Chapter 1 Section 2 Part 2

Question 1

concussion type losses considered explosive? why?

Answer 1

No, because concussion = result of build-up of internal working pressure of items (hot water heaters, boilers used in heating)

Question 2

All insurance policies; two types of common exclusions?

Answer 2

property and losses

Question 3

Exclusions inserted to remove coverage for property losses; why?

Answer 3

• more specialized coverage available

- uninsurable

Question 4

Standard Exclusions legislated to be in fire insurance policies - Acronym?

Answer 4

ALEC RIC RIC WAM

Question 5

Standard Exclusions legislated to be in fire insurance policies - ALEC

Answer 5

Application of Heat
Lightning Damage
Electricity
Contamination

Question 6

Standard Exclusions legislated to be in fire insurance policies - RIC 1

Answer 6

Riot
Insurrection
Civil Commotion

Question 7

Standard Exclusions legislated to be in fire insurance policies - RIC 2

Answer 7

Revolution/Rebellion
Invasion
Civil War

Question 8

Standard Exclusions legislated to be in fire insurance policies - WAM

Answer 8

War
Act of Foreign Enemy
Military Power

Question 9

Coverages insurers provide though not required to do so by the Insurance Act (improving on coverages provided under basic legislated policy) (3)

Answer 9

• Lightning Damage
• Riot
• Civil Commotion

Question 10

Policies with “statutory conditions” (in addition to fire policies) (2)

Answer 10

• Accident and Sickness

- Automobile