insurance of property.*
*Binding to all parties* and not binding only on the insured.
*Variable by the insurer* but only to
*the insurer's benefit*.
What are the 15 Statutory Conditions? - correct answer ✔✔*CaMP MaRT FlEWS PiRANA*
3: Change of interest
1: Misrepresentation
2: Property of others
4: Material change
6: Requirements after loss
5: Termination
7: Fraud
10: Entry, Control, Abandonment
8: Who may give notice and proof
9: Salvage
12: when loss Payable
13: Replacement
, 11: Appraisal
15: Notice
14: Action
List the perils that are included on the Basic Property Fire Insurance Policy. Give a brief
explanation of each. - correct answer ✔✔*FELl*
Peril #1.
*Fire*
- *Application of heat* damage to goods is excluded.
- *Riot, war invasion, civil* commotion and so on is excluded.
- *Indirect contamination* from a fire is excluded.
Peril#3.
*Explosion* - explosion of natural, coal or manufactured gas.
- *Indirect contamination* from an explosion is excluded.
Peril #2.
*Lightning*
- *Power surges* caused by lightning are excluded.
- *Indirect contamination* from a lightning strike is excluded.
What action must an insurer take if they issue a policy that differs from the application
completed? - correct answer ✔✔*Insurer must inform the insured.*
*clearly on the first page* of the policy and some companies even add the text in red ink.
