Shared Flashcard Set


Fundamentals of Insurance - Chapter 06
Personal Property (Habitational) Insurance
Not Applicable

Additional Insurance Flashcards




Identify four persons included in the definition of "you" or your" and who would be "insureds" under the policy.
1) The person named on the policy.
2) Spouse/ partner of the named insured.
3) Relatives of either spouse/partner who live with the insureds.
4) Any person under 21 in the care of the Named Insured.
5) Full-time students dependent on the insureds.
When only one person is named as the Insured on the plicy and a claim is made by their "spouse" or common law partner, the insurer will agree to pay the claim when certain evidence is provided to it.
Identify three way in which such persons might qualify for coverage.
1) Proof of marriage to the insured.
2) Proof of residence with the insured in a conjugal relationship continuously for three years.
3) Proof of being the natural/adoptive parent of a child living with the Named Insured for one year.
Each Homeowners Form contains two coverage sections. Identify these coverage sections and the coverages provided by each.
I: Property Coverages
A - Dwelling Building
B - Detached Private Structures
C - Personal Property
D - Additional Living Expenses

II: Liability Coverage
E - Personal Liability
F - Voluntary Medical Payments
G - Voluntary Payment for Damage to Property
H - Voluntary Compensation for Residence Employees
Identify the items insured under Coverage A - Dwelling Building
1) The dwelling and attached structures.
2) Permanently installed outdoor equipment on the premises.
3) Outdoor swimming pool and attached equipment on the premises.
4) Construction materials/supplies located on/beside premises. Exclusion: wind/hail/theft during construction.
Also included under the limit of insurance:
-Building fixture/fittings temporarily removed.
-Outdoor Trees, Shrubs, and Plants.
Explain the coverage provided for Outdoor Trees, Shrubs and Plants.
As much as 5% of the insurance for "dwelling building" can be applied to outdoor greenery, with the exception of lawns. Damage exclusions are wind, hail, and greenery being grown for resale.
State the three Insuring Agreements included within Coverage C - Personal Property.
1. Insurance of contents of your dwelling and other personal property owned, worn or used while on premises. Can also include uninsured property of others while on premises occupied by insured.
2. Insurance of personal property temporarily away from premises.
3. Insurance of personal property of any student insured, who is temporarily living away from premises for schooling purposes.
Identify three types of personal property items excluded under this coverage.
1) Motorized vehicles or their equipment, except watercraft, maintenance equipment for premises, and scooters for disabled persons.
2) Camper units, truck caps, tailers, or their equipment.
3) aircraft or their equipment.
State the territorial limits provided for personal property which is away from the insured's premises.
As long as property is normally kept on premises, it is covered anywhere in the world.
Identify two types of losses for which "Special Limits of Insurance" are provided and provide examples for each.
i) Those which apply to specific property items, regardless of the cause of loss. Ex: Business property, securities, computer software.
ii) Those which apply to specified property items which have been stolen. Ex: Jewellery, numismatic property, collectible cards, bicycles.
Identify the two coverages provided under Coverage D - Additional Living Expense.
1) Additional Living Expense
2) Fair Rental Value
Indicate the circumstances under which coverage would be provided for Additional Living Expense.
Coverage would be provided if the dwelling is sufficiently damaged by an insured peril that it is unfit for occupancy, or else necessary that insureds move out while repairs are made.
State the basis of claim payment.
Claim payment is made on a replacement cost basis, unless otherwise stated.
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