Chapter 3 Flashcards

1
Q

Causes of fire losses 🔥

A
  • failure or malfunction of mechanical equipment (major cause)
  • arson, suspected arson, or other set fires
  • misuse of ignition source
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2
Q

Information required on all policies

A
  • names of parties to the contract
  • policy period
  • loss payable or payee
  • type of coverages and amounts for which insurer may be liable
  • rate and premium charged
  • subject matter of insurance (and location)
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3
Q

Debris removal

A

The amount payable shall not exceed 25% of the sum of the total amount payable for the direct loss and damage to insured property and the applicable deductible

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4
Q

Package policies generally contain

A

Property insurance
Business interruption
Liability insurance
Crime insurance

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5
Q

Rate credits are provided for

A
Building constructed after 1945
Alarmed
Sprinkler system
Sole occupant
Increased deductible
Claims free
Ground floor area below specified size - 3000 sq ft
Floor of concrete with no basement
Neighborhood
Maintenance and safety
Management
Judgement by broker -5 to +5
Building insured in addition to contents
Detachment
Enclosed shopping mall
Automatic circuit breakers
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6
Q

Why brokers like package policies

A

Simplicity of application form
Costs of insurance determined on the spot
Expertise less required
Broad coverages provided eliminate many of claims problems common to more limited policy forms

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