Definitions

Question 1

Define property Insurance

Answer 1

First party insurance that indemnifies the owner or user of property for its loss, or the loss of its income producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion.

Question 2

Insurable interest

Answer 2

An interest that the insured must have in the subject matter of the insurance purchased so that if the event insured against occurs the insured will suffer an economic loss

Question 3

Indemnity

Answer 3

A contract, expressed or implied, to repay the event of a loss. The insured neither gains nor loses.

Question 4

Contract

Answer 4

An agreement I promise between two or more parties that is intended to be legally enforced and is constituted by the acceptance by one party of an offer made by another party, to do or to abstain from doing a specific act. The offer acceptance may either be expressed or be inferred through the conduct of the parties.

Question 5

Contract (Quebec)

Answer 5

An agreement of whales by which one or several persons obligate themselves to one or several other persons to perform a pre-station (that is, a duty, a payment of money, or a service)

Question 6

Uberrimae fidei

Answer 6

Of the Utmost good faith. The basis of all insurance and reinsurance contracts. Both parties to the contract are bound to exercise good faith and do so by a full disclosure of all information material to proposed contract.

Question 7

Peril

Answer 7

The event that caused a loss covered by the policy for example fire, windstorm.

Question 8

Deductible

Answer 8

And agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest of the claim. This amount is greed upon by both the insurer and the insured. And Insurance obligation to pay a deductible is not based on whether the insured is at fault.

Question 9

Fire insurance

Answer 9

Coverage for losses from fire, lightning, and limited explosion and also the resultant Damage caused by smoking water. Usually supplemented by extended coverage insurance

Question 10

Exclusion

Answer 10

Risks, perils, or properties defined in the policy as not covered

Question 11

Flashpoint

Answer 11

The lowest temperature at which a liquid gives off sufficient vapours to form an ignitable mixture with air

Question 12

Statutory conditions

Answer 12

Special prescribed and standardized conditions that the provincial and territorial insurance acts required to be included in insurance policies

Question 13

Extended coverage insurance

Answer 13

An endorsement that enlarges the coverage afforded by the primary policy. Coverages such as windstorm, hail, smoke, and riot are extended coverage is on a fire policy

Question 14

Mortgage clause

Answer 14

A clause in an insurance policy that stipulates the rights and obligations of the insurer and the mortgagee

Question 15

First party insurance

Answer 15

Protects the named insured and others with an insurable interest in or mortgage on the property or who entrust their property to the insured against loss or damage to the insured property

Question 16

Third party insurance

Answer 16

Liability insurance is purchased by the insured (the first party) from an insurer (the second party) to compensate or indemnify another (the third party) for damage or loss for which the insured is lawfully liable

Question 17

Direct loss or damage

Answer 17

Damage to property by direct action of a peril insured against, as distinguished from contingent or indirect damage

Question 18

Plain language policy

Answer 18

Policies written in every day language so that they are easily understood. Technical terms with their technical meanings are used only where are required by law or one substitutions would be misleading

Question 19

Warranty

Answer 19

Statement or stipulation or promise in an insurance contract, the breach of which may nullify the contract

Question 20

Proximate cause

Answer 20

Because that, in a natural and continuous sequence unbroken by any new an independent clause, produces an event and without which the event would not have happened

Question 21

Current causation

Answer 21

A doctrine that holds that is a lost to property is a tributable to more than one cause, any one of which is covered by the insurance policy, the loss is payable under the policy

Question 22

Actual cash value

Answer 22

The fair market value of property, taking into account factors that might argument or reduce the value of the property in question. Actual cash value is usually calculated in one of three ways
1.Cost to repair or place less depreciation
2. Fair market value or
3. consideration of all relevant evidence of the value of the damage to property.

Question 23

Replacement insurance

Answer 23

Insurance coverage that indemnifies for loss or damage to insured property at the current market price rather than the depreciated value. Thus, the Radion premium are based on the current cost to replace the insured property

Question 24

Declaration

Answer 24

Statements included in a policy that are agreed To by the insured and form the basis of the contract of insurance

Question 25

Package policy

Answer 25

Any insurance policy that covers two or more lines or types of insurance in the same policy

Question 26

Adverse selection

Answer 26

Occurs when those with higher risks may purchase insurance in greater amounts than those with the lower risks. Much of insurance law and practice is designed to control adverse selection. Insurers protect themselves from adverse selection by attempting to measure risk and either charging more for the high-risk or refusing to cover them at all.

Question 27

Subscription policy

Answer 27

A single policy covering a risk that is divided among a number of insurers. The policy is issued by the lead company (usually the one with the largest percentage) and signed by all participating companies.

Question 28

Multi-limit policy

Answer 28

A type of habitation policy were separate insurance amounts are shown for the building and for the personal property

Question 29

Single limit

Answer 29

A type of habitation of policy where one insurance amount as shown encompassing the building and personal property

Question 30

Loss payee

Answer 30

A person or an entity other than the named insured to whom the proceeds of insurance will be paid

Question 31

Chattel

Answer 31

Any property other than freehold land and leasehold interest in land

Question 32

Guaranteed replacement cost

Answer 32

An undertaking by the insurer to pay the cost of repairs to replace the dwelling building even if it is more than the amount of insurance on the dwelling building, provided certain conditions are met in addition to those that normally govern settlement at replacement cost. Called enhanced replacement cost in Quebec

Question 33

Seepage

Answer 33

 A slow flow of water that takes place over a more extended period of time then accidental discharge, usually through porous materials

Question 34

Endorsement

Answer 34

An amendment added to a written document, particularly an agreement between parties, altering its provisions

Question 35

Manuscript wordings

Answer 35

Policy wording that does not conform to the standard wording in general used within the insurance industry and that is unique to the policy involved

Question 36

Floater policy

Answer 36

Additional coverage for the moveable items, like jewellery or antiques, beyond what’s included in the basic homeowners policy. Also called a writer or endorsement. A policy designed to cover property that floats or moves from location to location

Question 37

Schedule of insurance

Answer 37

A list of items individually covered by a policy for example a list of Jules under a jewellery floater or a list of cars under one automobile policy or a list of buildings under a fire fire policy

Question 38

Personal article floater

Answer 38

A policy that covers certain kinds of personal property that a principal residence more broadly or for higher limit then do policies such as a homeowners policy of more general scope. A property appraisals often required

Question 39

Marine survey

Answer 39

Appraisal of a boat for value, mechanical condition, safety, and evidence of damage

Question 40

Mobile home

Answer 40

Manufactured housing, commonly called house trailers, usually placed in one location and left there permanently, but retaining the ability to be moved, as required in many areas. Behind the cosmetic work fitted at installation to hide the base there are strong trailer frames, axles, wheels, and tow hitches

Question 41

Modular homes

Answer 41

A type of manufactured housing that is built in a factory and move to a building site in large individual sessions it is not moveable and may be considered a permanent structure

Question 42

Condominium

Answer 42

Individual ownership of a single unit in a multiunit building or group of buildings including a percentage interest in the part of the total property of owned jointly by all unit owners. Condominium property requires special insurance treatment

Question 43

Inherent vice

Answer 43

Equality within an object that makes it 10 to destroy itself

Question 44

Replacement cost value (RCV)

Answer 44

The current market value of the cost to replace the loss or damage insured property

Question 45

Coinsurance clause

Answer 45

A distinct section or provision in an insurance policy that requires an insured to carry separate insurance for a specified Amount stated in the policy to be eligible for full coverage. If there is insufficient coverage the insured must Pay part of the loss

Question 46

Statement of values

Answer 46

The information required when a single read is to cover more than one item or building. To determine the correct average, the rating bureau Requires the policyholder to give the value of each separate risk and its contents

Question 47

Underwriter

Answer 47

The insurance company or group that under rates or ensures a particular risk The individual within an insurance company whose responsibility it is to Except or reject business in the particular line in which she specializes and this way choose the risks her principles are prepared to underwrite

Question 48

Line guide

Answer 48

A listing of the maximum amount of exposure and insurance company is prepared to except on various classes of risks

Question 49

Frequency loss

Answer 49

This is a measure of how often losses are likely to occur in the future. Assuming the average size of loss is constant The higher the Lost Frequencies the worst the loss experience

Question 50

See verity of loss

Answer 50

This is the average size of the losses. The larger the average loss, the higher the loss severity is said to be. And assuming the loss frequency is constant, the higher the loss severity, the worse the loss experience

Question 51

Rate

Answer 51

Amount charged to an insured that reflects the expectation of loss for a covered risk, insurance company expenses, and profit. In other words it is the basis of premium calculated for the insurance provided for the exposure

Question 52

Actuary

Answer 52

One who specializes in mathematics of insurance, mortality rates, and the lake

Question 53

Rate making

Answer 53

The process of compiling an analyzing data to establish rates that accurately Reflect the level of risk. Usually performed by actuaries

Question 54

Rating

Answer 54

The process by which underwriters apply the rates developed by actuaries to the information that underwriters have gathered to determine premium for individual risks

Question 55

Premium

Answer 55

The price of insurance protection for a specified risk for a specified period of time

Question 56

Adjuster

Answer 56

One who investigates insurance claims, making recommendations regarding the payment of benefits from insurance policies, and negotiates payments and settlements

Question 57

Common law

Answer 57

A system of laws originating and developed In England by judges based on court decisions and similar tribunals. Also known as caselaw or the law of precedent

Question 58

Civil code of Quebec

Answer 58

The civil code in force in the province of Quebec

Question 59

Precedent

Answer 59

A legal decision that serves as a basis to

Question 60

Case law

Answer 60

The body of previously decided cases that courts review for guidance on cases currently in dispute

Question 61

Statue law

Answer 61

A law set down in a government act and passed by legislature

Question 62

Contra Proferentem

Answer 62

A legal term that provides that any ambiguity in a contract must be interpreted against the person who drew the contract because the person had the opportunity to make it clear

Question 63

Material fact

Answer 63

A fact that would affect the contract of insurance enough to influence and ensures decision regarding whether to accept or reject the risk Or the premium to be sad. Material facts must be disclosed by the applicant if asked about

Question 64

Ab initio

Answer 64

A Latin term meaning to go back to the beginning. When a policy is rejected or made void ab initio, Premium is refunded entirely and the contract is treated as though it never existed

Question 65

Privity of contract

Answer 65

Relationship that exist between two parties or more by virtue of their having entered into a contract

Question 66

Short term cancellation

Answer 66

The cancellation by the insured of a policy before its natural expiration. The insured pays a return premium that is less than the proportionate part that remains unearned

Question 67

Minimum retained premium

Answer 67

A premium specified on an individual policy that is the minimum amount retained by the insurer in the event that the policy is cancelled mid term by the insured

Question 68

Proof of loss

Answer 68

A formal statement of facts about a loss attested to buy the claimant, in a form specified by the insurer. A proof of loss may need to be notarized. An insurer must respond to a proof of loss after a specified time period with a formal disposition of the claim - approved or denied

Question 69

Subrogation

Answer 69

Legal process by which an insurance company, after the payment of loss, is assigned the rights to the insured to recover the amount of the loss from those who are legally liable for it

Question 70

Personal information protection and electronic documents act (PIPEDA)

Answer 70

A federal statute that governs the collection and use of personal information. It states that personal information should be collected must be relevant and that all information that has been collected is being collected or will Be collected must be held in the strictest of confidence

Question 71

Risk

Answer 71

The chance of loss. Specifically the possible loss or destruction of property or the possible incurring of a liability. Sometimes referred to as the subject of an insurance contract

Question 72

Named perils policy

Answer 72

A policy in which the perils insured against are listed as opposed to one that ensures against all risks

Question 73

All risks policy

Answer 73

A name given to an insurance policy that covers each and every loss except for those that are specifically excluded if the insured does not Excluded then it automatically covered this is the brightest type of policy that can be purchased

Question 74

Specified perils

Answer 74

Perils insured against that are specifically named in a policy. Losses resulting from the perils listed are covered under the policy. This is the flipside of all risk coverage where losses resulting from the perils listed are excluded

Question 75

Fire

Answer 75

Combustion manifested in light flame and heat for useful purposes such as friendly fire or destructive purposes such as hostile fire

Question 76

Personal property

Answer 76

Legally any property of an insured other than real property. More often used to refer to the personal property a family members insured under a homeowners policy

Question 77

Real property

Answer 77

Land in any property that is tangible and usually fixed or attached to the land

Question 78

Theft

Answer 78

The wrongful taking of the property of another it is a broad term and includes larceny, pilfering, holdup, robbery and pickpocketing 

Question 79

Earth movement

Answer 79

A general term that Includes earthquake landslide snowslide and volcanic irruption among other phenomena

Question 80

Fluvial flooding

Answer 80

The overflow of a river

Question 81

Pluvial flooding

Answer 81

Flooding caused by rain

Question 82

Hazard

Answer 82

1. A risk or probability that the event insured against might occur 2. A condition that engenders or increases the chance of a loss

Question 83

Physical hazard

Answer 83

A hazard arising from the physical conditions or characteristics of the object that is insured

Question 84

Moral hazard

Answer 84

A hazard arising from the character interest habits and lack of integrity of the insured or persons concerned

Question 85

Conflagration

Answer 85

1. A fire involving two or more risks or extended over wide areas 2. Any unusual large fire

Question 86

Sublimit

Answer 86

A limitation an insurance policy on the amount of coverage available to cover a specific type of loss