Chapter 4 - C 120

Terms	Definitions
What information about physical risk might an underwriter look for regarding home owners insurance?	past losses can provide a clearer picture.
Why are inspections rarely ordered for personal risks? Give an example of when an inspection might be ordered.	most personal risks are similar and more predictable they may be ordered for homes that are older or high valued
Why must values be assessed within their contexts?	hard to determine true value if there is no context to compare it to.
How are values in personal lines often determined?	often are determined by valuation guides
Why should an underwriter look at the age of a dwelling when assessing risk?	the older the dwelling, the drier and more flammable any wood used in construction is likely to be.
Why should an underwriter look at how many families or tenants occupy a dwelling when assessing risk?	the greater number of people, the greater the activity that could lead to a fire or other insured loss.
What is Tenant's Legal Liability insurance?	it protects a tenant against his or her liability for damages caused by an insured peril to the premises he or she occupies.
What are "grow ops," and what hazards do they present?	rented dwellings use to grow marijuana. rewiring of hydro for heat lamps and ventilation systems could lead to blown fuses and firs.
What are common hazards? What are special hazards? Give an example of each.	common hazards are generally found in most occupancies. e.g. heating, lighting. special hazards are unique to certain occupancies. e.g. deep fat fryers in restaurants
What types of fire protection might an underwriter look for in a dwelling when assessing risk?	sprinklers, fire alarms.
Why is it important for an underwriter to have knowledge of the typical natural hazards of a region or province?	by knowing the typical natural hazards of a region or province, the underwriter is better equipped to make his or her decision whether to accept or reject the risk.
Why are the COPE hazards often heightened for commercial businesses?	dangerous, exposure tends to be less predictable.
What does it mean if a building has been "grandfathered"?	It is a building that does not meet current zoning requirements but has been granted an exemption as an already existing structure from the more stringent requirements.
What is a true retailer? Why might this be an important characteristic of a business for an underwriter to consider when assessing risk?	they are sold. If manufacturing takes place then the risk is higher of a hazard occurring
Why should an underwriter consider the hours of operation of a business when assessing risk?	the more extended the hours during which a business is open for operation, the greater risk that something may occur to cause a loss.
How does vacancy or unoccupancy affect the character of a risk?	increases the risk of loss due to factors such as unsupervised, vandalism or used by trespassers etc.
What is the flash point of a liquid? Why should an underwriter know the flash points of liquids used by the business when assessing risk?	the flash point is the minimum temperature at which the liquid gives off sufficient vapours to form an ignitable mixture with the air. The underwriter would want to determine whether flammable liquids are used and stored safely.
What is an automatic sprinkler system? What should an underwriter look for regarding an automatic sprinkler system when assessing risk?	is a network of specially designed piping on which sprinklers are located, together with a suitable water supply and alarm devices so designed and assembled that, in the case of a fire in the area covered by the system, the fire is automatically detected and controlled while at the same time an alarm is sounded. An underwriter would want to know that the protection provided by the sprinklers is sufficient.
What characteristics of fire extinguishers should an underwriter look for when assessing risk?	extinguishers are needed in all occupancies and must be right for the fire it will fight.
What should an underwriter look for when assessing whether or not the employees of a business are prepared for a fire or emergency situation?	underwriter will be concerned to know how prepared the employees are for a fire or other emergency situation.