Chapter 8 - C12 Insurance on Property

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Terms	Definitions
What three types of risk are normally underwritten individually at the time of application, renewal or whenever new information comes to light?	commercial, manufacturing and mercantile risks are normally underwritten individually.
Other than the occupancy risks they insure, what distinguishes habitational policies from other policies?	the language is less formal
Into what two categories are habitational policy provisions divided?	section 1 - property insurance section 2 - personal liability insurance
What is the commercial equivalent of the Coverage Summary called?	it is the equivalent of the declarations page used in commercial insurance policies
What nine pieces of information must be included in the Coverage Summary?	- name and postal address of insured - address of the property insured - policy's effective and expiry dates - occupancy, construction and public fire protection for each insured location - name(s) and address(es) of loss payee(s) for each location - the form (policy wording) that applies to each location - amounts of insurance for each form and for each item, section and coverage - deductible amount - premium.
What words, required by law in the common law provinces, are stamped or printed on the Coverage Summary page of a policy that has limitations?	"this policy contains a clause that may limit the amount payable"
What policy may be thought of as the habitational version of the Basic Fire Policy?	the residential basic form
Identify a form that serves those who are ineligible for an insurer's package policy or who have a location that is ineligible for broader coverage.	the residential basic form
What documents, usually included in a contract with the Residential Basic Form and the Coverage Summary, are not clear language documents because they must use the exact words taken from provincial Insurance Acts?	the statutory conditions are not clear language documents.
In what two ways does the packaging approach allow the insurer to reduce premiums?	it cuts costs and enhances coverage.
What helps the insurer maintain underwriting profitability when using the packaging approach?	- reduces the risk of adverse selection  - issues uniform contracts which simplifies policy-issuing and claims adjustment.
What two factors affect the variation in these from insurer to insurer?	rules of eligibility and rating criteria.
What policy, abbreviated CDP, was a precursor to the Residential Basic Form?	the composite dwelling policy
The absence of what peril differentiated the Homeowners Limited Form from the Basic Form?	the theft peril was not included for either dwelling building or personal property.
Identify an all risks property form that was originally offered as an inland marine coverage.	The Homeowners Broad From - all risks on the dwelling building and same perils as the basic form for persona property.
What inland marine coverage form, which was generally offered to wealthy people travelling abroad, is abbreviated PPF?	Personal Property Floater - expensive all risks policy covering personal property worldwide and offered only to wealthy people who often traveled abroad.
The IBC Homeowners forms 1151, 1153, and 1155 are better known by what names?	1151 - homeowner's basic form 1153 - homeowners broad form 1155 - homeowners comprehensive form
Which IBC Homeowners form includes all risks on all items?	homeowners comprehensive form (IBC 1155)
What type of insurance is addressed in Section I of the Homeowners forms? What type of insurance is addressed in Section II of the Homeowners forms?	section 1 - concerns property insurance section 2 - concerns personal liability insurance
In which section would you find Additional Living Expense coverage?	section 1 - property insurance. it applies to consequential loss - indirect loss arising as a consequence of a direct loss covered by ABC.
Which type of form uses a unique version of Section II?	the condominium unit owners form is unique.
What is the Homeowners building limit based on, rather than cash value?	it is based on replacement cost rather than actual cash value.
What alternative do most insurers require of insureds who choose not to have a professional appraisal done to determine a building's replacement cost?	they require the completion of an estimator or calculator (a formula) devised by professional appraisers that estimates replacement cost.
What is the minimum amount of insurance for Coverage B?	the minimum amount is usually 10% of the amount for coverage A.