Chapter 7 Endorsements and Floaters Flashcards
(44 cards)
The function of an exclusion is:
a) To expand on coverages according to underwriting guidelines
b) To remove exposures according to underwriting & rating guidelines
c) To restrict policy extensions
d) To remove policy conditions
b) To remove exposures according to underwriting & rating guidelines
What legal doctrine applies particularly to endorsements?
a) Utmost good faith
b) Ab initio
c) Contra proforentum
d) Law of large numbers
c) Contraproforentum
Sewer backup coverage limits in areas that are prone to flooding are usually:
a) 25,000
b) 50,000
c) 15,000
d) 10,000
d) 10,000
Which of the following is one of the high risk areas for earthquake in Canada?
a) Alberta
b) British Columbia
c) Saskatchewan
d) Prince Edward Island
b) British Columbia
Musical instruments can be insured on a floater but unless otherwise specified on the declarations page coverage would apply only when:
a) On the insured premises
b) Not being used
c) Being played at an appearance
d) Locked up
a) On the insured premises
Name 2 of the common types of endorsements.
Sewer backup, flood, earthquake, vacancy permit, by-laws, home-based business, identity theft
Explain what coverage is provided by the Identity Theft endorsement
Provides coverage for costs accrued with restoring an insured’s identity.
Legal costs to notify the appropriate authorities
Liaison between the insured and financial institutions
Lost wages for time off work to mitigate the loss; usually $500 per week limit
Loan application fees
Legal fees to defend against lawsuits as a result of identity theft
Long-distance phone charges
a credit-monitoring service for a certain amount of time
limited to a specific amount per occurrence. ranging from $10,000 to $30,000.
Appraisals are often required for property insured under a floater. What 4 things do those appraisals verify?
COVE:
condition,
ownership,
value
existence of the item to be insured
Possessing software that has been illegally acquired is considered copyright infringement or piracy and is in violation of what federal act?
a. Personal Information Protection and Electronic Documents Act
b. Access to Information Act
c. Copyright Act
d. Canadian Anti-Piracy Act
c. Copyright Act
Sewer systems are usually publicly owned and disposes of what kind of material?
a. Recycled material
b. Potable water
c. Waste water
d. Garbage disposal material
c. Waste water
The insurer will not pay for increased costs due to any law regulating the zoning, demolition, repair, or construction of buildings and their related services. Which endorsement will address this limitation and extend coverage?
a. Identity theft endorsement
b. Vacancy permit
c. Home-based business endorsement
d. Bylaws endorsement
d. Bylaws endorsement
The purpose of a homeowners floater is to provide additional coverage for which types of items?
a. Commercial property
b. Personal property on exhibit
c. Movable and portable personal property
d. Stationary personal property
c. Movable and portable personal property
The rates for an earthquake endorsement are based on all of the following factors, EXCEPT
a. Geographic location
b. Building design, construction, and age
c. Occupancy
d. Municipal bylaws
d. Municipal bylaws
What is an endorsement?
a. A coverage to add for highly mobile contents such as jewellery
b. An amendment added to a written document
c. A contract to promote a product
d. An exclusion
b. An amendment added to a written document
Which is the most appropriate concise definition of contra proferentem?
a. Against the insurer
b. Against the insured
c. Against the additional named insured
d. Against the lienholder
a. Against the insurer
Which of the following is a list of items individually covered by a policy?
a. Schedule of insurance
b. Appraisal
c. General personal contents
d. Itemized list of personal contents
a. Schedule of insurance
Which of the following reports shows the value, mechanical condition, safety, and evidence of any physical damage of a watercraft?
a. Watercraft report
b. Boat survey
c. Marine survey
d. Pleasure craft report
c. Marine survey
Which of the following would be covered by Coverage C of the homeowners forms?
a. Aircraft
b. Camper units
c. Canoe
d. Motorized vehicle
c. Canoe
Lost wages as a result of time off work to mitigate the loss is generally limited to what amount?
a. 300 per week
b 100 per day
c. 500 per week
d. 200 per day
c. 500 per week
Which section of the policy covers Detached Structure?
a. A
b. B
c. C
d. D
b. B
Separated from the dwelling by a clear space or connected only by a fence or utility line. such as, Detached garage, Shed, or
greenhouse
Which section of the policy covers Personal Property?
a. A
b. B
c. C
d. D
c. C
Personal property not permanently attached to the dwelling.
Covers belongings temporarily away from home
Which section of the policy covers the dwelling/building?
a. A
b. B
c. C
d. D
a. A
Covers dwelling and any structures attached to the house that is
permanent installed such as fenced, gated gas pipeline
Material and supplies intended for use in construction or repair
Which section of the policy covers Additional living expensed
a. A
b. B
c. C
d. D
d. D
Endorsement is NOT?
a. An amendment added to a written document
b. An agreement between parties alerting its provision
c. Used to override specific terms
d. A clause added for exceptions
d. A clause added for exceptions
