Alberta General Insurance Level 1 – Questions and Answers Already Passed
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Course
Alberta General Insurance Level 1
Institution
Alberta General Insurance Level 1
Alberta General Insurance Level 1 –
Questions and Answers Already Passed
Your insured, a sole proprietor, purchased a building valued at $1 million. The insurance policy
has a coinsurance clause based on the replacement cost value of 90%. Contrary to your advice,
your insured insures the bu...
Alberta General Insurance Level 1 –
Questions and Answers Already Passed Your insured, a sole proprietor, purchased a building valued at $1 million. The insurance policy has a coinsurance clause based on the replacement cost value of 90%. Contrary to your advice, your insured insures the building for only $500,000. He suffers a windstorm loss totaling $150,000. How much will the insurer pay? a) $75,000 b) $83,333 c) $150,000 d) $93.755 ✔✔b) $83,333 An insured property is covered by two separate commercial policies placed with two different insurers. Insurer A's policy has a li mit of $100,000 and Insurer B's policy has a limit of $200,000. The insured suffers an insurable loss of $230,000. Assuming no deductibles apply, how much will each insurer pay? a) Insurer A will pay $100,000. Insurer B will pay $130,000 b) Insurer A will pay $100,000, Insurer B will pay $200,000 c) Insurer A will pay $76,659. Insurer B will pay $153,341 d) Neither insurer will pay. Two policies on the same property are prohibited ✔✔c) Insurer A will pay $76,659. Insurer B will pay $153,341 On a Commercia l Building, Equipment, and Stock Form, that insures the building owner, which of the following would not be included under the "building" definition? a) Growing plants and trees inside the building used for decorative purposes b) Building maintenance supp lies c) Fixed structures pertaining to the building d) Temporary fixtures and fittings ✔✔d) Temporary fixtures and fittings Under a Commercial Building, Equipment, and Stock insurance policy, the definition of "stock" includes a) merchandise of every des cription usual to the insured's business, including packing and wrapping materials b) advertising material usual to the insured's business c) all stock including similar property belonging to others for which the insured is obligated to insure d) all of th e above ✔✔d) all of the above The Commercial Building, Equipment and Stock insurance policy identifies three types of equipment for which coverage is provided. Which of the following is NOT one of these three types? a) Tenants' improvements and betterments if the insured does not own the building b) Packing materials used to ship stock c) Property belonging to others for which the insured is legally liable d) The contents usual to the business the insured is engaged i n, other than stock ✔✔b) Packing materials used to ship stock The basic principle of business interruption insurance is a) to arrange alternate employment for employees while the building is being repaired following an insured loss b) To restore the prem ises to the condition they were in before the loss c) to cover the cost of relocation the business d) to restore the income that would have been earned had the business not been interrupted ✔✔d) to restore the income that would have been earned had the bus iness not been interrupted On a commercial crime insurance policy, employee dishonesty insurance a) is provided on a discovery basis b) is also known as fidelity insurance c) protects insured against dishonest acts committed by employees, alone or in col lusion with others d) all of the above ✔✔d) all of the above Which of the following losses normally excluded under a boiler and machinery policy can be added by endorsement? a) Fire b) Nuclear reaction or radioactive contamination c) Increased costs due to the enforcement of a bylaw regulating building construction
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