CAIB 2 Chapter 3 Study Guide Questions with
Answers
identify the three leading causes of fires in canada - ✔✔-failure or malfunction of mechanical or
electrical equipment
-arson, suspected arson and other set fires
-misuse of source of ignition
Identify what information is required by law to appear on all insurance policies - ✔✔names of
parties to the contract
policy period\loss payable or payee
summary of insurance coverage
rate and premium charged
subject matter of insurance
identify the 'policy period' shown on the declarations page - ✔✔the policy takes effect 1201 am
local time at the insureds address
what could happen if an insurer paid the entire amount of a claim to the client when a 'loss
payable' was indicated on the policy? - ✔✔the insurer would be called upon to pay the claim
twice
how could your answer differ if the loss payable was not indicated on the policy? - ✔✔when
the payee is not stated on the policy and payment of a loss is paid in full to the insured, there is
no obligation upon the insurer to indemnify the payee
The IFC 10010 is designed to meet the requirements of the insurance acts of the common law
provinces. identify the three perils to be included by law in any contract of fire insurance -
✔✔fire
lightning
, explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances? - ✔✔no
identify the losses that insurers are NOT liable for by law - ✔✔loss or damage to electrical
devices, appliances or wiring caused by artificially generated electrical currents.
loss or damage by the application of heat.
loss or damage caused by war
trade losses are NOT required to be insured by law. identify three types of businesses that may
suffer a trade loss - ✔✔bakeries\laundaries\machinging and fabricating shops, garages
certain property losses are NOT required to be nsured by law. identify the four groups of
property exluded - ✔✔money, securities, stamps
automobiles, watercraft, aircraft
property at locations which the knowledge of the insured are vacant, unoccupied, or shut down
for more than 30 consecutive days
any additional costs as a result of a by-law, incurred by the insured is NOT covered under the
policy. identify any three such costs that may be incurred by the insured. - ✔✔use of improved
construction materials
installation of automatic fire estinguishing systems
installation of wheelchair, ramps, and improved accessibility features for the handicapped
identify two extensions of coverage required by law to be in a fire policy - ✔✔removal
debris removal
identify three provisions of the removal clause - ✔✔coverage provided for 7 days to unnamed
location of until unexpired term of policy
Answers
identify the three leading causes of fires in canada - ✔✔-failure or malfunction of mechanical or
electrical equipment
-arson, suspected arson and other set fires
-misuse of source of ignition
Identify what information is required by law to appear on all insurance policies - ✔✔names of
parties to the contract
policy period\loss payable or payee
summary of insurance coverage
rate and premium charged
subject matter of insurance
identify the 'policy period' shown on the declarations page - ✔✔the policy takes effect 1201 am
local time at the insureds address
what could happen if an insurer paid the entire amount of a claim to the client when a 'loss
payable' was indicated on the policy? - ✔✔the insurer would be called upon to pay the claim
twice
how could your answer differ if the loss payable was not indicated on the policy? - ✔✔when
the payee is not stated on the policy and payment of a loss is paid in full to the insured, there is
no obligation upon the insurer to indemnify the payee
The IFC 10010 is designed to meet the requirements of the insurance acts of the common law
provinces. identify the three perils to be included by law in any contract of fire insurance -
✔✔fire
lightning
, explosion of natural, coral or manufactured gas
does the peril of lightning under this form cover DIRECT losses to electrical appliances? - ✔✔no
identify the losses that insurers are NOT liable for by law - ✔✔loss or damage to electrical
devices, appliances or wiring caused by artificially generated electrical currents.
loss or damage by the application of heat.
loss or damage caused by war
trade losses are NOT required to be insured by law. identify three types of businesses that may
suffer a trade loss - ✔✔bakeries\laundaries\machinging and fabricating shops, garages
certain property losses are NOT required to be nsured by law. identify the four groups of
property exluded - ✔✔money, securities, stamps
automobiles, watercraft, aircraft
property at locations which the knowledge of the insured are vacant, unoccupied, or shut down
for more than 30 consecutive days
any additional costs as a result of a by-law, incurred by the insured is NOT covered under the
policy. identify any three such costs that may be incurred by the insured. - ✔✔use of improved
construction materials
installation of automatic fire estinguishing systems
installation of wheelchair, ramps, and improved accessibility features for the handicapped
identify two extensions of coverage required by law to be in a fire policy - ✔✔removal
debris removal
identify three provisions of the removal clause - ✔✔coverage provided for 7 days to unnamed
location of until unexpired term of policy
