Fundamentals of Insurance BC - Level One
License: Questions With Verified Solutions
Special limits applied to property items regardless of loss Correct
Answer - - Business property up to $2000
- Securiti
If the Insured moved personal property to a storage facility to
protect it from loss because of an encroaching forest fire. Under
what clause will it be protected? Correct Answer - Removal
Clause requires the insurer to extend coverage to another location
that is not named in the policy
How many decimals in a driving Factor Correct Answer - 3
Vintage Cars are classified as such only when they are over how
many years Correct Answer - 30 years
Collision Covers Correct Answer - insures against loss or
damage resulting from a collision or overturning of vehicle
Comprehensive covers Correct Answer - insures against loss
or damage caused by anything other than a collision
Classic cars are only labeled as such when they are over how many
years? Correct Answer - 25 years
Self Insurance is known as what when dealing with risk Correct
Answer - Retention
what is the most common choice when dealing with risk? Correct
Answer - Transfer
,Fire Policy expires when? Correct Answer - 12:01 am standard
time at the risk address shown on policy
Different types of property items insured by the builders risk form?
Correct Answer - landscaping, temporary buildings, forms,
scaffolding
characteristics common to Business interruption policies Correct
Answer - 1) Contract of Indemnity
2) Insures same perils as property policy
3) coverage not limited to policy period
4) pays expenses when they reduce the amount of loss
the purpose of the extra expense Insurance Correct Answer -
insures all necessary extra expenses incurred by insureds in
continuing normal business operations after a loss
what are three examples that would be covered by the extra
expense policy? Correct Answer - to rent temporary premises,
to rent temporary equipment, to pay overtime salaries
What can be insured under the definition of Building for commercial
property Insurance Correct Answer - any fixed structures ex
flooring, fences, fixed large air conditioning units
what can be included under "stock" when dealing with commercial
property Insurance? Correct Answer - merchandise of every
description usual to the insureds business this includes products,
packaging advertising material
what can be included under "equipment" when dealing with
commercial property insurance? Correct Answer - all contents
usual to the insureds business including furniture, signs, stuff to
make products
,The Intent of the appraisal process is to settle the dispute between
your client and the insurer regarding what? Correct Answer -
Amount of the settlement being offered
Define Moral Hazard Correct Answer - subjective
characteristics of the applicant that could cause peril to occur
Examples of moral hazards Correct Answer - financial
condition, Indifference to loss, character of insured
Define physical hazard Correct Answer - are conditions
relating to the premise which may cause peril to occur
Examples of Physical hazards Correct Answer - House keeping,
occupancy, type of building construction
Insurable interest means Correct Answer - Financial interest a
person has in something of value
the main purpose of insurance is to Correct Answer - allow the
spread of risk
Who do the Insurers report to Federally? Correct Answer -
office of Superintendent of Financial Institutions
what does it mean to be solvent and insolvent when dealing with
Insurers Correct Answer - Solvent means they can pay all
insured losses
Insolvent means they are unable to pay for all insured losses
PACICC does what when a Insurance company declares bankruptcy
or claims cannot be paid Correct Answer - they pay claims to a
maximum of $250,000 for all claims coming from one occurrence.
, Refund of up to 70% of unearned premiums maximum of $750 per
policy
what is the fiduciary responsibility of both Insurance companies and
brokers? Correct Answer - To hold unearned commissions are
held in trust so it is available should the policy be terminated before
expiry
The removal clause requires the insurer to extend coverage to
another location where the Insured property is kept, even if this
location is not stated on the policy. Only one of the following
situations would qualify for this coverage Correct Answer - the
insured moved personal property to a storage facility to protect it
from loss because of encroaching forest fire
when the insurer has indemnified the insured for a loss caused by a
third party. the insurer has a legal right of recovery from that party.
this legal process is referred to as? Correct Answer -
subrogation
the insurance act provides that a policy insuring the peril of "fire"
must also include coverage for Correct Answer - explosion of
natural, coal, or manufactured gas and lightning, excluding damage
to electrical appliances and devices.
An underwriter is required to perform numerous tasks. however the
primary function of an underwriter is Correct Answer - select
those risks that are most profitable to the insurer
Coverage provided for an insureds records under most policies of
commercial property insurance is limited to Correct Answer -
blank value only
License: Questions With Verified Solutions
Special limits applied to property items regardless of loss Correct
Answer - - Business property up to $2000
- Securiti
If the Insured moved personal property to a storage facility to
protect it from loss because of an encroaching forest fire. Under
what clause will it be protected? Correct Answer - Removal
Clause requires the insurer to extend coverage to another location
that is not named in the policy
How many decimals in a driving Factor Correct Answer - 3
Vintage Cars are classified as such only when they are over how
many years Correct Answer - 30 years
Collision Covers Correct Answer - insures against loss or
damage resulting from a collision or overturning of vehicle
Comprehensive covers Correct Answer - insures against loss
or damage caused by anything other than a collision
Classic cars are only labeled as such when they are over how many
years? Correct Answer - 25 years
Self Insurance is known as what when dealing with risk Correct
Answer - Retention
what is the most common choice when dealing with risk? Correct
Answer - Transfer
,Fire Policy expires when? Correct Answer - 12:01 am standard
time at the risk address shown on policy
Different types of property items insured by the builders risk form?
Correct Answer - landscaping, temporary buildings, forms,
scaffolding
characteristics common to Business interruption policies Correct
Answer - 1) Contract of Indemnity
2) Insures same perils as property policy
3) coverage not limited to policy period
4) pays expenses when they reduce the amount of loss
the purpose of the extra expense Insurance Correct Answer -
insures all necessary extra expenses incurred by insureds in
continuing normal business operations after a loss
what are three examples that would be covered by the extra
expense policy? Correct Answer - to rent temporary premises,
to rent temporary equipment, to pay overtime salaries
What can be insured under the definition of Building for commercial
property Insurance Correct Answer - any fixed structures ex
flooring, fences, fixed large air conditioning units
what can be included under "stock" when dealing with commercial
property Insurance? Correct Answer - merchandise of every
description usual to the insureds business this includes products,
packaging advertising material
what can be included under "equipment" when dealing with
commercial property insurance? Correct Answer - all contents
usual to the insureds business including furniture, signs, stuff to
make products
,The Intent of the appraisal process is to settle the dispute between
your client and the insurer regarding what? Correct Answer -
Amount of the settlement being offered
Define Moral Hazard Correct Answer - subjective
characteristics of the applicant that could cause peril to occur
Examples of moral hazards Correct Answer - financial
condition, Indifference to loss, character of insured
Define physical hazard Correct Answer - are conditions
relating to the premise which may cause peril to occur
Examples of Physical hazards Correct Answer - House keeping,
occupancy, type of building construction
Insurable interest means Correct Answer - Financial interest a
person has in something of value
the main purpose of insurance is to Correct Answer - allow the
spread of risk
Who do the Insurers report to Federally? Correct Answer -
office of Superintendent of Financial Institutions
what does it mean to be solvent and insolvent when dealing with
Insurers Correct Answer - Solvent means they can pay all
insured losses
Insolvent means they are unable to pay for all insured losses
PACICC does what when a Insurance company declares bankruptcy
or claims cannot be paid Correct Answer - they pay claims to a
maximum of $250,000 for all claims coming from one occurrence.
, Refund of up to 70% of unearned premiums maximum of $750 per
policy
what is the fiduciary responsibility of both Insurance companies and
brokers? Correct Answer - To hold unearned commissions are
held in trust so it is available should the policy be terminated before
expiry
The removal clause requires the insurer to extend coverage to
another location where the Insured property is kept, even if this
location is not stated on the policy. Only one of the following
situations would qualify for this coverage Correct Answer - the
insured moved personal property to a storage facility to protect it
from loss because of encroaching forest fire
when the insurer has indemnified the insured for a loss caused by a
third party. the insurer has a legal right of recovery from that party.
this legal process is referred to as? Correct Answer -
subrogation
the insurance act provides that a policy insuring the peril of "fire"
must also include coverage for Correct Answer - explosion of
natural, coal, or manufactured gas and lightning, excluding damage
to electrical appliances and devices.
An underwriter is required to perform numerous tasks. however the
primary function of an underwriter is Correct Answer - select
those risks that are most profitable to the insurer
Coverage provided for an insureds records under most policies of
commercial property insurance is limited to Correct Answer -
blank value only
