Briefly discuss why non-standard risks may be hard to secure coverage for, and why a broker may use a wholesale broker in these cases.
(5 marks)
Jack and Jill Tsang own a large home with a pool in the backyard. When Mr. and Mrs. Tsang aren’t throwing pool parties for their friends and family, they like taking walks in the park with their guard dog, Rufus. Jack is a stay-at-home Dad and Jill is a writer for Inside Scoop Magazine, an online publication for gossip stories about celebrities and politicians.
Identify and briefly explain 2 liability exposures facing Mr. and Mrs. Tsang.
(5 marks)
Briefly discuss why non-standard risks may be hard to secure coverage for, and why a broker may use a wholesale broker in these cases.
(5marks)
Connie has just returned from a winter vacation in Mexico. She has asked her neighbor to keep an eye on her property while she was away and take the mail into the house daily. When Connie entered her house, she realized that a pipe upstairs had ruptured. This resulted in a collapse of the upstairs bathroom floor, and major water damage. Since this is Connie’s first insurance claim, she is asking her broker John for advice on how the claim will be handled and what to expect. Connie is a conscientious individual and wants to assist the insurance adjuster to ensure that she can move back into her house as quickly as possible.
Briefly discuss the steps John will take to guide Connie’s expectations of the claims process.
(5 marks)
Deby Matteo is insured with your brokerage. Deby owns a large single detached house and has replacement cost coverage on her building and contents. She declined sewer backup coverage as she felt the coverage was too expensive. Six months after issuing the policy, Deby experienced a large sewer backup loss in her house. Shortly after the loss occurred, she submitted a claim to her insurer. The insurer subsequently denied the claim as there was no coverage in place.
Deby was frustrated by the denial of coverage and is considering looking for insurance elsewhere. As her broker, how should you communicate with her to maintain good relations?
(5 marks)
Briefly explain who a NAMED INSURED is as part of an insurance application, and why the distinction is important.
(5 marks)
Frank, a broker, is reviewing Condominium unit coverage with his new client, Rucha. She requests a detailed explanation from Frank about how and why she could have unexpected expenses to pay as a result of damages to the condominium corporation’s building or property grounds.
Identify and briefly describe the coverage that would protect Rucha if she is required to pay unexpected expenses from the corporation
