C12 property final exam 1-10 with well answered questions with complete solutions

C12 property final exam 1-10 with well
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answered questions with complete solutions |\ |\ |\ |\




Define property insurance. - CORRECT ANSWERS ✔✔Property
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insurance
Protects the owner or user of property for its loss or loss of
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income-producing ability |\




Offers financial protection to an insured and to lending
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institutions


Covers occurrences or events that are sudden and accidental in
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nature


Property can include dwellings and detached buildings; personal
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property; and commercial buildings, stock, and equipment.
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Insurable interest - CORRECT ANSWERS ✔✔—person or company
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stands to benefit from the continued existence of the property or
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be prejudiced by its loss
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Policy - CORRECT ANSWERS ✔✔formalizes the agreement,
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contains terms, clauses, stipulations, and requirements
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Deductible - CORRECT ANSWERS ✔✔the insured's portion of a
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covered loss |\

,Types and classes of insurance - CORRECT ANSWERS ✔✔Personal
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lines vs commercial lines
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Special types: marine, aviation, builders risk, crop insurance
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Specialized coverage: flood, earthquake, and equipment |\ |\ |\ |\ |\ |\


breakdown


Elements of policy - CORRECT ANSWERS ✔✔The name of the
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insurer, insured, and to whom money is payable
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The premium, the subject matter of insurance, the indemnity
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The effective date and expiry date
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Types of property covered, types of perils covered, exclusions of
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coverage


Describe the evolution of property insurance. - CORRECT
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ANSWERS ✔✔First type of property insurance was fire insurance
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As the needs and wants expanded, additional perils were added
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to fire policies
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Fire policies have become property policies
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,The basic fire policy is rarely sold today
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Exclusions - CORRECT ANSWERS ✔✔provision in an insurance
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policy eliminating coverage for certain risks or limiting coverage
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Statutory conditions apply to - CORRECT ANSWERS ✔✔all fire
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insurance contracts |\




Multi-peril policies combine - CORRECT ANSWERS ✔✔the policy
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forms, covering various classes of business in package policies
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Basic Fire Policy - CORRECT ANSWERS ✔✔named perils
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- fire
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-lighting |\




-explosion of natural, coal or manufactured gas
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exclusions |\




-electrical devices |\ |\




- application of heat
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-war risk |\ |\




- nuclear incident
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- excluded property
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- alterations and additions
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- vacancy, unoccupancy or disuse
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, -volatile substances |\ |\




-by law
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extensions |\




- removed of insured property
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-debris removal |\




Expansion of Fire Policy into Property Insurance - CORRECT
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ANSWERS ✔✔Additional Perils: Extended Coverage (EC)
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- Explosion (enhanced coverage)
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- Impact by aircraft, spacecraft, or land vehicle
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- Riot, vandalism, or malicious acts
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- Smoke
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- Leakage from fire-protective equipment
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- Windstorm or hail
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other additional perils
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- Falling object
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- Glass breakage
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- Water damage
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- Theft
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- Loss in transit
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