Chapter 6 - C12 Insurance on Property

C12 - Chapter 6 The Residential Basic Form.pdf  View
Download

C12: Download

Donwload the latest uploaded file - July 2012

Terms	Definitions
What are the two versions of IBC's Commercial Property Form?	named perils form and broad form (all risks)
Where more than one deductible applies for any one premises, which deductible will apply?	the highest deductible will apply
Describe the requirements of the Coinsurance clause.	insured must maintain insurance at least equal to the specified percentage of the value of property as determined in the basis of valuation clause.
How does the Vacancy or Unoccupancy exclusion in the Basic Fire Policy differ from that in the Commercial Property Named Perils Form?	differ slightly in its use of the word "are" instead of "while" to describe the excluded condition.
Describe the Property Illegally Acquired or Kept exclusion.	the insured has no legal claim to stolen property where purchased or stolen. the insurer must prove that the possession is illegal.
What has been omitted from the War Risks exclusion in the Commercial Property Named Perils Form?	the riot and civil commotion have been omitted.
Define the terms hackers and viruses as they pertain to technology.	hackers - use features of computer system and software to interfere, steal or corrupt data viruses - use the internet to covertly enter a computer system to destroy, corrupt, dos.
What are the exceptions to the exclusion of loss due to a data problem?	it does not apply to loss or damage caused directly by resultant fire, explosion, smoke, or leakage from fire protective equipment
How is the Fungi and Spores exclusion similar to the Pollution exclusion?	loss due to mould is excluded in property and liability policies. similar to pollution exlcusion.
How does the Debris Removal extension address the gap when the amount of insurance has been exhausted but the cost of removing debris remains?	the extension provides greater certainty for the insured of money for debris removal in addition to the money for direct loss.
Why does the form specify a percentage of the direct loss amount rather than including a debris removal expense?	allows the insurer to anticipate its loss exposure, including debris removal costs, and ensure some money for the insured to cover this indirect cost.
What are the limitations to the coverage of officers' and employees' personal property?	it is conditional coverage. applies only to loss or damage occurring at the insured premises. coverage does not apply to property insured by its owner.
Describe the consequences of a material change in risk within the control and knowledge of the insured as they relate to breach of contract.	it voids the insurance contract.
How is the Property Protection Systems clause linked to the Breach of Condition clause?	it makes clear that any failure of the insured to comply with the PPS clause will be a breach of policy conditions.
What are the benefits of the form's approach to premium adjustment? What are the drawbacks for the insured?	not having to file reports throughout the policy period saves handling costs. the insured can also apply for a premium adjustment after the end of some years and not others.  the drawbacks is that the insured must apply within six months of the date the policy expires.
Describe the Basis of Valuation clause.	establishes a clear understanding of how value will be determined for various types of property, including sold and unsold stock, property of others, tenant's improvements, business records, and other insured property.
Define tenant's improvements.	are additions or changes a tenant makes with the landlord's permission.
Describe the limitation of the insurer's liability for business records.	liability is limited to the cost incurred by the insured to re-create the damaged or destroyed records from duplicates. cost of re-assembling data is not covered.
Name three factors considered in the form to determine actual cash value.	replacement cost, less any depreciation and market value.
Explain what it means to say a structure must be fixed.	implies that it somehow must be attached to the ground or to something attached to the ground.
Describe the three different kinds of equipment broadly identified in the form.	1. broad array of contents any business is likely to have e.g. furniture 2. property belonging to other e.g. leased equipment. 3. tenant's improvements.
Define pollutants.	it includes solid, liquid, gaseous or thermal irritants or contaminants in any form.
In commercial wordings, why might vehicles be included in the definition of premises?	covers vehicles within 100 metres of insured premises. purpose is to cover goods being delivered.
Define terrorism.	ideologically motivated unlawful acts or acts committed by any groups for purpose of influencing any government or instilling fear in the public.