Property insurance C12 Midterm prep questions with answers

Property insurance C12 Midterm prep |\ |\ |\ |\ |\




questions with answers |\ |\




What is covered by Named Perils? - CORRECT ANSWERS ✔✔direct
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physical loss or damage, caused by only the listed perils. Onus is
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on the insured to prove that the loss is insurable, and that no
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exclusion applies. |\




What are All Risk Policies? - CORRECT ANSWERS ✔✔provide
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coverage for any peril, unless specifically excluded. The insured
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must prove that the loss was fortuitous, and that it was an
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insured location. |\




What is a peril? - CORRECT ANSWERS ✔✔Cause of loss.
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What is an exclusion? - CORRECT ANSWERS ✔✔List types of
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property that are not insured and perils that are never or
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sometimes not insured. |\ |\




What are the exceptions to the exclusions? - CORRECT ANSWERS
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✔✔Specified perils: Often written as all losses except those
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caused by a specified peril.
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Define Fire: - CORRECT ANSWERS ✔✔Combustion manifested in
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light, flame, and heat for useful purposes or destructive
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purposes. Hostile fire is the subject of insurance.
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,When Is Lightning covered? - CORRECT ANSWERS ✔✔Only
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resultant fire damage, not electrical damage.
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Define Explosion - CORRECT ANSWERS ✔✔it is a named peril,
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extends to natural gas and coal. Excludes water hammer.
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When can fire be excluded? - CORRECT ANSWERS ✔✔property
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undergoing a heat process (resulting damage insured); Riot, civil
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commotion, war, invasion or act of a foreign enemy, of military
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power, radioactivity.|\




What is smoke coverage? - CORRECT ANSWERS ✔✔sudden and
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unusual faulty operation of a heating or cooking system. But not
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from a fireplace
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What coverage is provided by the peril Falling object? - CORRECT
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ANSWERS ✔✔any falling and striking object. it Must strike the
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exterior of the building, Meteorite, aircraft and satellite strike are
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included.


What coverage is provided by the peril Impact by aircraft or land
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vehicle? - CORRECT ANSWERS ✔✔Strike by aircraft or land
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vehicle. Animals struck by a vehicle are not included in this, they
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must be harmed by fire. Delivery truck repeatedly striking a
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building is not insured. |\ |\ |\




What coverage is provided by the peril Riot? - CORRECT
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ANSWERS ✔✔an act of violence by one or more persons who are
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,part of an assembly of 3 or more. Strikers and locked-out
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employees included. |\




What coverage is excluded in the peril Vandalism/ malicious acts?
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- CORRECT ANSWERS ✔✔Excluded for buildings under
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construction, vacant, caused by an insured, and caused by theft. |\ |\ |\ |\ |\ |\ |\ |\ |\




What coverage is provided by the peril water damage? -
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CORRECT ANSWERS ✔✔Sudden and accidental release, no |\ |\ |\ |\ |\ |\ |\


coverage If the insured is away for more than 4 days, no
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coverage From freezing in an unheated home portion, Entrance
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of water through an aperture (hole in roof).
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What coverage is provided by the peril glass breakage? -
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CORRECT ANSWERS ✔✔Included in all but: tenants forms, condo
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forms, basic residential forms, seasonal residences. Caused by
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any peril unless excluded, under construction, and while the
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building is vacant. |\ |\




What coverage is provided by the peril transportation? -
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CORRECT ANSWERS ✔✔intended to cover transported personal
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property. excludes watercraft. |\ |\




How is coverage determined for the peril Theft, including
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Damage Caused by Theft. - CORRECT ANSWERS ✔✔Established
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by exclusions: any owned dwelling unless occupied, from the part
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of the dwelling rented to others, under construction, to animals,
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or voluntary parting under false pretense.
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, What coverage is provided by the peril electricity? - CORRECT
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ANSWERS ✔✔power surge if artificially generated, and must be
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sudden and accidental. |\ |\




What coverage is provided by the peril Hurricane? - CORRECT
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ANSWERS ✔✔fall within the windstorm peril. Tornadoes also fall
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within the windstorm & hail.
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What coverage is provided by the peril accidental breakage? -
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CORRECT ANSWERS ✔✔Breakage by household property is either
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not Named or excluded under All Risks policy. Faulty
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workmanship, and undergoing work process is excluded. Fragile
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articles are also excluded except by Peril.
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What coverage is provided by the peril collapse? - CORRECT
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ANSWERS ✔✔not covered, commonly seen with Snow Load or
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with Faulty Workmanship.
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What coverage is provided by the peril earthquake? - CORRECT
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ANSWERS ✔✔excluded except for resultant Fire.
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Are animals covered? - CORRECT ANSWERS ✔✔Not unless
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harmed in fire. |\ |\




How is windstorm or hail established? - CORRECT ANSWERS
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✔✔by exclusion, only covered if it creates an opening in the
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home.