CAIB 2- Chapter 3 Study Guide with Questions and Correct Answers

Identify the three leading causes of fires in canada -failure or malfunction of mechanical or electrical equipment -arson, suspected arson and other set fires -misuse of source of ignition Identify what information is required by law to appear on all insurance policies names of parties to the contract Policy periodloss payable or payee Summary of insurance coverage Rate and premium charged Subject matter of insurance Identify the 'policy period' shown on the declarations page the policy takes effect 1201 am local time at the insureds address What could happen if an insurer paid the entire amount of a claim to the client when a 'loss payable' was indicated on the policy? the insurer would be called upon to pay the claim twice How could your answer differ if the loss payable was not indicated on the policy? when the payee is not stated on the policy and payment of a loss is paid in full to the insured, there is no obligation upon the insurer to indemnify the payee The ifc 10010 is designed to meet the requirements of the insurance acts of the common law provinces. Identify the three perils to be included by law in any contract of fire insurance fire Lightning Explosion of natural, coral or manufactured gas Does the peril of lightning under this form cover direct losses to electrical appliances? no Identify the losses that insurers are not liable for by law loss or damage to electrical devices, appliances or wiring caused by artificially generated electrical currents. Loss or damage by the application of heat. Loss or damage caused by war Trade losses are not required to be insured by law. Identify three types of businesses that may suffer a trade loss bakerieslaundariesmachinging and fabricating shops, garages