Exam (elaborations)
CAIB 1-Chapter 1
- Course
- Institution
Exam of 33 pages for the course .... at .... (CAIB 1-Chapter 1)
[Show more]
Content preview
Name: Score:92 Multiple choice questions
Term 1 of 92
What 3 Elements are found in the Indemnity Agreement?
1) ACV 2) Financial Interest 3) Amount of Insurance
DID / SHOULD X LOSS = SETTLEMENT
Chance of Financial Loss only
must be legal and cannot violate the public good
Term 2 of 92
What type of losses are co-insurance applied to?
Agreed value
Agency agreement
Total losses
Partial losses
Term 3 of 92
Define "Action"
Action against the insurer is barred unless commenced within 6 months after loss or
damage occurs
To have never existed
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
In the event of value disagreement
,Term 4 of 92
How much will PACICC pay for claims?
$250K for unpaid loss or up to 70% unearned premium up to $700
$1m for liability claims or up to 90% of earned premium up to $2000
$100k for property damage or up to 50% of earned premium up to $500
$500k for medical expenses or up to 80% of unearned premium up to $1000
Term 5 of 92
Define "Notice" - INSURED to INSURER - When is Notice required?
Where the Peril Actually Attacks the Object of Insurance
Expiration, Request for Appraisal, Notice of Legal Action
Complete and Total Honesty of all Parties - a Higher Degree of Honesty
Termination, Request for Appraisal, Notice of Legal Action
Term 6 of 92
Define "Proprietary Insurers"
They exist to make a profit and are owned by their shareholders. Majority of insurance
companies are written by incorporated proprietary insurers
The insured must give immediate notice to the authorities when loss is due to malicious acts
/ theft / burglary so as to improve the chances of recovery and reduce the amount of the
claim
To reduce the frequency or severity of the loss
Deliberate attempt to deceive with the intent of securing profit
,Term 7 of 92
How is payment calculated for co-insurance?
Pure risk
Agency agreement
Immediately prior to loss
DID / SHOULD X LOSS = SETTLEMENT
Term 8 of 92
What does the PACICC do?
Property And Casualty Insurance Compensation Corp - protects clients in the event of an
insurance company becoming insolvent
Collects fees from every federal insurer into a pool so in the event an insurer becomes
insolvent (financially unstable) claims and cancelled policies will still be paid
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
Term 9 of 92
Discuss "Removal Coverage"
Any insured property that is removed from the location to prevent loss shall be covered at
the property not insured up to 7 days
Allows the insurer to recover the amount of loss from the responsible party
Protection for property that is relocated within the same building for up to 7 days
Insurance for property that is temporarily stored in a different city for up to 7 days
, Term 10 of 92
List 2 Types of Risks
1) Speculative Risk 2) Pure Risk
1) ACV 2) Financial Interest 3) Amount of Insurance
basic level of honesty
To shift the financial obligation to someone better equipped to handle it (an insurance
company)
Term 11 of 92
When can courts choose the appraiser or umpire?
1) Proof of Loss must be filed 2) Submit written application for appraisal 3) insurer and
insured must each select appraisers to represent them 4) if both appraisers cannot
determine the value they submit it to an umpire. 5) each party must pay their own
representative and then equal parts to the umpire
1) if one of the parties fails to appoint one with 7 days 2) if the appraisers fail to agree with
15 days 3) when appraiser or umpire refuses to act/is incapable of acting or dies
1) Contents of Insurance Policies 2) Removal Coverage 3) Limitation of Liability Coverage 4)
Right of Subrogation 5) Waiver of Term or Condition 6) Effect of Delivery of Policy
They oversee the content of policies, the licensing of agents and brokers and ensure
provincially licensed insurers are solvent
Term 12 of 92
Define "Appraisal"
In the event of value disagreement
Basic level of honesty
Deliberate attempt to deceive with the intent of securing profit
Action against the insurer is barred unless commenced within 1 year after loss or damage
occurs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stuuviaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now