Andrea has had automobile insurance with ABC Insurance Company for several years and has recently started working from home. The insurance company has recently implemented the option to increase their OPCF 20 limit from $1000 to $3000. Andrea's automobile renewal has just been sent to her. What is the broker's obligation in regards to this change and why? OA) No action is required by the broker. As Andrea is working from home it is unlikely that she will need a higher limit. OB) Contact Andrea and advise her of the higher coverage option so that Andrea can decide to request or decline the increase in coverage. OC) No action is required by the broker. It is the responsibility of the client to advise of any material change in risk. OD) Request the Principal Broker to advise the carrier to increase the OPCF 20 limit on all their policies when they are due for renewal.
Andrea has had automobile insurance with ABC Insurance Company for several years and has recently started working from home. The insurance company has recently implemented the option to increase their OPCF 20 limit from $1000 to $3000. Andrea's automobile renewal has just been sent to her. What is the broker's obligation in regards to this change and why? OA) No action is required by the broker. As Andrea is working from home it is unlikely that she will need a higher limit. OB) Contact Andrea and advise her of the higher coverage option so that Andrea can decide to request or decline the increase in coverage. OC) No action is required by the broker. It is the responsibility of the client to advise of any material change in risk. OD) Request the Principal Broker to advise the carrier to increase the OPCF 20 limit on all their policies when they are due for renewal.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Andrea has had automobile insurance with ABC Insurance Company for several years and has recently started
working from home. The insurance company has recently implemented the option to increase their OPCF 20 limit
from $1000 to $3000. Andrea's automobile renewal has just been sent to her. What is the broker's obligation in
regards to this change and why? 4
OA) No action is required by the broker. As Andrea is working from home it is unlikely that she will need a higher
limit.
OB) Contact Andrea and advise her of the higher coverage option so that Andrea can decide to request or
decline the increase in coverage.
OC) No action is required by the broker. It is the responsibility of the client to advise of any material change in
risk.
OD) Request the Principal Broker to advise the carrier to increase the OPCF 20 limit on all their policies when
they are due for renewal.
Transcribed Image Text:Zoning by-laws in the area where your insured resides are changed to permit commercial occupancy. Your insured
decides to open a small restaurant in the basement of his/her home. What is the effect of this change on coverage
under your insured's Homeowners policy?
OA) The policy will not apply unless it contains a By-laws Endorsement.
OB) The policy will not apply until he/she installs automatic fire protection equipment in the kitchen.
OC) It is a change material to the risk and failure to notify the insurer could impair the coverage.
OD) The replacement cost clause will no longer apply to the risk.
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